diff --git a/src/currency_core/blockchain_storage.cpp b/src/currency_core/blockchain_storage.cpp
index 552cc194..d0cc3d57 100644
--- a/src/currency_core/blockchain_storage.cpp
+++ b/src/currency_core/blockchain_storage.cpp
@@ -4449,7 +4449,7 @@ bool blockchain_storage::validate_pos_block(const block& b,
     if (get_block_height(b) > m_core_runtime_config.hard_fork1_starts_after_height)
     {
       uint64_t last_pow_h = get_last_x_block_height(false);
-      CHECK_AND_ASSERT_MES(max_related_block_height < last_pow_h, false, "Failed to failed to validate coinbase in pos block, condition failed: max_related_block_height(" << max_related_block_height << ") < last_pow_h(" << last_pow_h << ")");
+      CHECK_AND_ASSERT_MES(max_related_block_height <= last_pow_h, false, "Failed to failed to validate coinbase in pos block, condition failed: max_related_block_height(" << max_related_block_height << ") < last_pow_h(" << last_pow_h << ")");
       //let's check that coinbase amount and unlock time
       r = validate_coinbase_outs_unlocktime(b.miner_tx, coinstake_in.amount, max_unlock_time);
       CHECK_AND_ASSERT_MES(r, false, "Failed to validate_coinbase_outs_unlocktime() in miner tx, block_id = " << get_block_hash(b) 
diff --git a/src/wallet/wallet2.cpp b/src/wallet/wallet2.cpp
index 9f9209dc..15a36e4d 100644
--- a/src/wallet/wallet2.cpp
+++ b/src/wallet/wallet2.cpp
@@ -2453,7 +2453,7 @@ bool wallet2::is_transfer_okay_for_pos(const transfer_details& tr, uint64_t& sta
   if (m_blockchain.size() - tr.m_ptx_wallet_info->m_block_height <= m_core_runtime_config.min_coinstake_age)
     return false;
   
-  if (tr.m_ptx_wallet_info->m_block_height >= m_last_pow_block_h)
+  if (tr.m_ptx_wallet_info->m_block_height > m_last_pow_block_h)
     return false;
 
   return true;
diff --git a/src/wallet/wallet2.h b/src/wallet/wallet2.h
index a1720f3d..f4c741c5 100644
--- a/src/wallet/wallet2.h
+++ b/src/wallet/wallet2.h
@@ -64,6 +64,8 @@ ENABLE_CHANNEL_BY_DEFAULT("wallet");
 #define WLT_CHECK_AND_ASSERT_MES_NO_RET(expr, msg) CHECK_AND_ASSERT_MES_NO_RET(expr, "[W:" << m_log_prefix << "]" << msg)
 #define WLT_THROW_IF_FALSE_WALLET_INT_ERR_EX(cond, msg) THROW_IF_FALSE_WALLET_INT_ERR_EX(cond, "[W:" << m_log_prefix << "]" << msg)
 
+class test_generator;
+
 namespace tools
 {
 #pragma pack(push, 1)
@@ -664,7 +666,7 @@ namespace tools
     //synchronous version of function 
     bool try_mint_pos();
     //for unit tests
-    friend class test_generator;
+    friend class ::test_generator;
     
     //next functions in public area only because of test_generator
     //TODO: Need refactoring - remove it back to private zone 
@@ -877,6 +879,8 @@ private:
     uint64_t m_fake_outputs_count;
     std::string m_miner_text_info;
 
+    //this needed to access wallets state in coretests, for creating abnormal blocks and tranmsactions
+    friend class test_generator;
  
   }; // class wallet2
 
diff --git a/tests/core_tests/chaingen.cpp b/tests/core_tests/chaingen.cpp
index 6e5be5f7..37efabaa 100644
--- a/tests/core_tests/chaingen.cpp
+++ b/tests/core_tests/chaingen.cpp
@@ -48,6 +48,7 @@ const crypto::signature invalid_signature = create_invalid_signature();
 test_generator::test_generator()
   : m_wallet_test_core_proxy(new wallet_test_core_proxy()), 
   m_do_pos_to_low_timestamp(false),
+  m_ignore_last_pow_in_wallets(false),
   m_last_found_timestamp(0), 
   m_hardfork_after_heigh(CURRENCY_MAX_BLOCK_NUMBER)
 {
@@ -517,6 +518,10 @@ bool test_generator::find_kernel(const std::list<currency::account_base>& accs,
     //lets try to find block
     for (auto& w : wallets)
     {
+      //set m_last_pow_block_h to big value, to let wallet to use any available outputs, including the those which is not behind last pow block
+      if (m_ignore_last_pow_in_wallets)
+        w->m_last_pow_block_h = CURRENCY_MAX_BLOCK_NUMBER;
+
       currency::COMMAND_RPC_SCAN_POS::request scan_pos_entries;
       bool r = w->get_pos_entries(scan_pos_entries);
       CHECK_AND_ASSERT_THROW_MES(r, "Failed to get_pos_entries");
diff --git a/tests/core_tests/chaingen.h b/tests/core_tests/chaingen.h
index d519e760..7ebeb817 100644
--- a/tests/core_tests/chaingen.h
+++ b/tests/core_tests/chaingen.h
@@ -510,10 +510,12 @@ public:
   static void set_test_gentime_settings(const test_gentime_settings& s) { m_test_gentime_settings = s; }
   static void set_test_gentime_settings_default() { m_test_gentime_settings = m_test_gentime_settings_default; }
   void set_pos_to_low_timestamp(bool do_pos_to_low_timestamp) { m_do_pos_to_low_timestamp = do_pos_to_low_timestamp; }
+  void set_ignore_last_pow_in_wallets(bool ignore_last_pow_in_wallets) { m_ignore_last_pow_in_wallets = ignore_last_pow_in_wallets; }
   void set_hardfork_height(uint64_t h);
 
 private:
   bool m_do_pos_to_low_timestamp;
+  bool m_ignore_last_pow_in_wallets;
   uint64_t m_last_found_timestamp;
   
   uint64_t m_hardfork_after_heigh;
@@ -986,6 +988,16 @@ void append_vector_by_another_vector(U& dst, const V& src)
   VEC_EVENTS.push_back(BLK_NAME);                                                     \
   PRINT_EVENT_NO(VEC_EVENTS)
 
+#define MAKE_NEXT_POS_BLOCK_TX1(VEC_EVENTS, BLK_NAME, PREV_BLOCK, MINER_ACC, MINERS_ACC_LIST, TX_1)         \
+  currency::block BLK_NAME = AUTO_VAL_INIT(BLK_NAME);                                                       \
+  {                                                                                                         \
+    std::list<currency::transaction>tx_list;                                                                \
+    tx_list.push_back(TX_1);                                                                                \
+    generator.construct_block(VEC_EVENTS, BLK_NAME, PREV_BLOCK, MINER_ACC, tx_list, MINERS_ACC_LIST);       \
+  }                                                                                                         \
+  VEC_EVENTS.push_back(BLK_NAME);                                                                           \
+  PRINT_EVENT_NO(VEC_EVENTS)
+
 #define MAKE_NEXT_BLOCK_NO_ADD(VEC_EVENTS, BLK_NAME, PREV_BLOCK, MINER_ACC)           \
   currency::block BLK_NAME = AUTO_VAL_INIT(BLK_NAME);                                 \
   generator.construct_block(VEC_EVENTS, BLK_NAME, PREV_BLOCK, MINER_ACC);             \
@@ -1006,6 +1018,7 @@ void append_vector_by_another_vector(U& dst, const V& src)
   VEC_EVENTS.push_back(BLK_NAME);                                                   \
   PRINT_EVENT_NO(VEC_EVENTS)
 
+
 #define MAKE_NEXT_BLOCK_TX_LIST(VEC_EVENTS, BLK_NAME, PREV_BLOCK, MINER_ACC, TXLIST)  \
   currency::block BLK_NAME = AUTO_VAL_INIT(BLK_NAME);                                 \
   generator.construct_block(VEC_EVENTS, BLK_NAME, PREV_BLOCK, MINER_ACC, TXLIST);     \
diff --git a/tests/core_tests/chaingen_main.cpp b/tests/core_tests/chaingen_main.cpp
index 63352700..e8e4124c 100644
--- a/tests/core_tests/chaingen_main.cpp
+++ b/tests/core_tests/chaingen_main.cpp
@@ -942,7 +942,7 @@ int main(int argc, char* argv[])
     GENERATE_AND_PLAY(inthe_middle_hard_fork_1_cumulative_difficulty);
     GENERATE_AND_PLAY(after_hard_fork_1_cumulative_difficulty);
     GENERATE_AND_PLAY(hard_fork_1_locked_mining_test);
-    
+    GENERATE_AND_PLAY(hard_fork_1_bad_pos_source);
     //GENERATE_AND_PLAY(gen_block_reward); */
 
 
diff --git a/tests/core_tests/chaingen_tests_list.h b/tests/core_tests/chaingen_tests_list.h
index 8d55633b..c7cadd7f 100644
--- a/tests/core_tests/chaingen_tests_list.h
+++ b/tests/core_tests/chaingen_tests_list.h
@@ -35,3 +35,4 @@
 #include "emission_test.h"
 #include "hard_fork_1_locked_pos_test.h"
 #include "hard_fork_1_consensus_test.h"
+#include "hard_fork_1_bad_pos_source.h"