diff --git a/pkg/vm/vm.go b/pkg/vm/vm.go
index c48d993ec..f289bc15a 100644
--- a/pkg/vm/vm.go
+++ b/pkg/vm/vm.go
@@ -63,6 +63,15 @@ const (
 // SyscallHandler is a type for syscall handler.
 type SyscallHandler = func(*VM, uint32) error
 
+// OnExecHook is a type for a callback that is invoked
+// before each instruction is executed.
+type OnExecHook = func(scriptHash util.Uint160, offset int, opcode opcode.Opcode)
+
+// A struct that contains all VM hooks.
+type hooks struct {
+	onExec OnExecHook
+}
+
 // VM represents the virtual machine.
 type VM struct {
 	state vmstate.State
@@ -90,6 +99,9 @@ type VM struct {
 
 	// invTree is a top-level invocation tree (if enabled).
 	invTree *invocations.Tree
+
+	// All registered hooks.
+	hooks hooks
 }
 
 var (
@@ -116,6 +128,16 @@ func NewWithTrigger(t trigger.Type) *VM {
 	return vm
 }
 
+// SetOnExecHook sets the value of OnExecHook which
+// will be invoked for each executed instruction.
+// This function panics if the VM has been started.
+func (v *VM) SetOnExecHook(hook OnExecHook) {
+	if v.state != vmstate.None {
+		panic("Cannot set onExec hook of a started VM")
+	}
+	v.hooks.onExec = hook
+}
+
 // SetPriceGetter registers the given PriceGetterFunc in v.
 // f accepts vm's Context, current instruction and instruction parameter.
 func (v *VM) SetPriceGetter(f func(opcode.Opcode, []byte) int64) {
@@ -472,7 +494,12 @@ func (v *VM) Step() error {
 
 // step executes one instruction in the given context.
 func (v *VM) step(ctx *Context) error {
+	ip := ctx.nextip
+	scriptHash := v.GetCurrentScriptHash()
 	op, param, err := ctx.Next()
+	if v.hooks.onExec != nil {
+		v.hooks.onExec(scriptHash, ip, op)
+	}
 	if err != nil {
 		v.state = vmstate.Fault
 		return newError(ctx.ip, op, err)
diff --git a/pkg/vm/vm_test.go b/pkg/vm/vm_test.go
index 2107f749b..e82b78eca 100644
--- a/pkg/vm/vm_test.go
+++ b/pkg/vm/vm_test.go
@@ -18,6 +18,7 @@ import (
 	"github.com/nspcc-dev/neo-go/pkg/io"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract/callflag"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract/trigger"
+	"github.com/nspcc-dev/neo-go/pkg/util"
 	"github.com/nspcc-dev/neo-go/pkg/vm/emit"
 	"github.com/nspcc-dev/neo-go/pkg/vm/opcode"
 	"github.com/nspcc-dev/neo-go/pkg/vm/stackitem"
@@ -2776,6 +2777,50 @@ func TestUninitializedSyscallHandler(t *testing.T) {
 	assert.Equal(t, true, v.HasFailed())
 }
 
+func TestCannotSetOnExecHookOfStartedVm(t *testing.T) {
+	prog := makeProgram(opcode.NOP)
+	v := load(prog)
+	runVM(t, v)
+	require.Panics(t, func() {
+		v.SetOnExecHook(func(scriptHash util.Uint160, offset int, opcode opcode.Opcode) {})
+	})
+}
+
+func TestOnExecHookGivesValidTrace(t *testing.T) {
+	prog := makeProgram(opcode.NOP, opcode.NOP, opcode.NOP)
+	expectedOffsets := []int{0, 1, 2, 3}
+	expectedOpcodes := []opcode.Opcode{opcode.NOP, opcode.NOP, opcode.NOP, opcode.RET}
+
+	actualScriptHashes, actualOffsets, actualOpcodes := runWithTrace(t, prog)
+
+	require.Equal(t, expectedOffsets, actualOffsets, "Invalid offsets")
+	require.Equal(t, expectedOpcodes, actualOpcodes, "Invalid opcodes")
+
+	t.Run("Validate collected script hashes", func(t *testing.T) {
+		scriptHash := actualScriptHashes[0]
+		expectedScriptHashes := []util.Uint160{scriptHash, scriptHash, scriptHash, scriptHash}
+		require.Equal(t, expectedScriptHashes, actualScriptHashes)
+	})
+}
+
+func runWithTrace(t *testing.T, prog []byte) ([]util.Uint160, []int, []opcode.Opcode) {
+	v := load(prog)
+
+	scriptHashes := make([]util.Uint160, 0)
+	offsets := make([]int, 0)
+	opcodes := make([]opcode.Opcode, 0)
+
+	onExec := func(scriptHash util.Uint160, offset int, opcode opcode.Opcode) {
+		scriptHashes = append(scriptHashes, scriptHash)
+		offsets = append(offsets, offset)
+		opcodes = append(opcodes, opcode)
+	}
+	v.SetOnExecHook(onExec)
+	runVM(t, v)
+
+	return scriptHashes, offsets, opcodes
+}
+
 func makeProgram(opcodes ...opcode.Opcode) []byte {
 	prog := make([]byte, len(opcodes)+1) // RET
 	for i := 0; i < len(opcodes); i++ {