diff --git a/docs/release-notes/release-notes-0.14.0.md b/docs/release-notes/release-notes-0.14.0.md
index 5c9721f98..3051ea2da 100644
--- a/docs/release-notes/release-notes-0.14.0.md
+++ b/docs/release-notes/release-notes-0.14.0.md
@@ -479,6 +479,12 @@ messages directly. There is no routing/path finding involved.
 * [Save compressed log files from logrorate during 
   itest](https://github.com/lightningnetwork/lnd/pull/5354).
 
+## Mission control
+
+* [Interpretation of channel disabled errors was changed to only penalize t
+  he destination node to consider mobile wallets with hub 
+  nodes.](https://github.com/lightningnetwork/lnd/pull/5598)
+
 ## Bug Fixes
 
 * A bug has been fixed that would cause `lnd` to [try to bootstrap using the
diff --git a/routing/result_interpretation.go b/routing/result_interpretation.go
index 70cc08f6a..19c43e4a1 100644
--- a/routing/result_interpretation.go
+++ b/routing/result_interpretation.go
@@ -335,6 +335,23 @@ func (i *interpretedResult) processPaymentOutcomeIntermediate(
 	case *lnwire.FailUnknownNextPeer:
 		reportOutgoing()
 
+	// Some implementations use this error when the next hop is offline, so we
+	// do the same as FailUnknownNextPeer and also process the channel update.
+	case *lnwire.FailChannelDisabled:
+
+		// Set the node pair for which a channel update may be out of
+		// date. The second chance logic uses the policyFailure field.
+		i.policyFailure = &DirectedNodePair{
+			From: route.Hops[errorSourceIdx-1].PubKeyBytes,
+			To:   route.Hops[errorSourceIdx].PubKeyBytes,
+		}
+
+		reportOutgoing()
+
+		// All nodes up to the failing pair must have forwarded
+		// successfully.
+		i.successPairRange(route, 0, errorSourceIdx-1)
+
 	// If we get a permanent channel, we'll prune the channel set in both
 	// directions and continue with the rest of the routes.
 	case *lnwire.FailPermanentChannelFailure:
@@ -349,8 +366,7 @@ func (i *interpretedResult) processPaymentOutcomeIntermediate(
 	// control.
 	case *lnwire.FailAmountBelowMinimum,
 		*lnwire.FailFeeInsufficient,
-		*lnwire.FailIncorrectCltvExpiry,
-		*lnwire.FailChannelDisabled:
+		*lnwire.FailIncorrectCltvExpiry:
 
 		// Set the node pair for which a channel update may be out of
 		// date. The second chance logic uses the policyFailure field.
diff --git a/routing/result_interpretation_test.go b/routing/result_interpretation_test.go
index 2fc0a7d90..954f07981 100644
--- a/routing/result_interpretation_test.go
+++ b/routing/result_interpretation_test.go
@@ -349,6 +349,24 @@ var resultTestCases = []resultTestCase{
 			nodeFailure: nil,
 		},
 	},
+
+	// Test a channel disabled failure from the final hop in two hops. Only the
+	// disabled channel should be penalized for any amount.
+	{
+		name:          "two hop channel disabled",
+		route:         &routeTwoHop,
+		failureSrcIdx: 1,
+		failure:       &lnwire.FailChannelDisabled{},
+
+		expectedResult: &interpretedResult{
+			pairResults: map[DirectedNodePair]pairResult{
+				getTestPair(1, 2): failPairResult(0),
+				getTestPair(2, 1): failPairResult(0),
+				getTestPair(0, 1): successPairResult(100),
+			},
+			policyFailure: getPolicyFailure(1, 2),
+		},
+	},
 }
 
 // TestResultInterpretation executes a list of test cases that test the result