diff --git a/index/manager.go b/index/manager.go
index 2e87cb3f..6b294c0f 100644
--- a/index/manager.go
+++ b/index/manager.go
@@ -2,6 +2,7 @@ package index
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"sync"
 
@@ -17,6 +18,10 @@ import (
 type (
 	// A Store is a persistent store for the index manager.
 	Store interface {
+		// ResetChainState resets the consensus state of the store. This
+		// should only occur if the user has reset their consensus database to
+		// sync from scratch.
+		ResetChainState() error
 		UpdateChainState(func(UpdateTx) error) error
 		Tip() (types.ChainIndex, error)
 	}
@@ -122,7 +127,7 @@ func NewManager(store Store, chain *chain.Manager, contracts ContractManager, wa
 	}
 
 	reorgCh := make(chan struct{}, 1)
-	reorgCh <- struct{}{} // trigger initial check
+	reorgCh <- struct{}{} // trigger initial sync
 	stop := m.chain.OnReorg(func(index types.ChainIndex) {
 		select {
 		case reorgCh <- struct{}{}:
@@ -145,7 +150,7 @@ func NewManager(store Store, chain *chain.Manager, contracts ContractManager, wa
 			case <-ctx.Done():
 				return
 			case <-reorgCh:
-				if err := m.syncDB(ctx); err != nil {
+				if err := m.syncDB(ctx); err != nil && !errors.Is(err, context.Canceled) {
 					m.log.Error("failed to sync database", zap.Error(err))
 				}
 			}
diff --git a/index/update.go b/index/update.go
index b71ee904..32560142 100644
--- a/index/update.go
+++ b/index/update.go
@@ -3,6 +3,7 @@ package index
 import (
 	"context"
 	"fmt"
+	"strings"
 
 	"go.sia.tech/core/types"
 	"go.sia.tech/coreutils/wallet"
@@ -32,7 +33,19 @@ func (m *Manager) syncDB(ctx context.Context) error {
 		}
 
 		reverted, applied, err := m.chain.UpdatesSince(index, m.updateBatchSize)
-		if err != nil {
+		if err != nil && strings.Contains(err.Error(), "missing block at index") {
+			log.Warn("missing block at index, resetting chain state")
+			// reset the consensus state. Should delete all chain related
+			// state from the store
+			if err := m.store.ResetChainState(); err != nil {
+				return fmt.Errorf("failed to reset consensus state: %w", err)
+			}
+			// zero out the index to force a full resync
+			m.mu.Lock()
+			m.index = types.ChainIndex{}
+			m.mu.Unlock()
+			return nil
+		} else if err != nil {
 			return fmt.Errorf("failed to get updates since %v: %w", index, err)
 		} else if len(reverted) == 0 && len(applied) == 0 {
 			return nil
diff --git a/persist/sqlite/consensus.go b/persist/sqlite/consensus.go
index 631c3664..4d428dad 100644
--- a/persist/sqlite/consensus.go
+++ b/persist/sqlite/consensus.go
@@ -39,6 +39,25 @@ type (
 
 var _ index.UpdateTx = (*updateTx)(nil)
 
+// ResetChainState resets the consensus state of the store. This
+// should only occur if the user has reset their consensus database to
+// sync from scratch.
+func (s *Store) ResetChainState() error {
+	return s.transaction(func(tx *txn) error {
+		_, err := tx.Exec(`
+-- v2 contracts
+DELETE FROM contracts_v2_chain_index_elements;
+DELETE FROM contract_v2_state_elements;
+-- wallet
+DELETE FROM wallet_siacoin_elements;
+DELETE FROM wallet_events;
+DELETE FROM host_stats WHERE stat=?; -- reset wallet stats since they are derived from the chain
+-- settings
+UPDATE global_settings SET last_scanned_index=NULL, last_announce_index=NULL, last_announce_address=NULL`, metricWalletBalance)
+		return err
+	})
+}
+
 // WalletStateElements returns all state elements related to the wallet. It is used
 // to update the proofs of all state elements affected by the update.
 func (ux *updateTx) WalletStateElements() (elements []types.StateElement, err error) {