diff --git a/cli/smartcontract/smart_contract.go b/cli/smartcontract/smart_contract.go
index 86bc1af41..05b3a6004 100644
--- a/cli/smartcontract/smart_contract.go
+++ b/cli/smartcontract/smart_contract.go
@@ -6,18 +6,20 @@ import (
 	"context"
 	"encoding/hex"
 	"encoding/json"
-	"errors"
 	"fmt"
 	"io/ioutil"
 	"os"
 	"path/filepath"
 
 	"github.com/CityOfZion/neo-go/pkg/rpc"
+	"github.com/CityOfZion/neo-go/pkg/vm"
 	"github.com/CityOfZion/neo-go/pkg/vm/compiler"
+	"github.com/pkg/errors"
 	"github.com/urfave/cli"
 )
 
 var (
+	errNoEndpoint          = errors.New("no RPC endpoint specified, use option '--endpoint' or '-e'")
 	errNoInput             = errors.New("no input file was found, specify an input file with the '--in or -i' flag")
 	errNoSmartContractName = errors.New("no name was provided, specify the '--name or -n' flag")
 	errFileExist           = errors.New("A file with given smart-contract name already exists")
@@ -65,6 +67,10 @@ func NewCommands() []cli.Command {
 				Usage:  "Test an invocation of a smart contract on the blockchain",
 				Action: testInvoke,
 				Flags: []cli.Flag{
+					cli.StringFlag{
+						Name:  "endpoint, e",
+						Usage: "RPC endpoint address (like 'http://seed4.ngd.network:20332')",
+					},
 					cli.StringFlag{
 						Name:  "in, i",
 						Usage: "Input location of the avm file that needs to be invoked",
@@ -91,6 +97,10 @@ func NewCommands() []cli.Command {
 				Usage:  "creates a user readable dump of the program instructions",
 				Action: inspect,
 				Flags: []cli.Flag{
+					cli.BoolFlag{
+						Name:  "compile, c",
+						Usage: "compile input file (it should be go code then)",
+					},
 					cli.StringFlag{
 						Name:  "in, i",
 						Usage: "input file of the program",
@@ -163,16 +173,16 @@ func testInvoke(ctx *cli.Context) error {
 	if len(src) == 0 {
 		return cli.NewExitError(errNoInput, 1)
 	}
+	endpoint := ctx.String("endpoint")
+	if len(endpoint) == 0 {
+		return cli.NewExitError(errNoEndpoint, 1)
+	}
 
 	b, err := ioutil.ReadFile(src)
 	if err != nil {
 		return cli.NewExitError(err, 1)
 	}
 
-	// For now we will hardcode the endpoint.
-	// On the long term the internal VM will run the script.
-	// TODO: remove RPC dependency, hardcoded node.
-	endpoint := "http://node1.ams2.bridgeprotocol.io:10332"
 	client, err := rpc.NewClient(context.TODO(), endpoint, rpc.ClientOptions{})
 	if err != nil {
 		return cli.NewExitError(err, 1)
@@ -251,12 +261,24 @@ func parseContractDetails() ContractDetails {
 }
 
 func inspect(ctx *cli.Context) error {
-	src := ctx.String("in")
-	if len(src) == 0 {
+	in := ctx.String("in")
+	compile := ctx.Bool("compile")
+	if len(in) == 0 {
 		return cli.NewExitError(errNoInput, 1)
 	}
-	if err := compiler.CompileAndInspect(src); err != nil {
+	b, err := ioutil.ReadFile(in)
+	if err != nil {
 		return cli.NewExitError(err, 1)
 	}
+	if compile {
+		b, err = compiler.Compile(bytes.NewReader(b))
+		if err != nil {
+			return cli.NewExitError(errors.Wrap(err, "failed to compile"), 1)
+		}
+	}
+	v := vm.New()
+	v.LoadScript(b)
+	v.PrintOps()
+
 	return nil
 }
diff --git a/cli/vm/vm.go b/cli/vm/vm.go
index 6e0876723..3dab28638 100644
--- a/cli/vm/vm.go
+++ b/cli/vm/vm.go
@@ -1,10 +1,6 @@
 package vm
 
 import (
-	"errors"
-	"io/ioutil"
-
-	"github.com/CityOfZion/neo-go/pkg/vm"
 	vmcli "github.com/CityOfZion/neo-go/pkg/vm/cli"
 	"github.com/urfave/cli"
 )
@@ -18,19 +14,6 @@ func NewCommands() []cli.Command {
 		Flags: []cli.Flag{
 			cli.BoolFlag{Name: "debug, d"},
 		},
-		Subcommands: []cli.Command{
-			{
-				Name:   "inspect",
-				Usage:  "dump instructions of the avm file given",
-				Action: inspect,
-				Flags: []cli.Flag{
-					cli.StringFlag{
-						Name:  "in, i",
-						Usage: "input file of the program (AVM)",
-					},
-				},
-			},
-		},
 	}}
 }
 
@@ -38,18 +21,3 @@ func startVMPrompt(ctx *cli.Context) error {
 	p := vmcli.New()
 	return p.Run()
 }
-
-func inspect(ctx *cli.Context) error {
-	avm := ctx.String("in")
-	if len(avm) == 0 {
-		return cli.NewExitError(errors.New("no input file given"), 1)
-	}
-	b, err := ioutil.ReadFile(avm)
-	if err != nil {
-		return cli.NewExitError(err, 1)
-	}
-	v := vm.New()
-	v.LoadScript(b)
-	v.PrintOps()
-	return nil
-}
diff --git a/pkg/core/blockchain.go b/pkg/core/blockchain.go
index 4427d2f08..59b82cca2 100644
--- a/pkg/core/blockchain.go
+++ b/pkg/core/blockchain.go
@@ -432,19 +432,9 @@ func (bc *Blockchain) storeBlock(block *Block) error {
 			contracts[contract.ScriptHash()] = contract
 
 		case *transaction.InvocationTX:
-			vm := vm.New()
-			vm.SetCheckedHash(tx.VerificationHash().Bytes())
-			vm.SetScriptGetter(func(hash util.Uint160) []byte {
-				cs := bc.GetContractState(hash)
-				if cs == nil {
-					return nil
-				}
-
-				return cs.Script
-			})
 			systemInterop := newInteropContext(0x10, bc, tmpStore, block, tx)
-			vm.RegisterInteropFuncs(systemInterop.getSystemInteropMap())
-			vm.RegisterInteropFuncs(systemInterop.getNeoInteropMap())
+			vm := bc.spawnVMWithInterops(systemInterop)
+			vm.SetCheckedHash(tx.VerificationHash().Bytes())
 			vm.LoadScript(t.Script)
 			err := vm.Run()
 			if !vm.HasFailed() {
@@ -1110,6 +1100,30 @@ func (bc *Blockchain) GetScriptHashesForVerifying(t *transaction.Transaction) ([
 
 }
 
+// spawnVMWithInterops returns a VM with script getter and interop functions set
+// up for current blockchain.
+func (bc *Blockchain) spawnVMWithInterops(interopCtx *interopContext) *vm.VM {
+	vm := vm.New()
+	vm.SetScriptGetter(func(hash util.Uint160) []byte {
+		cs := bc.GetContractState(hash)
+		if cs == nil {
+			return nil
+		}
+		return cs.Script
+	})
+	vm.RegisterInteropFuncs(interopCtx.getSystemInteropMap())
+	vm.RegisterInteropFuncs(interopCtx.getNeoInteropMap())
+	return vm
+}
+
+// GetTestVM returns a VM and a Store setup for a test run of some sort of code.
+func (bc *Blockchain) GetTestVM() (*vm.VM, storage.Store) {
+	tmpStore := storage.NewMemCachedStore(bc.store)
+	systemInterop := newInteropContext(0x10, bc, tmpStore, nil, nil)
+	vm := bc.spawnVMWithInterops(systemInterop)
+	return vm, tmpStore
+}
+
 // verifyHashAgainstScript verifies given hash against the given witness.
 func (bc *Blockchain) verifyHashAgainstScript(hash util.Uint160, witness *transaction.Witness, checkedHash util.Uint256, interopCtx *interopContext) error {
 	verification := witness.VerificationScript
@@ -1127,17 +1141,8 @@ func (bc *Blockchain) verifyHashAgainstScript(hash util.Uint160, witness *transa
 		}
 	}
 
-	vm := vm.New()
+	vm := bc.spawnVMWithInterops(interopCtx)
 	vm.SetCheckedHash(checkedHash.Bytes())
-	vm.SetScriptGetter(func(hash util.Uint160) []byte {
-		cs := bc.GetContractState(hash)
-		if cs == nil {
-			return nil
-		}
-		return cs.Script
-	})
-	vm.RegisterInteropFuncs(interopCtx.getSystemInteropMap())
-	vm.RegisterInteropFuncs(interopCtx.getNeoInteropMap())
 	vm.LoadScript(verification)
 	vm.LoadScript(witness.InvocationScript)
 	err := vm.Run()
diff --git a/pkg/core/blockchainer.go b/pkg/core/blockchainer.go
index 1409a2c40..1ce3247e6 100644
--- a/pkg/core/blockchainer.go
+++ b/pkg/core/blockchainer.go
@@ -2,8 +2,10 @@ package core
 
 import (
 	"github.com/CityOfZion/neo-go/config"
+	"github.com/CityOfZion/neo-go/pkg/core/storage"
 	"github.com/CityOfZion/neo-go/pkg/core/transaction"
 	"github.com/CityOfZion/neo-go/pkg/util"
+	"github.com/CityOfZion/neo-go/pkg/vm"
 )
 
 // Blockchainer is an interface that abstract the implementation
@@ -27,6 +29,7 @@ type Blockchainer interface {
 	GetScriptHashesForVerifying(*transaction.Transaction) ([]util.Uint160, error)
 	GetStorageItem(scripthash util.Uint160, key []byte) *StorageItem
 	GetStorageItems(hash util.Uint160) (map[string]*StorageItem, error)
+	GetTestVM() (*vm.VM, storage.Store)
 	GetTransaction(util.Uint256) (*transaction.Transaction, uint32, error)
 	GetUnspentCoinState(util.Uint256) *UnspentCoinState
 	References(t *transaction.Transaction) map[transaction.Input]*transaction.Output
diff --git a/pkg/network/helper_test.go b/pkg/network/helper_test.go
index dbb55f607..2ad71205d 100644
--- a/pkg/network/helper_test.go
+++ b/pkg/network/helper_test.go
@@ -9,9 +9,11 @@ import (
 
 	"github.com/CityOfZion/neo-go/config"
 	"github.com/CityOfZion/neo-go/pkg/core"
+	"github.com/CityOfZion/neo-go/pkg/core/storage"
 	"github.com/CityOfZion/neo-go/pkg/core/transaction"
 	"github.com/CityOfZion/neo-go/pkg/network/payload"
 	"github.com/CityOfZion/neo-go/pkg/util"
+	"github.com/CityOfZion/neo-go/pkg/vm"
 )
 
 type testChain struct {
@@ -78,6 +80,9 @@ func (chain testChain) GetScriptHashesForVerifying(*transaction.Transaction) ([]
 func (chain testChain) GetStorageItem(scripthash util.Uint160, key []byte) *core.StorageItem {
 	panic("TODO")
 }
+func (chain testChain) GetTestVM() (*vm.VM, storage.Store) {
+	panic("TODO")
+}
 func (chain testChain) GetStorageItems(hash util.Uint160) (map[string]*core.StorageItem, error) {
 	panic("TODO")
 }
diff --git a/pkg/rpc/server.go b/pkg/rpc/server.go
index 24c203d30..1ea607d6e 100644
--- a/pkg/rpc/server.go
+++ b/pkg/rpc/server.go
@@ -192,10 +192,6 @@ Methods:
 
 		results = peers
 
-	case "getblocksysfee", "getcontractstate", "getrawmempool", "getstorage", "submitblock", "gettxout", "invoke", "invokefunction", "invokescript":
-
-		results = "TODO"
-
 	case "validateaddress":
 		validateaddressCalled.Inc()
 		param, err := reqParams.Value(0)
@@ -242,6 +238,9 @@ Methods:
 		getrawtransactionCalled.Inc()
 		results, resultsErr = s.getrawtransaction(reqParams)
 
+	case "invokescript":
+		results, resultsErr = s.invokescript(reqParams)
+
 	case "sendrawtransaction":
 		sendrawtransactionCalled.Inc()
 		results, resultsErr = s.sendrawtransaction(reqParams)
@@ -296,6 +295,28 @@ func (s *Server) getrawtransaction(reqParams Params) (interface{}, error) {
 	return results, resultsErr
 }
 
+// invokescript implements the `invokescript` RPC call.
+func (s *Server) invokescript(reqParams Params) (interface{}, error) {
+	hexScript, err := reqParams.ValueWithType(0, "string")
+	if err != nil {
+		return nil, err
+	}
+	script, err := hex.DecodeString(hexScript.StringVal)
+	if err != nil {
+		return nil, err
+	}
+	vm, _ := s.chain.GetTestVM()
+	vm.LoadScript(script)
+	_ = vm.Run()
+	result := &wrappers.InvokeResult{
+		State:       vm.State(),
+		GasConsumed: "0.1",
+		Script:      hexScript.StringVal,
+		Stack:       vm.Estack(),
+	}
+	return result, nil
+}
+
 func (s *Server) sendrawtransaction(reqParams Params) (interface{}, error) {
 	var resultsErr error
 	var results interface{}
diff --git a/pkg/rpc/wrappers/invoke_result.go b/pkg/rpc/wrappers/invoke_result.go
new file mode 100644
index 000000000..4cc790bf5
--- /dev/null
+++ b/pkg/rpc/wrappers/invoke_result.go
@@ -0,0 +1,13 @@
+package wrappers
+
+import (
+	"github.com/CityOfZion/neo-go/pkg/vm"
+)
+
+// InvokeResult is used as a wrapper to represent an invokation result.
+type InvokeResult struct {
+	State       string `json:"state"`
+	GasConsumed string `json:"gas_consumed"`
+	Script      string `json:"script"`
+	Stack       *vm.Stack
+}
diff --git a/pkg/vm/cli/cli.go b/pkg/vm/cli/cli.go
index 3083e0b6e..e4e2115ba 100644
--- a/pkg/vm/cli/cli.go
+++ b/pkg/vm/cli/cli.go
@@ -259,7 +259,7 @@ func handleLoadGo(c *ishell.Context) {
 		c.Err(err)
 		return
 	}
-	b, err := compiler.Compile(bytes.NewReader(fb), &compiler.Options{})
+	b, err := compiler.Compile(bytes.NewReader(fb))
 	if err != nil {
 		c.Err(err)
 		return
diff --git a/pkg/vm/compiler/compiler.go b/pkg/vm/compiler/compiler.go
index 7a264650f..5ead0d34a 100644
--- a/pkg/vm/compiler/compiler.go
+++ b/pkg/vm/compiler/compiler.go
@@ -14,7 +14,6 @@ import (
 	"os"
 	"strings"
 
-	"github.com/CityOfZion/neo-go/pkg/vm"
 	"golang.org/x/tools/go/loader"
 )
 
@@ -38,7 +37,7 @@ type buildInfo struct {
 }
 
 // Compile compiles a Go program into bytecode that can run on the NEO virtual machine.
-func Compile(r io.Reader, o *Options) ([]byte, error) {
+func Compile(r io.Reader) ([]byte, error) {
 	conf := loader.Config{ParserMode: parser.ParseComments}
 	f, err := conf.ParseFile("", r)
 	if err != nil {
@@ -85,7 +84,7 @@ func CompileAndSave(src string, o *Options) error {
 	if err != nil {
 		return err
 	}
-	b, err = Compile(bytes.NewReader(b), o)
+	b, err = Compile(bytes.NewReader(b))
 	if err != nil {
 		return fmt.Errorf("error while trying to compile smart contract file: %v", err)
 	}
@@ -96,23 +95,6 @@ func CompileAndSave(src string, o *Options) error {
 	return ioutil.WriteFile(out, b, os.ModePerm)
 }
 
-// CompileAndInspect compiles the program and dumps the opcode in a user friendly format.
-func CompileAndInspect(src string) error {
-	b, err := ioutil.ReadFile(src)
-	if err != nil {
-		return err
-	}
-	b, err = Compile(bytes.NewReader(b), &Options{})
-	if err != nil {
-		return err
-	}
-
-	v := vm.New()
-	v.LoadScript(b)
-	v.PrintOps()
-	return nil
-}
-
 func gopath() string {
 	gopath := os.Getenv("GOPATH")
 	if len(gopath) == 0 {
diff --git a/pkg/vm/compiler/compiler_test.go b/pkg/vm/compiler/compiler_test.go
index 1ab46d1ae..5ddd11824 100644
--- a/pkg/vm/compiler/compiler_test.go
+++ b/pkg/vm/compiler/compiler_test.go
@@ -44,14 +44,10 @@ func filterFilename(infos []os.FileInfo) string {
 }
 
 func compileFile(src string) error {
-	o := compiler.Options{
-		Outfile: "tmp/contract.avm",
-	}
-
 	file, err := os.Open(src)
 	if err != nil {
 		return err
 	}
-	_, err = compiler.Compile(file, &o)
+	_, err = compiler.Compile(file)
 	return err
 }
diff --git a/pkg/vm/output.go b/pkg/vm/output.go
index 4cad005d8..14e83103b 100644
--- a/pkg/vm/output.go
+++ b/pkg/vm/output.go
@@ -9,7 +9,7 @@ type stackItem struct {
 	Type  string      `json:"type"`
 }
 
-func buildStackOutput(s *Stack) string {
+func stackToArray(s *Stack) []stackItem {
 	items := make([]stackItem, 0, s.Len())
 	s.Iter(func(e *Element) {
 		items = append(items, stackItem{
@@ -17,7 +17,10 @@ func buildStackOutput(s *Stack) string {
 			Type:  e.value.String(),
 		})
 	})
+	return items
+}
 
-	b, _ := json.MarshalIndent(items, "", "    ")
+func buildStackOutput(s *Stack) string {
+	b, _ := json.MarshalIndent(stackToArray(s), "", "    ")
 	return string(b)
 }
diff --git a/pkg/vm/stack.go b/pkg/vm/stack.go
index f295d1e59..13a6c0f75 100644
--- a/pkg/vm/stack.go
+++ b/pkg/vm/stack.go
@@ -1,6 +1,7 @@
 package vm
 
 import (
+	"encoding/json"
 	"fmt"
 	"math/big"
 
@@ -334,3 +335,8 @@ func (s *Stack) popSigElements() ([][]byte, error) {
 	}
 	return elems, nil
 }
+
+// MarshalJSON implements JSON marshalling interface.
+func (s *Stack) MarshalJSON() ([]byte, error) {
+	return json.Marshal(stackToArray(s))
+}
diff --git a/pkg/vm/tests/vm_test.go b/pkg/vm/tests/vm_test.go
index a65357e67..deb18eaa7 100644
--- a/pkg/vm/tests/vm_test.go
+++ b/pkg/vm/tests/vm_test.go
@@ -52,7 +52,7 @@ func vmAndCompile(t *testing.T, src string) *vm.VM {
 	vm.RegisterInteropFunc("Neo.Storage.Put", storePlugin.Put, 1)
 	vm.RegisterInteropFunc("Neo.Storage.GetContext", storePlugin.GetContext, 1)
 
-	b, err := compiler.Compile(strings.NewReader(src), &compiler.Options{})
+	b, err := compiler.Compile(strings.NewReader(src))
 	if err != nil {
 		t.Fatal(err)
 	}
diff --git a/pkg/vm/vm.go b/pkg/vm/vm.go
index f425a5a6f..568e47110 100644
--- a/pkg/vm/vm.go
+++ b/pkg/vm/vm.go
@@ -199,10 +199,11 @@ func (v *VM) LoadFile(path string) error {
 
 // Load initializes the VM with the program given.
 func (v *VM) Load(prog []byte) {
-	// clear all stacks, it could be a reload.
+	// Clear all stacks and state, it could be a reload.
 	v.istack.Clear()
 	v.estack.Clear()
 	v.astack.Clear()
+	v.state = noneState
 	v.LoadScript(prog)
 }
 
@@ -250,6 +251,11 @@ func (v *VM) Stack(n string) string {
 	return buildStackOutput(s)
 }
 
+// State returns string representation of the state for the VM.
+func (v *VM) State() string {
+	return v.state.String()
+}
+
 // Ready returns true if the VM ready to execute the loaded program.
 // Will return false if no program is loaded.
 func (v *VM) Ready() bool {