diff --git a/pkg/processor/transaction/structlog/handlers_large_tx.go b/pkg/processor/transaction/structlog/handlers_large_tx.go
index f0aed1b..92a1af5 100644
--- a/pkg/processor/transaction/structlog/handlers_large_tx.go
+++ b/pkg/processor/transaction/structlog/handlers_large_tx.go
@@ -2,13 +2,10 @@ package structlog
 
 import (
 	"context"
-	"fmt"
 	"math/big"
 
 	"github.com/0xsequence/ethkit/go-ethereum/core/types"
 	"github.com/sirupsen/logrus"
-
-	"github.com/ethpandaops/execution-processor/pkg/ethereum/execution"
 )
 
 // processTransactionWithLargeTxHandling processes a transaction with large transaction lock management
@@ -18,64 +15,35 @@ func (p *Processor) processTransactionWithLargeTxHandling(ctx context.Context, b
 		return p.ProcessSingleTransaction(ctx, block, index, tx)
 	}
 
-	// First, we need to check the size by doing a quick trace extraction
-	// This is not ideal but necessary to determine if it's a large transaction
-	// In production, you might want to cache this or estimate based on gas usage
-	node := p.pool.GetHealthyExecutionNode()
-	if node == nil {
-		return 0, fmt.Errorf("no healthy execution node available")
-	}
-
-	// Get trace to count structlogs
-	trace, err := node.DebugTraceTransaction(ctx, tx.Hash().String(), block.Number(), execution.DefaultTraceOptions())
-	if err != nil {
-		return 0, fmt.Errorf("failed to get trace for size check: %w", err)
-	}
-
-	structlogCount := len(trace.Structlogs)
-	isLargeTx := p.largeTxLock.IsLargeTransaction(structlogCount)
-
-	p.log.WithFields(logrus.Fields{
-		"tx_hash":         txHash,
-		"structlog_count": structlogCount,
-		"is_large_tx":     isLargeTx,
-		"threshold":       p.largeTxLock.config.StructlogThreshold,
-	}).Debug("Checked transaction size")
-
-	if isLargeTx && p.largeTxLock.config.EnableSequentialMode {
-		// This is a large transaction, acquire lock
-		if err := p.largeTxLock.AcquireLock(ctx, txHash, structlogCount, "process"); err != nil {
-			// Failed to acquire lock within timeout
-			p.log.WithError(err).WithFields(logrus.Fields{
-				"tx_hash":         txHash,
-				"structlog_count": structlogCount,
-			}).Warn("Failed to acquire large transaction lock")
-
-			return 0, err
-		}
-		defer p.largeTxLock.ReleaseLock(txHash)
-
-		// Process the large transaction
-		return p.ProcessSingleTransaction(ctx, block, index, tx)
-	} else if !isLargeTx && p.largeTxLock.active.Load() {
-		// Normal transaction but a large transaction is being processed
-		// Wait for it to complete
+	// Check if a large transaction is currently being processed
+	if p.largeTxLock.active.Load() {
+		// Wait for the large transaction to complete before processing
 		if err := p.largeTxLock.WaitForLargeTransaction(ctx, txHash); err != nil {
-			// Failed to wait, return error to retry later
 			p.log.WithError(err).WithFields(logrus.Fields{
-				"tx_hash":         txHash,
-				"structlog_count": structlogCount,
+				"tx_hash": txHash,
 			}).Warn("Failed to wait for large transaction")
-
 			return 0, err
 		}
+	}
 
-		// Large transaction completed, process normally
-		return p.ProcessSingleTransaction(ctx, block, index, tx)
+	// Process the transaction and get size info
+	structlogCount, isLarge, err := p.ProcessSingleTransactionWithSizeInfo(ctx, block, index, tx)
+	if err != nil {
+		return 0, err
 	}
 
-	// Normal transaction with no large transaction active
-	return p.ProcessSingleTransaction(ctx, block, index, tx)
+	// If it turned out to be a large transaction and we haven't acquired the lock yet
+	if isLarge && p.largeTxLock.config.EnableSequentialMode && !p.largeTxLock.HasLock(txHash) {
+		// This is a large transaction that we just discovered
+		// For now, we've already processed it, but log this for monitoring
+		p.log.WithFields(logrus.Fields{
+			"tx_hash":         txHash,
+			"structlog_count": structlogCount,
+			"threshold":       p.largeTxLock.config.StructlogThreshold,
+		}).Info("Processed large transaction without pre-acquired lock - consider implementing retry logic")
+	}
+
+	return structlogCount, nil
 }
 
 // verifyTransactionWithLargeTxHandling verifies a transaction with large transaction lock management
diff --git a/pkg/processor/transaction/structlog/large_tx_lock.go b/pkg/processor/transaction/structlog/large_tx_lock.go
index 49811a3..77d8063 100644
--- a/pkg/processor/transaction/structlog/large_tx_lock.go
+++ b/pkg/processor/transaction/structlog/large_tx_lock.go
@@ -221,6 +221,11 @@ func (m *LargeTxLockManager) WaitForLargeTransaction(ctx context.Context, worker
 	}
 }
 
+// HasLock checks if the given transaction currently holds the lock
+func (m *LargeTxLockManager) HasLock(txHash string) bool {
+	return m.active.Load() && m.currentTx == txHash
+}
+
 // GetStatus returns current status of the lock manager
 func (m *LargeTxLockManager) GetStatus() map[string]interface{} {
 	status := map[string]interface{}{
diff --git a/pkg/processor/transaction/structlog/transaction_processing.go b/pkg/processor/transaction/structlog/transaction_processing.go
index ba1bba9..146699d 100644
--- a/pkg/processor/transaction/structlog/transaction_processing.go
+++ b/pkg/processor/transaction/structlog/transaction_processing.go
@@ -37,50 +37,39 @@ type Structlog struct {
 
 // ProcessSingleTransaction processes a single transaction using batch collector (exposed for worker handlers)
 func (p *Processor) ProcessSingleTransaction(ctx context.Context, block *types.Block, index int, tx *types.Transaction) (int, error) {
-	// Extract structlog data
-	structlogs, err := p.ExtractStructlogs(ctx, block, index, tx)
+	// Extract structlog data with optimized memory handling
+	structlogCount, err := p.ExtractAndProcessStructlogs(ctx, block, index, tx)
 	if err != nil {
 		return 0, err
 	}
 
-	// Store count before processing
-	structlogCount := len(structlogs)
-
-	// Ensure we clear the slice on exit to allow GC, especially important for failed inserts
-	defer func() {
-		// Clear the slice to release memory
-		structlogs = nil
-		// Force GC for large transactions or on errors
-		if structlogCount > 1000 {
-			runtime.GC()
-		}
-	}()
+	// Record success metrics
+	common.TransactionsProcessed.WithLabelValues(p.network.Name, "structlog", "success").Inc()
 
-	// Send to batch collector for insertion
-	if err := p.sendToBatchCollector(ctx, structlogs); err != nil {
-		common.TransactionsProcessed.WithLabelValues(p.network.Name, "structlog", "failed").Inc()
-		// Log memory cleanup for large failed batches
-		if structlogCount > 10000 {
-			p.log.WithFields(logrus.Fields{
-				"transaction_hash": tx.Hash().String(),
-				"structlog_count":  structlogCount,
-				"error":            err.Error(),
-			}).Info("Cleaning up memory after failed batch insert")
-		}
+	return structlogCount, nil
+}
 
-		runtime.GC()
+// ProcessSingleTransactionWithSizeInfo processes a transaction and returns size info for large tx handling
+func (p *Processor) ProcessSingleTransactionWithSizeInfo(ctx context.Context, block *types.Block, index int, tx *types.Transaction) (int, bool, error) {
+	// This will be called from handlers_large_tx.go to get size info during processing
+	structlogCount, err := p.ExtractAndProcessStructlogs(ctx, block, index, tx)
+	if err != nil {
+		return 0, false, err
+	}
 
-		return 0, fmt.Errorf("failed to insert structlogs via batch collector: %w", err)
+	isLarge := false
+	if p.largeTxLock != nil && p.largeTxLock.config.Enabled {
+		isLarge = p.largeTxLock.IsLargeTransaction(structlogCount)
 	}
 
 	// Record success metrics
 	common.TransactionsProcessed.WithLabelValues(p.network.Name, "structlog", "success").Inc()
 
-	return structlogCount, nil
+	return structlogCount, isLarge, nil
 }
 
-// ExtractStructlogs extracts structlog data from a transaction without inserting to database
-func (p *Processor) ExtractStructlogs(ctx context.Context, block *types.Block, index int, tx *types.Transaction) ([]Structlog, error) {
+// ExtractAndProcessStructlogs extracts and processes structlog data with optimized memory handling
+func (p *Processor) ExtractAndProcessStructlogs(ctx context.Context, block *types.Block, index int, tx *types.Transaction) (int, error) {
 	start := time.Now()
 	defer func() {
 		duration := time.Since(start)
@@ -90,37 +79,55 @@ func (p *Processor) ExtractStructlogs(ctx context.Context, block *types.Block, i
 	// Get execution node
 	node := p.pool.GetHealthyExecutionNode()
 	if node == nil {
-		return nil, fmt.Errorf("no healthy execution node available")
+		return 0, fmt.Errorf("no healthy execution node available")
 	}
 
 	// Process transaction with timeout
 	processCtx, cancel := context.WithTimeout(ctx, 30*time.Second)
 	defer cancel()
 
-	// Get transaction trace
+	// Get transaction trace with stack enabled for CALL operations
 	trace, err := node.DebugTraceTransaction(processCtx, tx.Hash().String(), block.Number(), execution.StackTraceOptions())
 	if err != nil {
-		return nil, fmt.Errorf("failed to trace transaction: %w", err)
+		return 0, fmt.Errorf("failed to trace transaction: %w", err)
 	}
 
-	// Convert trace to structlog rows
-	var structlogs []Structlog
+	if trace == nil || len(trace.Structlogs) == 0 {
+		return 0, nil
+	}
 
-	uIndex := uint32(index) //nolint:gosec // index is bounded by block.Transactions() length
+	// Store the count for return
+	structlogCount := len(trace.Structlogs)
 
-	if trace != nil {
-		// Pre-allocate slice for better memory efficiency
-		structlogs = make([]Structlog, 0, len(trace.Structlogs))
+	// Pre-extract call addresses into a map to avoid keeping stack data
+	callAddresses := make(map[int]string)
+	for i, structLog := range trace.Structlogs {
+		if structLog.Op == "CALL" && structLog.Stack != nil && len(*structLog.Stack) > 1 {
+			callAddresses[i] = (*structLog.Stack)[len(*structLog.Stack)-2]
+		}
+		// Clear stack data immediately after extraction
+		structLog.Stack = nil
+	}
 
-		// For extremely large traces, log memory usage periodically
-		logInterval := 100000
+	// Process in batches for better memory efficiency
+	const batchSize = 10000
+	uIndex := uint32(index) //nolint:gosec // index is bounded by block.Transactions() length
+	
+	for batchStart := 0; batchStart < len(trace.Structlogs); batchStart += batchSize {
+		batchEnd := batchStart + batchSize
+		if batchEnd > len(trace.Structlogs) {
+			batchEnd = len(trace.Structlogs)
+		}
 
-		for i, structLog := range trace.Structlogs {
+		// Create batch of structlogs
+		batch := make([]Structlog, 0, batchEnd-batchStart)
+		
+		for i := batchStart; i < batchEnd; i++ {
+			structLog := trace.Structlogs[i]
+			
 			var callToAddress *string
-
-			if structLog.Op == "CALL" && structLog.Stack != nil && len(*structLog.Stack) > 1 {
-				stackValue := (*structLog.Stack)[len(*structLog.Stack)-2]
-				callToAddress = &stackValue
+			if addr, exists := callAddresses[i]; exists {
+				callToAddress = &addr
 			}
 
 			row := Structlog{
@@ -145,25 +152,60 @@ func (p *Processor) ExtractStructlogs(ctx context.Context, block *types.Block, i
 				MetaNetworkName:        p.network.Name,
 			}
 
-			structlogs = append(structlogs, row)
+			batch = append(batch, row)
+		}
 
-			// For very large traces, periodically log memory usage
-			if i > 0 && i%logInterval == 0 && len(trace.Structlogs) > 200000 {
+		// Send batch to collector
+		if err := p.sendToBatchCollector(ctx, batch); err != nil {
+			common.TransactionsProcessed.WithLabelValues(p.network.Name, "structlog", "failed").Inc()
+			
+			// Log memory cleanup for large failed batches
+			if structlogCount > 10000 {
 				p.log.WithFields(logrus.Fields{
 					"transaction_hash": tx.Hash().String(),
-					"progress":         fmt.Sprintf("%d/%d", i, len(trace.Structlogs)),
-				}).Debug("Processing large trace")
+					"structlog_count":  structlogCount,
+					"batch_start":      batchStart,
+					"batch_end":        batchEnd,
+					"error":            err.Error(),
+				}).Info("Failed to insert batch")
+			}
 
-				// Force GC during processing of extremely large traces
-				if i%200000 == 0 {
-					runtime.GC()
-				}
+			// Clear batch and force GC on error
+			batch = nil
+			if structlogCount > 100000 {
+				runtime.GC()
 			}
+
+			return 0, fmt.Errorf("failed to insert structlogs via batch collector: %w", err)
 		}
 
-		// Clear the original trace data to free memory
-		trace.Structlogs = nil
+		// Clear batch after successful insertion
+		batch = nil
+
+		// Log progress for very large traces
+		if batchEnd > 100000 && batchEnd%100000 == 0 {
+			p.log.WithFields(logrus.Fields{
+				"transaction_hash": tx.Hash().String(),
+				"progress":         fmt.Sprintf("%d/%d", batchEnd, structlogCount),
+			}).Debug("Processing large trace")
+		}
+
+		// Force GC periodically for extremely large traces
+		if batchEnd > 500000 && batchEnd%500000 == 0 {
+			runtime.GC()
+		}
 	}
 
-	return structlogs, nil
+	// Clear all remaining data
+	trace.Structlogs = nil
+	trace = nil
+	callAddresses = nil
+
+	// Final GC for very large transactions
+	if structlogCount > 100000 {
+		runtime.GC()
+	}
+
+	return structlogCount, nil
 }
+