diff --git a/hathor/feature_activation/feature_service.py b/hathor/feature_activation/feature_service.py
index 4d44dd5c2..a5921e830 100644
--- a/hathor/feature_activation/feature_service.py
+++ b/hathor/feature_activation/feature_service.py
@@ -19,9 +19,10 @@
 from hathor.feature_activation.model.feature_description import FeatureDescription
 from hathor.feature_activation.model.feature_state import FeatureState
 from hathor.feature_activation.settings import Settings as FeatureSettings
+from hathor.util import not_none
 
 if TYPE_CHECKING:
-    from hathor.transaction import Block
+    from hathor.transaction import Block, Transaction
     from hathor.transaction.storage import TransactionStorage
 
 
@@ -47,8 +48,15 @@ def __init__(self, *, feature_settings: FeatureSettings, tx_storage: 'Transactio
         self._feature_settings = feature_settings
         self._tx_storage = tx_storage
 
-    def is_feature_active(self, *, block: 'Block', feature: Feature) -> bool:
-        """Returns whether a Feature is active at a certain block."""
+    def is_feature_active_for_transaction(self, *, tx: 'Transaction', feature: Feature) -> bool:
+        """Return whether a Feature is active for a certain Transaction."""
+        metadata = tx.get_metadata()
+        closest_block = self._tx_storage.get_block(not_none(metadata.closest_block))
+
+        return self.is_feature_active_for_block(block=closest_block, feature=feature)
+
+    def is_feature_active_for_block(self, *, block: 'Block', feature: Feature) -> bool:
+        """Return whether a Feature is active for a certain block."""
         state = self.get_state(block=block, feature=feature)
 
         return state == FeatureState.ACTIVE
diff --git a/hathor/manager.py b/hathor/manager.py
index 731e70c0a..cb9fb6259 100644
--- a/hathor/manager.py
+++ b/hathor/manager.py
@@ -1083,7 +1083,7 @@ def _log_feature_states(self, vertex: BaseTransaction) -> None:
 
     def _log_if_feature_is_active(self, block: Block, feature: Feature) -> None:
         """Log if a feature is ACTIVE for a block. Used as part of the Feature Activation Phased Testing."""
-        if self._feature_service.is_feature_active(block=block, feature=feature):
+        if self._feature_service.is_feature_active_for_block(block=block, feature=feature):
             self.log.info(
                 'Feature is ACTIVE for block',
                 feature=feature.value,
diff --git a/hathor/transaction/base_transaction.py b/hathor/transaction/base_transaction.py
index 958c59c05..9fe3b0669 100644
--- a/hathor/transaction/base_transaction.py
+++ b/hathor/transaction/base_transaction.py
@@ -33,7 +33,7 @@
 from hathor.transaction.util import VerboseCallback, int_to_bytes, unpack, unpack_len
 from hathor.transaction.validation_state import ValidationState
 from hathor.types import TokenUid, TxOutputScript, VertexId
-from hathor.util import classproperty
+from hathor.util import classproperty, not_none
 
 if TYPE_CHECKING:
     from _hashlib import HASH
@@ -708,6 +708,7 @@ def update_initial_metadata(self, *, save: bool = True) -> None:
         self._update_parents_children_metadata()
         self._update_reward_lock_metadata()
         self._update_feature_activation_bit_counts()
+        self._update_closest_block_metadata()
         if save:
             assert self.storage is not None
             self.storage.save_transaction(self, only_metadata=True)
@@ -742,6 +743,51 @@ def _update_feature_activation_bit_counts(self) -> None:
         # This method lazily calculates and stores the value in metadata
         self.get_feature_activation_bit_counts()
 
+    def _update_closest_block_metadata(self) -> None:
+        """
+        Set the tx's closest_block metadata.
+        For blocks, it's always None. For Transactions, it's the Block with the greatest height that is a direct
+        or indirect dependency (ancestor) of the transaction, including both funds and confirmation DAGs.
+        It's calculated by propagating the metadata forward in the DAG,
+        and it's used by Feature Activation for Transactions.
+        """
+        from hathor.transaction import Block, Transaction
+        if isinstance(self, Block):
+            return
+        assert isinstance(self, Transaction)
+        assert self.storage is not None
+        metadata = self.get_metadata()
+
+        if self.is_genesis:
+            metadata.closest_block = self._settings.GENESIS_BLOCK_HASH
+            return
+
+        closest_block: Block | None = None
+        dependency_ids = self.parents + [tx_input.tx_id for tx_input in self.inputs]
+
+        for vertex_id in dependency_ids:
+            vertex = self.storage.get_transaction(vertex_id)
+            vertex_meta = vertex.get_metadata()
+            this_closest_block: Block
+
+            if isinstance(vertex, Block):
+                assert vertex_meta.closest_block is None
+                this_closest_block = vertex
+            elif isinstance(vertex, Transaction):
+                this_closest_block_id = (
+                    self._settings.GENESIS_BLOCK_HASH if vertex.is_genesis else not_none(vertex_meta.closest_block)
+                )
+                this_closest_block = self.storage.get_block(this_closest_block_id)
+            else:
+                raise NotImplementedError
+
+            if not closest_block or (this_closest_block.get_height() > closest_block.get_height()):
+                closest_block = this_closest_block
+
+        assert closest_block is not None
+        assert closest_block.hash is not None
+        metadata.closest_block = closest_block.hash
+
     def update_timestamp(self, now: int) -> None:
         """Update this tx's timestamp
 
diff --git a/hathor/transaction/storage/migrations/add_closest_block_metadata.py b/hathor/transaction/storage/migrations/add_closest_block_metadata.py
new file mode 100644
index 000000000..02fcb22cd
--- /dev/null
+++ b/hathor/transaction/storage/migrations/add_closest_block_metadata.py
@@ -0,0 +1,41 @@
+#  Copyright 2023 Hathor Labs
+#
+#  Licensed under the Apache License, Version 2.0 (the "License");
+#  you may not use this file except in compliance with the License.
+#  You may obtain a copy of the License at
+#
+#  http://www.apache.org/licenses/LICENSE-2.0
+#
+#  Unless required by applicable law or agreed to in writing, software
+#  distributed under the License is distributed on an "AS IS" BASIS,
+#  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#  See the License for the specific language governing permissions and
+#  limitations under the License.
+
+from typing import TYPE_CHECKING
+
+from structlog import get_logger
+
+from hathor.transaction.storage.migrations import BaseMigration
+from hathor.util import progress
+
+if TYPE_CHECKING:
+    from hathor.transaction.storage import TransactionStorage
+
+logger = get_logger()
+
+
+class Migration(BaseMigration):
+    def skip_empty_db(self) -> bool:
+        return True
+
+    def get_db_name(self) -> str:
+        return 'add_closest_block_metadata'
+
+    def run(self, storage: 'TransactionStorage') -> None:
+        log = logger.new()
+        topological_iterator = storage.topological_iterator()
+
+        for vertex in progress(topological_iterator, log=log, total=None):
+            if vertex.is_transaction:
+                vertex.update_initial_metadata()
diff --git a/hathor/transaction/storage/transaction_storage.py b/hathor/transaction/storage/transaction_storage.py
index 4a94f98f9..8fbffd147 100644
--- a/hathor/transaction/storage/transaction_storage.py
+++ b/hathor/transaction/storage/transaction_storage.py
@@ -38,6 +38,7 @@
 from hathor.transaction.storage.migrations import (
     BaseMigration,
     MigrationState,
+    add_closest_block_metadata,
     add_feature_activation_bit_counts_metadata,
     add_feature_activation_bit_counts_metadata2,
     add_min_height_metadata,
@@ -92,6 +93,7 @@ class TransactionStorage(ABC):
         add_feature_activation_bit_counts_metadata.Migration,
         remove_first_nop_features.Migration,
         add_feature_activation_bit_counts_metadata2.Migration,
+        add_closest_block_metadata.Migration,
     ]
 
     _migrations: list[BaseMigration]
diff --git a/hathor/transaction/transaction_metadata.py b/hathor/transaction/transaction_metadata.py
index 17ed326a1..d46cda8e3 100644
--- a/hathor/transaction/transaction_metadata.py
+++ b/hathor/transaction/transaction_metadata.py
@@ -19,6 +19,7 @@
 from hathor.feature_activation.feature import Feature
 from hathor.feature_activation.model.feature_state import FeatureState
 from hathor.transaction.validation_state import ValidationState
+from hathor.types import VertexId
 from hathor.util import practically_equal
 
 if TYPE_CHECKING:
@@ -56,6 +57,12 @@ class TransactionMetadata:
     # is None otherwise. This is only used for caching, so it can be safely cleared up, as it would be recalculated
     # when necessary.
     feature_states: Optional[dict[Feature, FeatureState]] = None
+
+    # For Blocks, this is None. For Transactions, this is the Block with the greatest height that is a direct or
+    # indirect dependency (ancestor) of the transaction, including both funds and confirmation DAGs.
+    # It's used by Feature Activation for Transactions.
+    closest_block: VertexId | None
+
     # It must be a weakref.
     _tx_ref: Optional['ReferenceType[BaseTransaction]']
 
@@ -71,7 +78,8 @@ def __init__(
         score: float = 0,
         height: Optional[int] = None,
         min_height: Optional[int] = None,
-        feature_activation_bit_counts: Optional[list[int]] = None
+        feature_activation_bit_counts: Optional[list[int]] = None,
+        closest_block: VertexId | None = None,
     ) -> None:
         from hathor.transaction.genesis import is_genesis
 
@@ -129,6 +137,8 @@ def __init__(
 
         self.feature_activation_bit_counts = feature_activation_bit_counts
 
+        self.closest_block = closest_block
+
         settings = get_global_settings()
 
         # Genesis specific:
@@ -192,7 +202,7 @@ def __eq__(self, other: Any) -> bool:
             return False
         for field in ['hash', 'conflict_with', 'voided_by', 'received_by', 'children',
                       'accumulated_weight', 'twins', 'score', 'first_block', 'validation',
-                      'min_height', 'feature_activation_bit_counts', 'feature_states']:
+                      'min_height', 'feature_activation_bit_counts', 'feature_states', 'closest_block']:
             if (getattr(self, field) or None) != (getattr(other, field) or None):
                 return False
 
@@ -228,6 +238,7 @@ def to_json(self) -> dict[str, Any]:
         data['height'] = self.height
         data['min_height'] = self.min_height
         data['feature_activation_bit_counts'] = self.feature_activation_bit_counts
+        data['closest_block'] = self.closest_block.hex() if self.closest_block is not None else None
 
         if self.feature_states is not None:
             data['feature_states'] = {feature.value: state.value for feature, state in self.feature_states.items()}
@@ -292,6 +303,9 @@ def create_from_json(cls, data: dict[str, Any]) -> 'TransactionMetadata':
         if first_block_raw:
             meta.first_block = bytes.fromhex(first_block_raw)
 
+        closest_block_raw = data.get('closest_block')
+        meta.closest_block = bytes.fromhex(closest_block_raw) if closest_block_raw is not None else None
+
         _val_name = data.get('validation', None)
         meta.validation = ValidationState.from_name(_val_name) if _val_name is not None else ValidationState.INITIAL
 
diff --git a/tests/feature_activation/test_feature_service.py b/tests/feature_activation/test_feature_service.py
index 4a01069d3..302fe6871 100644
--- a/tests/feature_activation/test_feature_service.py
+++ b/tests/feature_activation/test_feature_service.py
@@ -507,7 +507,7 @@ def test_is_feature_active(block_mocks: list[Block], tx_storage: TransactionStor
     )
     block = block_mocks[block_height]
 
-    result = service.is_feature_active(block=block, feature=Feature.NOP_FEATURE_1)
+    result = service.is_feature_active_for_block(block=block, feature=Feature.NOP_FEATURE_1)
 
     assert result is True