diff --git a/clientcontroller/babylon.go b/clientcontroller/babylon.go
index ed0916e0..ee722962 100644
--- a/clientcontroller/babylon.go
+++ b/clientcontroller/babylon.go
@@ -3,6 +3,7 @@ package clientcontroller
 import (
 	"context"
 	"fmt"
+	coretypes "github.com/cometbft/cometbft/rpc/core/types"
 	"strings"
 	"time"
 
@@ -415,6 +416,10 @@ func (bc *BabylonController) QueryBestBlock() (*types.BlockInfo, error) {
 	return blocks[0], nil
 }
 
+func (bc *BabylonController) NodeStatus() (*coretypes.ResultStatus, error) {
+	return bc.bbnClient.GetStatus()
+}
+
 func (bc *BabylonController) queryCometBestBlock() (*types.BlockInfo, error) {
 	ctx, cancel := getContextWithCancel(bc.cfg.Timeout)
 	// this will return 20 items at max in the descending order (highest first)
diff --git a/clientcontroller/interface.go b/clientcontroller/interface.go
index 8aaf29d9..bd3f58a7 100644
--- a/clientcontroller/interface.go
+++ b/clientcontroller/interface.go
@@ -2,6 +2,7 @@ package clientcontroller
 
 import (
 	"fmt"
+	coretypes "github.com/cometbft/cometbft/rpc/core/types"
 
 	"cosmossdk.io/math"
 	btcstakingtypes "github.com/babylonlabs-io/babylon/x/btcstaking/types"
@@ -89,6 +90,8 @@ type ClientController interface {
 	// the value zero should be returned.
 	QueryFinalityActivationBlockHeight() (uint64, error)
 
+	NodeStatus() (*coretypes.ResultStatus, error)
+
 	Close() error
 }
 
diff --git a/finality-provider/service/fp_instance.go b/finality-provider/service/fp_instance.go
index 725d3e72..4b32c1b2 100644
--- a/finality-provider/service/fp_instance.go
+++ b/finality-provider/service/fp_instance.go
@@ -108,6 +108,10 @@ func (fp *FinalityProviderInstance) Start() error {
 		return fmt.Errorf("the finality-provider instance %s is already started", fp.GetBtcPkHex())
 	}
 
+	if err := fp.txIndexEnabled(); err != nil {
+		return err
+	}
+
 	if fp.IsJailed() {
 		fp.logger.Warn("the finality provider is jailed",
 			zap.String("pk", fp.GetBtcPkHex()))
@@ -1035,3 +1039,16 @@ func (fp *FinalityProviderInstance) GetFinalityProviderSlashedOrJailedWithRetry(
 
 	return slashed, jailed, nil
 }
+
+func (fp *FinalityProviderInstance) txIndexEnabled() error {
+	res, err := fp.cc.NodeStatus()
+	if err != nil {
+		return fmt.Errorf("failed to query node status: %w", err)
+	}
+
+	if !res.TxIndexEnabled() {
+		return fmt.Errorf("tx indexing in the babylon node must be enabled")
+	}
+
+	return nil
+}
diff --git a/testutil/mocks/babylon.go b/testutil/mocks/babylon.go
index 404463a7..72e7e061 100644
--- a/testutil/mocks/babylon.go
+++ b/testutil/mocks/babylon.go
@@ -13,6 +13,7 @@ import (
 	types1 "github.com/babylonlabs-io/finality-provider/types"
 	btcec "github.com/btcsuite/btcd/btcec/v2"
 	schnorr "github.com/btcsuite/btcd/btcec/v2/schnorr"
+	coretypes "github.com/cometbft/cometbft/rpc/core/types"
 	gomock "github.com/golang/mock/gomock"
 )
 
@@ -83,6 +84,21 @@ func (mr *MockClientControllerMockRecorder) EditFinalityProvider(fpPk, commissio
 	return mr.mock.ctrl.RecordCallWithMethodType(mr.mock, "EditFinalityProvider", reflect.TypeOf((*MockClientController)(nil).EditFinalityProvider), fpPk, commission, description)
 }
 
+// NodeStatus mocks base method.
+func (m *MockClientController) NodeStatus() (*coretypes.ResultStatus, error) {
+	m.ctrl.T.Helper()
+	ret := m.ctrl.Call(m, "NodeStatus")
+	ret0, _ := ret[0].(*coretypes.ResultStatus)
+	ret1, _ := ret[1].(error)
+	return ret0, ret1
+}
+
+// NodeStatus indicates an expected call of NodeStatus.
+func (mr *MockClientControllerMockRecorder) NodeStatus() *gomock.Call {
+	mr.mock.ctrl.T.Helper()
+	return mr.mock.ctrl.RecordCallWithMethodType(mr.mock, "NodeStatus", reflect.TypeOf((*MockClientController)(nil).NodeStatus))
+}
+
 // QueryActivatedHeight mocks base method.
 func (m *MockClientController) QueryActivatedHeight() (uint64, error) {
 	m.ctrl.T.Helper()