diff --git a/funding/manager_test.go b/funding/manager_test.go
index ca598cec7..dbe635377 100644
--- a/funding/manager_test.go
+++ b/funding/manager_test.go
@@ -4653,8 +4653,8 @@ func testZeroConf(t *testing.T, chanType *lnwire.ChannelType) {
 // opening behavior with a specified fundmax flag. To give a hypothetical
 // example, if ANCHOR types had been introduced after the fundmax flag had been
 // activated, the developer would have had to code for the anchor reserve in the
-// funding manager in the context of public and private channels. Otherwise
-// inconsistent bahvior would have resulted when specifying fundmax for
+// funding manager in the context of public and private channels. Otherwise,
+// inconsistent behavior would have resulted when specifying fundmax for
 // different types of channel openings.
 // To ensure consistency this test compares a map of locally defined channel
 // commitment types to the list of channel types that are defined in the proto
@@ -4670,6 +4670,7 @@ func TestCommitmentTypeFundmaxSanityCheck(t *testing.T) {
 		"ANCHORS":                 3,
 		"SCRIPT_ENFORCED_LEASE":   4,
 		"SIMPLE_TAPROOT":          5,
+		"SIMPLE_TAPROOT_OVERLAY":  6,
 	}
 
 	for commitmentType := range lnrpc.CommitmentType_value {
diff --git a/rpcserver.go b/rpcserver.go
index 44a3ae391..198c43123 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -2309,6 +2309,29 @@ func (r *rpcServer) parseOpenChannelReq(in *lnrpc.OpenChannelRequest,
 
 		*channelType = lnwire.ChannelType(*fv)
 
+	case lnrpc.CommitmentType_SIMPLE_TAPROOT_OVERLAY:
+		// If the taproot overlay channel type is being set, then the
+		// channel MUST be private.
+		if !in.Private {
+			return nil, fmt.Errorf("taproot overlay channels " +
+				"must be private")
+		}
+
+		channelType = new(lnwire.ChannelType)
+		fv := lnwire.NewRawFeatureVector(
+			lnwire.SimpleTaprootOverlayChansRequired,
+		)
+
+		if in.ZeroConf {
+			fv.Set(lnwire.ZeroConfRequired)
+		}
+
+		if in.ScidAlias {
+			fv.Set(lnwire.ScidAliasRequired)
+		}
+
+		*channelType = lnwire.ChannelType(*fv)
+
 	default:
 		return nil, fmt.Errorf("unhandled request channel type %v",
 			in.CommitmentType)
@@ -4533,6 +4556,9 @@ func rpcCommitmentType(chanType channeldb.ChannelType) lnrpc.CommitmentType {
 	// first check whether it has anchors, since in that case it would also
 	// be tweakless.
 	switch {
+	case chanType.HasTapscriptRoot():
+		return lnrpc.CommitmentType_SIMPLE_TAPROOT_OVERLAY
+
 	case chanType.IsTaproot():
 		return lnrpc.CommitmentType_SIMPLE_TAPROOT
 
@@ -4544,6 +4570,7 @@ func rpcCommitmentType(chanType channeldb.ChannelType) lnrpc.CommitmentType {
 
 	case chanType.IsTweakless():
 		return lnrpc.CommitmentType_STATIC_REMOTE_KEY
+
 	default:
 
 		return lnrpc.CommitmentType_LEGACY
diff --git a/rpcserver_test.go b/rpcserver_test.go
index 9dd3c3f86..53ec6d0ac 100644
--- a/rpcserver_test.go
+++ b/rpcserver_test.go
@@ -77,3 +77,53 @@ func TestAuxDataParser(t *testing.T) {
 	require.NotNil(t, resp)
 	require.Equal(t, []byte{0x00, 0x00}, resp.CustomChannelData)
 }
+
+// TestRpcCommitmentType tests the rpcCommitmentType returns the corect
+// commitment type given a channel type.
+func TestRpcCommitmentType(t *testing.T) {
+	tests := []struct {
+		name     string
+		chanType channeldb.ChannelType
+		want     lnrpc.CommitmentType
+	}{
+		{
+			name: "tapscript overlay",
+			chanType: channeldb.SimpleTaprootFeatureBit |
+				channeldb.TapscriptRootBit,
+			want: lnrpc.CommitmentType_SIMPLE_TAPROOT_OVERLAY,
+		},
+		{
+			name:     "simple taproot",
+			chanType: channeldb.SimpleTaprootFeatureBit,
+			want:     lnrpc.CommitmentType_SIMPLE_TAPROOT,
+		},
+		{
+			name:     "lease expiration",
+			chanType: channeldb.LeaseExpirationBit,
+			want:     lnrpc.CommitmentType_SCRIPT_ENFORCED_LEASE,
+		},
+		{
+			name:     "anchors",
+			chanType: channeldb.AnchorOutputsBit,
+			want:     lnrpc.CommitmentType_ANCHORS,
+		},
+		{
+			name:     "tweakless",
+			chanType: channeldb.SingleFunderTweaklessBit,
+			want:     lnrpc.CommitmentType_STATIC_REMOTE_KEY,
+		},
+		{
+			name:     "legacy",
+			chanType: channeldb.SingleFunderBit,
+			want:     lnrpc.CommitmentType_LEGACY,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			require.Equal(
+				t, tt.want, rpcCommitmentType(tt.chanType),
+			)
+		})
+	}
+}