diff --git a/rpcclient.go b/rpcclient.go
index 2d56510..6c9129c 100644
--- a/rpcclient.go
+++ b/rpcclient.go
@@ -53,12 +53,6 @@ const (
 	// prevent a single connection from causing a denial of service attack
 	// with an unnecessarily large number of requests.
 	maxConcurrentClientRequests = 20
-
-	// maxUnhandledNotifications is the maximum number of still marshaled
-	// and unhandled notifications.  If this limit is reached, the
-	// btcrpcclient client notification handlers will begin blocking until
-	// an unhandled notification is processed.
-	maxUnhandledNotifications = 50
 )
 
 type blockSummary struct {
@@ -91,32 +85,6 @@ type (
 	rescanProgress int32
 )
 
-type notificationChan chan notification
-
-func (c notificationChan) onBlockConnected(hash *btcwire.ShaHash, height int32) {
-	c <- (blockConnected)(blockSummary{hash, height})
-}
-
-func (c notificationChan) onBlockDisconnected(hash *btcwire.ShaHash, height int32) {
-	c <- (blockDisconnected)(blockSummary{hash, height})
-}
-
-func (c notificationChan) onRecvTx(tx *btcutil.Tx, block *btcws.BlockDetails) {
-	c <- recvTx{tx, block}
-}
-
-func (c notificationChan) onRedeemingTx(tx *btcutil.Tx, block *btcws.BlockDetails) {
-	c <- redeemingTx{tx, block}
-}
-
-func (c notificationChan) onRescanFinished(height int32) {
-	c <- rescanFinished{error: nil}
-}
-
-func (c notificationChan) onRescanProgress(height int32) {
-	c <- rescanProgress(height)
-}
-
 func (n blockConnected) handleNotification() error {
 	// Update the blockstamp for the newly-connected block.
 	bs := &wallet.BlockStamp{
@@ -304,14 +272,15 @@ func (n rescanProgress) handleNotification() error {
 
 type rpcClient struct {
 	*btcrpcclient.Client // client to btcd
-	chainNotifications   notificationChan
+	enqueueNotification  chan notification
+	dequeueNotification  chan notification
 	wg                   sync.WaitGroup
 }
 
 func newRPCClient(certs []byte) (*rpcClient, error) {
-	ntfns := make(notificationChan, maxUnhandledNotifications)
 	client := rpcClient{
-		chainNotifications: ntfns,
+		enqueueNotification: make(chan notification),
+		dequeueNotification: make(chan notification),
 	}
 	initializedClient := make(chan struct{})
 	ntfnCallbacks := btcrpcclient.NotificationHandlers{
@@ -328,12 +297,12 @@ func newRPCClient(certs []byte) (*rpcClient, error) {
 				client.Stop()
 			}
 		},
-		OnBlockConnected:    ntfns.onBlockConnected,
-		OnBlockDisconnected: ntfns.onBlockDisconnected,
-		OnRecvTx:            ntfns.onRecvTx,
-		OnRedeemingTx:       ntfns.onRedeemingTx,
-		OnRescanFinished:    ntfns.onRescanFinished,
-		OnRescanProgress:    ntfns.onRescanProgress,
+		OnBlockConnected:    client.onBlockConnected,
+		OnBlockDisconnected: client.onBlockDisconnected,
+		OnRecvTx:            client.onRecvTx,
+		OnRedeemingTx:       client.onRedeemingTx,
+		OnRescanFinished:    client.onRescanFinished,
+		OnRescanProgress:    client.onRescanProgress,
 	}
 	conf := btcrpcclient.ConnConfig{
 		Host:         cfg.RPCConnect,
@@ -352,7 +321,8 @@ func newRPCClient(certs []byte) (*rpcClient, error) {
 }
 
 func (c *rpcClient) Start() {
-	c.wg.Add(1)
+	c.wg.Add(2)
+	go c.notificationQueue()
 	go c.handleNotifications()
 }
 
@@ -361,7 +331,7 @@ func (c *rpcClient) Stop() {
 		log.Warn("Disconnecting chain server client connection")
 		c.Client.Shutdown()
 	}
-	close(c.chainNotifications)
+	close(c.enqueueNotification)
 }
 
 func (c *rpcClient) WaitForShutdown() {
@@ -369,8 +339,83 @@ func (c *rpcClient) WaitForShutdown() {
 	c.wg.Wait()
 }
 
+func (c *rpcClient) onBlockConnected(hash *btcwire.ShaHash, height int32) {
+	c.enqueueNotification <- (blockConnected)(blockSummary{hash, height})
+}
+
+func (c *rpcClient) onBlockDisconnected(hash *btcwire.ShaHash, height int32) {
+	c.enqueueNotification <- (blockDisconnected)(blockSummary{hash, height})
+}
+
+func (c *rpcClient) onRecvTx(tx *btcutil.Tx, block *btcws.BlockDetails) {
+	c.enqueueNotification <- recvTx{tx, block}
+}
+
+func (c *rpcClient) onRedeemingTx(tx *btcutil.Tx, block *btcws.BlockDetails) {
+	c.enqueueNotification <- redeemingTx{tx, block}
+}
+
+func (c *rpcClient) onRescanProgress(height int32) {
+	c.enqueueNotification <- rescanProgress(height)
+}
+
+func (c *rpcClient) onRescanFinished(height int32) {
+	c.enqueueNotification <- rescanFinished{error: nil}
+}
+
+func (c *rpcClient) notificationQueue() {
+	// TODO: Rather than leaving this as an unbounded queue for all types of
+	// notifications, try dropping ones where a later enqueued notification
+	// can fully invalidate one waiting to be processed.  For example,
+	// blockconnected notifications for greater block heights can remove the
+	// need to process earlier blockconnected notifications still waiting
+	// here.
+
+	var q []notification
+	enqueue := c.enqueueNotification
+	var dequeue chan notification
+	var next notification
+out:
+	for {
+		select {
+		case n, ok := <-enqueue:
+			if !ok {
+				// If no notifications are queued for handling,
+				// the queue is finished.
+				if len(q) == 0 {
+					break out
+				}
+				// nil channel so no more reads can occur.
+				enqueue = nil
+				continue
+			}
+			if len(q) == 0 {
+				next = n
+				dequeue = c.dequeueNotification
+			}
+			q = append(q, n)
+
+		case dequeue <- next:
+			q[0] = nil
+			q = q[1:]
+			if len(q) != 0 {
+				next = q[0]
+			} else {
+				// If no more notifications can be enqueued, the
+				// queue is finished.
+				if enqueue == nil {
+					break out
+				}
+				dequeue = nil
+			}
+		}
+	}
+	close(c.dequeueNotification)
+	c.wg.Done()
+}
+
 func (c *rpcClient) handleNotifications() {
-	for n := range c.chainNotifications {
+	for n := range c.dequeueNotification {
 		err := n.handleNotification()
 		if err != nil {
 			switch e := err.(type) {