diff --git a/beacon-chain/rpc/prysm/v1alpha1/validator/BUILD.bazel b/beacon-chain/rpc/prysm/v1alpha1/validator/BUILD.bazel
index 7d6a5a201..0bfe5eabe 100644
--- a/beacon-chain/rpc/prysm/v1alpha1/validator/BUILD.bazel
+++ b/beacon-chain/rpc/prysm/v1alpha1/validator/BUILD.bazel
@@ -102,6 +102,7 @@ go_test(
         "blocks_test.go",
         "exit_test.go",
         "proposer_attestations_test.go",
+        "proposer_deposits_test.go",
         "proposer_execution_payload_test.go",
         "proposer_sync_aggregate_test.go",
         "proposer_test.go",
diff --git a/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits.go b/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits.go
index 60ebd3349..05fd3e4ca 100644
--- a/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits.go
+++ b/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits.go
@@ -10,6 +10,7 @@ import (
 	"github.com/prysmaticlabs/prysm/config/params"
 	"github.com/prysmaticlabs/prysm/container/trie"
 	ethpb "github.com/prysmaticlabs/prysm/proto/prysm/v1alpha1"
+	"github.com/sirupsen/logrus"
 	"go.opencensus.io/trace"
 	"golang.org/x/sync/errgroup"
 	"google.golang.org/grpc/codes"
@@ -139,6 +140,13 @@ func (vs *Server) depositTrie(ctx context.Context, canonicalEth1Data *ethpb.Eth1
 	upToEth1DataDeposits := vs.DepositFetcher.NonFinalizedDeposits(ctx, finalizedDeposits.MerkleTrieIndex, canonicalEth1DataHeight)
 	insertIndex := finalizedDeposits.MerkleTrieIndex + 1
 
+	if shouldRebuildTrie(canonicalEth1Data.DepositCount, uint64(len(upToEth1DataDeposits))) {
+		log.WithFields(logrus.Fields{
+			"unfinalized deposits": len(upToEth1DataDeposits),
+			"total deposit count":  canonicalEth1Data.DepositCount,
+		}).Warn("Too many unfinalized deposits, building a deposit trie from scratch.")
+		return vs.rebuildDepositTrie(ctx, canonicalEth1Data, canonicalEth1DataHeight)
+	}
 	for _, dep := range upToEth1DataDeposits {
 		depHash, err := dep.Data.HashTreeRoot()
 		if err != nil {
@@ -210,3 +218,21 @@ func constructMerkleProof(trie *trie.SparseMerkleTrie, index int, deposit *ethpb
 	deposit.Proof = proof
 	return deposit, nil
 }
+
+// This checks whether we should fallback to rebuild the whole deposit trie.
+func shouldRebuildTrie(totalDepCount, unFinalizedDeps uint64) bool {
+	if totalDepCount == 0 || unFinalizedDeps == 0 {
+		return false
+	}
+	// The total number interior nodes hashed in a binary trie would be
+	// x - 1, where x is the total number of leaves of the trie. For simplicity's
+	// sake we assume it as x here as this function is meant as a heuristic rather than
+	// and exact calculation.
+	//
+	// Since the effective_depth = log(x) , the total depth can be represented as
+	// depth = log(x) + k. We can then find the total number of nodes to be hashed by
+	// calculating  y (log(x) + k) , where y is the number of unfinalized deposits. For
+	// the deposit trie, the value of log(x) + k is fixed at 32.
+	unFinalizedCompute := unFinalizedDeps * params.BeaconConfig().DepositContractTreeDepth
+	return unFinalizedCompute > totalDepCount
+}
diff --git a/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits_test.go b/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits_test.go
new file mode 100644
index 000000000..00f96db41
--- /dev/null
+++ b/beacon-chain/rpc/prysm/v1alpha1/validator/proposer_deposits_test.go
@@ -0,0 +1,56 @@
+package validator
+
+import "testing"
+
+func TestShouldFallback(t *testing.T) {
+	tests := []struct {
+		name            string
+		totalDepCount   uint64
+		unFinalizedDeps uint64
+		want            bool
+	}{
+		{
+			name:            "0 dep count",
+			totalDepCount:   0,
+			unFinalizedDeps: 100,
+			want:            false,
+		},
+		{
+			name:            "0 unfinalized count",
+			totalDepCount:   100,
+			unFinalizedDeps: 0,
+			want:            false,
+		},
+		{
+			name:            "equal number of deposits and non finalized deposits",
+			totalDepCount:   1000,
+			unFinalizedDeps: 1000,
+			want:            true,
+		},
+		{
+			name:            "large number of non finalized deposits",
+			totalDepCount:   300000,
+			unFinalizedDeps: 100000,
+			want:            true,
+		},
+		{
+			name:            "small number of non finalized deposits",
+			totalDepCount:   300000,
+			unFinalizedDeps: 2000,
+			want:            false,
+		},
+		{
+			name:            "unfinalized deposits beyond threshold",
+			totalDepCount:   300000,
+			unFinalizedDeps: 10000,
+			want:            true,
+		},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			if got := shouldRebuildTrie(tt.totalDepCount, tt.unFinalizedDeps); got != tt.want {
+				t.Errorf("shouldRebuildTrie() = %v, want %v", got, tt.want)
+			}
+		})
+	}
+}