diff --git a/store/v2/storage/pebbledb/db.go b/store/v2/storage/pebbledb/db.go
index 8c7b822600d1..4acdc392b63a 100644
--- a/store/v2/storage/pebbledb/db.go
+++ b/store/v2/storage/pebbledb/db.go
@@ -68,27 +68,27 @@ func New(dataDir string) (*Database, error) {
 		return nil, fmt.Errorf("failed to open PebbleDB: %w", err)
 	}
 
-	pruneHeight, err := getPruneHeight(db)
+	earliestVersion, err := getEarliestVersion(db)
 	if err != nil {
-		return nil, fmt.Errorf("failed to get prune height: %w", err)
+		return nil, fmt.Errorf("failed to get the earliest version: %w", err)
 	}
 
 	return &Database{
 		storage:         db,
-		earliestVersion: pruneHeight + 1,
+		earliestVersion: earliestVersion,
 		sync:            true,
 	}, nil
 }
 
 func NewWithDB(storage *pebble.DB, sync bool) *Database {
-	pruneHeight, err := getPruneHeight(storage)
+	earliestVersion, err := getEarliestVersion(storage)
 	if err != nil {
-		panic(fmt.Errorf("failed to get prune height: %w", err))
+		panic(fmt.Errorf("failed to get the earliest version: %w", err))
 	}
 
 	return &Database{
 		storage:         storage,
-		earliestVersion: pruneHeight + 1,
+		earliestVersion: earliestVersion,
 		sync:            sync,
 	}
 }
@@ -362,7 +362,10 @@ func prependStoreKey(storeKey, key []byte) []byte {
 	return []byte(fmt.Sprintf("%s%s", storePrefix(storeKey), key))
 }
 
-func getPruneHeight(storage *pebble.DB) (uint64, error) {
+// getEarliestVersion returns the earliest version set in the database.
+// It is calculated by prune height + 1. If the prune height is not set, it
+// returns 0.
+func getEarliestVersion(storage *pebble.DB) (uint64, error) {
 	bz, closer, err := storage.Get([]byte(pruneHeightKey))
 	if err != nil {
 		if errors.Is(err, pebble.ErrNotFound) {
@@ -377,7 +380,7 @@ func getPruneHeight(storage *pebble.DB) (uint64, error) {
 		return 0, closer.Close()
 	}
 
-	return binary.LittleEndian.Uint64(bz), closer.Close()
+	return binary.LittleEndian.Uint64(bz) + 1, closer.Close()
 }
 
 func valTombstoned(value []byte) bool {
diff --git a/store/v2/storage/pebbledb/iterator.go b/store/v2/storage/pebbledb/iterator.go
index 6b16805e9d40..6cafe196a20b 100644
--- a/store/v2/storage/pebbledb/iterator.go
+++ b/store/v2/storage/pebbledb/iterator.go
@@ -82,6 +82,12 @@ func newPebbleDBIterator(src *pebble.Iterator, prefix, mvccStart, mvccEnd []byte
 			// so there exists at least one version of currKey SeekLT may move to.
 			itr.valid = itr.source.SeekLT(MVCCEncode(currKey, itr.version+1))
 		}
+
+		// The cursor might now be pointing at a key/value pair that is tombstoned.
+		// If so, we must move the cursor.
+		if itr.valid && itr.cursorTombstoned() {
+			itr.Next()
+		}
 	}
 	return itr
 }
diff --git a/store/v2/storage/storage_test_suite.go b/store/v2/storage/storage_test_suite.go
index 6b4247fffc8d..08f455ca12ca 100644
--- a/store/v2/storage/storage_test_suite.go
+++ b/store/v2/storage/storage_test_suite.go
@@ -485,6 +485,33 @@ func (s *StorageTestSuite) TestDatabaseIterator_ForwardIterationHigher() {
 	s.Require().Equal(0, count)
 }
 
+func (s *StorageTestSuite) TestDatabaseIterator_WithDelete() {
+	db, err := s.NewDB(s.T().TempDir())
+	s.Require().NoError(err)
+	defer db.Close()
+
+	dbApplyChangeset(s.T(), db, 1, storeKey1, [][]byte{[]byte("keyA")}, [][]byte{[]byte("value001")})
+	dbApplyChangeset(s.T(), db, 2, storeKey1, [][]byte{[]byte("keyA")}, [][]byte{nil}) // delete
+
+	itr, err := db.Iterator(storeKey1Bytes, 1, nil, nil)
+	s.Require().NoError(err)
+
+	count := 0
+	for ; itr.Valid(); itr.Next() {
+		count++
+	}
+	s.Require().Equal(1, count)
+
+	itr, err = db.Iterator(storeKey1Bytes, 2, nil, nil)
+	s.Require().NoError(err)
+
+	count = 0
+	for ; itr.Valid(); itr.Next() {
+		count++
+	}
+	s.Require().Equal(0, count)
+}
+
 func (s *StorageTestSuite) TestDatabase_IteratorNoDomain() {
 	db, err := s.NewDB(s.T().TempDir())
 	s.Require().NoError(err)