diff --git a/modules/sdk-coin-ada/src/lib/transaction.ts b/modules/sdk-coin-ada/src/lib/transaction.ts
index 21e8bcd3ac..6ee96e034b 100644
--- a/modules/sdk-coin-ada/src/lib/transaction.ts
+++ b/modules/sdk-coin-ada/src/lib/transaction.ts
@@ -101,6 +101,7 @@ export class Transaction extends BaseTransaction {
   private _transaction: CardanoWasm.Transaction;
   private _fee: string;
   private _pledgeDetails?: PledgeDetails;
+  private _changeAddress?: string;
 
   constructor(coinConfig: Readonly<CoinConfig>) {
     super(coinConfig);
@@ -391,7 +392,7 @@ export class Transaction extends BaseTransaction {
 
   /** @inheritdoc */
   explainTransaction(): {
-    outputs: { amount: string; address: string; multiAssets?: Asset[] }[];
+    outputs: { amount: string; address: string; multiAssets?: Asset[]; change?: boolean }[];
     certificates: Cert[];
     changeOutputs: string[];
     outputAmount: string;
@@ -426,10 +427,12 @@ export class Transaction extends BaseTransaction {
       id: txJson.id,
       outputs: txJson.outputs.map((o) => {
         const multiAssets = Transaction.parseMultiAssets(o.multiAssets as CardanoWasm.MultiAsset | undefined);
+        const isChange = this._changeAddress !== undefined && o.address === this._changeAddress;
         return {
           address: o.address,
           amount: o.amount,
           ...(multiAssets && { multiAssets }),
+          ...(isChange && { change: true }),
         };
       }),
       outputAmount: outputAmount,
@@ -485,6 +488,14 @@ export class Transaction extends BaseTransaction {
   fee(fee: string) {
     this._fee = fee;
   }
+
+  set changeAddress(address: string) {
+    this._changeAddress = address;
+  }
+
+  get changeAddress(): string | undefined {
+    return this._changeAddress;
+  }
 }
 
 export interface SponsorshipInfo {
diff --git a/modules/sdk-coin-ada/src/lib/transactionBuilder.ts b/modules/sdk-coin-ada/src/lib/transactionBuilder.ts
index 16edafe0a9..ec363a6292 100644
--- a/modules/sdk-coin-ada/src/lib/transactionBuilder.ts
+++ b/modules/sdk-coin-ada/src/lib/transactionBuilder.ts
@@ -227,6 +227,9 @@ export abstract class TransactionBuilder extends BaseTransactionBuilder {
     this.setMutableSenderAssetList();
     this.addOutputs(outputs);
     this._transaction.transaction = this.prepareAdaTransactionDraft(inputs, outputs, true);
+    if (this._changeAddress) {
+      this._transaction.changeAddress = this._changeAddress;
+    }
     return this.transaction;
   }
 
@@ -573,6 +576,9 @@ export abstract class TransactionBuilder extends BaseTransactionBuilder {
 
     const finalOutputs = this.buildExplicitOutputsCollection(this._fee);
     this._transaction.transaction = this.prepareAdaTransactionDraft(inputs, finalOutputs, true);
+    if (this._changeAddress) {
+      this._transaction.changeAddress = this._changeAddress;
+    }
     return this.transaction;
   }
 
@@ -924,6 +930,9 @@ export abstract class TransactionBuilder extends BaseTransactionBuilder {
     });
     witnessSet.set_vkeys(vkeyWitnesses);
     this._transaction.transaction = CardanoWasm.Transaction.new(txRaw, witnessSet);
+    if (this._changeAddress) {
+      this._transaction.changeAddress = this._changeAddress;
+    }
     return this.transaction;
   }
 
diff --git a/modules/sdk-coin-ada/test/unit/transactionBuilder.ts b/modules/sdk-coin-ada/test/unit/transactionBuilder.ts
index 8055657bc9..7c722591dc 100644
--- a/modules/sdk-coin-ada/test/unit/transactionBuilder.ts
+++ b/modules/sdk-coin-ada/test/unit/transactionBuilder.ts
@@ -549,4 +549,71 @@ describe('ADA Transaction Builder', async () => {
   //     console.log(err);
   //   }
   // });
+
+  describe('explainTransaction change output marking', () => {
+    it('should mark the change output with change: true for a shelley send tx', async () => {
+      const txBuilder = factory.getTransferBuilder();
+      txBuilder.input({
+        transaction_id: '3677e75c7ba699bfdc6cd57d42f246f86f63aefd76025006ac78313fad2bba21',
+        transaction_index: 1,
+      });
+      const outputAmount = 7823121;
+      txBuilder.output({
+        address: testData.rawTx.outputAddress1.address,
+        amount: outputAmount.toString(),
+      });
+      const totalInput = 21032023;
+      txBuilder.changeAddress(testData.rawTx.outputAddress2.address, totalInput.toString());
+      txBuilder.ttl(800000000);
+      const tx = (await txBuilder.build()) as Transaction;
+      const explained = tx.explainTransaction();
+      explained.outputs.length.should.equal(2);
+      const recipientOutput = explained.outputs.find((o) => o.address === testData.rawTx.outputAddress1.address);
+      const changeOutput = explained.outputs.find((o) => o.address === testData.rawTx.outputAddress2.address);
+      should.exist(recipientOutput);
+      should.exist(changeOutput);
+      should.not.exist(recipientOutput!.change);
+      changeOutput!.change!.should.be.true();
+    });
+
+    it('should mark the change output with change: true for a byron send tx', async () => {
+      const txBuilder = factory.getTransferBuilder();
+      txBuilder.input({
+        transaction_id: '1b53331e069a6e58fe77919d30c0cf299d13a2f5b3d9970ce473c1a66d71bf03',
+        transaction_index: 1,
+      });
+      const outputAmount = 200000000;
+      txBuilder.output({
+        address: testData.rawTxByron.outputAddress1.address,
+        amount: outputAmount.toString(),
+      });
+      const totalInput = 999600000;
+      txBuilder.changeAddress(testData.rawTxByron.outputAddress2.address, totalInput.toString());
+      txBuilder.ttl(800000000);
+      const tx = (await txBuilder.build()) as Transaction;
+      const explained = tx.explainTransaction();
+      explained.outputs.length.should.equal(2);
+      const recipientOutput = explained.outputs.find((o) => o.address === testData.rawTxByron.outputAddress1.address);
+      const changeOutput = explained.outputs.find((o) => o.address === testData.rawTxByron.outputAddress2.address);
+      should.exist(recipientOutput);
+      should.exist(changeOutput);
+      should.not.exist(recipientOutput!.change);
+      changeOutput!.change!.should.be.true();
+    });
+
+    it('should not set change on any output when no change address is set (consolidation)', async () => {
+      const txBuilder = factory.getTransferBuilder();
+      txBuilder.input({
+        transaction_id: '3677e75c7ba699bfdc6cd57d42f246f86f63aefd76025006ac78313fad2bba21',
+        transaction_index: 1,
+      });
+      const totalInput = 20000000;
+      txBuilder.changeAddress(testData.rawTx.outputAddress1.address, totalInput.toString());
+      txBuilder.ttl(800000000);
+      const tx = (await txBuilder.build()) as Transaction;
+      const explained = tx.explainTransaction();
+      explained.outputs.length.should.equal(1);
+      explained.outputs[0].change!.should.be.true();
+    });
+  });
 });