diff --git a/database/commit_timestamp.go b/database/commit_timestamp.go
index b10706f..d597a31 100644
--- a/database/commit_timestamp.go
+++ b/database/commit_timestamp.go
@@ -38,6 +38,19 @@ func (CommitTimestamp) TableName() string {
 	return "commit_timestamp"
 }
 
+type CommitTimestampError struct {
+	MetadataTimestamp int64
+	BlobTimestamp     int64
+}
+
+func (e CommitTimestampError) Error() string {
+	return fmt.Sprintf(
+		"commit timestamp mismatch: %d (metadata) != %d (blob)",
+		e.MetadataTimestamp,
+		e.BlobTimestamp,
+	)
+}
+
 func (b *BaseDatabase) checkCommitTimestamp() error {
 	// Create table if it doesn't exist
 	if err := b.Metadata().AutoMigrate(&CommitTimestamp{}); err != nil {
@@ -66,11 +79,10 @@ func (b *BaseDatabase) checkCommitTimestamp() error {
 		tmpTimestamp := new(big.Int).SetBytes(val).Int64()
 		// Compare values
 		if tmpTimestamp != tmpCommitTimestamp.Timestamp {
-			return fmt.Errorf(
-				"commit timestamp mismatch: %d (metadata) != %d (blob)",
-				tmpCommitTimestamp.Timestamp,
-				tmpTimestamp,
-			)
+			return CommitTimestampError{
+				MetadataTimestamp: tmpCommitTimestamp.Timestamp,
+				BlobTimestamp:     tmpTimestamp,
+			}
 		}
 		return nil
 	})
diff --git a/database/database.go b/database/database.go
index 41d6b40..e7189e2 100644
--- a/database/database.go
+++ b/database/database.go
@@ -73,15 +73,15 @@ func (b *BaseDatabase) init() error {
 	}
 	// Configure metrics for Badger DB
 	b.registerBadgerMetrics()
-	// Check commit timestamp
-	if err := b.checkCommitTimestamp(); err != nil {
-		return err
-	}
 	// Run GC periodically for Badger DB
 	if b.blobGcEnabled {
 		b.blobGcTimer = time.NewTicker(5 * time.Minute)
 		go b.blobGc()
 	}
+	// Check commit timestamp
+	if err := b.checkCommitTimestamp(); err != nil {
+		return err
+	}
 	return nil
 }
 
@@ -141,7 +141,8 @@ func NewInMemory(logger *slog.Logger) (*InMemoryDatabase, error) {
 		},
 	}
 	if err := db.init(); err != nil {
-		return nil, err
+		// Database is available for recovery, so return it with error
+		return db, err
 	}
 	return db, nil
 }
@@ -204,7 +205,8 @@ func NewPersistent(
 		dataDir: dataDir,
 	}
 	if err := db.init(); err != nil {
-		return nil, err
+		// Database is available for recovery, so return it with error
+		return db, err
 	}
 	return db, nil
 }
diff --git a/state/state.go b/state/state.go
index 4a095c2..dca53ac 100644
--- a/state/state.go
+++ b/state/state.go
@@ -69,16 +69,42 @@ func NewLedgerState(cfg LedgerStateConfig) (*LedgerState, error) {
 	}
 	if cfg.DataDir == "" {
 		db, err := database.NewInMemory(ls.config.Logger)
+		ls.db = db
 		if err != nil {
-			return nil, err
+			if _, ok := err.(database.CommitTimestampError); !ok {
+				return nil, err
+			}
+			ls.config.Logger.Warn(
+				"database initialization error",
+				"error",
+				err,
+				"component",
+				"ledger",
+			)
+			// Run recovery
+			if err := ls.recoverCommitTimestampConflict(); err != nil {
+				return nil, err
+			}
 		}
-		ls.db = db
 	} else {
 		db, err := database.NewPersistent(cfg.DataDir, cfg.Logger)
+		ls.db = db
 		if err != nil {
-			return nil, err
+			if _, ok := err.(database.CommitTimestampError); !ok {
+				return nil, err
+			}
+			ls.config.Logger.Warn(
+				"database initialization error",
+				"error",
+				err,
+				"component",
+				"ledger",
+			)
+			// Run recovery
+			if err := ls.recoverCommitTimestampConflict(); err != nil {
+				return nil, err
+			}
 		}
-		ls.db = db
 	}
 	// Create the table schemas
 	for _, model := range models.MigrateModels {
@@ -109,6 +135,32 @@ func NewLedgerState(cfg LedgerStateConfig) (*LedgerState, error) {
 	return ls, nil
 }
 
+func (ls *LedgerState) recoverCommitTimestampConflict() error {
+	// Try to load last n blocks and rollback to the last one we can load
+	var tmpBlocks []models.Block
+	result := ls.db.Metadata().Order("id DESC").Limit(100).Find(&tmpBlocks)
+	if result.Error != nil {
+		return result.Error
+	}
+	for _, tmpBlock := range tmpBlocks {
+		blockPoint := ocommon.NewPoint(
+			tmpBlock.Slot,
+			tmpBlock.Hash,
+		)
+		// Load individual block to also (attempt to) load CBOR
+		if _, err := models.BlockByPoint(ls.db, blockPoint); err == nil {
+			if err2 := ls.rollback(blockPoint); err2 != nil {
+				return fmt.Errorf(
+					"failed to rollback: %s",
+					err2,
+				)
+			}
+			return nil
+		}
+	}
+	return fmt.Errorf("failed to recover database")
+}
+
 func (ls *LedgerState) scheduleCleanupConsumedUtxos() {
 	ls.Lock()
 	defer ls.Unlock()
@@ -209,13 +261,17 @@ func (ls *LedgerState) handleEventChainSync(evt event.Event) {
 }
 
 func (ls *LedgerState) handleEventChainSyncRollback(e ChainsyncEvent) error {
+	return ls.rollback(e.Point)
+}
+
+func (ls *LedgerState) rollback(point ocommon.Point) error {
 	// Start a transaction
 	txn := ls.db.Transaction(true)
 	err := txn.Do(func(txn *database.Txn) error {
 		// Remove rolled-back blocks in reverse order
 		var tmpBlocks []models.Block
 		result := txn.Metadata().
-			Where("slot > ?", e.Point.Slot).
+			Where("slot > ?", point.Slot).
 			Order("slot DESC").
 			Find(&tmpBlocks)
 		if result.Error != nil {
@@ -229,19 +285,21 @@ func (ls *LedgerState) handleEventChainSyncRollback(e ChainsyncEvent) error {
 		// Delete rolled-back UTxOs
 		var tmpUtxos []models.Utxo
 		result = txn.Metadata().
-			Where("added_slot > ?", e.Point.Slot).
+			Where("added_slot > ?", point.Slot).
 			Order("id DESC").
 			Find(&tmpUtxos)
 		if result.Error != nil {
-			return fmt.Errorf("remove rolled-backup UTxOs: %w", result.Error)
+			return fmt.Errorf("remove rolled-back UTxOs: %w", result.Error)
 		}
-		if err := models.UtxosDeleteTxn(txn, tmpUtxos); err != nil {
-			return fmt.Errorf("remove rolled-back UTxOs: %w", err)
+		if len(tmpUtxos) > 0 {
+			if err := models.UtxosDeleteTxn(txn, tmpUtxos); err != nil {
+				return fmt.Errorf("remove rolled-back UTxOs: %w", err)
+			}
 		}
 		// Restore spent UTxOs
 		result = txn.Metadata().
 			Model(models.Utxo{}).
-			Where("deleted_slot > ?", e.Point.Slot).
+			Where("deleted_slot > ?", point.Slot).
 			Update("deleted_slot", 0)
 		if result.Error != nil {
 			return fmt.Errorf(
@@ -260,15 +318,15 @@ func (ls *LedgerState) handleEventChainSyncRollback(e ChainsyncEvent) error {
 		event.NewEvent(
 			ChainRollbackEventType,
 			ChainRollbackEvent{
-				Point: e.Point,
+				Point: point,
 			},
 		),
 	)
 	ls.config.Logger.Info(
 		fmt.Sprintf(
 			"chain rolled back, new tip: %x at slot %d",
-			e.Point.Hash,
-			e.Point.Slot,
+			point.Hash,
+			point.Slot,
 		),
 		"component",
 		"ledger",