diff --git a/eth/backend.go b/eth/backend.go
index df68a1a8f76..5ce5da1c3ec 100644
--- a/eth/backend.go
+++ b/eth/backend.go
@@ -129,11 +129,11 @@ func New(stack *node.Node, config *ethconfig.Config, XDCXServ *XDCx.XDCX, lendin
 	if err != nil {
 		return nil, err
 	}
-	// Here we determine genesis hash and active ChainConfig.
-	// We need these to figure out the consensus parameters and to set up history pruning.
-	chainConfig, _, err := core.LoadChainConfig(chainDb, config.Genesis)
-	if err != nil {
-		return nil, err
+	// Resolve the effective chain config (and persist it when compatible)
+	// before constructing the consensus engine so it initializes with final network settings.
+	chainConfig, _, genesisErr := core.SetupGenesisBlock(chainDb, config.Genesis)
+	if _, ok := genesisErr.(*params.ConfigCompatError); genesisErr != nil && !ok {
+		return nil, genesisErr
 	}
 
 	// Set networkID to chainID by default.
@@ -142,6 +142,7 @@ func New(stack *node.Node, config *ethconfig.Config, XDCXServ *XDCx.XDCX, lendin
 		networkID = chainConfig.ChainID.Uint64()
 	}
 	common.CopyConstants(networkID)
+	engine := CreateConsensusEngine(stack, chainConfig, chainDb)
 
 	// Assemble the Ethereum object.
 	eth := &Ethereum{
@@ -149,7 +150,7 @@ func New(stack *node.Node, config *ethconfig.Config, XDCXServ *XDCx.XDCX, lendin
 		chainDb:        chainDb,
 		eventMux:       stack.EventMux(),
 		accountManager: stack.AccountManager(),
-		engine:         CreateConsensusEngine(stack, chainConfig, chainDb),
+		engine:         engine,
 		shutdownChan:   make(chan bool),
 		networkId:      networkID,
 		gasPrice:       config.Miner.GasPrice,
diff --git a/eth/backend_test.go b/eth/backend_test.go
index dd787d7986c..f30e23c0933 100644
--- a/eth/backend_test.go
+++ b/eth/backend_test.go
@@ -4,6 +4,8 @@ import (
 	"math/big"
 	"testing"
 
+	"github.com/XinFinOrg/XDPoSChain/core"
+	"github.com/XinFinOrg/XDPoSChain/core/rawdb"
 	"github.com/XinFinOrg/XDPoSChain/eth/util"
 	"github.com/XinFinOrg/XDPoSChain/params"
 )
@@ -27,3 +29,65 @@ func TestRewardInflation(t *testing.T) {
 		}
 	}
 }
+
+func TestSetupGenesisBlockRepairsMissingV2Config(t *testing.T) {
+	db := rawdb.NewMemoryDatabase()
+
+	legacyGenesis := legacyTestnetGenesisWithoutV2()
+	legacyGenesis.MustCommit(db)
+
+	loadedCfg, _, err := core.LoadChainConfig(db, core.DefaultTestnetGenesisBlock())
+	if err != nil {
+		t.Fatalf("LoadChainConfig failed: %v", err)
+	}
+	if loadedCfg.XDPoS == nil {
+		t.Fatal("expected XDPoS config in loaded chain config")
+	}
+	if loadedCfg.XDPoS.V2 != nil {
+		t.Fatal("expected stored legacy chain config to have nil XDPoS.V2 before setup")
+	}
+
+	finalCfg, _, err := core.SetupGenesisBlock(db, core.DefaultTestnetGenesisBlock())
+	if err != nil {
+		t.Fatalf("SetupGenesisBlock failed: %v", err)
+	}
+	if finalCfg.XDPoS == nil || finalCfg.XDPoS.V2 == nil {
+		t.Fatal("expected SetupGenesisBlock to return a config with XDPoS.V2")
+	}
+	if finalCfg.XDPoS.V2.SwitchBlock.Cmp(params.TestnetChainConfig.XDPoS.V2.SwitchBlock) != 0 {
+		t.Fatalf("unexpected switch block after setup: have %v want %v", finalCfg.XDPoS.V2.SwitchBlock, params.TestnetChainConfig.XDPoS.V2.SwitchBlock)
+	}
+}
+
+func TestSetupGenesisBlockIsIdempotentForTestnet(t *testing.T) {
+	db := rawdb.NewMemoryDatabase()
+	genesis := core.DefaultTestnetGenesisBlock()
+
+	cfg1, hash1, err := core.SetupGenesisBlock(db, genesis)
+	if err != nil {
+		t.Fatalf("first SetupGenesisBlock failed: %v", err)
+	}
+	cfg2, hash2, err := core.SetupGenesisBlock(db, genesis)
+	if err != nil {
+		t.Fatalf("second SetupGenesisBlock failed: %v", err)
+	}
+	if hash1 != hash2 {
+		t.Fatalf("genesis hash changed across SetupGenesisBlock calls: first %v second %v", hash1, hash2)
+	}
+	if cfg1.XDPoS == nil || cfg2.XDPoS == nil || cfg1.XDPoS.V2 == nil || cfg2.XDPoS.V2 == nil {
+		t.Fatal("expected both returned configs to include XDPoS.V2")
+	}
+	if cfg1.XDPoS.V2.SwitchBlock.Cmp(cfg2.XDPoS.V2.SwitchBlock) != 0 {
+		t.Fatalf("switch block changed across SetupGenesisBlock calls: first %v second %v", cfg1.XDPoS.V2.SwitchBlock, cfg2.XDPoS.V2.SwitchBlock)
+	}
+}
+
+func legacyTestnetGenesisWithoutV2() *core.Genesis {
+	legacyGenesis := *core.DefaultTestnetGenesisBlock()
+	legacyChainConfig := *params.TestnetChainConfig
+	legacyXDPoS := *params.TestnetChainConfig.XDPoS
+	legacyXDPoS.V2 = nil
+	legacyChainConfig.XDPoS = &legacyXDPoS
+	legacyGenesis.Config = &legacyChainConfig
+	return &legacyGenesis
+}