diff --git a/docs/docs/contracts/src/src/utils/BitcoinTx.sol/library.BitcoinTx.md b/docs/docs/contracts/src/src/utils/BitcoinTx.sol/library.BitcoinTx.md
index d0bf5149..ffb574ab 100644
--- a/docs/docs/contracts/src/src/utils/BitcoinTx.sol/library.BitcoinTx.md
+++ b/docs/docs/contracts/src/src/utils/BitcoinTx.sol/library.BitcoinTx.md
@@ -58,7 +58,7 @@ function evaluateProofDifficulty(IRelay relay, uint256 txProofDifficultyFactor,
 
 ### processTxOutputs
 
-Processes the Bitcoin transaction output vector.
+Processes all outputs from the transaction.
 
 
 ```solidity
@@ -74,39 +74,19 @@ function processTxOutputs(bytes memory txOutputVector, bytes32 scriptPubKeyHash)
 |`txOutputVector`|`bytes`|Bitcoin transaction output vector. This function assumes vector's structure is valid so it must be validated using e.g. `BTCUtils.validateVout` function before it is passed here.|
 |`scriptPubKeyHash`|`bytes32`|Expected Bitcoin scriptPubKey keccak256 hash.|
 
-**Returns**
-
-|Name|Type|Description|
-|----|----|-----------|
-|`resultInfo`|`TxOutputsInfo`|Outcomes of the processing.|
-
-
-### processTxOutputs
 
-Processes all outputs from the transaction.
+### extractEvmAddressFromOutput
 
 
 ```solidity
-function processTxOutputs(
-    bytes memory txOutputVector,
-    bytes32 scriptPubKeyHash,
-    TxOutputsProcessingInfo memory processInfo
-) internal pure returns (TxOutputsInfo memory resultInfo);
+function extractEvmAddressFromOutput(bytes memory _output, uint256 _at) internal pure returns (address evmAddress);
 ```
-**Parameters**
-
-|Name|Type|Description|
-|----|----|-----------|
-|`txOutputVector`|`bytes`|Bitcoin transaction output vector. This function assumes vector's structure is valid so it must be validated using e.g. `BTCUtils.validateVout` function before it is passed here.|
-|`scriptPubKeyHash`|`bytes32`|Expected Bitcoin scriptPubKey keccak256 hash.|
-|`processInfo`|`TxOutputsProcessingInfo`|TxOutputsProcessingInfo identifying output starting index and the number of outputs.|
 
-
-### extractEvmAddressFromOutput
+### extractHashFromOutput
 
 
 ```solidity
-function extractEvmAddressFromOutput(bytes memory _output, uint256 _at) internal pure returns (address evmAddress);
+function extractHashFromOutput(bytes memory _output, uint256 _at) internal pure returns (bytes32 outputHash);
 ```
 
 ### reverseEndianness
@@ -185,6 +165,7 @@ outputs processing.
 struct TxOutputsInfo {
     uint64 value;
     address evmAddress;
+    bytes32 hash;
 }
 ```
 
diff --git a/src/utils/BitcoinTx.sol b/src/utils/BitcoinTx.sol
index 796374de..f6cd5e7b 100644
--- a/src/utils/BitcoinTx.sol
+++ b/src/utils/BitcoinTx.sol
@@ -220,23 +220,26 @@ library BitcoinTx {
         uint64 value;
         // Optional EVM address specified in OP_RETURN.
         address evmAddress;
+        // Optional hash specified in OP_RETURN.
+        bytes32 hash;
     }
 
-    /// @notice Processes the Bitcoin transaction output vector.
-    /// @param txOutputVector Bitcoin transaction output vector.
-    ///        This function assumes vector's structure is valid so it
-    ///        must be validated using e.g. `BTCUtils.validateVout` function
-    ///        before it is passed here.
+    /// @notice Processes all outputs from the transaction.
+    /// @param txOutputVector Bitcoin transaction output vector. This function
+    ///        assumes vector's structure is valid so it must be validated using
+    ///        e.g. `BTCUtils.validateVout` function before it is passed here.
     /// @param scriptPubKeyHash Expected Bitcoin scriptPubKey keccak256 hash.
-    /// @return resultInfo Outcomes of the processing.
     function processTxOutputs(bytes memory txOutputVector, bytes32 scriptPubKeyHash)
         internal
         pure
         returns (TxOutputsInfo memory resultInfo)
     {
+        // needed to avoid stack too deep errors
+        TxOutputsProcessingInfo memory processInfo;
+
         // Determining the total number of transaction outputs in the same way as
         // for number of inputs. See `BitcoinTx.outputVector` docs for more details.
-        (uint256 outputsCompactSizeUintLength, uint256 outputsCount) = txOutputVector.parseVarInt();
+        (processInfo.outputStartingIndex, processInfo.outputsCount) = txOutputVector.parseVarInt();
 
         // To determine the first output starting index, we must jump over
         // the compactSize uint which prepends the output vector. One byte
@@ -253,25 +256,8 @@ library BitcoinTx {
         //
         // Please refer `BTCUtils` library and compactSize uint
         // docs in `BitcoinTx` library for more details.
-        uint256 outputStartingIndex = 1 + outputsCompactSizeUintLength;
+        processInfo.outputStartingIndex++;
 
-        return processTxOutputs(
-            txOutputVector, scriptPubKeyHash, TxOutputsProcessingInfo(outputStartingIndex, outputsCount)
-        );
-    }
-
-    /// @notice Processes all outputs from the transaction.
-    /// @param txOutputVector Bitcoin transaction output vector. This function
-    ///        assumes vector's structure is valid so it must be validated using
-    ///        e.g. `BTCUtils.validateVout` function before it is passed here.
-    /// @param scriptPubKeyHash Expected Bitcoin scriptPubKey keccak256 hash.
-    /// @param processInfo TxOutputsProcessingInfo identifying output
-    ///        starting index and the number of outputs.
-    function processTxOutputs(
-        bytes memory txOutputVector,
-        bytes32 scriptPubKeyHash,
-        TxOutputsProcessingInfo memory processInfo
-    ) internal pure returns (TxOutputsInfo memory resultInfo) {
         // Helper flag indicating whether there was at least one
         // output present
         bool outputPresent = false;
@@ -311,6 +297,12 @@ library BitcoinTx {
                     // NOTE: this will overwrite if there are multiple OP_RETURN outputs
                     resultInfo.evmAddress = outputEvmAddress;
                 }
+
+                bytes32 outputHash = extractHashFromOutput(txOutputVector, processInfo.outputStartingIndex);
+                if (outputHash != 0) {
+                    // NOTE: this will overwrite if there are multiple OP_RETURN outputs
+                    resultInfo.hash = outputHash;
+                }
             }
 
             // Make the `outputStartingIndex` pointing to the next output by
@@ -339,6 +331,20 @@ library BitcoinTx {
         }
     }
 
+    function extractHashFromOutput(bytes memory _output, uint256 _at) internal pure returns (bytes32 outputHash) {
+        // OP_RETURN
+        if (_output[_at + 9] != hex"6a") {
+            return 0;
+        }
+        bytes1 _dataLen = _output[_at + 10];
+        if (uint256(uint8(_dataLen)) == 32) {
+            uint256 opReturnStart = _at + 11;
+            assembly {
+                outputHash := mload(add(_output, add(opReturnStart, 32)))
+            }
+        }
+    }
+
     function reverseEndianness(bytes32 b) internal pure returns (bytes32 txHash) {
         bytes memory newValue = new bytes(b.length);
         for (uint256 i = 0; i < b.length; i++) {
diff --git a/test/BitcoinTx.t.sol b/test/BitcoinTx.t.sol
index f39be877..1321b4f5 100644
--- a/test/BitcoinTx.t.sol
+++ b/test/BitcoinTx.t.sol
@@ -156,7 +156,7 @@ contract BitcoinTxTest is Test {
         assertFalse(success);
     }
 
-    function test_ProcessTxOutputsWithOpReturn() public {
+    function test_ProcessTxOutputsWithOpReturnAddress() public {
         BitcoinTx.TxOutputsInfo memory resultInfo = BitcoinTx.processTxOutputs(
             hex"02983a000000000000146142b39c0073672dc382b89a42b29e06368bcabd0000000000000000166a14675ca18a04027fd50c88ccd03939e0e5c97b795f",
             keccak256(hex"146142b39c0073672dc382b89a42b29e06368bcabd")
@@ -164,4 +164,13 @@ contract BitcoinTxTest is Test {
         assertEq(resultInfo.value, 15000);
         assertEq(resultInfo.evmAddress, 0x675Ca18A04027fd50C88CcD03939E0e5C97b795f);
     }
+
+    function test_ProcessTxOutputsWithOpReturnBytes32() public {
+        BitcoinTx.TxOutputsInfo memory resultInfo = BitcoinTx.processTxOutputs(
+            hex"02983a000000000000146142b39c0073672dc382b89a42b29e06368bcabd0000000000000000166a2000112233445566778899001122334455667788990011",
+            keccak256(hex"146142b39c0073672dc382b89a42b29e06368bcabd")
+        );
+        assertEq(resultInfo.value, 15000);
+        assertEq(resultInfo.hash, hex"00112233445566778899001122334455667788990011");
+    }
 }