diff --git a/crates/core/component/compact-block/src/component/manager.rs b/crates/core/component/compact-block/src/component/manager.rs
index 8824a0c16a..dfd777a9e0 100644
--- a/crates/core/component/compact-block/src/component/manager.rs
+++ b/crates/core/component/compact-block/src/component/manager.rs
@@ -91,6 +91,8 @@ trait Inner: StateWrite {
         let note_payloads = self
             .pending_note_payloads()
             .into_iter()
+            // Filter out notes with the compact block exclusion flag set.
+            .filter(|(_pos, note, _source)| !note.sync_exclude)
             // Strip the sources of transaction IDs
             .map(|(pos, note, source)| (pos, (note, source.stripped()).into()));
         let rolled_up_payloads = self
diff --git a/crates/core/component/shielded-pool/src/component/action_handler/spend.rs b/crates/core/component/shielded-pool/src/component/action_handler/spend.rs
index ee4c1ace85..8d2f6cb52b 100644
--- a/crates/core/component/shielded-pool/src/component/action_handler/spend.rs
+++ b/crates/core/component/shielded-pool/src/component/action_handler/spend.rs
@@ -46,6 +46,8 @@ impl ActionHandler for Spend {
 
         let source = state.get_current_source().expect("source should be set");
 
+        // TODO: if the request body has the "don't store in compact block" bit set,
+        // then we should not store this nullifier in the compact block.
         state.nullify(self.body.nullifier, source).await;
 
         // Also record an ABCI event for transaction indexing.