diff --git a/src/BotPlutusInterface/Balance.hs b/src/BotPlutusInterface/Balance.hs
index 79f43215..fc215358 100644
--- a/src/BotPlutusInterface/Balance.hs
+++ b/src/BotPlutusInterface/Balance.hs
@@ -45,7 +45,7 @@ import Data.List ((\\))
 import Data.List qualified as List
 import Data.Map (Map)
 import Data.Map qualified as Map
-import Data.Maybe (fromMaybe, mapMaybe)
+import Data.Maybe (fromMaybe, isJust, mapMaybe)
 import Data.Set qualified as Set
 import Data.Text (Text)
 import Data.Text qualified as Text
@@ -104,7 +104,7 @@ balanceTxIO ::
   Eff effs (Either Text Tx)
 balanceTxIO = balanceTxIO' @w defaultBalanceConfig
 
--- | `balanceTxIO'` is more flexible version of `balanceTxIO`, this let us specify custom `BalanceConfig`.
+-- | `balanceTxIO'` is more flexible version of `balanceTxIO`, this lets us specify custom `BalanceConfig`.
 balanceTxIO' ::
   forall (w :: Type) (effs :: [Type -> Type]).
   (Member (PABEffect w) effs) =>
@@ -314,6 +314,12 @@ getAdaChange utxos = lovelaceValue . getChange utxos
 getNonAdaChange :: Map TxOutRef TxOut -> Tx -> Value
 getNonAdaChange utxos = Ledger.noAdaValue . getChange utxos
 
+hasDatum :: TxOut -> Bool
+hasDatum = isJust . txOutDatumHash
+
+hasNoDatum :: TxOut -> Bool
+hasNoDatum = not . hasDatum
+
 -- | Add min lovelaces to each tx output
 addLovelaces :: [(TxOut, Integer)] -> Tx -> Tx
 addLovelaces minLovelaces tx =
@@ -372,8 +378,9 @@ handleNonAdaChange balanceCfg changeAddr utxos tx =
             ( \txout ->
                 Tx.txOutAddress txout == changeAddr
                   && not (justLovelace $ Tx.txOutValue txout)
+                  && hasNoDatum txout
             )
-          else (\txout -> Tx.txOutAddress txout == changeAddr)
+          else (\txout -> Tx.txOutAddress txout == changeAddr && hasNoDatum txout)
       newOutput =
         TxOut
           { txOutAddress = changeAddr
@@ -401,7 +408,7 @@ addAdaChange balanceCfg changeAddr change tx
       { txOutputs =
           List.reverse $
             modifyFirst
-              (\txout -> Tx.txOutAddress txout == changeAddr && justLovelace (txOutValue txout))
+              (\txout -> Tx.txOutAddress txout == changeAddr && justLovelace (txOutValue txout) && hasNoDatum txout)
               (fmap $ addValueToTxOut $ Ada.lovelaceValueOf change)
               (List.reverse $ txOutputs tx)
       }
@@ -409,7 +416,7 @@ addAdaChange balanceCfg changeAddr change tx
     tx
       { txOutputs =
           modifyFirst
-            ((== changeAddr) . Tx.txOutAddress)
+            (\txout -> Tx.txOutAddress txout == changeAddr && hasNoDatum txout)
             (fmap $ addValueToTxOut $ Ada.lovelaceValueOf change)
             (txOutputs tx)
       }
diff --git a/test/Spec/BotPlutusInterface/Balance.hs b/test/Spec/BotPlutusInterface/Balance.hs
index 3c04b106..3648799a 100644
--- a/test/Spec/BotPlutusInterface/Balance.hs
+++ b/test/Spec/BotPlutusInterface/Balance.hs
@@ -1,23 +1,57 @@
+{-# LANGUAGE QuasiQuotes #-}
+{-# LANGUAGE TemplateHaskell #-}
+
 module Spec.BotPlutusInterface.Balance (tests) where
 
-import BotPlutusInterface.Balance (defaultBalanceConfig, withFee)
+import BotPlutusInterface.Balance (balanceTxIO, defaultBalanceConfig, withFee)
 import BotPlutusInterface.Balance qualified as Balance
 import BotPlutusInterface.Effects (PABEffect)
+import BotPlutusInterface.Types (
+  ContractEnvironment (cePABConfig),
+  PABConfig (pcOwnPubKeyHash),
+ )
+import Control.Lens ((&), (.~), (<>~), (^.))
 import Data.Default (Default (def))
+import Data.Function (on)
+import Data.List (delete, partition)
 import Data.Map qualified as Map
 import Data.Set qualified as Set
 import Data.Text qualified as Text
+import Data.Void (Void)
 import Ledger qualified
 import Ledger.Ada qualified as Ada
 import Ledger.Address (Address, PaymentPubKeyHash (PaymentPubKeyHash))
 import Ledger.Address qualified as Address
 import Ledger.CardanoWallet qualified as Wallet
+import Ledger.Constraints qualified as Constraints
+import Ledger.Constraints.OffChain qualified as OffChain
 import Ledger.Crypto (PubKeyHash)
-import Ledger.Tx (Tx (..), TxIn (..), TxInType (..), TxOut (..), TxOutRef (..))
+import Ledger.Scripts qualified as Scripts
+import Ledger.Tx (
+  ChainIndexTxOut (..),
+  Tx (..),
+  TxIn (..),
+  TxInType (..),
+  TxOut (..),
+  TxOutRef (..),
+ )
+import Ledger.Value (AssetClass, Value)
 import Ledger.Value qualified as Value
-import Spec.MockContract (runPABEffectPure)
+import Plutus.V1.Ledger.Api qualified as Api
+import PlutusTx qualified
+import Spec.MockContract (
+  MockContractState,
+  contractEnv,
+  paymentPkh3,
+  pkh3,
+  pkhAddr3,
+  -- runContractPure,
+  runPABEffectPure,
+  utxos,
+ )
 import Test.Tasty (TestTree, testGroup)
-import Test.Tasty.HUnit (Assertion, assertFailure, testCase, (@?=))
+import Test.Tasty.HUnit (Assertion, assertBool, assertFailure, testCase, (@?=))
+import Text.Printf (printf)
 import Prelude
 
 {- | Tests for 'cardano-cli query utxo' result parsers
@@ -30,21 +64,35 @@ tests =
     [ testCase "Add utxos to cover fees" addUtxosForFees
     , testCase "Add utxos to cover native tokens" addUtxosForNativeTokens
     , testCase "Add utxos to cover change min utxo" addUtxosForChange
+    , testCase "Don't add change to UTxOs with datums (1)" dontAddChangeToDatum
+    , testCase "Don't add change to UTxOs with datums (2)" dontAddChangeToDatum2
     ]
 
+validator :: Scripts.Validator
+validator =
+  Scripts.mkValidatorScript
+    $$(PlutusTx.compile [||(\_ _ _ -> ())||])
+
+valHash :: Ledger.ValidatorHash
+valHash = Scripts.validatorHash validator
+
 pkh1, pkh2 :: PubKeyHash
 pkh1 = Address.unPaymentPubKeyHash . Wallet.paymentPubKeyHash $ Wallet.knownMockWallet 1
 pkh2 = Address.unPaymentPubKeyHash . Wallet.paymentPubKeyHash $ Wallet.knownMockWallet 2
 
-addr1, addr2 :: Address
+addr1, addr2, valAddr :: Address
 addr1 = Ledger.pubKeyHashAddress (PaymentPubKeyHash pkh1) Nothing
 addr2 = Ledger.pubKeyHashAddress (PaymentPubKeyHash pkh2) Nothing
+valAddr = Ledger.scriptAddress validator
 
-txOutRef1, txOutRef2, txOutRef3, txOutRef4 :: TxOutRef
+txOutRef1, txOutRef2, txOutRef3, txOutRef4, txOutRef5, txOutRef6, txOutRef7 :: TxOutRef
 txOutRef1 = TxOutRef "384de3f29396fdf687551e3f9e05bd400adcd277720c71f1d2b61f17f5183e51" 0
 txOutRef2 = TxOutRef "52a003b3f4956433429631afe4002f82a924a5a7a891db7ae1f6434797a57dff" 1
 txOutRef3 = TxOutRef "d8a5630a9d7e913f9d186c95e5138a239a4e79ece3414ac894dbf37280944de3" 0
 txOutRef4 = TxOutRef "d8a5630a9d7e913f9d186c95e5138a239a4e79ece3414ac894dbf37280944de3" 2
+txOutRef5 = TxOutRef "52a003b3f4956433429631afe4002f82a924a5a7a891db7ae1f6434797a57dff" 0
+txOutRef6 = TxOutRef "52a003b3f4956433429631afe4002f82a924a5a7a891db7ae1f6434797a57dff" 3
+txOutRef7 = TxOutRef "384de3f29396fdf687551e3f9e05bd400adcd277720c71f1d2b61f17f5183e51" 1
 
 txIn1, txIn2, txIn3, txIn4 :: TxIn
 txIn1 = TxIn txOutRef1 (Just ConsumePublicKeyAddress)
@@ -56,7 +104,29 @@ utxo1, utxo2, utxo3, utxo4 :: (TxOutRef, TxOut)
 utxo1 = (txOutRef1, TxOut addr1 (Ada.lovelaceValueOf 1_100_000) Nothing)
 utxo2 = (txOutRef2, TxOut addr1 (Ada.lovelaceValueOf 1_000_000) Nothing)
 utxo3 = (txOutRef3, TxOut addr1 (Ada.lovelaceValueOf 900_000) Nothing)
-utxo4 = (txOutRef4, TxOut addr1 (Ada.lovelaceValueOf 800_000 <> Value.singleton "11223344" "Token" 200) Nothing)
+utxo4 = (txOutRef4, TxOut addr1 (Ada.lovelaceValueOf 800_000 <> Value.assetClassValue tokenAsset 200) Nothing)
+
+scrValue :: Value.Value
+scrValue = Value.assetClassValue tokenAsset 200 <> Ada.lovelaceValueOf 500_000
+
+scrValue' :: Value.Value
+scrValue' = Value.assetClassValue tokenAsset 120 <> Ada.lovelaceValueOf 500_000
+
+scrDatum :: Ledger.Datum
+scrDatum = Ledger.Datum $ Api.toBuiltinData (23 :: Integer)
+
+scrDatumHash :: Ledger.DatumHash
+scrDatumHash = Ledger.datumHash scrDatum
+
+acValueOf :: AssetClass -> Value -> Integer
+acValueOf = flip Value.assetClassValueOf
+
+-- | Get the amount of lovelace in a `Value`.
+lovelaceInValue :: Value -> Integer
+lovelaceInValue = acValueOf (Value.assetClass Api.adaSymbol Api.adaToken)
+
+tokenAsset :: Value.AssetClass
+tokenAsset = Value.assetClass "11223344" "Token"
 
 addUtxosForFees :: Assertion
 addUtxosForFees = do
@@ -105,3 +175,176 @@ addUtxosForChange = do
   case ebalancedTx of
     Left e -> assertFailure (Text.unpack e)
     Right balancedTx -> txInputs <$> balancedTx @?= Right (Set.fromList [txIn1, txIn2])
+
+dontAddChangeToDatum :: Assertion
+dontAddChangeToDatum = do
+  let scrTxOut' =
+        ScriptChainIndexTxOut
+          valAddr
+          (Right validator)
+          (Right scrDatum)
+          scrValue
+      scrTxOut = Ledger.toTxOut scrTxOut'
+      usrTxOut' =
+        PublicKeyChainIndexTxOut
+          pkhAddr3
+          (Ada.lovelaceValueOf 1_001_000)
+      usrTxOut = Ledger.toTxOut usrTxOut'
+      initState :: MockContractState ()
+      initState =
+        def & utxos .~ [(txOutRef6, scrTxOut), (txOutRef7, usrTxOut)]
+          & contractEnv .~ contractEnv'
+      pabConf :: PABConfig
+      pabConf = def {pcOwnPubKeyHash = pkh3}
+      contractEnv' :: ContractEnvironment ()
+      contractEnv' = def {cePABConfig = pabConf}
+
+      -- Input UTxOs:
+      -- UTxO 1:
+      -- - From: User
+      -- - Amt : 1.001 ADA
+      -- UTxO 2:
+      -- - From: Script
+      -- - Amt : 0.5 ADA + 200 Tokens
+      --
+      -- Output UTxOs:
+      -- UTxO 1:
+      -- - To : User
+      -- - Amt: 1 ADA
+      -- UTxO 2:
+      -- - To : Script
+      -- - Amt: 0.5005 Ada + 200 Token
+      --
+      -- Fees   : 400 Lovelace
+      -- Change : 100 Lovelace
+
+      scrLkups =
+        Constraints.unspentOutputs (Map.fromList [(txOutRef6, scrTxOut'), (txOutRef7, usrTxOut')])
+          <> Constraints.ownPaymentPubKeyHash paymentPkh3
+      txConsts =
+        -- Pay the same datum to the script, but with more ada.
+        Constraints.mustPayToOtherScript valHash scrDatum (scrValue <> Ada.lovelaceValueOf 500)
+          <> Constraints.mustPayToPubKey paymentPkh3 (Ada.lovelaceValueOf 1_000_000)
+          <> Constraints.mustSpendScriptOutput txOutRef6 Ledger.unitRedeemer
+          <> Constraints.mustSpendPubKeyOutput txOutRef7
+      eunbalancedTx = Constraints.mkTx @Void scrLkups txConsts
+
+  unbalancedTx <- liftAssertFailure eunbalancedTx (\err -> "MkTx Error: " <> show err)
+  let (eRslt, _finalState) = runPABEffectPure initState (balanceTxIO @() @'[PABEffect ()] pabConf pkh3 unbalancedTx)
+  eRslt' <- liftAssertFailure eRslt (\txt -> "PAB effect error: " <> Text.unpack txt)
+  trx <- liftAssertFailure eRslt' (\txt -> "Balancing error: " <> Text.unpack txt)
+  let scrTxOut'' = scrTxOut' & Ledger.ciTxOutValue <>~ Ada.lovelaceValueOf 500
+      scrTxOutExpected = Ledger.toTxOut scrTxOut''
+      isScrUtxo :: TxOut -> Bool
+      isScrUtxo utxo = txOutAddress utxo == txOutAddress scrTxOutExpected
+      (balScrUtxos, balOtherUtxos) = partition isScrUtxo (txOutputs trx)
+  assertBool
+    ( "Expected UTxO not in output Tx."
+        <> "\nExpected UTxO: \n"
+        <> show scrTxOutExpected
+        <> "\nBalanced Script UTxOs: \n"
+        <> show balScrUtxos
+        <> "\nOther Balanced UTxOs: \n"
+        <> show balOtherUtxos
+        <> "\nUnbalanced UTxOs: \n"
+        <> show (txOutputs (unbalancedTx ^. OffChain.tx))
+    )
+    (scrTxOutExpected `elem` txOutputs trx)
+
+-- Like the first one, but
+-- only has inputs from the script.
+dontAddChangeToDatum2 :: Assertion
+dontAddChangeToDatum2 = do
+  let scrTxOut' =
+        ScriptChainIndexTxOut
+          valAddr
+          (Right validator)
+          (Right scrDatum)
+          (scrValue <> Ada.lovelaceValueOf 1_500_000)
+      scrTxOut = Ledger.toTxOut scrTxOut'
+      initState :: MockContractState ()
+      initState =
+        def & utxos .~ [(txOutRef6, scrTxOut)]
+          & contractEnv .~ contractEnv'
+      pabConf :: PABConfig
+      pabConf = def {pcOwnPubKeyHash = pkh3}
+      contractEnv' :: ContractEnvironment ()
+      contractEnv' = def {cePABConfig = pabConf}
+
+      -- Input UTxO :
+      -- - 2.0 ADA
+      -- - 200 tokens
+      -- Output UTxO :
+      -- - 0.5 ADA
+      -- - 120 tokens
+      -- Change:
+      -- - 1.5 ADA (400 Lovelace to fees)
+      -- - 80 tokens
+
+      scrLkups =
+        Constraints.unspentOutputs (Map.fromList [(txOutRef6, scrTxOut')])
+          <> Constraints.ownPaymentPubKeyHash paymentPkh3
+      txConsts =
+        -- Pay the same datum to the script, but with LESS ada
+        -- and fewer tokens. This is to ensure that the excess
+        -- ADA and tokens are moved into their own UTxO(s),
+        -- rather than just being left in the original UTxO.
+        -- (The extra ada is used to cover fees etc...)
+        Constraints.mustPayToOtherScript valHash scrDatum scrValue'
+          <> Constraints.mustSpendScriptOutput txOutRef6 Ledger.unitRedeemer
+      eunbalancedTx = Constraints.mkTx @Void scrLkups txConsts
+
+  unbalancedTx <- liftAssertFailure eunbalancedTx (\err -> "MkTx Error: " <> show err)
+  let (eRslt, _finalState) = runPABEffectPure initState (balanceTxIO @() @'[PABEffect ()] pabConf pkh3 unbalancedTx)
+  eRslt' <- liftAssertFailure eRslt (\txt -> "PAB effect error: " <> Text.unpack txt)
+  trx <- liftAssertFailure eRslt' (\txt -> "Balancing error: " <> Text.unpack txt)
+  let scrTxOut'' = scrTxOut' & Ledger.ciTxOutValue .~ scrValue'
+      scrTxOutExpected = Ledger.toTxOut scrTxOut''
+      isScrUtxo :: TxOut -> Bool
+      isScrUtxo utxo = txOutAddress utxo == txOutAddress scrTxOutExpected
+      (balScrUtxos, balOtherUtxos) = partition isScrUtxo (txOutputs trx)
+  -- Check that the expected script UTxO
+  -- is in the output.
+  assertBool
+    ( "Expected UTxO not in output Tx."
+        <> "\nExpected UTxO: \n"
+        <> show scrTxOutExpected
+        <> "\nBalanced Script UTxOs: \n"
+        <> show balScrUtxos
+        <> "\nOther Balanced UTxOs: \n"
+        <> show balOtherUtxos
+        <> "\nUnbalanced UTxOs: \n"
+        <> show (txOutputs (unbalancedTx ^. OffChain.tx))
+    )
+    (scrTxOutExpected `elem` txOutputs trx)
+  -- Check that the output has the remaining change
+  let trxFee = txFee trx
+      adaChange' :: Integer
+      adaChange' = ((-) `on` (lovelaceInValue . txOutValue)) scrTxOut scrTxOutExpected
+      adaChange :: Integer
+      adaChange = adaChange' - lovelaceInValue trxFee
+      tokChange :: Integer
+      tokChange = ((-) `on` (acValueOf tokenAsset . txOutValue)) scrTxOut scrTxOutExpected
+      remainingTxOuts :: [TxOut]
+      remainingTxOuts = delete scrTxOutExpected (txOutputs trx)
+      remainingValue :: Value.Value
+      remainingValue = foldMap txOutValue remainingTxOuts
+  -- Check for ADA change
+  assertBool
+    ( "Other UTxOs do not contain expected ADA change."
+        <> printf "\nExpected Amount : %d Lovelace" adaChange
+        <> printf "\nActual Amount   : %d Lovelace" (lovelaceInValue remainingValue)
+    )
+    (adaChange == lovelaceInValue remainingValue)
+  -- Check for Token change
+  assertBool
+    ( "Other UTxOs do not contain expected Token change."
+        <> printf "\nExpected Amount : %d tokens" tokChange
+        <> printf "\nActual Amount   : %d tokens" (acValueOf tokenAsset remainingValue)
+    )
+    (tokChange == acValueOf tokenAsset remainingValue)
+
+-- | Lift an `Either` value into an `assertFailure`.
+liftAssertFailure :: Either a b -> (a -> String) -> IO b
+liftAssertFailure (Left err) fstr = assertFailure (fstr err)
+liftAssertFailure (Right rslt) _ = return rslt