diff --git a/crates/derive/src/stages/batch_stream.rs b/crates/derive/src/stages/batch_stream.rs
new file mode 100644
index 0000000000..39eea52e8e
--- /dev/null
+++ b/crates/derive/src/stages/batch_stream.rs
@@ -0,0 +1,166 @@
+//! This module contains the `BatchStream` stage.
+
+use alloc::{boxed::Box, sync::Arc, vec::Vec};
+use async_trait::async_trait;
+use core::fmt::Debug;
+use op_alloy_genesis::{RollupConfig, SystemConfig};
+use op_alloy_protocol::BlockInfo;
+use tracing::trace;
+
+use crate::{
+    batch::{Batch, SingleBatch, SpanBatch},
+    errors::{PipelineError, PipelineResult},
+    stages::BatchQueueProvider,
+    traits::{OriginAdvancer, OriginProvider, ResettableStage},
+};
+
+/// [BatchStream] stage in the derivation pipeline.
+///
+/// This stage is introduced in the [Holocene] hardfork.
+/// It slots in between the [ChannelReader] and [BatchQueue]
+/// stages, buffering span batches until they are validated.
+///
+/// [Holocene]: https://specs.optimism.io/protocol/holocene/overview.html
+/// [ChannelReader]: crate::stages::ChannelReader
+/// [BatchQueue]: crate::stages::BatchQueue
+#[derive(Debug)]
+pub struct BatchStream<P>
+where
+    P: BatchQueueProvider + OriginAdvancer + OriginProvider + ResettableStage + Debug,
+{
+    /// The previous stage in the derivation pipeline.
+    prev: P,
+    /// There can only be a single staged span batch.
+    span: Option<SpanBatch>,
+    /// A buffer of single batches derived from the [SpanBatch].
+    buffer: Vec<SingleBatch>,
+    /// A reference to the rollup config, used to check
+    /// if the [BatchStream] stage should be activated.
+    config: Arc<RollupConfig>,
+}
+
+impl<P> BatchStream<P>
+where
+    P: BatchQueueProvider + OriginAdvancer + OriginProvider + ResettableStage + Debug,
+{
+    /// Create a new [BatchStream] stage.
+    pub fn new(prev: P, config: Arc<RollupConfig>) -> Self {
+        Self { prev, span: None, buffer: Vec::new(), config }
+    }
+
+    /// Returns if the [BatchStream] stage is active based on the
+    /// origin timestamp and holocene activation timestamp.
+    pub fn is_active(&self) -> PipelineResult<bool> {
+        let origin = self.prev.origin().ok_or(PipelineError::MissingOrigin.crit())?;
+        Ok(self.config.is_holocene_active(origin.timestamp))
+    }
+
+    /// Gets a [SingleBatch] from the in-memory buffer.
+    pub fn get_single_batch(&mut self) -> Option<SingleBatch> {
+        trace!(target: "batch_span", "Attempting to get a SingleBatch from buffer len: {}", self.buffer.len());
+        unimplemented!()
+    }
+}
+
+#[async_trait]
+impl<P> BatchQueueProvider for BatchStream<P>
+where
+    P: BatchQueueProvider + OriginAdvancer + OriginProvider + ResettableStage + Send + Debug,
+{
+    async fn next_batch(&mut self) -> PipelineResult<Batch> {
+        // If the stage is not active, "pass" the next batch
+        // through this stage to the BatchQueue stage.
+        if !self.is_active()? {
+            trace!(target: "batch_span", "BatchStream stage is inactive, pass-through.");
+            return self.prev.next_batch().await;
+        }
+
+        // First, attempt to pull a SinguleBatch out of the buffer.
+        if let Some(b) = self.get_single_batch() {
+            return Ok(Batch::Single(b));
+        }
+
+        // Safety: bubble up any errors from the batch reader.
+        let batch = self.prev.next_batch().await?;
+
+        // If the next batch is a singular batch, it is immediately
+        // forwarded to the `BatchQueue` stage.
+        let Batch::Span(b) = batch else {
+            return Ok(batch);
+        };
+
+        // Set the current span batch.
+        self.span = Some(b);
+
+        // Attempt to pull a SingleBatch out of the SpanBatch.
+        match self.get_single_batch() {
+            Some(b) => Ok(Batch::Single(b)),
+            None => Err(PipelineError::NotEnoughData.temp()),
+        }
+    }
+}
+
+#[async_trait]
+impl<P> OriginAdvancer for BatchStream<P>
+where
+    P: BatchQueueProvider + OriginAdvancer + OriginProvider + ResettableStage + Send + Debug,
+{
+    async fn advance_origin(&mut self) -> PipelineResult<()> {
+        self.prev.advance_origin().await
+    }
+}
+
+impl<P> OriginProvider for BatchStream<P>
+where
+    P: BatchQueueProvider + OriginAdvancer + OriginProvider + ResettableStage + Debug,
+{
+    fn origin(&self) -> Option<BlockInfo> {
+        self.prev.origin()
+    }
+}
+
+#[async_trait]
+impl<P> ResettableStage for BatchStream<P>
+where
+    P: BatchQueueProvider + OriginAdvancer + OriginProvider + ResettableStage + Debug + Send,
+{
+    async fn reset(&mut self, base: BlockInfo, cfg: &SystemConfig) -> PipelineResult<()> {
+        self.prev.reset(base, cfg).await?;
+        self.span.take();
+        crate::inc!(STAGE_RESETS, &["batch-span"]);
+        Ok(())
+    }
+}
+
+#[cfg(test)]
+mod test {
+    use super::*;
+    use crate::{
+        batch::SingleBatch,
+        stages::test_utils::{CollectingLayer, MockBatchQueueProvider, TraceStorage},
+    };
+    use tracing_subscriber::{layer::SubscriberExt, util::SubscriberInitExt};
+
+    #[tokio::test]
+    async fn test_batch_stream_inactive() {
+        let trace_store: TraceStorage = Default::default();
+        let layer = CollectingLayer::new(trace_store.clone());
+        tracing_subscriber::Registry::default().with(layer).init();
+
+        let data = vec![Ok(Batch::Single(SingleBatch::default()))];
+        let config = Arc::new(RollupConfig { holocene_time: Some(100), ..RollupConfig::default() });
+        let prev = MockBatchQueueProvider::new(data);
+        let mut stream = BatchStream::new(prev, config.clone());
+
+        // The stage should not be active.
+        assert!(!stream.is_active().unwrap());
+
+        // The next batch should be passed through to the [BatchQueue] stage.
+        let batch = stream.next_batch().await.unwrap();
+        assert_eq!(batch, Batch::Single(SingleBatch::default()));
+
+        let logs = trace_store.get_by_level(tracing::Level::TRACE);
+        assert_eq!(logs.len(), 1);
+        assert!(logs[0].contains("BatchStream stage is inactive, pass-through."));
+    }
+}
diff --git a/crates/derive/src/stages/mod.rs b/crates/derive/src/stages/mod.rs
index 2b0422be9e..e6c73b48da 100644
--- a/crates/derive/src/stages/mod.rs
+++ b/crates/derive/src/stages/mod.rs
@@ -29,6 +29,9 @@ pub use channel_bank::{ChannelBank, ChannelBankProvider};
 mod channel_reader;
 pub use channel_reader::{ChannelReader, ChannelReaderProvider};
 
+mod batch_stream;
+pub use batch_stream::BatchStream;
+
 mod batch_queue;
 pub use batch_queue::{BatchQueue, BatchQueueProvider};