diff --git a/cumulus/pallets/parachain-system/src/mock.rs b/cumulus/pallets/parachain-system/src/mock.rs
index b76553a53841d..088c3d68992af 100644
--- a/cumulus/pallets/parachain-system/src/mock.rs
+++ b/cumulus/pallets/parachain-system/src/mock.rs
@@ -65,6 +65,7 @@ parameter_types! {
 		apis: sp_version::create_apis_vec!([]),
 		transaction_version: 1,
 		state_version: 1,
+		extrinsic_state_version: 0,
 	};
 	pub const ParachainId: ParaId = ParaId::new(200);
 	pub const ReservedXcmpWeight: Weight = Weight::zero();
diff --git a/cumulus/parachain-template/runtime/src/lib.rs b/cumulus/parachain-template/runtime/src/lib.rs
index 1ef018a8ca344..6aa2aeaa27c20 100644
--- a/cumulus/parachain-template/runtime/src/lib.rs
+++ b/cumulus/parachain-template/runtime/src/lib.rs
@@ -187,6 +187,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// This determines the average expected block time that we are targeting.
diff --git a/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs b/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs
index 3010cbc69fa27..6fca130d09bd4 100644
--- a/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/assets/asset-hub-rococo/src/lib.rs
@@ -116,6 +116,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 14,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 #[cfg(not(feature = "state-trie-version-1"))]
@@ -129,6 +130,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 14,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs b/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs
index e0dff0c4516e3..748607e8c1e2d 100644
--- a/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/assets/asset-hub-westend/src/lib.rs
@@ -114,6 +114,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 14,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs
index 0052e9dcb38a4..dfa19a791c4f4 100644
--- a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-rococo/src/lib.rs
@@ -206,6 +206,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 4,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs
index 717cde6280dbf..dd868f2e5bc2a 100644
--- a/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/bridge-hubs/bridge-hub-westend/src/lib.rs
@@ -180,6 +180,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 4,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs b/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs
index 6cb8e096e4b3f..8b2d9ad629efe 100644
--- a/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/collectives/collectives-westend/src/lib.rs
@@ -121,6 +121,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 5,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs b/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs
index 79b6b6be299be..0107049bed82b 100644
--- a/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/contracts/contracts-rococo/src/lib.rs
@@ -138,6 +138,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 6,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs b/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs
index 0f01c2d74166e..3b67327b53efc 100644
--- a/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/coretime/coretime-rococo/src/lib.rs
@@ -134,6 +134,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 0,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs b/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs
index 742b3a29275ca..8834eeab612e8 100644
--- a/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/coretime/coretime-westend/src/lib.rs
@@ -125,6 +125,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 0,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/glutton/glutton-westend/src/lib.rs b/cumulus/parachains/runtimes/glutton/glutton-westend/src/lib.rs
index 2c51791c07405..1c8067401336a 100644
--- a/cumulus/parachains/runtimes/glutton/glutton-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/glutton/glutton-westend/src/lib.rs
@@ -104,6 +104,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs b/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs
index 7805e0ad98292..fc842a39b0430 100644
--- a/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs
+++ b/cumulus/parachains/runtimes/people/people-rococo/src/lib.rs
@@ -129,6 +129,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 0,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/people/people-westend/src/lib.rs b/cumulus/parachains/runtimes/people/people-westend/src/lib.rs
index 8ea29c8aa218b..83b72c72d302f 100644
--- a/cumulus/parachains/runtimes/people/people-westend/src/lib.rs
+++ b/cumulus/parachains/runtimes/people/people-westend/src/lib.rs
@@ -129,6 +129,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 0,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/starters/seedling/src/lib.rs b/cumulus/parachains/runtimes/starters/seedling/src/lib.rs
index cb868627e799e..29562a1f43c34 100644
--- a/cumulus/parachains/runtimes/starters/seedling/src/lib.rs
+++ b/cumulus/parachains/runtimes/starters/seedling/src/lib.rs
@@ -80,6 +80,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 2,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/starters/shell/src/lib.rs b/cumulus/parachains/runtimes/starters/shell/src/lib.rs
index de95969f71d10..770d886829add 100644
--- a/cumulus/parachains/runtimes/starters/shell/src/lib.rs
+++ b/cumulus/parachains/runtimes/starters/shell/src/lib.rs
@@ -88,6 +88,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/cumulus/parachains/runtimes/testing/penpal/src/lib.rs b/cumulus/parachains/runtimes/testing/penpal/src/lib.rs
index 541bcd05644f5..1377730407a0b 100644
--- a/cumulus/parachains/runtimes/testing/penpal/src/lib.rs
+++ b/cumulus/parachains/runtimes/testing/penpal/src/lib.rs
@@ -236,6 +236,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// This determines the average expected block time that we are targeting.
diff --git a/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs b/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs
index 7faee4258f65e..9568f69f95b94 100644
--- a/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs
+++ b/cumulus/parachains/runtimes/testing/rococo-parachain/src/lib.rs
@@ -113,6 +113,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 6,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 pub const MILLISECS_PER_BLOCK: u64 = 6000;
diff --git a/cumulus/test/runtime/src/lib.rs b/cumulus/test/runtime/src/lib.rs
index 3de77cb1e5811..451449563ce2f 100644
--- a/cumulus/test/runtime/src/lib.rs
+++ b/cumulus/test/runtime/src/lib.rs
@@ -103,6 +103,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 #[cfg(feature = "increment-spec-version")]
@@ -117,6 +118,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 pub const MILLISECS_PER_BLOCK: u64 = 12000;
diff --git a/polkadot/runtime/rococo/src/lib.rs b/polkadot/runtime/rococo/src/lib.rs
index 3fd3f2bc63549..d00955c942f09 100644
--- a/polkadot/runtime/rococo/src/lib.rs
+++ b/polkadot/runtime/rococo/src/lib.rs
@@ -158,6 +158,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 24,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The BABE epoch configuration at genesis.
diff --git a/polkadot/runtime/test-runtime/src/lib.rs b/polkadot/runtime/test-runtime/src/lib.rs
index f472b619ba759..85ab0a61dcb86 100644
--- a/polkadot/runtime/test-runtime/src/lib.rs
+++ b/polkadot/runtime/test-runtime/src/lib.rs
@@ -112,6 +112,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The BABE epoch configuration at genesis.
diff --git a/polkadot/runtime/westend/src/lib.rs b/polkadot/runtime/westend/src/lib.rs
index e1416c4b75437..75cd6d25f5efb 100644
--- a/polkadot/runtime/westend/src/lib.rs
+++ b/polkadot/runtime/westend/src/lib.rs
@@ -152,6 +152,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 24,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The BABE epoch configuration at genesis.
diff --git a/substrate/bin/minimal/runtime/src/lib.rs b/substrate/bin/minimal/runtime/src/lib.rs
index efee400c3f594..eb600497f549e 100644
--- a/substrate/bin/minimal/runtime/src/lib.rs
+++ b/substrate/bin/minimal/runtime/src/lib.rs
@@ -43,6 +43,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The version information used to identify this runtime when compiled natively.
diff --git a/substrate/bin/node-template/runtime/src/lib.rs b/substrate/bin/node-template/runtime/src/lib.rs
index 5f399edda9878..28d0ba92ebe33 100644
--- a/substrate/bin/node-template/runtime/src/lib.rs
+++ b/substrate/bin/node-template/runtime/src/lib.rs
@@ -108,6 +108,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// This determines the average expected block time that we are targeting.
diff --git a/substrate/bin/node/runtime/src/lib.rs b/substrate/bin/node/runtime/src/lib.rs
index 1043e5017dc36..87025887b7bd2 100644
--- a/substrate/bin/node/runtime/src/lib.rs
+++ b/substrate/bin/node/runtime/src/lib.rs
@@ -162,6 +162,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 2,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 /// The BABE epoch configuration at genesis.
diff --git a/substrate/client/executor/src/wasm_runtime.rs b/substrate/client/executor/src/wasm_runtime.rs
index 501279a312cc0..fab04cd238b94 100644
--- a/substrate/client/executor/src/wasm_runtime.rs
+++ b/substrate/client/executor/src/wasm_runtime.rs
@@ -504,6 +504,7 @@ mod tests {
 			apis: create_apis_vec!([(<dyn Core::<Block>>::ID, 3)]),
 			transaction_version: 3,
 			state_version: 4,
+			extrinsic_state_version: 0,
 		};
 
 		let version = decode_version(&old_runtime_version.encode()).unwrap();
@@ -516,14 +517,16 @@ mod tests {
 			authoring_version: 1,
 			spec_version: 1,
 			impl_version: 1,
-			apis: create_apis_vec!([(<dyn Core::<Block>>::ID, 4)]),
+			apis: create_apis_vec!([(<dyn Core::<Block>>::ID, 5)]),
 			transaction_version: 3,
 			state_version: 4,
+			extrinsic_state_version: 1,
 		};
 
 		let version = decode_version(&old_runtime_version.encode()).unwrap();
 		assert_eq!(3, version.transaction_version);
 		assert_eq!(4, version.state_version);
+		assert_eq!(1, version.extrinsic_state_version);
 	}
 
 	#[test]
@@ -542,6 +545,7 @@ mod tests {
 			apis: create_apis_vec!([(<dyn Core::<Block>>::ID, 4)]),
 			transaction_version: 100,
 			state_version: 1,
+			extrinsic_state_version: 0,
 		};
 
 		let embedded = sp_version::embed::embed_runtime_version(&wasm, runtime_version.clone())
diff --git a/substrate/client/rpc-spec-v2/src/chain_head/tests.rs b/substrate/client/rpc-spec-v2/src/chain_head/tests.rs
index c8f2362b9ebbf..6d6d4fc86cc6a 100644
--- a/substrate/client/rpc-spec-v2/src/chain_head/tests.rs
+++ b/substrate/client/rpc-spec-v2/src/chain_head/tests.rs
@@ -245,11 +245,11 @@ async fn follow_with_runtime() {
 
 	// it is basically json-encoded substrate_test_runtime_client::runtime::VERSION
 	let runtime_str = "{\"specName\":\"test\",\"implName\":\"parity-test\",\"authoringVersion\":0,\
-		\"specVersion\":2,\"implVersion\":2,\"apis\":[[\"0xdf6acb689907609b\",4],\
+		\"specVersion\":2,\"implVersion\":2,\"apis\":[[\"0xdf6acb689907609b\",5],\
 		[\"0x37e397fc7c91f5e4\",2],[\"0xd2bc9897eed08f15\",3],[\"0x40fe3ad401f8959a\",6],\
 		[\"0xbc9d89904f5b923f\",1],[\"0xc6e9a76309f39b09\",2],[\"0xdd718d5cc53262d4\",1],\
 		[\"0xcbca25e39f142387\",2],[\"0xf78b278be53f454c\",2],[\"0xab3c0572291feb8b\",1],\
-		[\"0xed99c5acb25eedf5\",3],[\"0xfbc577b9d747efd6\",1]],\"transactionVersion\":1,\"stateVersion\":0}";
+		[\"0xed99c5acb25eedf5\",3],[\"0xfbc577b9d747efd6\",1]],\"transactionVersion\":1,\"stateVersion\":0, \"extrinsicStateVersion\":0}";
 
 	let runtime: RuntimeVersion = serde_json::from_str(runtime_str).unwrap();
 
diff --git a/substrate/client/rpc/src/state/tests.rs b/substrate/client/rpc/src/state/tests.rs
index 594f51efba686..e678866210f24 100644
--- a/substrate/client/rpc/src/state/tests.rs
+++ b/substrate/client/rpc/src/state/tests.rs
@@ -526,7 +526,7 @@ async fn should_return_runtime_version() {
 
 	// it is basically json-encoded substrate_test_runtime_client::runtime::VERSION
 	let result = "{\"specName\":\"test\",\"implName\":\"parity-test\",\"authoringVersion\":1,\
-		\"specVersion\":2,\"implVersion\":2,\"apis\":[[\"0xdf6acb689907609b\",4],\
+		\"specVersion\":2,\"implVersion\":2,\"apis\":[[\"0xdf6acb689907609b\",5],\
 		[\"0x37e397fc7c91f5e4\",2],[\"0xd2bc9897eed08f15\",3],[\"0x40fe3ad401f8959a\",6],\
 		[\"0xbc9d89904f5b923f\",1],[\"0xc6e9a76309f39b09\",2],[\"0xdd718d5cc53262d4\",1],\
 		[\"0xcbca25e39f142387\",2],[\"0xf78b278be53f454c\",2],[\"0xab3c0572291feb8b\",1],\
diff --git a/substrate/frame/support/test/compile_pass/src/lib.rs b/substrate/frame/support/test/compile_pass/src/lib.rs
index b304dfcb2823e..744cfec2881a8 100644
--- a/substrate/frame/support/test/compile_pass/src/lib.rs
+++ b/substrate/frame/support/test/compile_pass/src/lib.rs
@@ -41,6 +41,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: sp_version::create_apis_vec!([]),
 	transaction_version: 0,
 	state_version: 0,
+	extrinsic_state_version: 0,
 };
 
 pub type Signature = sr25519::Signature;
diff --git a/substrate/frame/system/src/lib.rs b/substrate/frame/system/src/lib.rs
index 069217bcee46b..9ddf1d5c05c43 100644
--- a/substrate/frame/system/src/lib.rs
+++ b/substrate/frame/system/src/lib.rs
@@ -176,16 +176,22 @@ const LOG_TARGET: &str = "runtime::system";
 ///
 /// The merkle proof is using the same trie as runtime state with
 /// `state_version` 0.
-pub fn extrinsics_root<H: Hash, E: codec::Encode>(extrinsics: &[E]) -> H::Output {
-	extrinsics_data_root::<H>(extrinsics.iter().map(codec::Encode::encode).collect())
+pub fn extrinsics_root<H: Hash, E: codec::Encode>(
+	extrinsics: &[E],
+	state_version: sp_core::storage::StateVersion,
+) -> H::Output {
+	extrinsics_data_root::<H>(extrinsics.iter().map(codec::Encode::encode).collect(), state_version)
 }
 
 /// Compute the trie root of a list of extrinsics.
 ///
 /// The merkle proof is using the same trie as runtime state with
 /// `state_version` 0.
-pub fn extrinsics_data_root<H: Hash>(xts: Vec<Vec<u8>>) -> H::Output {
-	H::ordered_trie_root(xts, sp_core::storage::StateVersion::V0)
+pub fn extrinsics_data_root<H: Hash>(
+	xts: Vec<Vec<u8>>,
+	state_version: sp_core::storage::StateVersion,
+) -> H::Output {
+	H::ordered_trie_root(xts, state_version)
 }
 
 /// An object to track the currently used extrinsic weight in a block.
@@ -1753,7 +1759,9 @@ impl<T: Config> Pallet<T> {
 		let extrinsics = (0..ExtrinsicCount::<T>::take().unwrap_or_default())
 			.map(ExtrinsicData::<T>::take)
 			.collect();
-		let extrinsics_root = extrinsics_data_root::<T::Hashing>(extrinsics);
+		let extrinsic_state_version = T::Version::get().extrinsic_state_version();
+		let extrinsics_root =
+			extrinsics_data_root::<T::Hashing>(extrinsics, extrinsic_state_version);
 
 		// move block hash pruning window by one block
 		let block_hash_count = T::BlockHashCount::get();
diff --git a/substrate/frame/system/src/mock.rs b/substrate/frame/system/src/mock.rs
index e33ac2f56c875..011276616c106 100644
--- a/substrate/frame/system/src/mock.rs
+++ b/substrate/frame/system/src/mock.rs
@@ -48,6 +48,7 @@ parameter_types! {
 		apis: sp_version::create_apis_vec!([]),
 		transaction_version: 1,
 		state_version: 1,
+		extrinsic_state_version: 0,
 	};
 	pub const DbWeight: RuntimeDbWeight = RuntimeDbWeight {
 		read: 10,
diff --git a/substrate/frame/system/src/tests.rs b/substrate/frame/system/src/tests.rs
index e437e7f9f39b0..5250d9195e914 100644
--- a/substrate/frame/system/src/tests.rs
+++ b/substrate/frame/system/src/tests.rs
@@ -21,14 +21,13 @@ use frame_support::{
 	dispatch::{Pays, PostDispatchInfo, WithPostDispatchInfo},
 	traits::{OnRuntimeUpgrade, WhitelistedStorageKeys},
 };
-use std::collections::BTreeSet;
-
 use mock::{RuntimeOrigin, *};
-use sp_core::{hexdisplay::HexDisplay, H256};
+use sp_core::{hexdisplay::HexDisplay, storage::StateVersion, H256};
 use sp_runtime::{
 	traits::{BlakeTwo256, Header},
 	DispatchError, DispatchErrorWithPostInfo,
 };
+use std::collections::BTreeSet;
 
 #[test]
 fn check_whitelist() {
@@ -761,7 +760,8 @@ fn extrinsics_root_is_calculated_correctly() {
 		System::note_finished_extrinsics();
 		let header = System::finalize();
 
-		let ext_root = extrinsics_data_root::<BlakeTwo256>(vec![vec![1], vec![2]]);
+		let ext_root =
+			extrinsics_data_root::<BlakeTwo256>(vec![vec![1], vec![2]], StateVersion::V0);
 		assert_eq!(ext_root, *header.extrinsics_root());
 	});
 }
diff --git a/substrate/primitives/api/src/lib.rs b/substrate/primitives/api/src/lib.rs
index 1b8b7c40ae074..5befe896d7199 100644
--- a/substrate/primitives/api/src/lib.rs
+++ b/substrate/primitives/api/src/lib.rs
@@ -334,6 +334,7 @@ pub use sp_api_proc_macro::decl_runtime_apis;
 ///     apis: RUNTIME_API_VERSIONS,
 ///     transaction_version: 1,
 ///     state_version: 1,
+///     extrinsic_state_version: 0,
 /// };
 ///
 /// # fn main() {}
@@ -797,7 +798,7 @@ pub fn deserialize_runtime_api_info(bytes: [u8; RUNTIME_API_INFO_SIZE]) -> ([u8;
 decl_runtime_apis! {
 	/// The `Core` runtime api that every Substrate runtime needs to implement.
 	#[core_trait]
-	#[api_version(4)]
+	#[api_version(5)]
 	pub trait Core {
 		/// Returns the version of the runtime.
 		fn version() -> RuntimeVersion;
diff --git a/substrate/primitives/version/proc-macro/src/decl_runtime_version.rs b/substrate/primitives/version/proc-macro/src/decl_runtime_version.rs
index 7ca2d9b71f60a..4924d7109906d 100644
--- a/substrate/primitives/version/proc-macro/src/decl_runtime_version.rs
+++ b/substrate/primitives/version/proc-macro/src/decl_runtime_version.rs
@@ -64,6 +64,7 @@ struct RuntimeVersion {
 	apis: u8,
 	transaction_version: u32,
 	state_version: u8,
+	extrinsic_state_version: u8,
 }
 
 #[derive(Default, Debug)]
@@ -75,6 +76,7 @@ struct ParseRuntimeVersion {
 	impl_version: Option<u32>,
 	transaction_version: Option<u32>,
 	state_version: Option<u8>,
+	extrinsic_state_version: Option<u8>,
 }
 
 impl ParseRuntimeVersion {
@@ -126,6 +128,8 @@ impl ParseRuntimeVersion {
 			parse_once(&mut self.transaction_version, field_value, Self::parse_num_literal)?;
 		} else if field_name == "state_version" {
 			parse_once(&mut self.state_version, field_value, Self::parse_num_literal_u8)?;
+		} else if field_name == "extrinsic_state_version" {
+			parse_once(&mut self.extrinsic_state_version, field_value, Self::parse_num_literal_u8)?;
 		} else if field_name == "apis" {
 			// Intentionally ignored
 			//
@@ -199,6 +203,7 @@ impl ParseRuntimeVersion {
 			impl_version,
 			transaction_version,
 			state_version,
+			extrinsic_state_version,
 		} = self;
 
 		Ok(RuntimeVersion {
@@ -210,6 +215,7 @@ impl ParseRuntimeVersion {
 			transaction_version: required!(transaction_version),
 			state_version: required!(state_version),
 			apis: 0,
+			extrinsic_state_version: extrinsic_state_version.unwrap_or(0),
 		})
 	}
 }
@@ -241,6 +247,7 @@ mod tests {
 			apis: 0,
 			transaction_version: 2,
 			state_version: 1,
+			extrinsic_state_version: 0,
 		}
 		.encode();
 
@@ -256,6 +263,7 @@ mod tests {
 				apis: Cow::Owned(vec![]),
 				transaction_version: 2,
 				state_version: 1,
+				extrinsic_state_version: 0
 			},
 		);
 	}
diff --git a/substrate/primitives/version/src/lib.rs b/substrate/primitives/version/src/lib.rs
index 13f4520f6e694..ee55db35f7ebb 100644
--- a/substrate/primitives/version/src/lib.rs
+++ b/substrate/primitives/version/src/lib.rs
@@ -80,6 +80,7 @@ pub mod embed;
 /// 	apis: RUNTIME_API_VERSIONS,
 /// 	transaction_version: 2,
 /// 	state_version: 1,
+///     extrinsic_state_version: 0,
 /// };
 ///
 /// # const RUNTIME_API_VERSIONS: sp_version::ApisVec = sp_version::create_apis_vec!([]);
@@ -229,6 +230,10 @@ pub struct RuntimeVersion {
 	/// Version of the state implementation used by this runtime.
 	/// Use of an incorrect version is consensus breaking.
 	pub state_version: u8,
+
+	/// Version of the state implementation used by this runtime to derive extrinsic root.
+	/// Use of an incorrect version is consensus breaking.
+	pub extrinsic_state_version: u8,
 }
 
 impl RuntimeVersion {
@@ -238,7 +243,8 @@ impl RuntimeVersion {
 	/// runtime api:
 	/// - `Core` version < 3 is a runtime version without a transaction version and state version.
 	/// - `Core` version 3 is a runtime version without a state version.
-	/// - `Core` version 4 is the latest runtime version.
+	/// - `Core` version 4 is a runtime version without extrinsic state version.
+	/// - `Core` version 5 is the latest runtime version.
 	pub fn decode_with_version_hint<I: Input>(
 		input: &mut I,
 		core_version: Option<u32>,
@@ -255,6 +261,8 @@ impl RuntimeVersion {
 			if core_version.map(|v| v >= 3).unwrap_or(false) { Decode::decode(input)? } else { 1 };
 		let state_version =
 			if core_version.map(|v| v >= 4).unwrap_or(false) { Decode::decode(input)? } else { 0 };
+		let extrinsic_state_version =
+			if core_version.map(|v| v >= 5).unwrap_or(false) { Decode::decode(input)? } else { 0 };
 		Ok(RuntimeVersion {
 			spec_name,
 			impl_name,
@@ -264,6 +272,7 @@ impl RuntimeVersion {
 			apis,
 			transaction_version,
 			state_version,
+			extrinsic_state_version,
 		})
 	}
 }
@@ -332,6 +341,15 @@ impl RuntimeVersion {
 		// If version > than 1, keep using latest version.
 		self.state_version.try_into().unwrap_or(StateVersion::V1)
 	}
+
+	/// Returns state version to use for extrinsic root derivation.
+	///
+	/// For runtime with core api version less than 5,
+	/// V0 trie version will be used
+	/// Otherwise, uses the version passed or defaults to V0 if not provided.
+	pub fn extrinsic_state_version(&self) -> StateVersion {
+		self.extrinsic_state_version.try_into().unwrap_or(StateVersion::V0)
+	}
 }
 
 /// The version of the native runtime.
diff --git a/substrate/test-utils/runtime/src/lib.rs b/substrate/test-utils/runtime/src/lib.rs
index 16ab467772f2f..6086ed52c7ce3 100644
--- a/substrate/test-utils/runtime/src/lib.rs
+++ b/substrate/test-utils/runtime/src/lib.rs
@@ -115,6 +115,7 @@ pub const VERSION: RuntimeVersion = RuntimeVersion {
 	apis: RUNTIME_API_VERSIONS,
 	transaction_version: 1,
 	state_version: 1,
+	extrinsic_state_version: 0,
 };
 
 fn version() -> RuntimeVersion {