diff --git a/src/chain.h b/src/chain.h
index c6d1640768e..f5bfdb2fb4b 100644
--- a/src/chain.h
+++ b/src/chain.h
@@ -292,7 +292,7 @@ public:
     std::string ToString() const;
 
     //! Check whether this block index entry is valid up to the passed validity level.
-    bool IsValid(enum BlockStatus nUpTo = BLOCK_VALID_TRANSACTIONS) const
+    bool IsValid(enum BlockStatus nUpTo) const
         EXCLUSIVE_LOCKS_REQUIRED(::cs_main)
     {
         AssertLockHeld(::cs_main);
diff --git a/src/test/fuzz/chain.cpp b/src/test/fuzz/chain.cpp
index 0363f317b63..09053e4815c 100644
--- a/src/test/fuzz/chain.cpp
+++ b/src/test/fuzz/chain.cpp
@@ -30,7 +30,7 @@ FUZZ_TARGET(chain)
         (void)disk_block_index->GetMedianTimePast();
         (void)disk_block_index->GetUndoPos();
         (void)disk_block_index->HaveNumChainTxs();
-        (void)disk_block_index->IsValid();
+        (void)disk_block_index->IsValid(BLOCK_VALID_TRANSACTIONS);
     }
 
     const CBlockHeader block_header = disk_block_index->GetBlockHeader();
diff --git a/src/validation.cpp b/src/validation.cpp
index 88180caca90..3cfcd2728cd 100644
--- a/src/validation.cpp
+++ b/src/validation.cpp
@@ -3851,9 +3851,9 @@ void Chainstate::ResetBlockFailureFlags(CBlockIndex *pindex) {
 
     int nHeight = pindex->nHeight;
 
-    // Remove the invalidity flag from this block and all its descendants.
+    // Remove the invalidity flag from this block and all its descendants and ancestors.
     for (auto& [_, block_index] : m_blockman.m_block_index) {
-        if (!block_index.IsValid() && block_index.GetAncestor(nHeight) == pindex) {
+        if ((block_index.nStatus & BLOCK_FAILED_MASK) && (block_index.GetAncestor(nHeight) == pindex || pindex->GetAncestor(block_index.nHeight) == &block_index)) {
             block_index.nStatus &= ~BLOCK_FAILED_MASK;
             m_blockman.m_dirty_blockindex.insert(&block_index);
             if (block_index.IsValid(BLOCK_VALID_TRANSACTIONS) && block_index.HaveNumChainTxs() && setBlockIndexCandidates.value_comp()(m_chain.Tip(), &block_index)) {
@@ -3865,15 +3865,6 @@ void Chainstate::ResetBlockFailureFlags(CBlockIndex *pindex) {
             }
         }
     }
-
-    // Remove the invalidity flag from all ancestors too.
-    while (pindex != nullptr) {
-        if (pindex->nStatus & BLOCK_FAILED_MASK) {
-            pindex->nStatus &= ~BLOCK_FAILED_MASK;
-            m_blockman.m_dirty_blockindex.insert(pindex);
-        }
-        pindex = pindex->pprev;
-    }
 }
 
 void Chainstate::TryAddBlockIndexCandidate(CBlockIndex* pindex)
diff --git a/src/validation.h b/src/validation.h
index 727b0255826..624a2ee8d6b 100644
--- a/src/validation.h
+++ b/src/validation.h
@@ -745,7 +745,7 @@ public:
     /** Set invalidity status to all descendants of a block */
     void SetBlockFailureFlags(CBlockIndex* pindex) EXCLUSIVE_LOCKS_REQUIRED(::cs_main);
 
-    /** Remove invalidity status from a block and its descendants. */
+    /** Remove invalidity status from a block, its descendants and ancestors and reconsider them for activation */
     void ResetBlockFailureFlags(CBlockIndex* pindex) EXCLUSIVE_LOCKS_REQUIRED(cs_main);
 
     /** Replay blocks that aren't fully applied to the database. */
diff --git a/test/functional/rpc_invalidateblock.py b/test/functional/rpc_invalidateblock.py
index e2eb033f09c..031f1dd86ce 100755
--- a/test/functional/rpc_invalidateblock.py
+++ b/test/functional/rpc_invalidateblock.py
@@ -85,6 +85,23 @@ class InvalidateTest(BitcoinTestFramework):
         self.wait_until(lambda: self.nodes[0].getblockcount() == 4, timeout=5)
         self.wait_until(lambda: self.nodes[1].getblockcount() == 4, timeout=5)
 
+        self.log.info("Verify that ancestors can become chain tip candidates when we reconsider blocks")
+        # Invalidate node0's current chain (1' -> 2' -> 3' -> 4') so that we don't reorg back to it in this test
+        badhash = self.nodes[0].getblockhash(1)
+        self.nodes[0].invalidateblock(badhash)
+        # Reconsider the tip so that node0's chain becomes this chain again : 1 -> 2 -> 3 -> 4 -> 5 -> 6 -> header 7
+        self.nodes[0].reconsiderblock(tip)
+        blockhash_3 = self.nodes[0].getblockhash(3)
+        blockhash_4 = self.nodes[0].getblockhash(4)
+        blockhash_6 = self.nodes[0].getblockhash(6)
+        assert_equal(self.nodes[0].getbestblockhash(), blockhash_6)
+
+        # Invalidate block 4 so that chain becomes : 1 -> 2 -> 3
+        self.nodes[0].invalidateblock(blockhash_4)
+        assert_equal(self.nodes[0].getbestblockhash(), blockhash_3)
+        assert_equal(self.nodes[0].getblockchaininfo()['blocks'], 3)
+        assert_equal(self.nodes[0].getblockchaininfo()['headers'], 3)
+
         self.log.info("Verify that we reconsider all ancestors as well")
         blocks = self.generatetodescriptor(self.nodes[1], 10, ADDRESS_BCRT1_UNSPENDABLE_DESCRIPTOR, sync_fun=self.no_op)
         assert_equal(self.nodes[1].getbestblockhash(), blocks[-1])
@@ -111,6 +128,14 @@ class InvalidateTest(BitcoinTestFramework):
         # Should report consistent blockchain info
         assert_equal(self.nodes[1].getblockchaininfo()["headers"], self.nodes[1].getblockchaininfo()["blocks"])
 
+        # Reconsider the header
+        self.nodes[0].reconsiderblock(block.hash)
+        # Since header doesn't have block data, it can't be chain tip
+        # Check if it's possible for an ancestor (with block data) to be the chain tip
+        assert_equal(self.nodes[0].getbestblockhash(), blockhash_6)
+        assert_equal(self.nodes[0].getblockchaininfo()['blocks'], 6)
+        assert_equal(self.nodes[0].getblockchaininfo()['headers'], 7)
+
         self.log.info("Verify that invalidating an unknown block throws an error")
         assert_raises_rpc_error(-5, "Block not found", self.nodes[1].invalidateblock, "00" * 32)
         assert_equal(self.nodes[1].getbestblockhash(), blocks[-1])