diff --git a/CHANGELOG.md b/CHANGELOG.md
index b40e2a213..a14095e6e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,7 @@
 
 ## Next release
 
+- fix(block_production): dynamic block closing now adds special address with prev block hash
 - fix(rpc): call, simulate, estimate rpcs executed on top of the block, not at the start of it
 - fix(compilation): crate-level compilation
 - chore: Move crates under a madara subdir
diff --git a/crates/madara/client/block_production/src/lib.rs b/crates/madara/client/block_production/src/lib.rs
index 314f598b6..e7355e1d4 100644
--- a/crates/madara/client/block_production/src/lib.rs
+++ b/crates/madara/client/block_production/src/lib.rs
@@ -359,6 +359,50 @@ impl<Mempool: MempoolProvider> BlockProductionTask<Mempool> {
         Ok(())
     }
 
+    /// Updates the state diff to store a block hash at the special address 0x1, which serves as
+    /// Starknet's block hash registry.
+    ///
+    /// # Purpose
+    /// Address 0x1 in Starknet is a special contract address that maintains a mapping of block numbers
+    /// to their corresponding block hashes. This storage is used by the `get_block_hash` system call
+    /// and is essential for block hash verification within the Starknet protocol.
+    ///
+    /// # Storage Structure at Address 0x1
+    /// - Keys: Block numbers
+    /// - Values: Corresponding block hashes
+    /// - Default: 0 for all other block numbers
+    ///
+    /// # Implementation Details
+    /// For each block N ≥ 10, this function stores the hash of block (N-10) at address 0x1
+    /// with the block number as the key.
+    ///
+    /// For more details, see the [official Starknet documentation on special addresses]
+    /// (https://docs.starknet.io/architecture-and-concepts/network-architecture/starknet-state/#address_0x1)
+    ///
+    /// It is also required by SNOS for PIEs creation of the block.
+    fn update_block_hash_registry(&self, state_diff: &mut StateDiff, block_n: u64) -> Result<(), Error> {
+        if block_n >= 10 {
+            let prev_block_number = block_n - 10;
+            let prev_block_hash = self
+                .backend
+                .get_block_hash(&BlockId::Number(prev_block_number))
+                .map_err(|err| {
+                    Error::Unexpected(
+                        format!("Error fetching block hash for block {prev_block_number}: {err:#}").into(),
+                    )
+                })?
+                .ok_or_else(|| {
+                    Error::Unexpected(format!("No block hash found for block number {prev_block_number}").into())
+                })?;
+
+            state_diff.storage_diffs.push(ContractStorageDiffItem {
+                address: Felt::ONE, // Address 0x1
+                storage_entries: vec![StorageEntry { key: Felt::from(prev_block_number), value: prev_block_hash }],
+            });
+        }
+        Ok(())
+    }
+
     #[tracing::instrument(skip(self), fields(module = "BlockProductionTask"))]
     pub async fn on_pending_time_tick(&mut self) -> Result<bool, Error> {
         let current_pending_tick = self.current_pending_tick;
@@ -366,13 +410,15 @@ impl<Mempool: MempoolProvider> BlockProductionTask<Mempool> {
             return Ok(false);
         }
 
-        // Use full bouncer capacity
-        let bouncer_cap = self.backend.chain_config().bouncer_config.block_max_capacity;
-
         let start_time = Instant::now();
 
-        let ContinueBlockResult { state_diff, visited_segments, bouncer_weights, stats, block_now_full } =
-            self.continue_block(bouncer_cap)?;
+        let ContinueBlockResult {
+            state_diff: mut new_state_diff,
+            visited_segments,
+            bouncer_weights,
+            stats,
+            block_now_full,
+        } = self.continue_block(self.backend.chain_config().bouncer_config.block_max_capacity)?;
 
         if stats.n_added_to_block > 0 {
             tracing::info!(
@@ -385,8 +431,11 @@ impl<Mempool: MempoolProvider> BlockProductionTask<Mempool> {
 
         // Check if block is full
         if block_now_full {
+            let block_n = self.block_n();
+            self.update_block_hash_registry(&mut new_state_diff, block_n)?;
+
             tracing::info!("Resource limits reached, closing block early");
-            self.close_and_prepare_next_block(state_diff, visited_segments, start_time).await?;
+            self.close_and_prepare_next_block(new_state_diff, visited_segments, start_time).await?;
             return Ok(true);
         }
 
@@ -394,7 +443,7 @@ impl<Mempool: MempoolProvider> BlockProductionTask<Mempool> {
         // todo, prefer using the block import pipeline?
         self.backend.store_block(
             self.block.clone().into(),
-            state_diff,
+            new_state_diff,
             self.declared_classes.clone(),
             Some(visited_segments),
             Some(bouncer_weights),
@@ -421,27 +470,7 @@ impl<Mempool: MempoolProvider> BlockProductionTask<Mempool> {
             block_now_full: _block_now_full,
         } = self.continue_block(self.backend.chain_config().bouncer_config.block_max_capacity)?;
 
-        // SNOS requirement: For blocks >= 10, the hash of the block 10 blocks prior
-        // at address 0x1 with the block number as the key
-        if block_n >= 10 {
-            let prev_block_number = block_n - 10;
-            let prev_block_hash = self
-                .backend
-                .get_block_hash(&BlockId::Number(prev_block_number))
-                .map_err(|err| {
-                    Error::Unexpected(
-                        format!("Error fetching block hash for block {prev_block_number}: {err:#}").into(),
-                    )
-                })?
-                .ok_or_else(|| {
-                    Error::Unexpected(format!("No block hash found for block number {prev_block_number}").into())
-                })?;
-
-            new_state_diff.storage_diffs.push(ContractStorageDiffItem {
-                address: Felt::ONE,
-                storage_entries: vec![StorageEntry { key: Felt::from(prev_block_number), value: prev_block_hash }],
-            });
-        }
+        self.update_block_hash_registry(&mut new_state_diff, block_n)?;
 
         self.close_and_prepare_next_block(new_state_diff, visited_segments, start_time).await
     }