diff --git a/src/handler.rs b/src/handler.rs
index 92233fc..11ee85d 100644
--- a/src/handler.rs
+++ b/src/handler.rs
@@ -125,7 +125,10 @@ where
                 is_nonce_check_disabled,
             )?;
 
-            // only check balance if l1 message and Spec is EUCLID.
+            // Note: we skip the balance check at pre-execution level if the transaction is a
+            // L1 message and Euclid is enabled. This means the L1 message will reach execution
+            // stage in revm and revert with `OutOfFunds` in the first frame, but still be included
+            // in the block.
             let skip_balance_check = tx.is_l1_msg() && spec.is_enabled_in(ScrollSpecId::EUCLID);
             if !skip_balance_check {
                 let max_balance_spending = tx.max_balance_spending()?;
diff --git a/src/tests/l1_message.rs b/src/tests/l1_message.rs
index 15aced6..392759c 100644
--- a/src/tests/l1_message.rs
+++ b/src/tests/l1_message.rs
@@ -7,10 +7,15 @@ use crate::{
 };
 use std::boxed::Box;
 
+use crate::test_utils::MIN_TRANSACTION_COST;
 use revm::{
-    context::{result::EVMError, ContextTr, JournalTr},
+    context::{
+        result::{EVMError, ExecutionResult, HaltReason, ResultAndState},
+        ContextTr, JournalTr,
+    },
     handler::{EthFrame, EvmTr, FrameResult, Handler},
     interpreter::{CallOutcome, Gas, InstructionResult, InterpreterResult},
+    ExecuteEvm,
 };
 use revm_primitives::U256;
 
@@ -120,3 +125,26 @@ fn test_reward_beneficiary_l1_message() -> Result<(), Box<dyn core::error::Error
 
     Ok(())
 }
+
+#[test]
+fn test_should_revert_with_out_of_funds_l1_message() -> Result<(), Box<dyn core::error::Error>> {
+    let ctx = context().modify_tx_chained(|tx| {
+        tx.base.tx_type = L1_MESSAGE_TYPE;
+        tx.base.value = U256::ONE;
+    });
+    let tx = ctx.tx.clone();
+    let mut evm = ctx.build_scroll();
+
+    let ResultAndState { result, .. } = evm.transact(tx)?;
+
+    // L1 message should pass pre-execution but revert with `OutOfFunds`.
+    assert_eq!(
+        result,
+        ExecutionResult::Halt {
+            gas_used: MIN_TRANSACTION_COST.to(),
+            reason: HaltReason::OutOfFunds
+        }
+    );
+
+    Ok(())
+}