diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index ea52ee6cad..464411d536 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -774,6 +774,8 @@ void CWallet::AddToSpends(const COutPoint& outpoint, const uint256& wtxid)
     mapTxSpends.insert(std::make_pair(outpoint, wtxid));
     setWalletUTXO.erase(outpoint);
 
+    setLockedCoins.erase(outpoint);
+
     std::pair<TxSpends::iterator, TxSpends::iterator> range;
     range = mapTxSpends.equal_range(outpoint);
     SyncMetaData(range);
diff --git a/test/functional/wallet.py b/test/functional/wallet.py
index e092619c92..2967220421 100755
--- a/test/functional/wallet.py
+++ b/test/functional/wallet.py
@@ -114,6 +114,15 @@ class WalletTest(BitcoinTestFramework):
                               self.nodes[2].lockunspent, False,
                               [{"txid": unspent_0["txid"], "vout": 999}])
 
+        # An output should be unlocked when spent
+        unspent_0 = self.nodes[1].listunspent()[0]
+        self.nodes[1].lockunspent(False, [unspent_0])
+        tx = self.nodes[1].createrawtransaction([unspent_0], { self.nodes[1].getnewaddress() : 1 })
+        tx = self.nodes[1].fundrawtransaction(tx)['hex']
+        tx = self.nodes[1].signrawtransactionwithwallet(tx)["hex"]
+        self.nodes[1].sendrawtransaction(tx)
+        assert_equal(len(self.nodes[1].listlockunspent()), 0)
+
         # Have node1 generate 100 blocks (so node0 can recover the fee)
         self.nodes[1].generate(100)
         self.sync_all(self.nodes[0:3])