diff --git a/crates/engine/tree/src/tree/payload_processor/mod.rs b/crates/engine/tree/src/tree/payload_processor/mod.rs
index 5798e245768..a02092973d9 100644
--- a/crates/engine/tree/src/tree/payload_processor/mod.rs
+++ b/crates/engine/tree/src/tree/payload_processor/mod.rs
@@ -43,7 +43,6 @@ use reth_trie_sparse::{
     ParallelSparseTrie, ParallelismThresholds, RevealableSparseTrie, SparseStateTrie,
 };
 use std::{
-    collections::BTreeMap,
     ops::Not,
     sync::{
         atomic::AtomicBool,
@@ -363,6 +362,10 @@ where
         }
     }
 
+    /// Below this threshold, transactions are converted via rayon's order-preserving `collect()`
+    /// in a single task, eliminating the out-of-order channel and `BTreeMap` reorder task.
+    const PARALLEL_REORDER_TX_THRESHOLD: usize = 30;
+
     /// Spawns a task advancing transaction env iterator and streaming updates through a channel.
     #[expect(clippy::type_complexity)]
     fn spawn_tx_iterator<I: ExecutableTxIterator<Evm>>(
@@ -372,48 +375,72 @@ where
         mpsc::Receiver<WithTxEnv<TxEnvFor<Evm>, I::Recovered>>,
         mpsc::Receiver<Result<WithTxEnv<TxEnvFor<Evm>, I::Recovered>, I::Error>>,
     ) {
-        let (ooo_tx, ooo_rx) = mpsc::channel();
+        let (transactions, convert) = transactions.into();
+        let transactions = transactions.into_par_iter();
+        let tx_count = transactions.len();
+
         let (prewarm_tx, prewarm_rx) = mpsc::channel();
         let (execute_tx, execute_rx) = mpsc::channel();
 
-        // Spawn a task that `convert`s all transactions in parallel and sends them out-of-order.
-        rayon::spawn(move || {
-            let (transactions, convert) = transactions.into();
-            transactions.into_par_iter().enumerate().for_each_with(ooo_tx, |ooo_tx, (idx, tx)| {
-                let tx = convert(tx);
-                let tx = tx.map(|tx| {
-                    let (tx_env, tx) = tx.into_parts();
-                    WithTxEnv { tx_env, tx: Arc::new(tx) }
-                });
-                // Only send Ok(_) variants to prewarming task.
-                if let Ok(tx) = &tx {
-                    let _ = prewarm_tx.send(tx.clone());
-                }
-                let _ = ooo_tx.send((idx, tx));
-            });
-        });
+        if tx_count < Self::PARALLEL_REORDER_TX_THRESHOLD {
+            rayon::spawn(move || {
+                let results: Vec<_> = transactions
+                    .map(|tx| {
+                        let tx = convert(tx);
+                        tx.map(|tx| {
+                            let (tx_env, tx) = tx.into_parts();
+                            WithTxEnv { tx_env, tx: Arc::new(tx) }
+                        })
+                    })
+                    .collect();
 
-        // Spawn a task that processes out-of-order transactions from the task above and sends them
-        // to the execution task in order.
-        self.executor.spawn_blocking(move || {
-            let mut next_for_execution = 0;
-            let mut queue = BTreeMap::new();
-            while let Ok((idx, tx)) = ooo_rx.recv() {
-                if next_for_execution == idx {
+                for tx in results {
+                    if let Ok(ref ok) = tx {
+                        let _ = prewarm_tx.send(ok.clone());
+                    }
                     let _ = execute_tx.send(tx);
-                    next_for_execution += 1;
+                }
+            });
+        } else {
+            let (ooo_tx, ooo_rx) = mpsc::channel();
+
+            rayon::spawn(move || {
+                transactions.enumerate().for_each_with(ooo_tx, |ooo_tx, (idx, tx)| {
+                    let tx = convert(tx);
+                    let tx = tx.map(|tx| {
+                        let (tx_env, tx) = tx.into_parts();
+                        WithTxEnv { tx_env, tx: Arc::new(tx) }
+                    });
+                    if let Ok(tx) = &tx {
+                        let _ = prewarm_tx.send(tx.clone());
+                    }
+                    let _ = ooo_tx.send((idx, tx));
+                });
+            });
 
-                    while let Some(entry) = queue.first_entry() &&
-                        *entry.key() == next_for_execution
-                    {
-                        let _ = execute_tx.send(entry.remove());
-                        next_for_execution += 1;
+            self.executor.spawn_blocking(move || {
+                let mut next = 0usize;
+                let mut buf: Vec<Option<Result<_, _>>> = (0..tx_count).map(|_| None).collect();
+                while let Ok((idx, tx)) = ooo_rx.recv() {
+                    if idx == next {
+                        let _ = execute_tx.send(tx);
+                        next += 1;
+
+                        while next < buf.len() {
+                            match buf[next].take() {
+                                Some(queued) => {
+                                    let _ = execute_tx.send(queued);
+                                    next += 1;
+                                }
+                                None => break,
+                            }
+                        }
+                    } else if idx < buf.len() {
+                        buf[idx] = Some(tx);
                     }
-                } else {
-                    queue.insert(idx, tx);
                 }
-            }
-        });
+            });
+        }
 
         (prewarm_rx, execute_rx)
     }