diff --git a/channeld/channel.c b/channeld/channel.c
index e40bc5420..924754835 100644
--- a/channeld/channel.c
+++ b/channeld/channel.c
@@ -1220,6 +1220,8 @@ static u8 *got_commitsig_msg(const tal_t *ctx,
 				(*f)->id = htlc->id;
 				(*f)->failcode = htlc->failcode;
 				(*f)->failreason = cast_const(u8 *, htlc->fail);
+				(*f)->scid = cast_const(struct short_channel_id *,
+							htlc->failed_scid);
 			}
 		} else {
 			struct changed_htlc *c = tal_arr_append(&changed);
@@ -1508,7 +1510,7 @@ static void handle_peer_fail_htlc(struct peer *peer, const u8 *msg)
 				       &channel_id, &id, &reason)) {
 		peer_failed(&peer->cs,
 			    &peer->channel_id,
-			    "Bad update_fulfill_htlc %s", tal_hex(msg, msg));
+			    "Bad update_fail_htlc %s", tal_hex(msg, msg));
 	}
 
 	e = channel_fail_htlc(peer->channel, LOCAL, id, &htlc);
@@ -2243,6 +2245,11 @@ static void handle_fail(struct peer *peer, const u8 *inmsg)
 	case CHANNEL_ERR_REMOVE_OK:
 		h->failcode = failcode;
 		h->fail = tal_steal(h, errpkt);
+		if (failcode & UPDATE)
+			h->failed_scid
+				= tal_dup(h, struct short_channel_id, &scid);
+		else
+			h->failed_scid = NULL;
 		send_fail_or_fulfill(peer, h);
 		start_commit_timer(peer);
 		return;
diff --git a/channeld/channeld_htlc.h b/channeld/channeld_htlc.h
index b4a3f2a73..18a50b600 100644
--- a/channeld/channeld_htlc.h
+++ b/channeld/channeld_htlc.h
@@ -33,6 +33,8 @@ struct htlc {
 	/* For a local failure, we might have to generate fail ourselves
 	 * (or, if BADONION we send a update_fail_malformed_htlc). */
 	enum onion_type failcode;
+	/* If failcode & UPDATE, this is channel which failed. Otherwise NULL. */
+	const struct short_channel_id *failed_scid;
 };
 
 static inline bool htlc_has(const struct htlc *h, int flag)
diff --git a/channeld/full_channel.c b/channeld/full_channel.c
index fde10fe58..b64f7548b 100644
--- a/channeld/full_channel.c
+++ b/channeld/full_channel.c
@@ -322,6 +322,7 @@ static enum channel_add_err add_htlc(struct channel *channel,
 	htlc->rhash = *payment_hash;
 	htlc->fail = NULL;
 	htlc->failcode = 0;
+	htlc->failed_scid = NULL;
 	htlc->r = NULL;
 	htlc->routing = tal_dup_arr(htlc, u8, routing, TOTAL_PACKET_SIZE, 0);
 
@@ -1052,6 +1053,12 @@ bool channel_force_htlcs(struct channel *channel,
 						 0);
 		else
 			htlc->fail = NULL;
+		if (failed[i]->scid)
+			htlc->failed_scid = tal_dup(htlc,
+						    struct short_channel_id,
+						    failed[i]->scid);
+		else
+			htlc->failed_scid = NULL;
 	}
 
 	for (i = 0; i < tal_count(htlcs); i++) {
diff --git a/common/htlc_wire.c b/common/htlc_wire.c
index 796465f1b..bedd1e1eb 100644
--- a/common/htlc_wire.c
+++ b/common/htlc_wire.c
@@ -30,6 +30,10 @@ void towire_failed_htlc(u8 **pptr, const struct failed_htlc *failed)
 	assert(!failed->failcode || !tal_len(failed->failreason));
 	towire_u64(pptr, failed->id);
 	towire_u16(pptr, failed->failcode);
+	if (failed->failcode & UPDATE)
+		towire_short_channel_id(pptr, failed->scid);
+	else
+		assert(!failed->scid);
 	towire_u16(pptr, tal_count(failed->failreason));
 	towire_u8_array(pptr, failed->failreason, tal_count(failed->failreason));
 }
@@ -88,6 +92,11 @@ struct failed_htlc *fromwire_failed_htlc(const tal_t *ctx, const u8 **cursor, si
 
 	failed->id = fromwire_u64(cursor, max);
 	failed->failcode = fromwire_u16(cursor, max);
+	if (failed->failcode & UPDATE) {
+		failed->scid = tal(failed, struct short_channel_id);
+		fromwire_short_channel_id(cursor, max, failed->scid);
+	} else
+		failed->scid = NULL;
 	failreason_len = fromwire_u16(cursor, max);
 	if (failreason_len)
 		failed->failreason = tal_arr(failed, u8, failreason_len);
diff --git a/common/htlc_wire.h b/common/htlc_wire.h
index 3d0d76a62..f0c5a0cce 100644
--- a/common/htlc_wire.h
+++ b/common/htlc_wire.h
@@ -29,6 +29,8 @@ struct failed_htlc {
 	/* Either this is 0 and failreason non-NULL, or vice versa. */
 	enum onion_type failcode;
 	u8 *failreason;
+	/* Non-NULL if failcode & UPDATE */
+	struct short_channel_id *scid;
 };
 
 struct changed_htlc {
diff --git a/lightningd/peer_htlcs.c b/lightningd/peer_htlcs.c
index 94d76033e..df16f8518 100644
--- a/lightningd/peer_htlcs.c
+++ b/lightningd/peer_htlcs.c
@@ -1387,6 +1387,7 @@ static void add_fulfill(u64 id, enum side side,
 
 static void add_fail(u64 id, enum side side,
 		     enum onion_type failcode,
+		     const struct short_channel_id *failing_channel,
 		     const u8 *failuremsg,
 		     const struct failed_htlc ***failed_htlcs,
 		     enum side **failed_sides)
@@ -1400,6 +1401,13 @@ static void add_fail(u64 id, enum side side,
 	*f = tal(*failed_htlcs, struct failed_htlc);
 	(*f)->id = id;
 	(*f)->failcode = failcode;
+	if (failcode & UPDATE) {
+		assert(failing_channel);
+		(*f)->scid = tal_dup(*f, struct short_channel_id,
+				     failing_channel);
+	} else
+		(*f)->scid = NULL;
+
 	if (failuremsg)
 		(*f)->failreason
 			= tal_dup_arr(*f, u8, failuremsg, tal_len(failuremsg), 0);
@@ -1444,6 +1452,7 @@ void peer_htlcs(const tal_t *ctx,
 
 		if (hin->failuremsg || hin->failcode)
 			add_fail(hin->key.id, REMOTE, hin->failcode,
+				 &hin->failoutchannel,
 				 hin->failuremsg, failed_htlcs, failed_sides);
 		if (hin->preimage)
 			add_fulfill(hin->key.id, REMOTE, hin->preimage,
@@ -1463,6 +1472,7 @@ void peer_htlcs(const tal_t *ctx,
 
 		if (hout->failuremsg || hout->failcode)
 			add_fail(hout->key.id, LOCAL, hout->failcode,
+				 hout->key.channel->scid,
 				 hout->failuremsg, failed_htlcs, failed_sides);
 		if (hout->preimage)
 			add_fulfill(hout->key.id, LOCAL, hout->preimage,