diff --git a/channeld/full_channel.c b/channeld/full_channel.c
index 55ae6214c..7001712f4 100644
--- a/channeld/full_channel.c
+++ b/channeld/full_channel.c
@@ -178,18 +178,21 @@ void dump_htlcs(const struct channel *channel, const char *prefix)
  * committed: HTLCs currently committed.
  * pending_removal: HTLCs pending removal (subset of committed)
  * pending_addition: HTLCs pending addition (no overlap with committed)
+ *
+ * Also returns number of HTLCs for other side.
  */
-static void gather_htlcs(const tal_t *ctx,
-			 const struct channel *channel,
-			 enum side side,
-			 const struct htlc ***committed,
-			 const struct htlc ***pending_removal,
-			 const struct htlc ***pending_addition)
+static size_t gather_htlcs(const tal_t *ctx,
+			   const struct channel *channel,
+			   enum side side,
+			   const struct htlc ***committed,
+			   const struct htlc ***pending_removal,
+			   const struct htlc ***pending_addition)
 {
 	struct htlc_map_iter it;
 	const struct htlc *htlc;
 	const int committed_flag = HTLC_FLAG(side, HTLC_F_COMMITTED);
 	const int pending_flag = HTLC_FLAG(side, HTLC_F_PENDING);
+	size_t num_other_side = 0;
 
 	*committed = tal_arr(ctx, const struct htlc *, 0);
 	if (pending_removal)
@@ -198,18 +201,33 @@ static void gather_htlcs(const tal_t *ctx,
 		*pending_addition = tal_arr(ctx, const struct htlc *, 0);
 
 	if (!channel->htlcs)
-		return;
+		return num_other_side;
 
 	for (htlc = htlc_map_first(channel->htlcs, &it);
 	     htlc;
 	     htlc = htlc_map_next(channel->htlcs, &it)) {
 		if (htlc_has(htlc, committed_flag)) {
+#ifdef SUPERVERBOSE
+			dump_htlc(htlc, "COMMITTED");
+#endif
 			htlc_arr_append(committed, htlc);
-			if (htlc_has(htlc, pending_flag))
+			if (htlc_has(htlc, pending_flag)) {
+#ifdef SUPERVERBOSE
+				dump_htlc(htlc, "REMOVING");
+#endif
 				htlc_arr_append(pending_removal, htlc);
-		} else if (htlc_has(htlc, pending_flag))
+			} else if (htlc_owner(htlc) != side)
+				num_other_side++;
+		} else if (htlc_has(htlc, pending_flag)) {
 			htlc_arr_append(pending_addition, htlc);
+#ifdef SUPERVERBOSE
+			dump_htlc(htlc, "ADDING");
+#endif
+			if (htlc_owner(htlc) != side)
+				num_other_side++;
+		}
 	}
+	return num_other_side;
 }
 
 static bool sum_offered_msatoshis(struct amount_msat *total,
@@ -489,6 +507,7 @@ static enum channel_add_err add_htlc(struct channel *channel,
 	enum side sender = htlc_state_owner(state), recipient = !sender;
 	const struct htlc **committed, **adding, **removing;
 	const struct channel_view *view;
+	size_t htlc_count;
 
 	htlc = tal(tmpctx, struct htlc);
 
@@ -563,7 +582,7 @@ static enum channel_add_err add_htlc(struct channel *channel,
 	}
 
 	/* Figure out what receiver will already be committed to. */
-	gather_htlcs(tmpctx, channel, recipient, &committed, &removing, &adding);
+	htlc_count = gather_htlcs(tmpctx, channel, recipient, &committed, &removing, &adding);
 	htlc_arr_append(&adding, htlc);
 
 	/* BOLT #2:
@@ -572,8 +591,7 @@ static enum channel_add_err add_htlc(struct channel *channel,
 	 *     HTLCs to its local commitment transaction...
 	 *     - SHOULD fail the channel.
 	 */
-	if (tal_count(committed) - tal_count(removing) + tal_count(adding)
-	    > channel->config[recipient].max_accepted_htlcs) {
+	if (htlc_count + 1 > channel->config[recipient].max_accepted_htlcs) {
 		return CHANNEL_ERR_TOO_MANY_HTLCS;
 	}
 
@@ -583,8 +601,7 @@ static enum channel_add_err add_htlc(struct channel *channel,
 	 * spike with large commitment transactions.
 	 */
 	if (sender == LOCAL
-	    && tal_count(committed) - tal_count(removing) + tal_count(adding)
-	    > channel->config[LOCAL].max_accepted_htlcs) {
+	    && htlc_count + 1 > channel->config[LOCAL].max_accepted_htlcs) {
 		return CHANNEL_ERR_TOO_MANY_HTLCS;
 	}
 
diff --git a/tests/test_pay.py b/tests/test_pay.py
index 5f75e0f0e..f49ac5250 100644
--- a/tests/test_pay.py
+++ b/tests/test_pay.py
@@ -4,7 +4,7 @@ from fixtures import TEST_NETWORK
 from flaky import flaky  # noqa: F401
 from pyln.client import RpcError, Millisatoshi
 from pyln.proto.onion import TlvPayload
-from pyln.testing.utils import EXPERIMENTAL_DUAL_FUND
+from pyln.testing.utils import EXPERIMENTAL_DUAL_FUND, FUNDAMOUNT
 from utils import (
     DEVELOPER, wait_for, only_one, sync_blockheight, TIMEOUT,
     EXPERIMENTAL_FEATURES, env, VALGRIND
@@ -4292,3 +4292,13 @@ gives a routehint straight to us causes an issue
     l3.stop()
     with pytest.raises(RpcError, match=r'Destination .* is not reachable directly and all routehints were unusable'):
         l2.rpc.pay(inv)
+
+
+@pytest.mark.xfail(strict=True)
+def test_pay_low_max_htlcs(node_factory):
+    """Test we can pay if *any* HTLC slots are available"""
+
+    l1, l2, l3 = node_factory.line_graph(3,
+                                         opts={'max-concurrent-htlcs': 1},
+                                         wait_for_announce=True)
+    l1.rpc.pay(l3.rpc.invoice(FUNDAMOUNT * 50, "test", "test")['bolt11'])