diff --git a/op-node/rollup/derive/attributes_queue.go b/op-node/rollup/derive/attributes_queue.go
index 63088a6eba8b4..f2e764b0c3cb0 100644
--- a/op-node/rollup/derive/attributes_queue.go
+++ b/op-node/rollup/derive/attributes_queue.go
@@ -22,75 +22,60 @@ import (
 // This stage can be reset by clearing it's batch buffer.
 // This stage does not need to retain any references to L1 blocks.
 
-type AttributesQueueOutput interface {
-	AddSafeAttributes(attributes *eth.PayloadAttributes)
-	SafeL2Head() eth.L2BlockRef
-	StageProgress
-}
-
 type AttributesQueue struct {
-	log      log.Logger
-	config   *rollup.Config
-	dl       L1ReceiptsFetcher
-	next     AttributesQueueOutput
-	prev     *BatchQueue
-	progress Progress
-	batches  []*BatchData
+	log    log.Logger
+	config *rollup.Config
+	dl     L1ReceiptsFetcher
+	prev   *BatchQueue
+	batch  *BatchData
 }
 
-func NewAttributesQueue(log log.Logger, cfg *rollup.Config, l1Fetcher L1ReceiptsFetcher, next AttributesQueueOutput, prev *BatchQueue) *AttributesQueue {
+func NewAttributesQueue(log log.Logger, cfg *rollup.Config, l1Fetcher L1ReceiptsFetcher, prev *BatchQueue) *AttributesQueue {
 	return &AttributesQueue{
 		log:    log,
 		config: cfg,
 		dl:     l1Fetcher,
-		next:   next,
 		prev:   prev,
 	}
 }
 
-func (aq *AttributesQueue) AddBatch(batch *BatchData) {
-	aq.log.Debug("Received next batch", "batch_epoch", batch.EpochNum, "batch_timestamp", batch.Timestamp, "tx_count", len(batch.Transactions))
-	aq.batches = append(aq.batches, batch)
-}
-
-func (aq *AttributesQueue) Progress() Progress {
-	return aq.progress
+func (aq *AttributesQueue) Origin() eth.L1BlockRef {
+	return aq.prev.Origin()
 }
 
-func (aq *AttributesQueue) Step(ctx context.Context, outer Progress) error {
-	if aq.progress.Origin != aq.prev.Origin() {
-		aq.progress.Closed = false
-		aq.progress.Origin = aq.prev.Origin()
-		return nil
+func (aq *AttributesQueue) NextAttributes(ctx context.Context, l2SafeHead eth.L2BlockRef) (*eth.PayloadAttributes, error) {
+	// Get a batch if we need it
+	if aq.batch == nil {
+		batch, err := aq.prev.NextBatch(ctx, l2SafeHead)
+		if err != nil {
+			return nil, err
+		}
+		aq.batch = batch
 	}
 
-	if len(aq.batches) == 0 {
-		batch, err := aq.prev.NextBatch(ctx, aq.next.SafeL2Head())
-		if err == io.EOF {
-			if !aq.progress.Closed {
-				aq.progress.Closed = true
-				return nil
-			} else {
-				return io.EOF
-			}
-
-		} else if err != nil {
-			return err
-		}
-		aq.batches = append(aq.batches, batch)
+	// Actually generate the next attributes
+	if attrs, err := aq.createNextAttributes(ctx, aq.batch, l2SafeHead); err != nil {
+		return nil, err
+	} else {
+		// Clear out the local state once we will succeed
+		aq.batch = nil
+		return attrs, nil
 	}
-	batch := aq.batches[0]
 
-	safeL2Head := aq.next.SafeL2Head()
+}
+
+// createNextAttributes transforms a batch into a payload attributes. This sets `NoTxPool` and appends the batched transactions
+// to the attributes transaction list
+func (aq *AttributesQueue) createNextAttributes(ctx context.Context, batch *BatchData, l2SafeHead eth.L2BlockRef) (*eth.PayloadAttributes, error) {
 	// sanity check parent hash
-	if batch.ParentHash != safeL2Head.Hash {
-		return NewCriticalError(fmt.Errorf("valid batch has bad parent hash %s, expected %s", batch.ParentHash, safeL2Head.Hash))
+	if batch.ParentHash != l2SafeHead.Hash {
+		return nil, NewResetError(fmt.Errorf("valid batch has bad parent hash %s, expected %s", batch.ParentHash, l2SafeHead.Hash))
 	}
 	fetchCtx, cancel := context.WithTimeout(ctx, 20*time.Second)
 	defer cancel()
-	attrs, err := PreparePayloadAttributes(fetchCtx, aq.config, aq.dl, safeL2Head, batch.Timestamp, batch.Epoch())
+	attrs, err := PreparePayloadAttributes(fetchCtx, aq.config, aq.dl, l2SafeHead, batch.Timestamp, batch.Epoch())
 	if err != nil {
-		return err
+		return nil, err
 	}
 
 	// we are verifying, not sequencing, we've got all transactions and do not pull from the tx-pool
@@ -100,19 +85,9 @@ func (aq *AttributesQueue) Step(ctx context.Context, outer Progress) error {
 
 	aq.log.Info("generated attributes in payload queue", "txs", len(attrs.Transactions), "timestamp", batch.Timestamp)
 
-	// Slice off the batch once we are guaranteed to succeed
-	aq.batches = aq.batches[1:]
-
-	aq.next.AddSafeAttributes(attrs)
-	return nil
+	return attrs, nil
 }
 
-func (aq *AttributesQueue) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error {
-	aq.batches = aq.batches[:0]
-	aq.progress = aq.next.Progress()
+func (aq *AttributesQueue) Reset(ctx context.Context, _ eth.L1BlockRef) error {
 	return io.EOF
 }
-
-func (aq *AttributesQueue) SafeL2Head() eth.L2BlockRef {
-	return aq.next.SafeL2Head()
-}
diff --git a/op-node/rollup/derive/attributes_queue_test.go b/op-node/rollup/derive/attributes_queue_test.go
index 959fc79c6b6e9..c5784f59f1715 100644
--- a/op-node/rollup/derive/attributes_queue_test.go
+++ b/op-node/rollup/derive/attributes_queue_test.go
@@ -2,7 +2,6 @@ package derive
 
 import (
 	"context"
-	"io"
 	"math/big"
 	"math/rand"
 	"testing"
@@ -17,30 +16,10 @@ import (
 	"github.com/ethereum/go-ethereum/log"
 )
 
-type MockAttributesQueueOutput struct {
-	MockOriginStage
-}
-
-func (m *MockAttributesQueueOutput) AddSafeAttributes(attributes *eth.PayloadAttributes) {
-	m.Mock.MethodCalled("AddSafeAttributes", attributes)
-}
-
-func (m *MockAttributesQueueOutput) ExpectAddSafeAttributes(attributes *eth.PayloadAttributes) {
-	m.Mock.On("AddSafeAttributes", attributes).Once().Return()
-}
-
-func (m *MockAttributesQueueOutput) SafeL2Head() eth.L2BlockRef {
-	return m.Mock.MethodCalled("SafeL2Head").Get(0).(eth.L2BlockRef)
-}
-
-func (m *MockAttributesQueueOutput) ExpectSafeL2Head(head eth.L2BlockRef) {
-	m.Mock.On("SafeL2Head").Once().Return(head)
-}
-
-var _ AttributesQueueOutput = (*MockAttributesQueueOutput)(nil)
-
-func TestAttributesQueue_Step(t *testing.T) {
-	t.Skip("don't fake out batch queue")
+// TestAttributesQueue checks that it properly uses the PreparePayloadAttributes function
+// (which is well tested) and that it properly sets NoTxPool and adds in the candidate
+// transactions.
+func TestAttributesQueue(t *testing.T) {
 	// test config, only init the necessary fields
 	cfg := &rollup.Config{
 		BlockTime:              2,
@@ -57,18 +36,9 @@ func TestAttributesQueue_Step(t *testing.T) {
 
 	l1Fetcher.ExpectInfoByHash(l1Info.InfoHash, l1Info, nil)
 
-	out := &MockAttributesQueueOutput{}
-	out.progress = Progress{
-		Origin: l1Info.BlockRef(),
-		Closed: false,
-	}
-	defer out.AssertExpectations(t)
-
 	safeHead := testutils.RandomL2BlockRef(rng)
 	safeHead.L1Origin = l1Info.ID()
 
-	out.ExpectSafeL2Head(safeHead)
-
 	batch := &BatchData{BatchV1{
 		ParentHash:   safeHead.Hash,
 		EpochNum:     rollup.Epoch(l1Info.InfoNum),
@@ -86,13 +56,11 @@ func TestAttributesQueue_Step(t *testing.T) {
 		Transactions:          []eth.Data{l1InfoTx, eth.Data("foobar"), eth.Data("example")},
 		NoTxPool:              true,
 	}
-	out.ExpectAddSafeAttributes(&attrs)
 
-	aq := NewAttributesQueue(testlog.Logger(t, log.LvlError), cfg, l1Fetcher, out, nil)
-	require.NoError(t, RepeatResetStep(t, aq.ResetStep, l1Fetcher, 1))
+	aq := NewAttributesQueue(testlog.Logger(t, log.LvlError), cfg, l1Fetcher, nil)
 
-	aq.AddBatch(batch)
+	actual, err := aq.createNextAttributes(context.Background(), batch, safeHead)
 
-	require.NoError(t, aq.Step(context.Background(), out.progress), "adding batch to next stage, no EOF yet")
-	require.Equal(t, io.EOF, aq.Step(context.Background(), out.progress), "done with batches")
+	require.Nil(t, err)
+	require.Equal(t, attrs, *actual)
 }
diff --git a/op-node/rollup/derive/engine_queue.go b/op-node/rollup/derive/engine_queue.go
index 412b553e3a4ab..b585619dde36b 100644
--- a/op-node/rollup/derive/engine_queue.go
+++ b/op-node/rollup/derive/engine_queue.go
@@ -17,6 +17,11 @@ import (
 	"github.com/ethereum/go-ethereum/log"
 )
 
+type NextAttributesProvider interface {
+	Origin() eth.L1BlockRef
+	NextAttributes(context.Context, eth.L2BlockRef) (*eth.PayloadAttributes, error)
+}
+
 type Engine interface {
 	GetPayload(ctx context.Context, payloadId eth.PayloadID) (*eth.ExecutionPayload, error)
 	ForkchoiceUpdate(ctx context.Context, state *eth.ForkchoiceState, attr *eth.PayloadAttributes) (*eth.ForkchoiceUpdatedResult, error)
@@ -64,8 +69,6 @@ type EngineQueue struct {
 
 	finalizedL1 eth.BlockID
 
-	progress Progress
-
 	safeAttributes []*eth.PayloadAttributes
 	unsafePayloads PayloadsQueue // queue of unsafe payloads, ordered by ascending block number, may have gaps
 
@@ -73,14 +76,15 @@ type EngineQueue struct {
 	finalityData []FinalityData
 
 	engine Engine
+	prev   NextAttributesProvider
+
+	progress Progress // only used for pipeline resets
 
 	metrics Metrics
 }
 
-var _ AttributesQueueOutput = (*EngineQueue)(nil)
-
 // NewEngineQueue creates a new EngineQueue, which should be Reset(origin) before use.
-func NewEngineQueue(log log.Logger, cfg *rollup.Config, engine Engine, metrics Metrics) *EngineQueue {
+func NewEngineQueue(log log.Logger, cfg *rollup.Config, engine Engine, metrics Metrics, prev NextAttributesProvider) *EngineQueue {
 	return &EngineQueue{
 		log:          log,
 		cfg:          cfg,
@@ -91,6 +95,7 @@ func NewEngineQueue(log log.Logger, cfg *rollup.Config, engine Engine, metrics M
 			MaxSize: maxUnsafePayloadsMemory,
 			SizeFn:  payloadMemSize,
 		},
+		prev: prev,
 	}
 }
 
@@ -146,17 +151,30 @@ func (eq *EngineQueue) LastL2Time() uint64 {
 	return uint64(eq.safeAttributes[len(eq.safeAttributes)-1].Timestamp)
 }
 
-func (eq *EngineQueue) Step(ctx context.Context, outer Progress) error {
-	if changed, err := eq.progress.Update(outer); err != nil || changed {
-		return err
-	}
+func (eq *EngineQueue) Step(ctx context.Context, _ Progress) error {
 	if len(eq.safeAttributes) > 0 {
 		return eq.tryNextSafeAttributes(ctx)
 	}
+	outOfData := false
+	if len(eq.safeAttributes) == 0 {
+		if next, err := eq.prev.NextAttributes(ctx, eq.safeHead); err == io.EOF {
+			outOfData = true
+		} else if err != nil {
+			return err
+		} else {
+			eq.safeAttributes = append(eq.safeAttributes, next)
+			return NotEnoughData
+		}
+	}
 	if eq.unsafePayloads.Len() > 0 {
 		return eq.tryNextUnsafePayload(ctx)
 	}
-	return io.EOF
+
+	if outOfData {
+		return io.EOF
+	} else {
+		return nil
+	}
 }
 
 // tryFinalizeL2 traverses the past L1 blocks, checks if any has been finalized,
@@ -186,11 +204,11 @@ func (eq *EngineQueue) postProcessSafeL2() {
 		eq.finalityData = append(eq.finalityData[:0], eq.finalityData[1:finalityLookback]...)
 	}
 	// remember the last L2 block that we fully derived from the given finality data
-	if len(eq.finalityData) == 0 || eq.finalityData[len(eq.finalityData)-1].L1Block.Number < eq.progress.Origin.Number {
+	if len(eq.finalityData) == 0 || eq.finalityData[len(eq.finalityData)-1].L1Block.Number < eq.prev.Origin().Number {
 		// append entry for new L1 block
 		eq.finalityData = append(eq.finalityData, FinalityData{
 			L2Block: eq.safeHead,
-			L1Block: eq.progress.Origin.ID(),
+			L1Block: eq.prev.Origin().ID(),
 		})
 	} else {
 		// if it's a now L2 block that was derived from the same latest L1 block, then just update the entry
@@ -205,7 +223,7 @@ func (eq *EngineQueue) logSyncProgress(reason string) {
 		"l2_safe", eq.safeHead,
 		"l2_unsafe", eq.unsafeHead,
 		"l2_time", eq.unsafeHead.Time,
-		"l1_derived", eq.progress.Origin,
+		"l1_derived", eq.prev.Origin(),
 	)
 }
 
@@ -415,7 +433,6 @@ func (eq *EngineQueue) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error
 	// note: we do not clear the unsafe payloadds queue; if the payloads are not applicable anymore the parent hash checks will clear out the old payloads.
 	eq.progress = Progress{
 		Origin: pipelineOrigin,
-		Closed: false,
 	}
 	eq.metrics.RecordL2Ref("l2_finalized", finalized)
 	eq.metrics.RecordL2Ref("l2_safe", safe)
diff --git a/op-node/rollup/derive/engine_queue_test.go b/op-node/rollup/derive/engine_queue_test.go
index 503f40c33e118..800c5c7736fe8 100644
--- a/op-node/rollup/derive/engine_queue_test.go
+++ b/op-node/rollup/derive/engine_queue_test.go
@@ -1,6 +1,8 @@
 package derive
 
 import (
+	"context"
+	"io"
 	"math/rand"
 	"testing"
 
@@ -14,6 +16,20 @@ import (
 	"github.com/ethereum/go-ethereum/log"
 )
 
+type fakeAttributesQueue struct {
+	origin eth.L1BlockRef
+}
+
+func (f *fakeAttributesQueue) Origin() eth.L1BlockRef {
+	return f.origin
+}
+
+func (f *fakeAttributesQueue) NextAttributes(_ context.Context, _ eth.L2BlockRef) (*eth.PayloadAttributes, error) {
+	return nil, io.EOF
+}
+
+var _ NextAttributesProvider = (*fakeAttributesQueue)(nil)
+
 func TestEngineQueue_Finalize(t *testing.T) {
 	logger := testlog.Logger(t, log.LvlInfo)
 
@@ -211,8 +227,10 @@ func TestEngineQueue_Finalize(t *testing.T) {
 	l1F.ExpectL1BlockRefByHash(refB.Hash, refB, nil)
 	l1F.ExpectL1BlockRefByNumber(refB.Number, refB, nil)
 
-	eq := NewEngineQueue(logger, cfg, eng, metrics)
-	require.NoError(t, RepeatResetStep(t, eq.ResetStep, l1F, 20))
+	prev := &fakeAttributesQueue{}
+
+	eq := NewEngineQueue(logger, cfg, eng, metrics, prev)
+	require.ErrorIs(t, eq.ResetStep(context.Background(), l1F), io.EOF)
 
 	require.Equal(t, refB1, eq.SafeL2Head(), "L2 reset should go back to sequence window ago: blocks with origin E and D are not safe until we reconcile, C is extra, and B1 is the end we look for")
 	require.Equal(t, refB, eq.Progress().Origin, "Expecting to be set back derivation L1 progress to B")
@@ -220,20 +238,19 @@ func TestEngineQueue_Finalize(t *testing.T) {
 
 	// now say C1 was included in D and became the new safe head
 	eq.progress.Origin = refD
+	prev.origin = refD
 	eq.safeHead = refC1
 	eq.postProcessSafeL2()
 
 	// now say D0 was included in E and became the new safe head
 	eq.progress.Origin = refE
+	prev.origin = refE
 	eq.safeHead = refD0
 	eq.postProcessSafeL2()
 
 	// let's finalize D (current L1), from which we fully derived C1 (it was safe head), but not D0 (included in E)
 	eq.Finalize(refD.ID())
 
-	// Now a few steps later, without consuming any additional L1 inputs,
-	// we should be able to resolve that B1 is now finalized, since it was included in finalized L1 block C
-	require.NoError(t, RepeatStep(t, eq.Step, eq.progress, 10))
 	require.Equal(t, refC1, eq.Finalized(), "C1 was included in finalized D, and should now be finalized")
 
 	l1F.AssertExpectations(t)
diff --git a/op-node/rollup/derive/pipeline.go b/op-node/rollup/derive/pipeline.go
index ba2f62472d68d..bc8fe63d78009 100644
--- a/op-node/rollup/derive/pipeline.go
+++ b/op-node/rollup/derive/pipeline.go
@@ -101,13 +101,13 @@ func NewDerivationPipeline(log log.Logger, cfg *rollup.Config, l1Fetcher L1Fetch
 	bank := NewChannelBank(log, cfg, l1Src, l1Fetcher)
 	chInReader := NewChannelInReader(log, bank)
 	batchQueue := NewBatchQueue(log, cfg, chInReader)
+	attributesQueue := NewAttributesQueue(log, cfg, l1Fetcher, batchQueue)
 
 	// Push stages (that act like pull stages b/c we push from the innermost stages prior to the outermost stages)
-	eng := NewEngineQueue(log, cfg, engine, metrics)
-	attributesQueue := NewAttributesQueue(log, cfg, l1Fetcher, eng, batchQueue)
+	eng := NewEngineQueue(log, cfg, engine, metrics, attributesQueue)
 
-	stages := []Stage{eng, attributesQueue}
-	pullStages := []PullStage{batchQueue, chInReader, bank, l1Src, l1Traversal}
+	stages := []Stage{eng}
+	pullStages := []PullStage{attributesQueue, batchQueue, chInReader, bank, l1Src, l1Traversal}
 
 	return &DerivationPipeline{
 		log:        log,