diff --git a/crates/common/types/transaction.rs b/crates/common/types/transaction.rs
index ffa2400e426..c3bc9243944 100644
--- a/crates/common/types/transaction.rs
+++ b/crates/common/types/transaction.rs
@@ -42,6 +42,7 @@ pub enum Transaction {
 
 /// The same as a Transaction enum, only that blob transactions are in wrapped format, including
 /// the blobs bundle.
+/// PrivilegedL2Transaction is not included as it is not expected to be sent over P2P.
 #[derive(Clone, Debug, PartialEq, Eq)]
 pub enum P2PTransaction {
     LegacyTransaction(LegacyTransaction),
@@ -49,7 +50,6 @@ pub enum P2PTransaction {
     EIP1559Transaction(EIP1559Transaction),
     EIP4844TransactionWithBlobs(WrappedEIP4844Transaction),
     EIP7702Transaction(EIP7702Transaction),
-    PrivilegedL2Transaction(PrivilegedL2Transaction),
 }
 
 impl TryInto<Transaction> for P2PTransaction {
@@ -61,9 +61,6 @@ impl TryInto<Transaction> for P2PTransaction {
             P2PTransaction::EIP2930Transaction(itx) => Ok(Transaction::EIP2930Transaction(itx)),
             P2PTransaction::EIP1559Transaction(itx) => Ok(Transaction::EIP1559Transaction(itx)),
             P2PTransaction::EIP7702Transaction(itx) => Ok(Transaction::EIP7702Transaction(itx)),
-            P2PTransaction::PrivilegedL2Transaction(itx) => {
-                Ok(Transaction::PrivilegedL2Transaction(itx))
-            }
             _ => Err("Can't convert blob p2p transaction into regular transaction. Blob bundle would be lost.".to_string()),
         }
     }
@@ -102,9 +99,6 @@ impl RLPDecode for P2PTransaction {
                 // EIP7702
                 0x4 => EIP7702Transaction::decode_unfinished(tx_encoding)
                     .map(|(tx, rem)| (P2PTransaction::EIP7702Transaction(tx), rem)),
-                // PrivilegedL2
-                0x7e => PrivilegedL2Transaction::decode_unfinished(tx_encoding)
-                    .map(|(tx, rem)| (P2PTransaction::PrivilegedL2Transaction(tx), rem)),
                 ty => Err(RLPDecodeError::Custom(format!(
                     "Invalid transaction type: {ty}"
                 ))),
@@ -1439,7 +1433,6 @@ mod canonic_encoding {
                 P2PTransaction::EIP1559Transaction(_) => TxType::EIP1559,
                 P2PTransaction::EIP4844TransactionWithBlobs(_) => TxType::EIP4844,
                 P2PTransaction::EIP7702Transaction(_) => TxType::EIP7702,
-                P2PTransaction::PrivilegedL2Transaction(_) => TxType::Privileged,
             }
         }
 
@@ -1455,7 +1448,6 @@ mod canonic_encoding {
                 P2PTransaction::EIP1559Transaction(t) => t.encode(buf),
                 P2PTransaction::EIP4844TransactionWithBlobs(t) => t.encode(buf),
                 P2PTransaction::EIP7702Transaction(t) => t.encode(buf),
-                P2PTransaction::PrivilegedL2Transaction(t) => t.encode(buf),
             };
         }
 
@@ -1482,9 +1474,6 @@ mod canonic_encoding {
                 P2PTransaction::EIP7702Transaction(t) => {
                     Transaction::EIP7702Transaction(t.clone()).compute_hash()
                 }
-                P2PTransaction::PrivilegedL2Transaction(t) => {
-                    Transaction::PrivilegedL2Transaction(t.clone()).compute_hash()
-                }
             }
         }
     }
diff --git a/crates/networking/p2p/rlpx/connection/server.rs b/crates/networking/p2p/rlpx/connection/server.rs
index 03c01c2c84f..6576a922b3f 100644
--- a/crates/networking/p2p/rlpx/connection/server.rs
+++ b/crates/networking/p2p/rlpx/connection/server.rs
@@ -589,6 +589,7 @@ async fn send_all_pooled_tx_hashes(
         .get_all_txs_by_sender()?
         .into_values()
         .flatten()
+        .filter(|tx| !tx.is_privileged())
         .collect();
     if !txs.is_empty() {
         state
@@ -933,8 +934,11 @@ async fn handle_incoming_message(
                 for tx in &txs.transactions {
                     // Reject blob transactions in L2 mode
                     #[cfg(feature = "l2")]
-                    if is_l2_mode && matches!(tx, Transaction::EIP4844Transaction(_)) {
-                        debug!(peer=%state.node, "Rejecting blob transaction in L2 mode - blob transactions are not supported in L2");
+                    if (is_l2_mode && matches!(tx, Transaction::EIP4844Transaction(_)))
+                        || tx.is_privileged()
+                    {
+                        let tx_type = tx.tx_type();
+                        debug!(peer=%state.node, "Rejecting transaction in L2 mode - {tx_type} transactions are not broadcasted in L2");
                         continue;
                     }
 
diff --git a/crates/networking/p2p/tx_broadcaster.rs b/crates/networking/p2p/tx_broadcaster.rs
index 0c9a219386d..f174c36be8a 100644
--- a/crates/networking/p2p/tx_broadcaster.rs
+++ b/crates/networking/p2p/tx_broadcaster.rs
@@ -193,7 +193,9 @@ impl TxBroadcaster {
         let full_txs = txs_to_broadcast
             .iter()
             .map(|tx| tx.transaction().clone())
-            .filter(|tx| !matches!(tx, Transaction::EIP4844Transaction { .. }))
+            .filter(|tx| {
+                !matches!(tx, Transaction::EIP4844Transaction { .. }) && !tx.is_privileged()
+            })
             .collect::<Vec<Transaction>>();
 
         let blob_txs = txs_to_broadcast
@@ -262,6 +264,7 @@ impl TxBroadcaster {
                     .known_txs
                     .get(&hash)
                     .is_some_and(|record| record.peers.is_set(peer_idx))
+                    && !tx.is_privileged()
             })
             .cloned()
             .collect::<Vec<MempoolTransaction>>();