diff --git a/state/execution.go b/state/execution.go
index 1ea2b999f..54a5ad8dc 100644
--- a/state/execution.go
+++ b/state/execution.go
@@ -146,6 +146,12 @@ func (blockExec *BlockExecutor) CreateProposalBlock(
 		panic(err)
 	}
 	rawNewData := preparedProposal.GetBlockData()
+
+	rejectedTxs := len(rawNewData.Txs) - len(txs)
+	if rejectedTxs > 0 {
+		blockExec.metrics.RejectedTransactions.Add(float64(rejectedTxs))
+	}
+
 	var blockDataSize int
 	for _, tx := range rawNewData.GetTxs() {
 		blockDataSize += len(tx)
diff --git a/state/metrics.go b/state/metrics.go
index 6c687f854..31c674e60 100644
--- a/state/metrics.go
+++ b/state/metrics.go
@@ -19,6 +19,8 @@ type Metrics struct {
 	BlockProcessingTime metrics.Histogram
 	// Count of times a block was rejected via ProcessProposal
 	ProcessProposalRejected metrics.Counter
+	// Count of transactions rejected by application.
+	RejectedTransactions metrics.Counter
 }
 
 // PrometheusMetrics returns Metrics build using Prometheus client library.
@@ -43,6 +45,12 @@ func PrometheusMetrics(namespace string, labelsAndValues ...string) *Metrics {
 			Name:      "process_proposal_rejected",
 			Help:      "Count of times a block was rejected via ProcessProposal",
 		}, labels).With(labelsAndValues...),
+		RejectedTransactions: prometheus.NewCounterFrom(stdprometheus.CounterOpts{
+			Namespace: namespace,
+			Subsystem: MetricsSubsystem,
+			Name:      "rejected_transactions",
+			Help:      "Count of transactions rejected by application",
+		}, labels).With(labelsAndValues...),
 	}
 }
 
@@ -51,5 +59,6 @@ func NopMetrics() *Metrics {
 	return &Metrics{
 		BlockProcessingTime:     discard.NewHistogram(),
 		ProcessProposalRejected: discard.NewCounter(),
+		RejectedTransactions:    discard.NewCounter(),
 	}
 }