diff --git a/db/migrations/20251201104138-add-tx-output-utxo-lookup-index.js b/db/migrations/20251201104138-add-tx-output-utxo-lookup-index.js
new file mode 100644
index 00000000..6bfb5a3e
--- /dev/null
+++ b/db/migrations/20251201104138-add-tx-output-utxo-lookup-index.js
@@ -0,0 +1,39 @@
+'use strict';
+
+module.exports = {
+  up: async (queryInterface) => {
+    // Check if index exists
+    const [indexes] = await queryInterface.sequelize.query(`
+      SELECT COUNT(DISTINCT index_name) as count
+      FROM information_schema.statistics
+      WHERE table_schema = DATABASE()
+        AND table_name = 'tx_output'
+        AND index_name = 'idx_tx_output_utxo_lookup';
+    `);
+
+    // Only create if it doesn't exist
+    if (indexes[0].count === 0) {
+      await queryInterface.sequelize.query(`
+        CREATE INDEX idx_tx_output_utxo_lookup
+        ON tx_output (address, token_id, spent_by, voided, locked, authorities);
+      `);
+    }
+  },
+
+  down: async (queryInterface) => {
+    // Check if index exists before dropping
+    const [indexes] = await queryInterface.sequelize.query(`
+      SELECT COUNT(DISTINCT index_name) as count
+      FROM information_schema.statistics
+      WHERE table_schema = DATABASE()
+        AND table_name = 'tx_output'
+        AND index_name = 'idx_tx_output_utxo_lookup';
+    `);
+
+    if (indexes[0].count > 0) {
+      await queryInterface.sequelize.query(`
+        DROP INDEX idx_tx_output_utxo_lookup ON tx_output;
+      `);
+    }
+  },
+};