diff --git a/src/wallet/spend.cpp b/src/wallet/spend.cpp
index 930e8ff204..3bd0ff9fc8 100644
--- a/src/wallet/spend.cpp
+++ b/src/wallet/spend.cpp
@@ -1080,6 +1080,28 @@ bool CWallet::CreateTransactionInternal(
         //  the blinding logic.
         coin_selection_params.tx_noinputs_size += 70 + 66 +(MAX_RANGEPROOF_SIZE + DEFAULT_SURJECTIONPROOF_SIZE + WITNESS_SCALE_FACTOR - 1)/WITNESS_SCALE_FACTOR;
     }
+    // If we are going to issue an asset, add the issuance data to the noinputs_size so that
+    // we allocate enough coins for them.
+    if (issuance_details) {
+        size_t issue_count = 0;
+        for (unsigned int i = 0; i < txNew.vout.size(); i++) {
+            if (txNew.vout[i].nAsset.IsExplicit() && txNew.vout[i].nAsset.GetAsset() == CAsset(uint256S("1"))) {
+                issue_count++;
+            } else if (txNew.vout[i].nAsset.IsExplicit() && txNew.vout[i].nAsset.GetAsset() == CAsset(uint256S("2"))) {
+                issue_count++;
+            }
+        }
+        if (issue_count > 0) {
+            // Allocate space for blinding nonce, entropy, and whichever of nAmount/nInflationKeys is null
+            coin_selection_params.tx_noinputs_size += 2 * 32 + 2 * (2 - issue_count);
+        }
+        // Allocate non-null nAmount/nInflationKeys and rangeproofs
+        if (issuance_details->blind_issuance) {
+            coin_selection_params.tx_noinputs_size += issue_count * (33 * WITNESS_SCALE_FACTOR + MAX_RANGEPROOF_SIZE + WITNESS_SCALE_FACTOR - 1) / WITNESS_SCALE_FACTOR;
+        } else {
+            coin_selection_params.tx_noinputs_size += issue_count * 9;
+        }
+    }
 
     // Include the fees for things that aren't inputs, excluding the change output
     const CAmount not_input_fees = coin_selection_params.m_effective_feerate.GetFee(coin_selection_params.tx_noinputs_size);
diff --git a/test/functional/wallet_elements_regression_1172.py b/test/functional/wallet_elements_regression_1172.py
index e070a4b1e8..0c9afa6db9 100755
--- a/test/functional/wallet_elements_regression_1172.py
+++ b/test/functional/wallet_elements_regression_1172.py
@@ -91,6 +91,36 @@ class WalletCtTest(BitcoinTestFramework):
         amt = satoshi_round(Decimal(amt - Decimal(0.0005)))
         self.test_send(amt, 1, 2, True)
 
+        addresses = [ self.nodes[1].getnewaddress() for i in range(15) ] \
+            + [ self.nodes[2].getnewaddress() for i in range(15) ]
+        txid = self.nodes[2].sendmany(amounts={address: satoshi_round(Decimal(0.00025)) for address in addresses})
+        self.log.info(f"Sent many small UTXOs to nodes 1 and 2 in {txid}")
+        self.nodes[2].generate(2)
+        self.sync_all()
+
+        self.log.info(f"Issuing some assets from node 1")
+        # Try issuing assets
+        amt = satoshi_round(Decimal(1))
+        res1 = self.nodes[1].issueasset(amt, amt, True);
+        res2 = self.nodes[1].issueasset(amt, amt, False);
+
+        assets = [ res1["asset"], res1["token"], res2["asset"], res2["token"] ]
+        addresses = [ self.nodes[2].getnewaddress() for i in range(len(assets)) ]
+        txid = self.nodes[1].sendmany(
+            amounts={address: amt for address in addresses},
+            output_assets={addresses[i]: assets[i] for i in range(len(assets))},
+        )
+        self.log.info(f"Sent them to node 2 in {txid}")
+        self.nodes[1].generate(2)
+        self.sync_all()
+        # Send them back
+        addresses = [ self.nodes[1].getnewaddress() for i in range(len(assets)) ]
+        txid = self.nodes[2].sendmany(
+            amounts={address: amt for address in addresses},
+            output_assets={addresses[i]: assets[i] for i in range(len(assets))},
+        )
+        self.log.info(f"Sent them back to node 1 in {txid}")
+
 if __name__ == '__main__':
     WalletCtTest().main()