diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 8ccb0ded1..04fb14f8b 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -825,7 +825,7 @@ func (lc *LightningChannel) extractPayDescs(commitHeight uint64,
 	return incomingHtlcs, outgoingHtlcs, nil
 }
 
-// diskCommitToMemCommit converts tthe on-disk commitment format to our
+// diskCommitToMemCommit converts the on-disk commitment format to our
 // in-memory commitment format which is needed in order to properly resume
 // channel operations after a restart.
 func (lc *LightningChannel) diskCommitToMemCommit(isLocal, isPendingCommit bool,
@@ -1090,16 +1090,22 @@ type updateLog struct {
 	// offerIndex is an index that maps the counter for offered HTLC's to
 	// their list element within the main list.List.
 	htlcIndex map[uint64]*list.Element
+
+	// modifiedHtlcs is a set that keeps track of all the current modified
+	// htlcs. A modified HTLC is one that's present in the log, and has as
+	// a pending fail or settle that's attempting to consume it.
+	modifiedHtlcs map[uint64]struct{}
 }
 
 // newUpdateLog creates a new updateLog instance.
 func newUpdateLog(logIndex, htlcCounter uint64) *updateLog {
 	return &updateLog{
-		List:        list.New(),
-		updateIndex: make(map[uint64]*list.Element),
-		htlcIndex:   make(map[uint64]*list.Element),
-		logIndex:    logIndex,
-		htlcCounter: htlcCounter,
+		List:          list.New(),
+		updateIndex:   make(map[uint64]*list.Element),
+		htlcIndex:     make(map[uint64]*list.Element),
+		logIndex:      logIndex,
+		htlcCounter:   htlcCounter,
+		modifiedHtlcs: make(map[uint64]struct{}),
 	}
 }
 
@@ -1158,6 +1164,19 @@ func (u *updateLog) removeHtlc(i uint64) {
 	entry := u.htlcIndex[i]
 	u.Remove(entry)
 	delete(u.htlcIndex, i)
+
+// htlcHasModification returns true if the HTLC identified by the passed index
+// has a pending modification within the log.
+func (u *updateLog) htlcHasModification(i uint64) bool {
+	_, o := u.modifiedHtlcs[i]
+	return o
+}
+
+// markHtlcModified marks an HTLC as modified based on its HTLC index. After a
+// call to this method, htlcHasModification will return true until the HTLC is
+// removed.
+func (u *updateLog) markHtlcModified(i uint64) {
+	u.modifiedHtlcs[i] = struct{}{}
 }
 
 // compactLogs performs garbage collection within the log removing HTLCs which
@@ -1509,10 +1528,12 @@ func (lc *LightningChannel) logUpdateToPayDesc(logUpdate *channeldb.LogUpdate,
 		if !isDustRemote {
 			theirP2WSH, theirWitnessScript, err := genHtlcScript(
 				false, false, wireMsg.Expiry, wireMsg.PaymentHash,
-				remoteCommitKeys)
+				remoteCommitKeys,
+			)
 			if err != nil {
 				return nil, err
 			}
+
 			pd.theirPkScript = theirP2WSH
 			pd.theirWitnessScript = theirWitnessScript
 		}
@@ -1571,7 +1592,7 @@ func (lc *LightningChannel) logUpdateToPayDesc(logUpdate *channeldb.LogUpdate,
 }
 
 // restoreCommitState will restore the local commitment chain and updateLog
-// state to a consistent in-memory representation of the passed dis commitment.
+// state to a consistent in-memory representation of the passed disk commitment.
 // This method is to be used upon reconnection to our channel counter party.
 // Once the connection has been established, we'll prepare our in memory state
 // to re-sync states with the remote party, and also verify/extend new proposed