diff --git a/rpcserver.go b/rpcserver.go
index e02c81c3..dcb143c2 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -606,7 +606,15 @@ func handleSendRawTransaction(s *rpcServer, cmd btcjson.Cmd, walletNotification
 	tx := btcutil.NewTx(msgtx)
 	err = s.server.txMemPool.ProcessTransaction(tx)
 	if err != nil {
-		log.Errorf("RPCS: Failed to process transaction: %v", err)
+		// When the error is a rule error, it means the transaction was
+		// simply rejected as opposed to something actually going wrong,
+		// so log it as such.  Otherwise, something really did go wrong,
+		// so log it as an actual error.
+		if _, ok := err.(TxRuleError); ok {
+			log.Debugf("RPCS: Rejected transaction %v: %v", txHash, err)
+		} else {
+			log.Errorf("RPCS: Failed to process transaction %v: %v", txHash, err)
+		}
 		err = btcjson.Error{
 			Code:    btcjson.ErrDeserialization.Code,
 			Message: "Failed to process transaction",