diff --git a/.changeset/few-sloths-explain.md b/.changeset/few-sloths-explain.md
new file mode 100644
index 00000000000..78efd6cc7f3
--- /dev/null
+++ b/.changeset/few-sloths-explain.md
@@ -0,0 +1,5 @@
+---
+"chainlink": patch
+---
+
+#updated ignoring tx type 126 on celo
diff --git a/core/chains/evm/gas/block_history_estimator_test.go b/core/chains/evm/gas/block_history_estimator_test.go
index de698fc9a08..384825c3a2c 100644
--- a/core/chains/evm/gas/block_history_estimator_test.go
+++ b/core/chains/evm/gas/block_history_estimator_test.go
@@ -1433,15 +1433,19 @@ func TestBlockHistoryEstimator_IsUsable(t *testing.T) {
 		assert.Equal(t, true, bhe.IsUsable(tx, block, defaultChainType, geCfg.PriceMin(), logger.Test(t)))
 	})
 
-	t.Run("returns false if transaction is of type 0x7c or 0x7b only on Celo", func(t *testing.T) {
+	t.Run("returns false if transaction is of type 0x7c, 0x7b, or 0x7e only on Celo", func(t *testing.T) {
 		tx := evmtypes.Transaction{Type: 0x7c, GasPrice: assets.NewWeiI(10), GasLimit: 42, Hash: utils.NewHash()}
-		assert.Equal(t, false, bhe.IsUsable(tx, block, chaintype.ChainCelo, geCfg.PriceMin(), logger.Test(t)))
+		assert.False(t, bhe.IsUsable(tx, block, chaintype.ChainCelo, geCfg.PriceMin(), logger.Test(t)))
 
 		tx2 := evmtypes.Transaction{Type: 0x7b, GasPrice: assets.NewWeiI(10), GasLimit: 42, Hash: utils.NewHash()}
-		assert.Equal(t, false, bhe.IsUsable(tx2, block, chaintype.ChainCelo, geCfg.PriceMin(), logger.Test(t)))
+		assert.False(t, bhe.IsUsable(tx2, block, chaintype.ChainCelo, geCfg.PriceMin(), logger.Test(t)))
 
-		assert.Equal(t, true, bhe.IsUsable(tx, block, defaultChainType, geCfg.PriceMin(), logger.Test(t)))
-		assert.Equal(t, true, bhe.IsUsable(tx2, block, defaultChainType, geCfg.PriceMin(), logger.Test(t)))
+		tx3 := evmtypes.Transaction{Type: 0x7e, GasPrice: assets.NewWeiI(10), GasLimit: 42, Hash: utils.NewHash()}
+		assert.False(t, bhe.IsUsable(tx2, block, chaintype.ChainCelo, geCfg.PriceMin(), logger.Test(t)))
+
+		assert.True(t, bhe.IsUsable(tx, block, defaultChainType, geCfg.PriceMin(), logger.Test(t)))
+		assert.True(t, bhe.IsUsable(tx2, block, defaultChainType, geCfg.PriceMin(), logger.Test(t)))
+		assert.True(t, bhe.IsUsable(tx3, block, defaultChainType, geCfg.PriceMin(), logger.Test(t)))
 	})
 
 	t.Run("returns false if transaction is of type 0x16 only on WeMix", func(t *testing.T) {
diff --git a/core/chains/evm/gas/chain_specific.go b/core/chains/evm/gas/chain_specific.go
index d1add00758b..a647f2ad272 100644
--- a/core/chains/evm/gas/chain_specific.go
+++ b/core/chains/evm/gas/chain_specific.go
@@ -31,7 +31,7 @@ func chainSpecificIsUsable(tx evmtypes.Transaction, baseFee *assets.Wei, chainTy
 	}
 	if chainType == chaintype.ChainCelo {
 		// Celo specific transaction types that utilize the feeCurrency field.
-		if tx.Type == 0x7c || tx.Type == 0x7b {
+		if tx.Type == 0x7c || tx.Type == 0x7b || tx.Type == 0x7e {
 			return false
 		}
 		// Celo has not yet fully migrated to the 0x7c type for special feeCurrency transactions