diff --git a/domain/consensus/processes/transactionvalidator/transaction_in_context_test.go b/domain/consensus/processes/transactionvalidator/transaction_in_context_test.go
new file mode 100644
index 000000000..6ef68ffa8
--- /dev/null
+++ b/domain/consensus/processes/transactionvalidator/transaction_in_context_test.go
@@ -0,0 +1,44 @@
+package transactionvalidator
+
+import (
+	"github.com/kaspanet/kaspad/util/mstime"
+	"testing"
+)
+
+// TestSequenceLocksActive tests the SequenceLockActive function to ensure it
+// works as expected in all possible combinations/scenarios.
+func TestSequenceLocksActive(t *testing.T) {
+	tests := []struct {
+		seqLock        sequenceLock
+		blockBlueScore uint64
+		mtp            mstime.Time
+
+		want bool
+	}{
+		// Block based sequence lock with equal block blue score.
+		{seqLock: sequenceLock{-1, 1000}, blockBlueScore: 1001, mtp: mstime.UnixMilliseconds(9), want: true},
+
+		// Time based sequence lock with mtp past the absolute time.
+		{seqLock: sequenceLock{30, -1}, blockBlueScore: 2, mtp: mstime.UnixMilliseconds(31), want: true},
+
+		// Block based sequence lock with current blue score below seq lock block blue score.
+		{seqLock: sequenceLock{-1, 1000}, blockBlueScore: 90, mtp: mstime.UnixMilliseconds(9), want: false},
+
+		// Time based sequence lock with current time before lock time.
+		{seqLock: sequenceLock{30, -1}, blockBlueScore: 2, mtp: mstime.UnixMilliseconds(29), want: false},
+
+		// Block based sequence lock at the same blue score, so shouldn't yet be active.
+		{seqLock: sequenceLock{-1, 1000}, blockBlueScore: 1000, mtp: mstime.UnixMilliseconds(9), want: false},
+
+		// Time based sequence lock with current time equal to lock time, so shouldn't yet be active.
+		{seqLock: sequenceLock{30, -1}, blockBlueScore: 2, mtp: mstime.UnixMilliseconds(30), want: false},
+	}
+
+	validator := transactionValidator{}
+	for i, test := range tests {
+		got := validator.sequenceLockActive(&test.seqLock, test.blockBlueScore, test.mtp.UnixMilliseconds())
+		if got != test.want {
+			t.Fatalf("SequenceLockActive #%d got %v want %v", i, got, test.want)
+		}
+	}
+}