diff --git a/pkg/core/interop/runtime/witness.go b/pkg/core/interop/runtime/witness.go
index d6a01e652..09c4335d4 100644
--- a/pkg/core/interop/runtime/witness.go
+++ b/pkg/core/interop/runtime/witness.go
@@ -41,6 +41,10 @@ func getContractGroups(v *vm.VM, ic *interop.Context, h util.Uint160) (manifest.
 	return manifest.Groups(cs.Manifest.Groups), nil
 }
 
+func (sc scopeContext) IsCalledByEntry() bool {
+	return sc.VM.Context().IsCalledByEntry()
+}
+
 func (sc scopeContext) checkScriptGroups(h util.Uint160, k *keys.PublicKey) (bool, error) {
 	groups, err := getContractGroups(sc.VM, sc.ic, h)
 	if err != nil {
@@ -69,9 +73,7 @@ func checkScope(ic *interop.Context, hash util.Uint160) (bool, error) {
 				return true, nil
 			}
 			if c.Scopes&transaction.CalledByEntry != 0 {
-				callingScriptHash := ic.VM.GetCallingScriptHash()
-				entryScriptHash := ic.VM.GetEntryScriptHash()
-				if callingScriptHash.Equals(util.Uint160{}) || callingScriptHash == entryScriptHash {
+				if ic.VM.Context().IsCalledByEntry() {
 					return true, nil
 				}
 			}
diff --git a/pkg/core/transaction/witness_condition.go b/pkg/core/transaction/witness_condition.go
index 71fcc1d33..65a73b09e 100644
--- a/pkg/core/transaction/witness_condition.go
+++ b/pkg/core/transaction/witness_condition.go
@@ -63,9 +63,9 @@ type WitnessCondition interface {
 type MatchContext interface {
 	GetCallingScriptHash() util.Uint160
 	GetCurrentScriptHash() util.Uint160
-	GetEntryScriptHash() util.Uint160
 	CallingScriptHasGroup(*keys.PublicKey) (bool, error)
 	CurrentScriptHasGroup(*keys.PublicKey) (bool, error)
+	IsCalledByEntry() bool
 }
 
 type (
@@ -394,8 +394,7 @@ func (c ConditionCalledByEntry) Type() WitnessConditionType {
 // Match implements the WitnessCondition interface checking whether this condition
 // matches given context.
 func (c ConditionCalledByEntry) Match(ctx MatchContext) (bool, error) {
-	entry := ctx.GetEntryScriptHash()
-	return entry.Equals(ctx.GetCallingScriptHash()) || entry.Equals(ctx.GetCurrentScriptHash()), nil
+	return ctx.IsCalledByEntry(), nil
 }
 
 // EncodeBinary implements the WitnessCondition interface allowing to serialize condition.
diff --git a/pkg/core/transaction/witness_condition_test.go b/pkg/core/transaction/witness_condition_test.go
index e8ac6d4fc..2a4f56244 100644
--- a/pkg/core/transaction/witness_condition_test.go
+++ b/pkg/core/transaction/witness_condition_test.go
@@ -170,6 +170,9 @@ func (t *TestMC) GetCurrentScriptHash() util.Uint160 {
 func (t *TestMC) GetEntryScriptHash() util.Uint160 {
 	return t.entry
 }
+func (t *TestMC) IsCalledByEntry() bool {
+	return t.entry.Equals(t.calling) || t.calling.Equals(util.Uint160{})
+}
 func (t *TestMC) CallingScriptHasGroup(k *keys.PublicKey) (bool, error) {
 	res, err := t.CurrentScriptHasGroup(k)
 	return !res, err // To differentiate from current we invert the logic value.
diff --git a/pkg/core/transaction/witness_scope.go b/pkg/core/transaction/witness_scope.go
index 5daf15eaa..aa67eb33a 100644
--- a/pkg/core/transaction/witness_scope.go
+++ b/pkg/core/transaction/witness_scope.go
@@ -13,7 +13,7 @@ type WitnessScope byte
 const (
 	// None specifies that no contract was witnessed. Only sign the transaction.
 	None WitnessScope = 0
-	// CalledByEntry means that this condition must hold: EntryScriptHash == CallingScriptHash.
+	// CalledByEntry witness is only valid in entry script and ones directly called by it.
 	// No params is needed, as the witness/permission/signature given on first invocation will
 	// automatically expire if entering deeper internal invokes. This can be default safe
 	// choice for native NEO/GAS (previously used on Neo 2 as "attach" mode).
diff --git a/pkg/vm/context.go b/pkg/vm/context.go
index aaf74b01e..31c4280f7 100644
--- a/pkg/vm/context.go
+++ b/pkg/vm/context.go
@@ -37,6 +37,9 @@ type scriptContext struct {
 	// Caller's contract script hash.
 	callingScriptHash util.Uint160
 
+	// Caller's scriptContext, if not entry.
+	callingContext *scriptContext
+
 	// Call flags this context was created with.
 	callFlag callflag.CallFlag
 
@@ -326,6 +329,12 @@ func (v *VM) getContextScriptHash(n int) util.Uint160 {
 	return ctx.ScriptHash()
 }
 
+// IsCalledByEntry checks parent script contexts and return true if the current one
+// is an entry script (the first loaded into the VM) or one called by it.
+func (c *Context) IsCalledByEntry() bool {
+	return c.sc.callingContext == nil || c.sc.callingContext.callingContext == nil
+}
+
 // PushContextScriptHash pushes the script hash of the
 // invocation stack element number n to the evaluation stack.
 func (v *VM) PushContextScriptHash(n int) error {
diff --git a/pkg/vm/vm.go b/pkg/vm/vm.go
index 47c68a772..378a898b2 100644
--- a/pkg/vm/vm.go
+++ b/pkg/vm/vm.go
@@ -340,15 +340,18 @@ func (v *VM) loadScriptWithCallingHash(b []byte, exe *nef.File, caller util.Uint
 	if rvcount != -1 || v.estack.Len() != 0 {
 		v.estack = subStack(v.estack)
 	}
+	parent := v.Context()
 	ctx.sc.estack = v.estack
 	initStack(&ctx.tryStack, "exception", nil)
 	ctx.sc.callFlag = f
 	ctx.sc.scriptHash = hash
 	ctx.sc.callingScriptHash = caller
+	if parent != nil {
+		ctx.sc.callingContext = parent.sc
+	}
 	ctx.sc.NEF = exe
 	if v.invTree != nil {
 		curTree := v.invTree
-		parent := v.Context()
 		if parent != nil {
 			curTree = parent.sc.invTree
 		}