diff --git a/src/wallet/wallet2.cpp b/src/wallet/wallet2.cpp
index 364ab9c06..2d8f0bc4a 100644
--- a/src/wallet/wallet2.cpp
+++ b/src/wallet/wallet2.cpp
@@ -1219,7 +1219,7 @@ void wallet2::process_new_transaction(const crypto::hash &txid, const cryptonote
               td.m_rct = false;
             }
 	    set_unspent(m_transfers.size()-1);
-            if (!m_multisig)
+            if (!m_multisig && !m_watch_only)
 	      m_key_images[td.m_key_image] = m_transfers.size()-1;
 	    m_pub_keys[tx_scan_info[o].in_ephemeral.pub] = m_transfers.size()-1;
             if (m_multisig)