diff --git a/lib/services/utxo/encoding.js b/lib/services/utxo/encoding.js
index 2343b1fd..2c11b798 100644
--- a/lib/services/utxo/encoding.js
+++ b/lib/services/utxo/encoding.js
@@ -1,15 +1,17 @@
 'use strict';
 
+var assert = require('assert');
 var bitcore = require('bitcore-lib');
 var BufferReader = bitcore.encoding.BufferReader;
 
 function Encoding(servicePrefix) {
   this.servicePrefix = servicePrefix;
+  this.nonP2PKPrefix = new Buffer('00', 'hex');
+  this.P2PKPrefix = new Buffer('01', 'hex');
 }
 
 Encoding.prototype.encodeUtxoIndexKey = function(address, txid, outputIndex) {
-  var prefix = new Buffer('01', 'hex');
-  var buffers = [this.servicePrefix, prefix];
+  var buffers = [this.servicePrefix, this.nonP2PKPrefix];
 
   var addressSizeBuffer = new Buffer(1);
   addressSizeBuffer.writeUInt8(address.length);
@@ -63,5 +65,56 @@ Encoding.prototype.decodeUtxoIndexValue = function(buffer) {
   };
 };
 
+Encoding.prototype.encodeP2PKUtxoIndexKey = function(txid, outputIndex) {
+  var buffers = [this.servicePrefix, this.P2PKPrefix];
+
+  assert(txid && txid.length === 64, 'Txid required');
+  assert(outputIndex >= 0, 'outputIndex required');
+
+  var txidBuffer = new Buffer(txid);
+  buffers.push(txidBuffer);
+
+  var outputIndexBuffer = new Buffer(4);
+  outputIndexBuffer.writeUInt32BE(outputIndex);
+  buffers.push(outputIndexBuffer);
+
+  return Buffer.concat(buffers);
+};
+
+Encoding.prototype.decodeP2PKUtxoIndexKey = function(buffer) {
+  var reader = new BufferReader(buffer);
+  reader.read(3);
+
+  var addressSize = reader.readUInt8();
+  var address = reader.read(addressSize).toString('utf8');
+  var txid = reader.read(32).toString('hex');
+  var outputIndex = reader.readUInt32BE(4);
+
+  return {
+    address: address,
+    txid: txid,
+    outputIndex: outputIndex
+  };
+};
+
+Encoding.prototype.encodeP2PKUtxoIndexValue = function(height, satoshis, scriptBuffer) {
+  var heightBuffer = new Buffer(4);
+  heightBuffer.writeUInt32BE(height);
+  var satoshisBuffer = new Buffer(8);
+  satoshisBuffer.writeDoubleBE(satoshis);
+  return Buffer.concat([heightBuffer, satoshisBuffer, scriptBuffer]);
+};
+
+Encoding.prototype.decodeP2PKUtxoIndexValue = function(buffer) {
+  var height = buffer.readUInt32BE();
+  var satoshis = buffer.readDoubleBE(4);
+  var scriptBuffer = buffer.slice(12);
+  return {
+    height: height,
+    satoshis: satoshis,
+    script: scriptBuffer
+  };
+};
+
 module.exports = Encoding;
 
diff --git a/lib/services/utxo/index.js b/lib/services/utxo/index.js
index 08863e79..7d9bdf05 100644
--- a/lib/services/utxo/index.js
+++ b/lib/services/utxo/index.js
@@ -3,8 +3,9 @@
 var BaseService = require('../../service');
 var inherits = require('util').inherits;
 var Encoding = require('./encoding');
-var LRU = require('lru-cache');
 var utils = require('../../utils');
+var index = require('../../');
+var log = index.log;
 
 function UtxoService(options) {
   BaseService.call(this, options);
@@ -79,7 +80,7 @@ UtxoService.prototype.getUtxosForAddress = function(address, callback) {
       address: address,
       height: value.height,
       satoshis: value.satoshis,
-      script: value.scriptBuffer
+      script: value.script
     });
   });
 
@@ -92,17 +93,32 @@ UtxoService.prototype._processInputs = function(tx, inputs, connect) {
 
   var operations = [];
   for(var i = 0; i < inputs.length; i++) {
-    var input = inputs[i];
 
-    var key = input.prevHash + input.outputIndex;
+    var input = inputs[i];
 
     if (input.prevTxId === tx.hash) {
       this._exlusionIndexes.push(i);
       continue;
     }
 
-    var ops = this._moveOutput(key, connect);
-    operations = operations.concat(ops);
+    var key = this._getOperationsKey({
+      script: input.script,
+      txid: input.prevTxId.toString('hex'),
+      index: input.outputIndex
+    });
+
+    if (key) {
+      var operation = connect ? {
+        type: 'del',
+        key: key
+      } : {
+        type: 'put',
+        key: key,
+        value: new Buffer('00', 'hex')
+      };
+
+      operations.push(operation);
+    }
   }
 
   return operations;
@@ -115,42 +131,70 @@ UtxoService.prototype._processOutputs = function(tx, outputs, block, connect) {
   for(var i = 0; i < outputs.length; i++) {
 
     var output = outputs[i];
-    var key = tx.hash + i;
 
     if (this._exclusionIndexes.indexOf(i) > -1) {
       continue;
     }
 
-    var action = connect ? 'put' : 'del';
-    operations = operations.concat(
-      { action: action,
-        key:  this._getOperationsKey(key, output),
-        value: this._getOperationsValue({
-          height: block.__height,
-          satoshis: output.satoshis,
-          script: output.script
-        })
-      }
-    );
+    var key = this._getOperationsKey({
+      script: output.script,
+      txid: tx.id,
+      index: i
+    });
+
+    var value = this._getOperationsValue({
+      height: block.__height,
+      satoshis: output.satoshis,
+      script: output.script
+    });
+
+    if (key && value) {
+      var operation = connect ? {
+        type: 'put',
+        key: key,
+        value: value
+      } : {
+        type: 'del',
+        key: key,
+        value: value
+      };
+
+      operations.push(operation);
+    }
+
+
   }
 
   return operations;
 
 };
 
-UtxoService.prototype._moveOutput = function(key, connect) {
+UtxoService.prototype._getOperationsKey = function(io) {
 
-  if (connect) {
-    return { action: 'del', key: key };
+  var address = utils.getAddressStringFromScript(io.script, this.node.network);
+
+  if (!address) {
+    var key = this._tryP2PKOperation(io);
+    if (key) {
+      return key;
+    }
   }
 
-  return { action: 'put', key: key, value: null };
+  if (!address) {
+    log.debug('could not determine address for script: ' + io.script.toString());
+    return;
+  }
 
+  return this.encoding.encodeUtxoIndexKey(address, io.txid, io.index);
 };
 
-UtxoService.prototype._getOperationsKey = function(key, output) {
-  var address = utils.getAddressStringFromScript(output.script, this.node.network);
-  return this.encoding.encodeUtxoIndexKey(address, key.slice(0, 64), parseInt(key.slice(64)));
+UtxoService.prototype._tryP2PKOperation = function(io) {
+
+  // checking for a scriptSig that has one signature
+  var sig = io.script.chunks[0];
+  if (sig && (sig.len > 69 && sig.len < 75)) {
+    return this.encoding.encodeP2PKUtxoIndexKey(io.txid, io.index);
+  }
 };
 
 UtxoService.prototype._getOperationsValue = function(value) {
diff --git a/regtest/utxo.js b/regtest/utxo.js
index 388185ec..b73598be 100644
--- a/regtest/utxo.js
+++ b/regtest/utxo.js
@@ -121,6 +121,7 @@ describe('Utxo Operations', function() {
       utils.waitForBitcoinReady.bind(utils, self.opts),
       utils.unlockWallet.bind(utils, self.opts),
       utils.setupInitialTxs.bind(utils, self.opts),
+      utils.sendTxs.bind(utils, self.opts),
       utils.startBitcoreNode.bind(utils, self.opts),
       utils.waitForBitcoreNode.bind(utils, self.opts)
     ], done);
@@ -140,6 +141,8 @@ describe('Utxo Operations', function() {
 
         res = JSON.parse(res);
         expect(res.address).to.equal(address);
+        expect(res.utxos.length).equal(1);
+        expect(Object.keys(res.utxos[0])).to.deep.equal([ 'txid',  'outputIndex', 'address', 'height', 'satoshis', 'script' ]);
         next(null, res.utxos);
       });
     }, function(err, utxos) {
@@ -147,7 +150,6 @@ describe('Utxo Operations', function() {
       if(err) {
         return done(err);
       }
-console.log('done');
 
       done();