diff --git a/lib/bcoin/pool.js b/lib/bcoin/pool.js
index 105e0cc8..8d88f0da 100644
--- a/lib/bcoin/pool.js
+++ b/lib/bcoin/pool.js
@@ -329,9 +329,19 @@ Pool.prototype._handleMerkle = function _handleMerkle(block, peer) {
 };
 
 Pool.prototype._handleBlock = function _handleBlock(block, peer) {
+  var self = this;
   var chainIndex = this.chain.index;
   var hash, len, orphan, err;
 
+  if (this.listeners('watched').length > 0) {
+    utils.nextTick(function() {
+      block.txs.forEach(function(tx) {
+        if (self.isWatched(tx))
+          self.emit('watched', tx, peer);
+      });
+    });
+  }
+
   backoff = 0;
 
   this._response(block);
@@ -520,6 +530,9 @@ Pool.prototype._addPeer = function _addPeer(backoff) {
   peer.on('tx', function(tx) {
     self._response(tx);
     self.emit('tx', tx, peer);
+
+    if (!self.options.fullNode)
+      self.emit('watched', tx, peer);
   });
 
   peer.on('addr', function(addr) {
@@ -575,9 +588,6 @@ Pool.prototype._removePeer = function _removePeer(peer) {
 Pool.prototype.watch = function watch(id) {
   var hid, i;
 
-  if (this.options.fullNode)
-    return;
-
   if (id instanceof bcoin.wallet) {
     this.watchWallet(id);
     return;
@@ -606,9 +616,6 @@ Pool.prototype.watch = function watch(id) {
 Pool.prototype.unwatch = function unwatch(id) {
   var i;
 
-  if (this.options.fullNode)
-    return;
-
   id = utils.toHex(id);
 
   if (!this.bloom.test(id, 'hex'))
@@ -633,6 +640,64 @@ Pool.prototype.unwatch = function unwatch(id) {
     this.peers.block[i].updateWatch();
 };
 
+// See "Filter matching algorithm":
+// https://github.com/bitcoin/bips/blob/master/bip-0037.mediawiki
+Pool.prototype.isWatched = function(tx, bloom) {
+  var i, input, output, outHash;
+
+  if (!bloom)
+    bloom = this.bloom;
+
+  function testScript(script) {
+    return script.some(function(chunk) {
+      if (!Array.isArray(chunk) || chunk.length === 0)
+        return false;
+      return bloom.test(chunk);
+    });
+  }
+
+  // 1. Test the tx hash
+  if (bloom.test(tx.hash()))
+    return true;
+
+  // 2. Test data elements in output scripts
+  //    (may need to update filter on match)
+  for (i = 0; i < tx.outputs.length; i++) {
+    output = tx.outputs[i];
+    // Test the output script
+    if (testScript(output.script))
+      return true;
+  }
+
+  // 3. Test prev_out structure
+  // 4. Test data elements in input scripts
+  for (i = 0; i < tx.inputs.length; i++) {
+    input = tx.inputs[i];
+    outHash = input.out.hash;
+
+    if (typeof outHash === 'string')
+      outHash = utils.toArray(outHash, 'hex');
+
+    // Test the prev_out tx hash
+    if (bloom.test(outHash))
+      return true;
+
+    // Test the prev_out script
+    if (input.out.tx) {
+      output = input.out.tx.outputs[input.out.index];
+      if (testScript(output.script))
+        return true;
+    }
+
+    // Test the input script
+    if (testScript(input.script))
+      return true;
+  }
+
+  // 5. No match
+  return false;
+};
+
 Pool.prototype.addWallet = function addWallet(w, defaultTs) {
   var self = this;
   var e;
@@ -648,7 +713,7 @@ Pool.prototype.addWallet = function addWallet(w, defaultTs) {
   if (w.loaded)
     search(w.lastTs);
   else
-    w.once('load', function(lastTs) { search(w.lastTs) });
+    w.once('load', function() { search(w.lastTs) });
 
   function search(ts) {
     // Relay pending TXs
@@ -680,9 +745,6 @@ Pool.prototype.removeWallet = function removeWallet(w) {
 };
 
 Pool.prototype.watchWallet = function watchWallet(w) {
-  if (this.options.fullNode)
-    return;
-
   if (w.type === 'scripthash') {
     // For the redeem script hash in outputs:
     this.watch(w.getFullHash());
@@ -697,9 +759,6 @@ Pool.prototype.watchWallet = function watchWallet(w) {
 };
 
 Pool.prototype.unwatchWallet = function unwatchWallet(w) {
-  if (this.options.fullNode)
-    return;
-
   if (w.type === 'scripthash') {
     // For the redeem script hash in p2sh outputs:
     this.unwatch(w.getFullHash());