diff --git a/access/validator.go b/access/validator.go
index f0dec8071d0..00d902d0c10 100644
--- a/access/validator.go
+++ b/access/validator.go
@@ -320,11 +320,20 @@ func (v *TransactionValidator) checkExpiry(tx *flow.TransactionBody) error {
 	return nil
 }
 
-func (v *TransactionValidator) checkCanBeParsed(tx *flow.TransactionBody) error {
+func (v *TransactionValidator) checkCanBeParsed(tx *flow.TransactionBody) (err error) {
+	defer func() {
+		if r := recover(); r != nil {
+			if panicErr, ok := r.(error); ok {
+				err = InvalidScriptError{ParserErr: panicErr}
+			} else {
+				err = InvalidScriptError{ParserErr: fmt.Errorf("non-error-typed panic: %v", r)}
+			}
+		}
+	}()
 	if v.options.CheckScriptsParse {
-		_, err := parser.ParseProgram(nil, tx.Script, parser.Config{})
-		if err != nil {
-			return InvalidScriptError{ParserErr: err}
+		_, parseErr := parser.ParseProgram(nil, tx.Script, parser.Config{})
+		if parseErr != nil {
+			return InvalidScriptError{ParserErr: parseErr}
 		}
 	}
 
diff --git a/engine/collection/ingest/engine_test.go b/engine/collection/ingest/engine_test.go
index 97eab113c97..f96cebc7908 100644
--- a/engine/collection/ingest/engine_test.go
+++ b/engine/collection/ingest/engine_test.go
@@ -172,6 +172,25 @@ func (suite *Suite) TestInvalidTransaction() {
 		suite.Assert().True(errors.As(err, &access.InvalidScriptError{}))
 	})
 
+	// In some cases the Cadence parser will panic rather than return an error.
+	// If this happens, we should recover from the panic and return an InvalidScriptError.
+	// See: https://github.com/onflow/cadence/issues/3428, https://github.com/dapperlabs/flow-go/issues/6964
+	suite.Run("transaction script exceeds parse token limit (Cadence parser panic should be caught)", func() {
+		const tokenLimit = 1 << 19
+		script := "{};"
+		for len(script) < tokenLimit {
+			script += script
+		}
+
+		tx := unittest.TransactionBodyFixture()
+		tx.ReferenceBlockID = suite.root.ID()
+		tx.Script = []byte("transaction { execute {" + script + "}}")
+
+		err := suite.engine.ProcessTransaction(&tx)
+		suite.Assert().Error(err)
+		suite.Assert().True(errors.As(err, &access.InvalidScriptError{}))
+	})
+
 	suite.Run("invalid signature format", func() {
 		signer := flow.Testnet.Chain().ServiceAddress()
 		keyIndex := uint32(0)