diff --git a/qml/models/transaction.cpp b/qml/models/transaction.cpp
index a06b738789..3bfdea588f 100644
--- a/qml/models/transaction.cpp
+++ b/qml/models/transaction.cpp
@@ -173,11 +173,11 @@ QList<QSharedPointer<Transaction>> Transaction::fromWalletTx(const interfaces::W
             const CTxOut& txout = wtx.tx->vout[i];
 
             if (fAllFromMe) {
-                // Change is only really possible if we're the sender
-                // Otherwise, someone just sent bitcoins to a change address, which should be shown
-                //if (wtx.txout_is_change[i]) {
-                //   continue;
-                //}
+                // Only hide change when this wallet is the sender. If someone sends to
+                // one of our change addresses, it is still an incoming payment.
+                if (wtx.txout_is_change[i]) {
+                    continue;
+                }
 
                 //
                 // Debit
diff --git a/test/CMakeLists.txt b/test/CMakeLists.txt
index 582aff50e8..21becc2ff5 100644
--- a/test/CMakeLists.txt
+++ b/test/CMakeLists.txt
@@ -27,6 +27,7 @@ add_executable(bitcoinqml_unit_tests
   test_walletqmlmodel.cpp
   test_bumptransactionmodel.cpp
   test_walletqmlcontroller.cpp
+  test_transaction.cpp
   ${CMAKE_CURRENT_SOURCE_DIR}/../bitcoin/src/util/chaintype.cpp
 )
 
diff --git a/test/test_transaction.cpp b/test/test_transaction.cpp
new file mode 100644
index 0000000000..7878cafac2
--- /dev/null
+++ b/test/test_transaction.cpp
@@ -0,0 +1,125 @@
+// Copyright (c) 2026 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#include <qml/models/transaction.h>
+
+#include <chainparams.h>
+#include <interfaces/wallet.h>
+#include <primitives/transaction.h>
+#include <script/script.h>
+#include <uint256.h>
+#include <wallet/types.h>
+
+#include <QtTest/QtTest>
+
+using wallet::ISMINE_NO;
+using wallet::ISMINE_SPENDABLE;
+
+namespace {
+constexpr CAmount COIN_VALUE{100'000'000};
+
+CTxDestination Destination(unsigned char value)
+{
+    uint160 id;
+    id.begin()[0] = value;
+    return PKHash{id};
+}
+
+interfaces::WalletTx MakeWalletTx(
+    const std::vector<wallet::isminetype>& txin_is_mine,
+    const std::vector<CAmount>& output_values,
+    const std::vector<wallet::isminetype>& txout_is_mine,
+    const std::vector<bool>& txout_is_change,
+    CAmount debit,
+    CAmount credit = 0)
+{
+    CMutableTransaction mtx;
+    mtx.vin.emplace_back(COutPoint{Txid::FromUint256(uint256{1}), 0});
+
+    std::vector<CTxDestination> addresses;
+    std::vector<wallet::isminetype> address_is_mine;
+    for (size_t i = 0; i < output_values.size(); ++i) {
+        mtx.vout.emplace_back(output_values[i], CScript{});
+        addresses.push_back(Destination(static_cast<unsigned char>(i + 1)));
+        address_is_mine.push_back(txout_is_mine[i]);
+    }
+
+    interfaces::WalletTx wtx;
+    wtx.tx = MakeTransactionRef(std::move(mtx));
+    wtx.txin_is_mine = txin_is_mine;
+    wtx.txout_is_mine = txout_is_mine;
+    wtx.txout_is_change = txout_is_change;
+    wtx.txout_address = addresses;
+    wtx.txout_address_is_mine = address_is_mine;
+    wtx.credit = credit;
+    wtx.debit = debit;
+    wtx.change = 0;
+    wtx.time = 0;
+    wtx.is_coinbase = false;
+    return wtx;
+}
+} // namespace
+
+class TransactionTests : public QObject
+{
+    Q_OBJECT
+
+private Q_SLOTS:
+    void initTestCase();
+    void fromWalletTx_hidesSenderChangeOutput();
+    void fromWalletTx_showsIncomingPaymentToChangeAddress();
+};
+
+void TransactionTests::initTestCase()
+{
+    SelectParams(ChainType::REGTEST);
+}
+
+void TransactionTests::fromWalletTx_hidesSenderChangeOutput()
+{
+    const interfaces::WalletTx wtx = MakeWalletTx(
+        /*txin_is_mine=*/{ISMINE_SPENDABLE},
+        /*output_values=*/{70 * COIN_VALUE, 29 * COIN_VALUE},
+        /*txout_is_mine=*/{ISMINE_NO, ISMINE_SPENDABLE},
+        /*txout_is_change=*/{false, true},
+        /*debit=*/100 * COIN_VALUE);
+
+    const auto parts = Transaction::fromWalletTx(wtx);
+
+    QCOMPARE(parts.size(), 1);
+    QCOMPARE(parts.at(0)->type, Transaction::SendToAddress);
+    QCOMPARE(parts.at(0)->idx, 0);
+    QCOMPARE(parts.at(0)->debit, -71 * COIN_VALUE);
+    QCOMPARE(parts.at(0)->credit, 0);
+}
+
+void TransactionTests::fromWalletTx_showsIncomingPaymentToChangeAddress()
+{
+    const interfaces::WalletTx wtx = MakeWalletTx(
+        /*txin_is_mine=*/{ISMINE_NO},
+        /*output_values=*/{5 * COIN_VALUE},
+        /*txout_is_mine=*/{ISMINE_SPENDABLE},
+        /*txout_is_change=*/{true},
+        /*debit=*/0,
+        /*credit=*/5 * COIN_VALUE);
+
+    const auto parts = Transaction::fromWalletTx(wtx);
+
+    QCOMPARE(parts.size(), 1);
+    QCOMPARE(parts.at(0)->type, Transaction::RecvWithAddress);
+    QCOMPARE(parts.at(0)->idx, 0);
+    QCOMPARE(parts.at(0)->debit, 0);
+    QCOMPARE(parts.at(0)->credit, 5 * COIN_VALUE);
+}
+
+int RunTransactionTests(int argc, char* argv[])
+{
+    TransactionTests tests;
+    return QTest::qExec(&tests, argc, argv);
+}
+
+#ifndef BITCOINQML_NO_TEST_MAIN
+QTEST_MAIN(TransactionTests)
+#endif
+#include "test_transaction.moc"
diff --git a/test/test_unit_tests_main.cpp b/test/test_unit_tests_main.cpp
index 206a239ca7..ec015d8d5b 100644
--- a/test/test_unit_tests_main.cpp
+++ b/test/test_unit_tests_main.cpp
@@ -11,6 +11,8 @@
 
 const TranslateFn G_TRANSLATION_FUN{nullptr};
 
+int RunTransactionTests(int argc, char* argv[]);
+
 int main(int argc, char* argv[])
 {
     testing::InitGoogleMock(&argc, argv);
@@ -22,6 +24,7 @@ int main(int argc, char* argv[])
     for (const auto& test : qttestregistry::SortedEntries()) {
         status |= test.run(argc, argv);
     }
+    status |= RunTransactionTests(argc, argv);
 
     return status;
 }