diff --git a/pkg/validator/validator.go b/pkg/validator/validator.go
index 1a201a9..9c6bf2d 100644
--- a/pkg/validator/validator.go
+++ b/pkg/validator/validator.go
@@ -334,7 +334,7 @@ func applyTransactions(block *types.Block, backend *ipldeth.Backend) (*ipldstate
 		evm.Reset(core.NewEVMTxContext(msg), statedb)
 		// Apply the transaction to the current state (included in the env).
 		if _, err := core.ApplyMessage(evm, msg, &gp); err != nil {
-			return nil, fmt.Errorf("transaction %#x failed: %w", tx.Hash(), err)
+			return nil, fmt.Errorf("error applying tx %#x: %w", tx.Hash(), err)
 		}
 
 		if config.IsByzantium(block.Number()) {
@@ -344,6 +344,14 @@ func applyTransactions(block *types.Block, backend *ipldeth.Backend) (*ipldstate
 		}
 	}
 
+	// Withdrawals processing.
+	for _, w := range block.Withdrawals() {
+		// Convert amount from gwei to wei.
+		amount := new(uint256.Int).SetUint64(w.Amount)
+		amount = amount.Mul(amount, uint256.NewInt(params.GWei))
+		statedb.AddBalance(w.Address, amount)
+	}
+
 	if config.Ethash != nil {
 		accumulateRewards(config, statedb, block.Header(), block.Uncles())
 	}