diff --git a/channeldb/models/channel_edge_info.go b/channeldb/models/channel_edge_info.go
index 1afa2d627..0f91e2bbe 100644
--- a/channeldb/models/channel_edge_info.go
+++ b/channeldb/models/channel_edge_info.go
@@ -8,6 +8,7 @@ import (
 	"github.com/btcsuite/btcd/btcutil"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/wire"
+	"github.com/lightningnetwork/lnd/fn"
 )
 
 // ChannelEdgeInfo represents a fully authenticated channel along with all its
@@ -62,6 +63,11 @@ type ChannelEdgeInfo struct {
 	// the value output in the outpoint that created this channel.
 	Capacity btcutil.Amount
 
+	// TapscriptRoot is the optional Merkle root of the tapscript tree if
+	// this channel is a taproot channel that also commits to a tapscript
+	// tree (custom channel).
+	TapscriptRoot fn.Option[chainhash.Hash]
+
 	// ExtraOpaqueData is the set of data that was appended to this
 	// message, some of which we may not actually know how to iterate or
 	// parse. By holding onto this data, we ensure that we're able to
diff --git a/config_builder.go b/config_builder.go
index 5679de10b..aade3f96e 100644
--- a/config_builder.go
+++ b/config_builder.go
@@ -35,6 +35,7 @@ import (
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/clock"
 	"github.com/lightningnetwork/lnd/fn"
+	"github.com/lightningnetwork/lnd/funding"
 	"github.com/lightningnetwork/lnd/invoices"
 	"github.com/lightningnetwork/lnd/keychain"
 	"github.com/lightningnetwork/lnd/kvdb"
@@ -44,6 +45,7 @@ import (
 	"github.com/lightningnetwork/lnd/lnwallet/btcwallet"
 	"github.com/lightningnetwork/lnd/lnwallet/rpcwallet"
 	"github.com/lightningnetwork/lnd/macaroons"
+	"github.com/lightningnetwork/lnd/protofsm"
 	"github.com/lightningnetwork/lnd/routing"
 	"github.com/lightningnetwork/lnd/rpcperms"
 	"github.com/lightningnetwork/lnd/signal"
@@ -162,6 +164,16 @@ type AuxComponents struct {
 	// TrafficShaper is an optional traffic shaper that can be used to
 	// control the outgoing channel of a payment.
 	TrafficShaper fn.Option[routing.TlvTrafficShaper]
+
+	// MsgRouter is an optional message router that if set will be used in
+	// place of a new blank default message router.
+	MsgRouter fn.Option[protofsm.MsgRouter]
+
+	// AuxFundingController is an optional controller that can be used to
+	// modify the way we handle certain custom chanenl types. It's also
+	// able to automatically handle new custom protocol messages related to
+	// the funding process.
+	AuxFundingController fn.Option[funding.AuxFundingController]
 }
 
 // DefaultWalletImpl is the default implementation of our normal, btcwallet
diff --git a/discovery/gossiper.go b/discovery/gossiper.go
index 507035e70..1e1ad28ad 100644
--- a/discovery/gossiper.go
+++ b/discovery/gossiper.go
@@ -20,6 +20,7 @@ import (
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/channeldb/models"
+	"github.com/lightningnetwork/lnd/fn"
 	"github.com/lightningnetwork/lnd/keychain"
 	"github.com/lightningnetwork/lnd/kvdb"
 	"github.com/lightningnetwork/lnd/lnpeer"
@@ -82,9 +83,10 @@ var (
 // can provide that serve useful when processing a specific network
 // announcement.
 type optionalMsgFields struct {
-	capacity     *btcutil.Amount
-	channelPoint *wire.OutPoint
-	remoteAlias  *lnwire.ShortChannelID
+	capacity      *btcutil.Amount
+	channelPoint  *wire.OutPoint
+	remoteAlias   *lnwire.ShortChannelID
+	tapscriptRoot fn.Option[chainhash.Hash]
 }
 
 // apply applies the optional fields within the functional options.
@@ -115,6 +117,14 @@ func ChannelPoint(op wire.OutPoint) OptionalMsgField {
 	}
 }
 
+// TapscriptRoot is an optional field that lets the gossiper know of the root of
+// the tapscript tree for a custom channel.
+func TapscriptRoot(root fn.Option[chainhash.Hash]) OptionalMsgField {
+	return func(f *optionalMsgFields) {
+		f.tapscriptRoot = root
+	}
+}
+
 // RemoteAlias is an optional field that lets the gossiper know that a locally
 // sent channel update is actually an update for the peer that should replace
 // the ShortChannelID field with the remote's alias. This is only used for
@@ -2513,6 +2523,9 @@ func (d *AuthenticatedGossiper) handleChanAnnouncement(nMsg *networkMsg,
 			cp := *nMsg.optionalMsgFields.channelPoint
 			edge.ChannelPoint = cp
 		}
+
+		// Optional tapscript root for custom channels.
+		edge.TapscriptRoot = nMsg.optionalMsgFields.tapscriptRoot
 	}
 
 	log.Debugf("Adding edge for short_chan_id: %v",
diff --git a/funding/aux_funding.go b/funding/aux_funding.go
new file mode 100644
index 000000000..34dc7cb3d
--- /dev/null
+++ b/funding/aux_funding.go
@@ -0,0 +1,82 @@
+package funding
+
+import (
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/lightningnetwork/lnd/channeldb"
+	"github.com/lightningnetwork/lnd/fn"
+	"github.com/lightningnetwork/lnd/lnwallet"
+	"github.com/lightningnetwork/lnd/protofsm"
+)
+
+// AuxFundingController permits the implementation of the funding of custom
+// channels types. The controller serves as a MsgEndpoint which allows it to
+// intercept custom messages, or even the regular funding messages. The
+// controller might also pass along an aux funding desc based on an existing
+// pending channel ID.
+type AuxFundingController interface {
+	// MsgEndpoint is the embedded interface that signals that the funding
+	// controller is also a message endpoint. This'll allow it to handle
+	// custom messages specific to the funding type.
+	protofsm.MsgEndpoint
+
+	// DescFromPendingChanID takes a pending channel ID, that may already be
+	// known due to prior custom channel messages, and maybe returns an aux
+	// funding desc which can be used to modify how a channel is funded.
+	DescFromPendingChanID(pid PendingChanID,
+		openChan *channeldb.OpenChannel,
+		localKeyRing, remoteKeyRing lnwallet.CommitmentKeyRing,
+		initiator bool) (fn.Option[lnwallet.AuxFundingDesc], error)
+
+	// DeriveTapscriptRoot takes a pending channel ID and maybe returns a
+	// tapscript root that should be used when creating any MuSig2 sessions
+	// for a channel.
+	DeriveTapscriptRoot(PendingChanID) (fn.Option[chainhash.Hash], error)
+
+	// ChannelReady is called when a channel has been fully opened (multiple
+	// confirmations) and is ready to be used. This can be used to perform
+	// any final setup or cleanup.
+	ChannelReady(openChan *channeldb.OpenChannel) error
+
+	// ChannelFinalized is called when a channel has been fully finalized.
+	// In this state, we've received the commitment sig from the remote
+	// party, so we are safe to broadcast the funding transaction.
+	ChannelFinalized(PendingChanID) error
+}
+
+// descFromPendingChanID takes a pending channel ID, that may already be known
+// due to prior custom channel messages, and maybe returns an aux funding desc
+// which can be used to modify how a channel is funded.
+func descFromPendingChanID(controller fn.Option[AuxFundingController],
+	chanID PendingChanID, openChan *channeldb.OpenChannel,
+	localKeyRing, remoteKeyRing lnwallet.CommitmentKeyRing,
+	initiator bool) (fn.Option[lnwallet.AuxFundingDesc], error) {
+
+	var result fn.Option[lnwallet.AuxFundingDesc]
+	mapErr := fn.MapOptionZ(controller, func(c AuxFundingController) error {
+		var err error
+		result, err = c.DescFromPendingChanID(
+			chanID, openChan, localKeyRing, remoteKeyRing,
+			initiator,
+		)
+
+		return err
+	})
+
+	return result, mapErr
+}
+
+// deriveTapscriptRoot takes a pending channel ID and maybe returns a
+// tapscript root that should be used when creating any MuSig2 sessions for a
+// channel.
+func deriveTapscriptRoot(controller fn.Option[AuxFundingController],
+	chanID PendingChanID) (fn.Option[chainhash.Hash], error) {
+
+	var result fn.Option[chainhash.Hash]
+	mapErr := fn.MapOptionZ(controller, func(c AuxFundingController) error {
+		var err error
+		result, err = c.DeriveTapscriptRoot(chanID)
+		return err
+	})
+
+	return result, mapErr
+}
diff --git a/funding/manager.go b/funding/manager.go
index 03b3deaf2..b623ce9d9 100644
--- a/funding/manager.go
+++ b/funding/manager.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"io"
 	"sync"
+	"sync/atomic"
 	"time"
 
 	"github.com/btcsuite/btcd/blockchain"
@@ -98,7 +99,6 @@ const (
 	// you and limitless channel size (apart from 21 million cap).
 	MaxBtcFundingAmountWumbo = btcutil.Amount(1000000000)
 
-	// TODO(roasbeef): tune.
 	msgBufferSize = 50
 
 	// MaxWaitNumBlocksFundingConf is the maximum number of blocks to wait
@@ -288,7 +288,7 @@ type InitFundingMsg struct {
 	// PendingChanID is not all zeroes (the default value), then this will
 	// be the pending channel ID used for the funding flow within the wire
 	// protocol.
-	PendingChanID [32]byte
+	PendingChanID PendingChanID
 
 	// ChannelType allows the caller to use an explicit channel type for the
 	// funding negotiation. This type will only be observed if BOTH sides
@@ -318,7 +318,7 @@ type fundingMsg struct {
 // pendingChannels is a map instantiated per-peer which tracks all active
 // pending single funded channels indexed by their pending channel identifier,
 // which is a set of 32-bytes generated via a CSPRNG.
-type pendingChannels map[[32]byte]*reservationWithCtx
+type pendingChannels map[PendingChanID]*reservationWithCtx
 
 // serializedPubKey is used within the FundingManager's activeReservations list
 // to identify the nodes with which the FundingManager is actively working to
@@ -542,6 +542,12 @@ type Config struct {
 	// AuxLeafStore is an optional store that can be used to store auxiliary
 	// leaves for certain custom channel types.
 	AuxLeafStore fn.Option[lnwallet.AuxLeafStore]
+
+	// AuxFundingController is an optional controller that can be used to
+	// modify the way we handle certain custom channel types. It's also
+	// able to automatically handle new custom protocol messages related to
+	// the funding process.
+	AuxFundingController fn.Option[AuxFundingController]
 }
 
 // Manager acts as an orchestrator/bridge between the wallet's
@@ -567,8 +573,10 @@ type Manager struct {
 
 	// chanIDNonce is a nonce that's incremented for each new funding
 	// reservation created.
-	nonceMtx    sync.RWMutex
-	chanIDNonce uint64
+	chanIDNonce atomic.Uint64
+
+	// nonceMtx is a mutex that guards the pendingMusigNonces.
+	nonceMtx sync.RWMutex
 
 	// pendingMusigNonces is used to store the musig2 nonce we generate to
 	// send funding locked until we receive a funding locked message from
@@ -590,7 +598,7 @@ type Manager struct {
 	// required as mid funding flow, we switch to referencing the channel
 	// by its full channel ID once the commitment transactions have been
 	// signed by both parties.
-	signedReservations map[lnwire.ChannelID][32]byte
+	signedReservations map[lnwire.ChannelID]PendingChanID
 
 	// resMtx guards both of the maps above to ensure that all access is
 	// goroutine safe.
@@ -797,24 +805,28 @@ func (f *Manager) rebroadcastFundingTx(c *channeldb.OpenChannel) {
 	}
 }
 
+// PendingChanID is a type that represents a pending channel ID. This might be
+// selected by the caller, but if not, will be automatically selected.
+type PendingChanID = [32]byte
+
 // nextPendingChanID returns the next free pending channel ID to be used to
 // identify a particular future channel funding workflow.
-func (f *Manager) nextPendingChanID() [32]byte {
-	// Obtain a fresh nonce. We do this by encoding the current nonce
-	// counter, then incrementing it by one.
-	f.nonceMtx.Lock()
-	var nonce [8]byte
-	binary.LittleEndian.PutUint64(nonce[:], f.chanIDNonce)
-	f.chanIDNonce++
-	f.nonceMtx.Unlock()
+func (f *Manager) nextPendingChanID() PendingChanID {
+	// Obtain a fresh nonce. We do this by encoding the incremented nonce.
+	nextNonce := f.chanIDNonce.Add(1)
+
+	var nonceBytes [8]byte
+	binary.LittleEndian.PutUint64(nonceBytes[:], nextNonce)
 
 	// We'll generate the next pending channelID by "encrypting" 32-bytes
 	// of zeroes which'll extract 32 random bytes from our stream cipher.
 	var (
-		nextChanID [32]byte
+		nextChanID PendingChanID
 		zeroes     [32]byte
 	)
-	salsa20.XORKeyStream(nextChanID[:], zeroes[:], nonce[:], &f.chanIDKey)
+	salsa20.XORKeyStream(
+		nextChanID[:], zeroes[:], nonceBytes[:], &f.chanIDKey,
+	)
 
 	return nextChanID
 }
@@ -1044,7 +1056,8 @@ func (f *Manager) reservationCoordinator() {
 //
 // NOTE: This MUST be run as a goroutine.
 func (f *Manager) advanceFundingState(channel *channeldb.OpenChannel,
-	pendingChanID [32]byte, updateChan chan<- *lnrpc.OpenStatusUpdate) {
+	pendingChanID PendingChanID,
+	updateChan chan<- *lnrpc.OpenStatusUpdate) {
 
 	defer f.wg.Done()
 
@@ -1119,7 +1132,7 @@ func (f *Manager) advanceFundingState(channel *channeldb.OpenChannel,
 // updateChan can be set non-nil to get OpenStatusUpdates.
 func (f *Manager) stateStep(channel *channeldb.OpenChannel,
 	lnChannel *lnwallet.LightningChannel,
-	shortChanID *lnwire.ShortChannelID, pendingChanID [32]byte,
+	shortChanID *lnwire.ShortChannelID, pendingChanID PendingChanID,
 	channelState channelOpeningState,
 	updateChan chan<- *lnrpc.OpenStatusUpdate) error {
 
@@ -1242,8 +1255,8 @@ func (f *Manager) stateStep(channel *channeldb.OpenChannel,
 
 // advancePendingChannelState waits for a pending channel's funding tx to
 // confirm, and marks it open in the database when that happens.
-func (f *Manager) advancePendingChannelState(
-	channel *channeldb.OpenChannel, pendingChanID [32]byte) error {
+func (f *Manager) advancePendingChannelState(channel *channeldb.OpenChannel,
+	pendingChanID PendingChanID) error {
 
 	if channel.IsZeroConf() {
 		// Persist the alias to the alias database.
@@ -1605,6 +1618,18 @@ func (f *Manager) fundeeProcessOpenChannel(peer lnpeer.Peer,
 		return
 	}
 
+	// At this point, if we have an AuxFundingController active, we'll
+	// check to see if we have a special tapscript root to use in our
+	// MuSig funding output.
+	tapscriptRoot, err := deriveTapscriptRoot(
+		f.cfg.AuxFundingController, msg.PendingChannelID,
+	)
+	if err != nil {
+		err = fmt.Errorf("error deriving tapscript root: %w", err)
+		log.Error(err)
+		f.failFundingFlow(peer, cid, err)
+	}
+
 	req := &lnwallet.InitFundingReserveMsg{
 		ChainHash:        &msg.ChainHash,
 		PendingChanID:    msg.PendingChannelID,
@@ -1621,6 +1646,7 @@ func (f *Manager) fundeeProcessOpenChannel(peer lnpeer.Peer,
 		ZeroConf:         zeroConf,
 		OptionScidAlias:  scid,
 		ScidAliasFeature: scidFeatureVal,
+		TapscriptRoot:    tapscriptRoot,
 	}
 
 	reservation, err := f.cfg.Wallet.InitChannelReservation(req)
@@ -2217,10 +2243,27 @@ func (f *Manager) waitForPsbt(intent *chanfunding.PsbtIntent,
 			return
 		}
 
+		// At this point, we'll see if there's an AuxFundingDesc we
+		// need to deliver so the funding process can continue
+		// properly.
+		chanState := resCtx.reservation.ChanState()
+		localKeys, remoteKeys := resCtx.reservation.CommitmentKeyRings()
+		auxFundingDesc, err := descFromPendingChanID(
+			f.cfg.AuxFundingController, cid.tempChanID, chanState,
+			*localKeys, *remoteKeys, true,
+		)
+		if err != nil {
+			failFlow("error continuing PSBT flow", err)
+			return
+		}
+
 		// A non-nil error means we can continue the funding flow.
 		// Notify the wallet so it can prepare everything we need to
 		// continue.
-		err = resCtx.reservation.ProcessPsbt()
+		//
+		// We'll also pass along the aux funding controller as well,
+		// which may be used to help process the finalized PSBT.
+		err = resCtx.reservation.ProcessPsbt(auxFundingDesc)
 		if err != nil {
 			failFlow("error continuing PSBT flow", err)
 			return
@@ -2346,7 +2389,6 @@ func (f *Manager) fundeeProcessFundingCreated(peer lnpeer.Peer,
 	// final funding transaction, as well as a signature for our version of
 	// the commitment transaction. So at this point, we can validate the
 	// initiator's commitment transaction, then send our own if it's valid.
-	// TODO(roasbeef): make case (p vs P) consistent throughout
 	fundingOut := msg.FundingPoint
 	log.Infof("completing pending_id(%x) with ChannelPoint(%v)",
 		pendingChanID[:], fundingOut)
@@ -2378,16 +2420,33 @@ func (f *Manager) fundeeProcessFundingCreated(peer lnpeer.Peer,
 		}
 	}
 
+	// At this point, we'll see if there's an AuxFundingDesc we need to
+	// deliver so the funding process can continue properly.
+	chanState := resCtx.reservation.ChanState()
+	localKeys, remoteKeys := resCtx.reservation.CommitmentKeyRings()
+	auxFundingDesc, err := descFromPendingChanID(
+		f.cfg.AuxFundingController, cid.tempChanID, chanState,
+		*localKeys, *remoteKeys, true,
+	)
+	if err != nil {
+		log.Errorf("error continuing PSBT flow: %v", err)
+		f.failFundingFlow(peer, cid, err)
+		return
+	}
+
 	// With all the necessary data available, attempt to advance the
 	// funding workflow to the next stage. If this succeeds then the
 	// funding transaction will broadcast after our next message.
 	// CompleteReservationSingle will also mark the channel as 'IsPending'
 	// in the database.
+	//
+	// We'll also directly pass in the AuxFunding controller as well,
+	// which may be used by the reservation system to finalize funding our
+	// side.
 	completeChan, err := resCtx.reservation.CompleteReservationSingle(
-		&fundingOut, commitSig,
+		&fundingOut, commitSig, auxFundingDesc,
 	)
 	if err != nil {
-		// TODO(roasbeef): better error logging: peerID, channelID, etc.
 		log.Errorf("unable to complete single reservation: %v", err)
 		f.failFundingFlow(peer, cid, err)
 		return
@@ -2683,6 +2742,22 @@ func (f *Manager) funderProcessFundingSigned(peer lnpeer.Peer,
 		}
 	}
 
+	// Before we proceed, if we have a funding hook that wants a
+	// notification that it's safe to broadcast the funding transaction,
+	// then we'll send that now.
+	err = fn.MapOptionZ(
+		f.cfg.AuxFundingController,
+		func(controller AuxFundingController) error {
+			return controller.ChannelFinalized(cid.tempChanID)
+		},
+	)
+	if err != nil {
+		cid := newChanIdentifier(msg.ChanID)
+		f.sendWarning(peer, cid, err)
+
+		return
+	}
+
 	// Now that we have a finalized reservation for this funding flow,
 	// we'll send the to be active channel to the ChainArbitrator so it can
 	// watch for any on-chain actions before the channel has fully
@@ -2698,9 +2773,6 @@ func (f *Manager) funderProcessFundingSigned(peer lnpeer.Peer,
 
 	// Send an update to the upstream client that the negotiation process
 	// is over.
-	//
-	// TODO(roasbeef): add abstraction over updates to accommodate
-	// long-polling, or SSE, etc.
 	upd := &lnrpc.OpenStatusUpdate{
 		Update: &lnrpc.OpenStatusUpdate_ChanPending{
 			ChanPending: &lnrpc.PendingUpdate{
@@ -2744,7 +2816,7 @@ type confirmedChannel struct {
 // channel as closed. The error is only returned for the responder of the
 // channel flow.
 func (f *Manager) fundingTimeout(c *channeldb.OpenChannel,
-	pendingID [32]byte) error {
+	pendingID PendingChanID) error {
 
 	// We'll get a timeout if the number of blocks mined since the channel
 	// was initiated reaches MaxWaitNumBlocksFundingConf and we are not the
@@ -3409,6 +3481,7 @@ func (f *Manager) addToRouterGraph(completeChan *channeldb.OpenChannel,
 	errChan := f.cfg.SendAnnouncement(
 		ann.chanAnn, discovery.ChannelCapacity(completeChan.Capacity),
 		discovery.ChannelPoint(completeChan.FundingOutpoint),
+		discovery.TapscriptRoot(completeChan.TapscriptRoot),
 	)
 	select {
 	case err := <-errChan:
@@ -3607,7 +3680,7 @@ func (f *Manager) annAfterSixConfs(completeChan *channeldb.OpenChannel,
 // a zero-conf channel. This will wait for the real confirmation, add the
 // confirmed SCID to the router graph, and then announce after six confs.
 func (f *Manager) waitForZeroConfChannel(c *channeldb.OpenChannel,
-	pendingID [32]byte) error {
+	_ PendingChanID) error {
 
 	// First we'll check whether the channel is confirmed on-chain. If it
 	// is already confirmed, the chainntnfs subsystem will return with the
@@ -3938,6 +4011,19 @@ func (f *Manager) handleChannelReady(peer lnpeer.Peer, //nolint:funlen
 				PubNonce: remoteNonce,
 			}),
 		)
+
+		err = fn.MapOptionZ(
+			f.cfg.AuxFundingController,
+			func(controller AuxFundingController) error {
+				return controller.ChannelReady(channel)
+			},
+		)
+		if err != nil {
+			cid := newChanIdentifier(msg.ChanID)
+			f.sendWarning(peer, cid, err)
+
+			return
+		}
 	}
 
 	// The channel_ready message contains the next commitment point we'll
@@ -3975,7 +4061,7 @@ func (f *Manager) handleChannelReady(peer lnpeer.Peer, //nolint:funlen
 // channel is now active, thus we change its state to `addedToRouterGraph` to
 // let the channel start handling routing.
 func (f *Manager) handleChannelReadyReceived(channel *channeldb.OpenChannel,
-	scid *lnwire.ShortChannelID, pendingChanID [32]byte,
+	scid *lnwire.ShortChannelID, pendingChanID PendingChanID,
 	updateChan chan<- *lnrpc.OpenStatusUpdate) error {
 
 	chanID := lnwire.NewChanIDFromOutPoint(channel.FundingOutpoint)
@@ -4024,6 +4110,17 @@ func (f *Manager) handleChannelReadyReceived(channel *channeldb.OpenChannel,
 	log.Debugf("Channel(%v) with ShortChanID %v: successfully "+
 		"added to router graph", chanID, scid)
 
+	err = fn.MapOptionZ(
+		f.cfg.AuxFundingController,
+		func(controller AuxFundingController) error {
+			return controller.ChannelReady(channel)
+		},
+	)
+	if err != nil {
+		return fmt.Errorf("failed notifying aux funding controller "+
+			"about channel ready: %w", err)
+	}
+
 	// Give the caller a final update notifying them that the channel is
 	fundingPoint := channel.FundingOutpoint
 	cp := &lnrpc.ChannelPoint{
@@ -4337,9 +4434,9 @@ func (f *Manager) announceChannel(localIDKey, remoteIDKey *btcec.PublicKey,
 	//
 	// We can pass in zeroes for the min and max htlc policy, because we
 	// only use the channel announcement message from the returned struct.
-	ann, err := f.newChanAnnouncement(localIDKey, remoteIDKey,
-		localFundingKey, remoteFundingKey, shortChanID, chanID,
-		0, 0, nil, chanType,
+	ann, err := f.newChanAnnouncement(
+		localIDKey, remoteIDKey, localFundingKey, remoteFundingKey,
+		shortChanID, chanID, 0, 0, nil, chanType,
 	)
 	if err != nil {
 		log.Errorf("can't generate channel announcement: %v", err)
@@ -4405,7 +4502,6 @@ func (f *Manager) announceChannel(localIDKey, remoteIDKey *btcec.PublicKey,
 
 // InitFundingWorkflow sends a message to the funding manager instructing it
 // to initiate a single funder workflow with the source peer.
-// TODO(roasbeef): re-visit blocking nature..
 func (f *Manager) InitFundingWorkflow(msg *InitFundingMsg) {
 	f.fundingRequests <- msg
 }
@@ -4499,7 +4595,7 @@ func (f *Manager) handleInitFundingMsg(msg *InitFundingMsg) {
 	// If the caller specified their own channel ID, then we'll use that.
 	// Otherwise we'll generate a fresh one as normal.  This will be used
 	// to track this reservation throughout its lifetime.
-	var chanID [32]byte
+	var chanID PendingChanID
 	if msg.PendingChanID == zeroID {
 		chanID = f.nextPendingChanID()
 	} else {
@@ -4595,6 +4691,20 @@ func (f *Manager) handleInitFundingMsg(msg *InitFundingMsg) {
 		scidFeatureVal = true
 	}
 
+	// At this point, if we have an AuxFundingController active, we'll check
+	// to see if we have a special tapscript root to use in our MuSig2
+	// funding output.
+	tapscriptRoot, err := deriveTapscriptRoot(
+		f.cfg.AuxFundingController, chanID,
+	)
+	if err != nil {
+		err = fmt.Errorf("error deriving tapscript root: %w", err)
+		log.Error(err)
+		msg.Err <- err
+
+		return
+	}
+
 	req := &lnwallet.InitFundingReserveMsg{
 		ChainHash:         &msg.ChainHash,
 		PendingChanID:     chanID,
@@ -4618,6 +4728,7 @@ func (f *Manager) handleInitFundingMsg(msg *InitFundingMsg) {
 		OptionScidAlias:   scid,
 		ScidAliasFeature:  scidFeatureVal,
 		Memo:              msg.Memo,
+		TapscriptRoot:     tapscriptRoot,
 	}
 
 	reservation, err := f.cfg.Wallet.InitChannelReservation(req)
@@ -4904,7 +5015,8 @@ func (f *Manager) pruneZombieReservations() {
 // cancelReservationCtx does all needed work in order to securely cancel the
 // reservation.
 func (f *Manager) cancelReservationCtx(peerKey *btcec.PublicKey,
-	pendingChanID [32]byte, byRemote bool) (*reservationWithCtx, error) {
+	pendingChanID PendingChanID,
+	byRemote bool) (*reservationWithCtx, error) {
 
 	log.Infof("Cancelling funding reservation for node_key=%x, "+
 		"chan_id=%x", peerKey.SerializeCompressed(), pendingChanID[:])
@@ -4952,7 +5064,7 @@ func (f *Manager) cancelReservationCtx(peerKey *btcec.PublicKey,
 // deleteReservationCtx deletes the reservation uniquely identified by the
 // target public key of the peer, and the specified pending channel ID.
 func (f *Manager) deleteReservationCtx(peerKey *btcec.PublicKey,
-	pendingChanID [32]byte) {
+	pendingChanID PendingChanID) {
 
 	peerIDKey := newSerializedKey(peerKey)
 	f.resMtx.Lock()
@@ -4975,7 +5087,7 @@ func (f *Manager) deleteReservationCtx(peerKey *btcec.PublicKey,
 // getReservationCtx returns the reservation context for a particular pending
 // channel ID for a target peer.
 func (f *Manager) getReservationCtx(peerKey *btcec.PublicKey,
-	pendingChanID [32]byte) (*reservationWithCtx, error) {
+	pendingChanID PendingChanID) (*reservationWithCtx, error) {
 
 	peerIDKey := newSerializedKey(peerKey)
 	f.resMtx.RLock()
@@ -4995,7 +5107,7 @@ func (f *Manager) getReservationCtx(peerKey *btcec.PublicKey,
 // of being funded. After the funding transaction has been confirmed, the
 // channel will receive a new, permanent channel ID, and will no longer be
 // considered pending.
-func (f *Manager) IsPendingChannel(pendingChanID [32]byte,
+func (f *Manager) IsPendingChannel(pendingChanID PendingChanID,
 	peer lnpeer.Peer) bool {
 
 	peerIDKey := newSerializedKey(peer.IdentityKey())
diff --git a/itest/lnd_psbt_test.go b/itest/lnd_psbt_test.go
index a3b5f757b..fd3db1211 100644
--- a/itest/lnd_psbt_test.go
+++ b/itest/lnd_psbt_test.go
@@ -177,6 +177,17 @@ func runPsbtChanFunding(ht *lntest.HarnessTest, carol, dave *node.HarnessNode,
 		},
 	)
 
+	// If this is a taproot channel, then we'll decode the PSBT to assert
+	// that an internal key is included.
+	if commitType == lnrpc.CommitmentType_SIMPLE_TAPROOT {
+		decodedPSBT, err := psbt.NewFromRawBytes(
+			bytes.NewReader(tempPsbt), false,
+		)
+		require.NoError(ht, err)
+
+		require.Len(ht, decodedPSBT.Outputs[0].TaprootInternalKey, 32)
+	}
+
 	// Let's add a second channel to the batch. This time between Carol and
 	// Alice. We will publish the batch TX once this channel funding is
 	// complete.
diff --git a/lnwallet/chanfunding/canned_assembler.go b/lnwallet/chanfunding/canned_assembler.go
index 6b95c2bd2..292ac9c59 100644
--- a/lnwallet/chanfunding/canned_assembler.go
+++ b/lnwallet/chanfunding/canned_assembler.go
@@ -4,6 +4,7 @@ import (
 	"fmt"
 
 	"github.com/btcsuite/btcd/btcec/v2"
+	"github.com/btcsuite/btcd/btcec/v2/schnorr/musig2"
 	"github.com/btcsuite/btcd/btcutil"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/wire"
@@ -105,6 +106,26 @@ func (s *ShimIntent) FundingOutput() ([]byte, *wire.TxOut, error) {
 	)
 }
 
+// TaprootInternalKey may return the internal key for a MuSig2 funding output,
+// but only if this is actually a MuSig2 channel.
+func (s *ShimIntent) TaprootInternalKey() fn.Option[*btcec.PublicKey] {
+	if !s.musig2 {
+		return fn.None[*btcec.PublicKey]()
+	}
+
+	// Similar to the existing p2wsh script, we'll always ensure the keys
+	// are sorted before use. Since we're only interested in the internal
+	// key, we don't need to take into account any tapscript root.
+	//
+	// We ignore the error here as this is only called after FundingOutput
+	// is called.
+	combinedKey, _, _, _ := musig2.AggregateKeys(
+		[]*btcec.PublicKey{s.localKey.PubKey, s.remoteKey}, true,
+	)
+
+	return fn.Some(combinedKey.PreTweakedKey)
+}
+
 // Cancel allows the caller to cancel a funding Intent at any time.  This will
 // return any resources such as coins back to the eligible pool to be used in
 // order channel fundings.
diff --git a/lnwallet/chanfunding/psbt_assembler.go b/lnwallet/chanfunding/psbt_assembler.go
index 10bcd7015..f678f520f 100644
--- a/lnwallet/chanfunding/psbt_assembler.go
+++ b/lnwallet/chanfunding/psbt_assembler.go
@@ -6,11 +6,14 @@ import (
 	"sync"
 
 	"github.com/btcsuite/btcd/btcec/v2"
+	"github.com/btcsuite/btcd/btcec/v2/schnorr"
 	"github.com/btcsuite/btcd/btcutil"
 	"github.com/btcsuite/btcd/btcutil/psbt"
 	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
+	"github.com/lightningnetwork/lnd/fn"
 	"github.com/lightningnetwork/lnd/input"
 	"github.com/lightningnetwork/lnd/keychain"
 )
@@ -162,6 +165,13 @@ func (i *PsbtIntent) BindKeys(localKey *keychain.KeyDescriptor,
 	i.State = PsbtOutputKnown
 }
 
+// BindTapscriptRoot takes an optional tapscript root and binds it to the
+// underlying funding intent. This only applies to musig2 channels, and will be
+// used to make the musig2 funding output.
+func (i *PsbtIntent) BindTapscriptRoot(root fn.Option[chainhash.Hash]) {
+	i.tapscriptRoot = root
+}
+
 // FundingParams returns the parameters that are necessary to start funding the
 // channel output this intent was created for. It returns the P2WSH funding
 // address, the exact funding amount and a PSBT packet that contains exactly one
@@ -208,7 +218,18 @@ func (i *PsbtIntent) FundingParams() (btcutil.Address, int64, *psbt.Packet,
 		}
 	}
 	packet.UnsignedTx.TxOut = append(packet.UnsignedTx.TxOut, out)
-	packet.Outputs = append(packet.Outputs, psbt.POutput{})
+
+	var pOut psbt.POutput
+
+	// If this is a MuSig2 channel, we also need to communicate the internal
+	// key to the caller. Otherwise, they cannot verify the construction of
+	// the P2TR output script.
+	pOut.TaprootInternalKey = fn.MapOptionZ(
+		i.TaprootInternalKey(), schnorr.SerializePubKey,
+	)
+
+	packet.Outputs = append(packet.Outputs, pOut)
+
 	return addr, out.Value, packet, nil
 }
 
diff --git a/lnwallet/reservation.go b/lnwallet/reservation.go
index 4f0940fe9..91cbc4dcd 100644
--- a/lnwallet/reservation.go
+++ b/lnwallet/reservation.go
@@ -11,6 +11,7 @@ import (
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/lightningnetwork/lnd/channeldb"
+	"github.com/lightningnetwork/lnd/fn"
 	"github.com/lightningnetwork/lnd/input"
 	"github.com/lightningnetwork/lnd/keychain"
 	"github.com/lightningnetwork/lnd/lnwallet/chanfunding"
@@ -602,12 +603,15 @@ func (r *ChannelReservation) IsCannedShim() bool {
 }
 
 // ProcessPsbt continues a previously paused funding flow that involves PSBT to
-// construct the funding transaction. This method can be called once the PSBT is
-// finalized and the signed transaction is available.
-func (r *ChannelReservation) ProcessPsbt() error {
+// construct the funding transaction. This method can be called once the PSBT
+// is finalized and the signed transaction is available.
+func (r *ChannelReservation) ProcessPsbt(
+	auxFundingDesc fn.Option[AuxFundingDesc]) error {
+
 	errChan := make(chan error, 1)
 
 	r.wallet.msgChan <- &continueContributionMsg{
+		auxFundingDesc:   auxFundingDesc,
 		pendingFundingID: r.reservationID,
 		err:              errChan,
 	}
@@ -709,8 +713,10 @@ func (r *ChannelReservation) CompleteReservation(fundingInputScripts []*input.Sc
 // available via the .OurSignatures() method. As this method should only be
 // called as a response to a single funder channel, only a commitment signature
 // will be populated.
-func (r *ChannelReservation) CompleteReservationSingle(fundingPoint *wire.OutPoint,
-	commitSig input.Signature) (*channeldb.OpenChannel, error) {
+func (r *ChannelReservation) CompleteReservationSingle(
+	fundingPoint *wire.OutPoint, commitSig input.Signature,
+	auxFundingDesc fn.Option[AuxFundingDesc]) (*channeldb.OpenChannel,
+	error) {
 
 	errChan := make(chan error, 1)
 	completeChan := make(chan *channeldb.OpenChannel, 1)
@@ -720,6 +726,7 @@ func (r *ChannelReservation) CompleteReservationSingle(fundingPoint *wire.OutPoi
 		fundingOutpoint:    fundingPoint,
 		theirCommitmentSig: commitSig,
 		completeChan:       completeChan,
+		auxFundingDesc:     auxFundingDesc,
 		err:                errChan,
 	}
 
@@ -805,6 +812,38 @@ func (r *ChannelReservation) Cancel() error {
 	return <-errChan
 }
 
+// ChanState the current open channel state.
+func (r *ChannelReservation) ChanState() *channeldb.OpenChannel {
+	r.RLock()
+	defer r.RUnlock()
+	return r.partialState
+}
+
+// CommitmentKeyRings returns the local+remote key ring used for the very first
+// commitment transaction both parties.
+func (r *ChannelReservation) CommitmentKeyRings() (*CommitmentKeyRing,
+	*CommitmentKeyRing) {
+
+	r.RLock()
+	defer r.RUnlock()
+
+	chanType := r.partialState.ChanType
+	ourChanCfg := r.ourContribution.ChannelConfig
+	theirChanCfg := r.theirContribution.ChannelConfig
+
+	localKeys := DeriveCommitmentKeys(
+		r.ourContribution.FirstCommitmentPoint, true, chanType,
+		ourChanCfg, theirChanCfg,
+	)
+
+	remoteKeys := DeriveCommitmentKeys(
+		r.theirContribution.FirstCommitmentPoint, false, chanType,
+		ourChanCfg, theirChanCfg,
+	)
+
+	return localKeys, remoteKeys
+}
+
 // VerifyConstraints is a helper function that can be used to check the sanity
 // of various channel constraints.
 func VerifyConstraints(c *channeldb.ChannelConstraints,
diff --git a/lnwallet/test/test_interface.go b/lnwallet/test/test_interface.go
index 401c46683..0a6f20e5f 100644
--- a/lnwallet/test/test_interface.go
+++ b/lnwallet/test/test_interface.go
@@ -34,6 +34,7 @@ import (
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/chainntnfs/btcdnotify"
 	"github.com/lightningnetwork/lnd/channeldb"
+	"github.com/lightningnetwork/lnd/fn"
 	"github.com/lightningnetwork/lnd/input"
 	"github.com/lightningnetwork/lnd/keychain"
 	"github.com/lightningnetwork/lnd/kvdb"
@@ -936,6 +937,7 @@ func testSingleFunderReservationWorkflow(miner *rpctest.Harness,
 	fundingPoint := aliceChanReservation.FundingOutpoint()
 	_, err = bobChanReservation.CompleteReservationSingle(
 		fundingPoint, aliceCommitSig,
+		fn.None[lnwallet.AuxFundingDesc](),
 	)
 	require.NoError(t, err, "bob unable to consume single reservation")
 
diff --git a/lnwallet/wallet.go b/lnwallet/wallet.go
index c57936354..51f737286 100644
--- a/lnwallet/wallet.go
+++ b/lnwallet/wallet.go
@@ -31,6 +31,7 @@ import (
 	"github.com/lightningnetwork/lnd/lnwallet/chanvalidate"
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/shachain"
+	"github.com/lightningnetwork/lnd/tlv"
 )
 
 const (
@@ -89,6 +90,33 @@ func (p *PsbtFundingRequired) Error() string {
 	return ErrPsbtFundingRequired.Error()
 }
 
+// AuxFundingDesc stores a series of attributes that may be used to modify the
+// way the channel funding occurs. This struct contains information that can
+// only be derived once both sides have received and sent their contributions
+// to the channel (keys, etc.).
+type AuxFundingDesc struct {
+	// CustomFundingBlob is a custom blob that'll be stored in the database
+	// within the OpenChannel struct. This should represent information
+	// static to the channel lifetime.
+	CustomFundingBlob tlv.Blob
+
+	// CustomLocalCommitBlob is a custom blob that'll be stored in the
+	// first commitment entry for the local party.
+	CustomLocalCommitBlob tlv.Blob
+
+	// CustomRemoteCommitBlob is a custom blob that'll be stored in the
+	// first commitment entry for the remote party.
+	CustomRemoteCommitBlob tlv.Blob
+
+	// LocalInitAuxLeaves is the set of aux leaves that'll be used for our
+	// very first commitment state.
+	LocalInitAuxLeaves CommitAuxLeaves
+
+	// RemoteInitAuxLeaves is the set of aux leaves that'll be used for the
+	// very first commitment state for the remote party.
+	RemoteInitAuxLeaves CommitAuxLeaves
+}
+
 // InitFundingReserveMsg is the first message sent to initiate the workflow
 // required to open a payment channel with a remote peer. The initial required
 // parameters are configurable across channels. These parameters are to be
@@ -201,9 +229,8 @@ type InitFundingReserveMsg struct {
 	// channel that will be useful to our future selves.
 	Memo []byte
 
-	// TapscriptRoot is the root of the tapscript tree that will be used to
-	// create the funding output. This is an optional field that should
-	// only be set for taproot channels.
+	// TapscriptRoot is an optional tapscript root that if provided, will
+	// be used to create the combined key for musig2 based channels.
 	TapscriptRoot fn.Option[chainhash.Hash]
 
 	// err is a channel in which all errors will be sent across. Will be
@@ -241,7 +268,6 @@ type fundingReserveCancelMsg struct {
 type addContributionMsg struct {
 	pendingFundingID uint64
 
-	// TODO(roasbeef): Should also carry SPV proofs in we're in SPV mode
 	contribution *ChannelContribution
 
 	// NOTE: In order to avoid deadlocks, this channel MUST be buffered.
@@ -254,6 +280,10 @@ type addContributionMsg struct {
 type continueContributionMsg struct {
 	pendingFundingID uint64
 
+	// auxFundingDesc is an optional descriptor that contains information
+	// about the custom channel funding flow.
+	auxFundingDesc fn.Option[AuxFundingDesc]
+
 	// NOTE: In order to avoid deadlocks, this channel MUST be buffered.
 	err chan error
 }
@@ -309,6 +339,10 @@ type addCounterPartySigsMsg struct {
 type addSingleFunderSigsMsg struct {
 	pendingFundingID uint64
 
+	// auxFundingDesc is an optional descriptor that contains information
+	// about the custom channel funding flow.
+	auxFundingDesc fn.Option[AuxFundingDesc]
+
 	// fundingOutpoint is the outpoint of the completed funding
 	// transaction as assembled by the workflow initiator.
 	fundingOutpoint *wire.OutPoint
@@ -412,8 +446,6 @@ type LightningWallet struct {
 	quit chan struct{}
 
 	wg sync.WaitGroup
-
-	// TODO(roasbeef): handle wallet lock/unlock
 }
 
 // NewLightningWallet creates/opens and initializes a LightningWallet instance.
@@ -458,7 +490,6 @@ func (l *LightningWallet) Startup() error {
 	}
 
 	l.wg.Add(1)
-	// TODO(roasbeef): multiple request handlers?
 	go l.requestHandler()
 
 	return nil
@@ -1412,7 +1443,6 @@ func (l *LightningWallet) initOurContribution(reservation *ChannelReservation,
 // transaction via coin selection are freed allowing future reservations to
 // include them.
 func (l *LightningWallet) handleFundingCancelRequest(req *fundingReserveCancelMsg) {
-	// TODO(roasbeef): holding lock too long
 	l.limboMtx.Lock()
 	defer l.limboMtx.Unlock()
 
@@ -1437,11 +1467,6 @@ func (l *LightningWallet) handleFundingCancelRequest(req *fundingReserveCancelMs
 		)
 	}
 
-	// TODO(roasbeef): is it even worth it to keep track of unused keys?
-
-	// TODO(roasbeef): Is it possible to mark the unused change also as
-	// available?
-
 	delete(l.fundingLimbo, req.pendingFundingID)
 
 	pid := pendingReservation.pendingChanID
@@ -1461,7 +1486,8 @@ func (l *LightningWallet) handleFundingCancelRequest(req *fundingReserveCancelMs
 // createCommitOpts is a struct that holds the options for creating a new
 // commitment transaction.
 type createCommitOpts struct {
-	auxLeaves fn.Option[CommitAuxLeaves]
+	localAuxLeaves  fn.Option[CommitAuxLeaves]
+	remoteAuxLeaves fn.Option[CommitAuxLeaves]
 }
 
 // defaultCommitOpts returns a new createCommitOpts with default values.
@@ -1469,6 +1495,17 @@ func defaultCommitOpts() createCommitOpts {
 	return createCommitOpts{}
 }
 
+// WithAuxLeaves is a functional option that can be used to set the aux leaves
+// for a new commitment transaction.
+func WithAuxLeaves(localLeaves,
+	remoteLeaves fn.Option[CommitAuxLeaves]) CreateCommitOpt {
+
+	return func(o *createCommitOpts) {
+		o.localAuxLeaves = localLeaves
+		o.remoteAuxLeaves = remoteLeaves
+	}
+}
+
 // CreateCommitOpt is a functional option that can be used to modify the way a
 // new commitment transaction is created.
 type CreateCommitOpt func(*createCommitOpts)
@@ -1500,7 +1537,7 @@ func CreateCommitmentTxns(localBalance, remoteBalance btcutil.Amount,
 	ourCommitTx, err := CreateCommitTx(
 		chanType, fundingTxIn, localCommitmentKeys, ourChanCfg,
 		theirChanCfg, localBalance, remoteBalance, 0, initiator,
-		leaseExpiry, options.auxLeaves,
+		leaseExpiry, options.localAuxLeaves,
 	)
 	if err != nil {
 		return nil, nil, err
@@ -1514,7 +1551,7 @@ func CreateCommitmentTxns(localBalance, remoteBalance btcutil.Amount,
 	theirCommitTx, err := CreateCommitTx(
 		chanType, fundingTxIn, remoteCommitmentKeys, theirChanCfg,
 		ourChanCfg, remoteBalance, localBalance, 0, !initiator,
-		leaseExpiry, options.auxLeaves,
+		leaseExpiry, options.remoteAuxLeaves,
 	)
 	if err != nil {
 		return nil, nil, err
@@ -1607,16 +1644,24 @@ func (l *LightningWallet) handleContributionMsg(req *addContributionMsg) {
 		// and remote key which will be needed to calculate the multisig
 		// funding output in a next step.
 		pendingChanID := pendingReservation.pendingChanID
+
 		walletLog.Debugf("Advancing PSBT funding flow for "+
 			"pending_id(%x), binding keys local_key=%v, "+
 			"remote_key=%x", pendingChanID,
 			&ourContribution.MultiSigKey,
 			theirContribution.MultiSigKey.PubKey.SerializeCompressed())
+
 		fundingIntent.BindKeys(
 			&ourContribution.MultiSigKey,
 			theirContribution.MultiSigKey.PubKey,
 		)
 
+		// We might have a tapscript root, so we'll bind that now to
+		// ensure we make the proper funding output.
+		fundingIntent.BindTapscriptRoot(
+			pendingReservation.partialState.TapscriptRoot,
+		)
+
 		// Exit early because we can't continue the funding flow yet.
 		req.err <- &PsbtFundingRequired{
 			Intent: fundingIntent,
@@ -1689,16 +1734,17 @@ func (l *LightningWallet) handleContributionMsg(req *addContributionMsg) {
 // the commitment transaction for the remote party, and verify their incoming
 // partial signature.
 func genMusigSession(ourContribution, theirContribution *ChannelContribution,
-	signer input.MuSig2Signer,
-	fundingOutput *wire.TxOut) *MusigPairSession {
+	signer input.MuSig2Signer, fundingOutput *wire.TxOut,
+	tapscriptRoot fn.Option[chainhash.Hash]) *MusigPairSession {
 
 	return NewMusigPairSession(&MusigSessionCfg{
-		LocalKey:    ourContribution.MultiSigKey,
-		RemoteKey:   theirContribution.MultiSigKey,
-		LocalNonce:  *ourContribution.LocalNonce,
-		RemoteNonce: *theirContribution.LocalNonce,
-		Signer:      signer,
-		InputTxOut:  fundingOutput,
+		LocalKey:       ourContribution.MultiSigKey,
+		RemoteKey:      theirContribution.MultiSigKey,
+		LocalNonce:     *ourContribution.LocalNonce,
+		RemoteNonce:    *theirContribution.LocalNonce,
+		Signer:         signer,
+		InputTxOut:     fundingOutput,
+		TapscriptTweak: tapscriptRoot,
 	})
 }
 
@@ -1748,6 +1794,7 @@ func (l *LightningWallet) signCommitTx(pendingReservation *ChannelReservation,
 			musigSessions := genMusigSession(
 				ourContribution, theirContribution,
 				l.Cfg.Signer, fundingOutput,
+				pendingReservation.partialState.TapscriptRoot,
 			)
 			pendingReservation.musigSessions = musigSessions
 		}
@@ -1783,6 +1830,26 @@ func (l *LightningWallet) handleChanPointReady(req *continueContributionMsg) {
 		return
 	}
 
+	chanState := pendingReservation.partialState
+
+	// If we have an aux funding desc, then we can use it to populate some
+	// of the optional, but opaque TLV blobs we'll carry for the channel.
+	chanState.CustomBlob = fn.MapOption(func(desc AuxFundingDesc) tlv.Blob {
+		return desc.CustomFundingBlob
+	})(req.auxFundingDesc)
+
+	chanState.LocalCommitment.CustomBlob = fn.MapOption(
+		func(desc AuxFundingDesc) tlv.Blob {
+			return desc.CustomLocalCommitBlob
+		},
+	)(req.auxFundingDesc)
+
+	chanState.RemoteCommitment.CustomBlob = fn.MapOption(
+		func(desc AuxFundingDesc) tlv.Blob {
+			return desc.CustomRemoteCommitBlob
+		},
+	)(req.auxFundingDesc)
+
 	ourContribution := pendingReservation.ourContribution
 	theirContribution := pendingReservation.theirContribution
 	chanPoint := pendingReservation.partialState.FundingOutpoint
@@ -1841,7 +1908,6 @@ func (l *LightningWallet) handleChanPointReady(req *continueContributionMsg) {
 	// Store their current commitment point. We'll need this after the
 	// first state transition in order to verify the authenticity of the
 	// revocation.
-	chanState := pendingReservation.partialState
 	chanState.RemoteCurrentRevocation = theirContribution.FirstCommitmentPoint
 
 	// Create the txin to our commitment transaction; required to construct
@@ -1857,6 +1923,18 @@ func (l *LightningWallet) handleChanPointReady(req *continueContributionMsg) {
 	if pendingReservation.partialState.ChanType.HasLeaseExpiration() {
 		leaseExpiry = pendingReservation.partialState.ThawHeight
 	}
+
+	localAuxLeaves := fn.MapOption(
+		func(desc AuxFundingDesc) CommitAuxLeaves {
+			return desc.LocalInitAuxLeaves
+		},
+	)(req.auxFundingDesc)
+	remoteAuxLeaves := fn.MapOption(
+		func(desc AuxFundingDesc) CommitAuxLeaves {
+			return desc.RemoteInitAuxLeaves
+		},
+	)(req.auxFundingDesc)
+
 	ourCommitTx, theirCommitTx, err := CreateCommitmentTxns(
 		localBalance, remoteBalance, ourContribution.ChannelConfig,
 		theirContribution.ChannelConfig,
@@ -1864,6 +1942,7 @@ func (l *LightningWallet) handleChanPointReady(req *continueContributionMsg) {
 		theirContribution.FirstCommitmentPoint, fundingTxIn,
 		pendingReservation.partialState.ChanType,
 		pendingReservation.partialState.IsInitiator, leaseExpiry,
+		WithAuxLeaves(localAuxLeaves, remoteAuxLeaves),
 	)
 	if err != nil {
 		req.err <- err
@@ -2129,6 +2208,7 @@ func (l *LightningWallet) verifyCommitSig(res *ChannelReservation,
 			res.musigSessions = genMusigSession(
 				res.ourContribution, res.theirContribution,
 				l.Cfg.Signer, fundingOutput,
+				res.partialState.TapscriptRoot,
 			)
 		}
 
@@ -2219,9 +2299,6 @@ func (l *LightningWallet) handleFundingCounterPartySigs(msg *addCounterPartySigs
 
 	// As we're about to broadcast the funding transaction, we'll take note
 	// of the current height for record keeping purposes.
-	//
-	// TODO(roasbeef): this info can also be piped into light client's
-	// basic fee estimation?
 	_, bestHeight, err := l.Cfg.ChainIO.GetBestBlock()
 	if err != nil {
 		msg.err <- err
@@ -2282,6 +2359,23 @@ func (l *LightningWallet) handleSingleFunderSigs(req *addSingleFunderSigsMsg) {
 	defer pendingReservation.Unlock()
 
 	chanState := pendingReservation.partialState
+
+	// If we have an aux funding desc, then we can use it to populate some
+	// of the optional, but opaque TLV blobs we'll carry for the channel.
+	chanState.CustomBlob = fn.MapOption(func(desc AuxFundingDesc) tlv.Blob {
+		return desc.CustomFundingBlob
+	})(req.auxFundingDesc)
+	chanState.LocalCommitment.CustomBlob = fn.MapOption(
+		func(desc AuxFundingDesc) tlv.Blob {
+			return desc.CustomLocalCommitBlob
+		},
+	)(req.auxFundingDesc)
+	chanState.RemoteCommitment.CustomBlob = fn.MapOption(
+		func(desc AuxFundingDesc) tlv.Blob {
+			return desc.CustomRemoteCommitBlob
+		},
+	)(req.auxFundingDesc)
+
 	chanType := pendingReservation.partialState.ChanType
 	chanState.FundingOutpoint = *req.fundingOutpoint
 	fundingTxIn := wire.NewTxIn(req.fundingOutpoint, nil, nil)
@@ -2295,6 +2389,18 @@ func (l *LightningWallet) handleSingleFunderSigs(req *addSingleFunderSigsMsg) {
 	if pendingReservation.partialState.ChanType.HasLeaseExpiration() {
 		leaseExpiry = pendingReservation.partialState.ThawHeight
 	}
+
+	localAuxLeaves := fn.MapOption(
+		func(desc AuxFundingDesc) CommitAuxLeaves {
+			return desc.LocalInitAuxLeaves
+		},
+	)(req.auxFundingDesc)
+	remoteAuxLeaves := fn.MapOption(
+		func(desc AuxFundingDesc) CommitAuxLeaves {
+			return desc.RemoteInitAuxLeaves
+		},
+	)(req.auxFundingDesc)
+
 	ourCommitTx, theirCommitTx, err := CreateCommitmentTxns(
 		localBalance, remoteBalance,
 		pendingReservation.ourContribution.ChannelConfig,
@@ -2303,6 +2409,7 @@ func (l *LightningWallet) handleSingleFunderSigs(req *addSingleFunderSigsMsg) {
 		pendingReservation.theirContribution.FirstCommitmentPoint,
 		*fundingTxIn, chanType,
 		pendingReservation.partialState.IsInitiator, leaseExpiry,
+		WithAuxLeaves(localAuxLeaves, remoteAuxLeaves),
 	)
 	if err != nil {
 		req.err <- err
diff --git a/log.go b/log.go
index f6da0235a..9ecdd0246 100644
--- a/log.go
+++ b/log.go
@@ -40,6 +40,7 @@ import (
 	"github.com/lightningnetwork/lnd/netann"
 	"github.com/lightningnetwork/lnd/peer"
 	"github.com/lightningnetwork/lnd/peernotifier"
+	"github.com/lightningnetwork/lnd/protofsm"
 	"github.com/lightningnetwork/lnd/routing"
 	"github.com/lightningnetwork/lnd/rpcperms"
 	"github.com/lightningnetwork/lnd/signal"
@@ -179,6 +180,7 @@ func SetupLoggers(root *build.RotatingLogWriter, interceptor signal.Interceptor)
 	AddSubLogger(root, btcwallet.Subsystem, interceptor, btcwallet.UseLogger)
 	AddSubLogger(root, rpcwallet.Subsystem, interceptor, rpcwallet.UseLogger)
 	AddSubLogger(root, peersrpc.Subsystem, interceptor, peersrpc.UseLogger)
+	AddSubLogger(root, protofsm.Subsystem, interceptor, protofsm.UseLogger)
 }
 
 // AddSubLogger is a helper method to conveniently create and register the
diff --git a/peer/brontide.go b/peer/brontide.go
index 67531f39b..5e0264328 100644
--- a/peer/brontide.go
+++ b/peer/brontide.go
@@ -42,6 +42,7 @@ import (
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/netann"
 	"github.com/lightningnetwork/lnd/pool"
+	"github.com/lightningnetwork/lnd/protofsm"
 	"github.com/lightningnetwork/lnd/queue"
 	"github.com/lightningnetwork/lnd/subscribe"
 	"github.com/lightningnetwork/lnd/ticker"
@@ -374,6 +375,11 @@ type Config struct {
 	// invalid.
 	DisallowRouteBlinding bool
 
+	// MsgRouter is an optional instance of the main message router that
+	// the peer will use. If None, then a new default version will be used
+	// in place.
+	MsgRouter fn.Option[protofsm.MsgRouter]
+
 	// Quit is the server's quit channel. If this is closed, we halt operation.
 	Quit chan struct{}
 }
@@ -493,6 +499,10 @@ type Brontide struct {
 	// potentially holding lots of un-consumed events.
 	channelEventClient *subscribe.Client
 
+	// msgRouter is an instance of the MsgRouter which is used to send off
+	// new wire messages for handing.
+	msgRouter fn.Option[protofsm.MsgRouter]
+
 	startReady chan struct{}
 	quit       chan struct{}
 	wg         sync.WaitGroup
@@ -508,6 +518,12 @@ var _ lnpeer.Peer = (*Brontide)(nil)
 func NewBrontide(cfg Config) *Brontide {
 	logPrefix := fmt.Sprintf("Peer(%x):", cfg.PubKeyBytes)
 
+	// We'll either use the msg router instance passed in, or create a new
+	// blank instance.
+	msgRouter := cfg.MsgRouter.Alt(fn.Some[protofsm.MsgRouter](
+		protofsm.NewMultiMsgRouter(),
+	))
+
 	p := &Brontide{
 		cfg:           cfg,
 		activeSignal:  make(chan struct{}),
@@ -530,6 +546,7 @@ func NewBrontide(cfg Config) *Brontide {
 		startReady:         make(chan struct{}),
 		quit:               make(chan struct{}),
 		log:                build.NewPrefixLog(logPrefix, peerLog),
+		msgRouter:          msgRouter,
 	}
 
 	var (
@@ -704,6 +721,12 @@ func (p *Brontide) Start() error {
 		return err
 	}
 
+	// Register the message router now as we may need to register some
+	// endpoints while loading the channels below.
+	p.msgRouter.WhenSome(func(router protofsm.MsgRouter) {
+		router.Start()
+	})
+
 	msgs, err := p.loadActiveChannels(activeChans)
 	if err != nil {
 		return fmt.Errorf("unable to load channels: %w", err)
@@ -882,7 +905,8 @@ func (p *Brontide) loadActiveChannels(chans []*channeldb.OpenChannel) (
 			p.cfg.Signer, dbChan, p.cfg.SigPool, chanOpts...,
 		)
 		if err != nil {
-			return nil, err
+			return nil, fmt.Errorf("unable to create channel "+
+				"state machine: %w", err)
 		}
 
 		chanPoint := dbChan.FundingOutpoint
@@ -1270,6 +1294,10 @@ func (p *Brontide) Disconnect(reason error) {
 		p.log.Errorf("couldn't stop pingManager during disconnect: %v",
 			err)
 	}
+
+	p.msgRouter.WhenSome(func(router protofsm.MsgRouter) {
+		router.Stop()
+	})
 }
 
 // String returns the string representation of this peer.
@@ -1709,6 +1737,24 @@ out:
 			}
 		}
 
+		// If a message router is active, then we'll try to have it
+		// handle this message. If it can, then we're able to skip the
+		// rest of the message handling logic.
+		err = fn.MapOptionZ(
+			p.msgRouter, func(r protofsm.MsgRouter) error {
+				return r.RouteMsg(protofsm.PeerMsg{
+					PeerPub: *p.IdentityKey(),
+					Message: nextMsg,
+				})
+			},
+		)
+
+		// No error occurred, and the message was handled by the
+		// router.
+		if err == nil {
+			continue
+		}
+
 		var (
 			targetChan   lnwire.ChannelID
 			isLinkUpdate bool
diff --git a/protofsm/log.go b/protofsm/log.go
new file mode 100644
index 000000000..91c693c89
--- /dev/null
+++ b/protofsm/log.go
@@ -0,0 +1,32 @@
+package protofsm
+
+import (
+	"github.com/btcsuite/btclog"
+	"github.com/lightningnetwork/lnd/build"
+)
+
+// Subsystem defines the logging code for this subsystem.
+const Subsystem = "PFSM"
+
+// log is a logger that is initialized with no output filters.  This
+// means the package will not perform any logging by default until the caller
+// requests it.
+var log btclog.Logger
+
+// The default amount of logging is none.
+func init() {
+	UseLogger(build.NewSubLogger(Subsystem, nil))
+}
+
+// DisableLog disables all library log output.  Logging output is disabled
+// by default until UseLogger is called.
+func DisableLog() {
+	UseLogger(btclog.Disabled)
+}
+
+// UseLogger uses a specified Logger to output package logging info.
+// This should be used in preference to SetLogWriter if the caller is also
+// using btclog.
+func UseLogger(logger btclog.Logger) {
+	log = logger
+}
diff --git a/protofsm/msg_router.go b/protofsm/msg_router.go
new file mode 100644
index 000000000..db98a44e9
--- /dev/null
+++ b/protofsm/msg_router.go
@@ -0,0 +1,313 @@
+package protofsm
+
+// For some reason golangci-lint has a false positive on the sort order of the
+// imports for the new "maps" package... We need the nolint directive here to
+// ignore that.
+//
+//nolint:gci
+import (
+	"fmt"
+	"maps"
+	"sync"
+
+	"github.com/btcsuite/btcd/btcec/v2"
+	"github.com/lightningnetwork/lnd/fn"
+	"github.com/lightningnetwork/lnd/lnwire"
+)
+
+var (
+	// ErrDuplicateEndpoint is returned when an endpoint is registered with
+	// a name that already exists.
+	ErrDuplicateEndpoint = fmt.Errorf("endpoint already registered")
+
+	// ErrUnableToRouteMsg is returned when a message is unable to be
+	// routed to any endpoints.
+	ErrUnableToRouteMsg = fmt.Errorf("unable to route message")
+)
+
+// EndpointName is the name of a given endpoint. This MUST be unique across all
+// registered endpoints.
+type EndpointName = string
+
+// PeerMsg is a wire message that includes the public key of the peer that sent
+// it.
+type PeerMsg struct {
+	lnwire.Message
+
+	// PeerPub is the public key of the peer that sent this message.
+	PeerPub btcec.PublicKey
+}
+
+// MsgEndpoint is an interface that represents a message endpoint, or the
+// sub-system that will handle processing an incoming wire message.
+type MsgEndpoint interface {
+	// Name returns the name of this endpoint. This MUST be unique across
+	// all registered endpoints.
+	Name() EndpointName
+
+	// CanHandle returns true if the target message can be routed to this
+	// endpoint.
+	CanHandle(msg PeerMsg) bool
+
+	// SendMessage handles the target message, and returns true if the
+	// message was able being processed.
+	SendMessage(msg PeerMsg) bool
+}
+
+// MsgRouter is an interface that represents a message router, which is generic
+// sub-system capable of routing any incoming wire message to a set of
+// registered endpoints.
+type MsgRouter interface {
+	// RegisterEndpoint registers a new endpoint with the router. If a
+	// duplicate endpoint exists, an error is returned.
+	RegisterEndpoint(MsgEndpoint) error
+
+	// UnregisterEndpoint unregisters the target endpoint from the router.
+	UnregisterEndpoint(EndpointName) error
+
+	// RouteMsg attempts to route the target message to a registered
+	// endpoint. If ANY endpoint could handle the message, then nil is
+	// returned. Otherwise, ErrUnableToRouteMsg is returned.
+	RouteMsg(PeerMsg) error
+
+	// Start starts the peer message router.
+	Start()
+
+	// Stop stops the peer message router.
+	Stop()
+}
+
+// queryMsg is a message sent into the main event loop to query or modify the
+// internal state.
+type queryMsg[Q any, R any] struct {
+	query Q
+
+	respChan chan fn.Either[R, error]
+}
+
+// SendError sends a response to the query with the given error value.
+func (q *queryMsg[Q, R]) SendError(err error) {
+	q.respChan <- fn.NewRight[R, error](err)
+}
+
+// SendResponse sends a response to the query with the given response value.
+func (q *queryMsg[Q, R]) SendResponse(resp R) {
+	q.respChan <- fn.NewLeft[R, error](resp)
+}
+
+// sendQuery sends a query to the main event loop, and returns the response.
+func sendQuery[Q any, R any](sendChan chan queryMsg[Q, R], queryArg Q,
+	quit chan struct{}) fn.Either[R, error] {
+
+	query := queryMsg[Q, R]{
+		query:    queryArg,
+		respChan: make(chan fn.Either[R, error], 1),
+	}
+
+	if !fn.SendOrQuit(sendChan, query, quit) {
+		return fn.NewRight[R](fmt.Errorf("router shutting down"))
+	}
+
+	resp, err := fn.RecvResp(query.respChan, nil, quit)
+	if err != nil {
+		return fn.NewRight[R](err)
+	}
+
+	return resp
+}
+
+// sendQueryErr is a helper function based on sendQuery that can be used when
+// the query only needs an error response.
+func sendQueryErr[Q any](sendChan chan queryMsg[Q, error], queryArg Q,
+	quitChan chan struct{}) error {
+
+	var err error
+	resp := sendQuery(sendChan, queryArg, quitChan)
+	resp.WhenRight(func(e error) {
+		err = e
+	})
+	resp.WhenLeft(func(e error) {
+		err = e
+	})
+
+	return err
+}
+
+// EndpointsMap is a map of all registered endpoints.
+type EndpointsMap map[EndpointName]MsgEndpoint
+
+// MultiMsgRouter is a type of message router that is capable of routing new
+// incoming messages, permitting a message to be routed to multiple registered
+// endpoints.
+type MultiMsgRouter struct {
+	startOnce sync.Once
+	stopOnce  sync.Once
+
+	// registerChan is the channel that all new endpoints will be sent to.
+	registerChan chan queryMsg[MsgEndpoint, error]
+
+	// unregisterChan is the channel that all endpoints that are to be
+	// removed are sent to.
+	unregisterChan chan queryMsg[EndpointName, error]
+
+	// msgChan is the channel that all messages will be sent to for
+	// processing.
+	msgChan chan queryMsg[PeerMsg, error]
+
+	// endpointsQueries is a channel that all queries to the endpoints map
+	// will be sent to.
+	endpointQueries chan queryMsg[MsgEndpoint, EndpointsMap]
+
+	wg   sync.WaitGroup
+	quit chan struct{}
+}
+
+// NewMultiMsgRouter creates a new instance of a peer message router.
+func NewMultiMsgRouter() *MultiMsgRouter {
+	return &MultiMsgRouter{
+		registerChan:    make(chan queryMsg[MsgEndpoint, error]),
+		unregisterChan:  make(chan queryMsg[EndpointName, error]),
+		msgChan:         make(chan queryMsg[PeerMsg, error]),
+		endpointQueries: make(chan queryMsg[MsgEndpoint, EndpointsMap]),
+		quit:            make(chan struct{}),
+	}
+}
+
+// Start starts the peer message router.
+func (p *MultiMsgRouter) Start() {
+	log.Infof("Starting MsgRouter")
+
+	p.startOnce.Do(func() {
+		p.wg.Add(1)
+		go p.msgRouter()
+	})
+}
+
+// Stop stops the peer message router.
+func (p *MultiMsgRouter) Stop() {
+	log.Infof("Stopping MsgRouter")
+
+	p.stopOnce.Do(func() {
+		close(p.quit)
+		p.wg.Wait()
+	})
+}
+
+// RegisterEndpoint registers a new endpoint with the router. If a duplicate
+// endpoint exists, an error is returned.
+func (p *MultiMsgRouter) RegisterEndpoint(endpoint MsgEndpoint) error {
+	return sendQueryErr(p.registerChan, endpoint, p.quit)
+}
+
+// UnregisterEndpoint unregisters the target endpoint from the router.
+func (p *MultiMsgRouter) UnregisterEndpoint(name EndpointName) error {
+	return sendQueryErr(p.unregisterChan, name, p.quit)
+}
+
+// RouteMsg attempts to route the target message to a registered endpoint. If
+// ANY endpoint could handle the message, then true is
+// returned.
+func (p *MultiMsgRouter) RouteMsg(msg PeerMsg) error {
+	return sendQueryErr(p.msgChan, msg, p.quit)
+}
+
+// Endpoints returns a list of all registered endpoints.
+func (p *MultiMsgRouter) Endpoints() EndpointsMap {
+	resp := sendQuery(p.endpointQueries, nil, p.quit)
+
+	var endpoints EndpointsMap
+	resp.WhenLeft(func(e EndpointsMap) {
+		endpoints = e
+	})
+
+	return endpoints
+}
+
+// msgRouter is the main goroutine that handles all incoming messages.
+func (p *MultiMsgRouter) msgRouter() {
+	defer p.wg.Done()
+
+	// endpoints is a map of all registered endpoints.
+	endpoints := make(map[EndpointName]MsgEndpoint)
+
+	for {
+		select {
+		// A new endpoint was just sent in, so we'll add it to our set
+		// of registered endpoints.
+		case newEndpointMsg := <-p.registerChan:
+			endpoint := newEndpointMsg.query
+
+			log.Infof("MsgRouter: registering new MsgEndpoint(%s)",
+				endpoint.Name())
+
+			// If this endpoint already exists, then we'll return
+			// an error as we require unique names.
+			if _, ok := endpoints[endpoint.Name()]; ok {
+				log.Errorf("MsgRouter: rejecting duplicate "+
+					"endpoint: %v", endpoint.Name())
+
+				newEndpointMsg.SendError(ErrDuplicateEndpoint)
+
+				continue
+			}
+
+			endpoints[endpoint.Name()] = endpoint
+
+			newEndpointMsg.SendError(nil)
+
+		// A request to unregister an endpoint was just sent in, so
+		// we'll attempt to remove it.
+		case endpointName := <-p.unregisterChan:
+			delete(endpoints, endpointName.query)
+
+			log.Infof("MsgRouter: unregistering MsgEndpoint(%s)",
+				endpointName.query)
+
+			endpointName.SendError(nil)
+
+		// A new message was just sent in. We'll attempt to route it to
+		// all the endpoints that can handle it.
+		case msgQuery := <-p.msgChan:
+			msg := msgQuery.query
+
+			// Loop through all the endpoints and send the message
+			// to those that can handle it the message.
+			var couldSend bool
+			for _, endpoint := range endpoints {
+				if endpoint.CanHandle(msg) {
+					log.Debugf("MsgRouter: sending msg %T "+
+						"to endpoint %s", msg.Message,
+						endpoint.Name())
+
+					sent := endpoint.SendMessage(msg)
+					couldSend = couldSend || sent
+				}
+			}
+
+			var err error
+			if !couldSend {
+				log.Debugf("MsgRouter: unable to route msg %T",
+					msg)
+
+				err = ErrUnableToRouteMsg
+			}
+
+			msgQuery.SendError(err)
+
+		// A query for the endpoint state just came in, we'll send back
+		// a copy of our current state.
+		case endpointQuery := <-p.endpointQueries:
+			endpointsCopy := make(EndpointsMap, len(endpoints))
+			maps.Copy(endpointsCopy, endpoints)
+
+			endpointQuery.SendResponse(endpointsCopy)
+
+		case <-p.quit:
+			return
+		}
+	}
+}
+
+// A compile time check to ensure MultiMsgRouter implements the MsgRouter
+// interface.
+var _ MsgRouter = (*MultiMsgRouter)(nil)
diff --git a/protofsm/msg_router_test.go b/protofsm/msg_router_test.go
new file mode 100644
index 000000000..dedb28687
--- /dev/null
+++ b/protofsm/msg_router_test.go
@@ -0,0 +1,152 @@
+package protofsm
+
+import (
+	"testing"
+
+	"github.com/lightningnetwork/lnd/lnwire"
+	"github.com/stretchr/testify/mock"
+	"github.com/stretchr/testify/require"
+)
+
+type mockEndpoint struct {
+	mock.Mock
+}
+
+func (m *mockEndpoint) Name() string {
+	args := m.Called()
+
+	return args.String(0)
+}
+
+func (m *mockEndpoint) CanHandle(msg PeerMsg) bool {
+	args := m.Called(msg)
+
+	return args.Bool(0)
+}
+
+func (m *mockEndpoint) SendMessage(msg PeerMsg) bool {
+	args := m.Called(msg)
+
+	return args.Bool(0)
+}
+
+// TestMessageRouterOperation tests the basic operation of the message router:
+// add new endpoints, route to them, remove, them, etc.
+func TestMessageRouterOperation(t *testing.T) {
+	msgRouter := NewMultiMsgRouter()
+	msgRouter.Start()
+	defer msgRouter.Stop()
+
+	openChanMsg := PeerMsg{
+		Message: &lnwire.OpenChannel{},
+	}
+	commitSigMsg := PeerMsg{
+		Message: &lnwire.CommitSig{},
+	}
+
+	errorMsg := PeerMsg{
+		Message: &lnwire.Error{},
+	}
+
+	// For this test, we'll have two endpoints, each with distinct names.
+	// One endpoint will only handle OpenChannel, while the other will
+	// handle the CommitSig message.
+	fundingEndpoint := &mockEndpoint{}
+	fundingEndpointName := "funding"
+	fundingEndpoint.On("Name").Return(fundingEndpointName)
+	fundingEndpoint.On("CanHandle", openChanMsg).Return(true)
+	fundingEndpoint.On("CanHandle", errorMsg).Return(false)
+	fundingEndpoint.On("CanHandle", commitSigMsg).Return(false)
+	fundingEndpoint.On("SendMessage", openChanMsg).Return(true)
+
+	commitEndpoint := &mockEndpoint{}
+	commitEndpointName := "commit"
+	commitEndpoint.On("Name").Return(commitEndpointName)
+	commitEndpoint.On("CanHandle", commitSigMsg).Return(true)
+	commitEndpoint.On("CanHandle", openChanMsg).Return(false)
+	commitEndpoint.On("CanHandle", errorMsg).Return(false)
+	commitEndpoint.On("SendMessage", commitSigMsg).Return(true)
+
+	t.Run("add endpoints", func(t *testing.T) {
+		// First, we'll add the funding endpoint to the router.
+		require.NoError(t, msgRouter.RegisterEndpoint(fundingEndpoint))
+
+		// There should be a single endpoint registered.
+		require.Len(t, msgRouter.Endpoints(), 1)
+
+		// The name of the registered endpoint should be "funding".
+		require.Equal(
+			t, "funding",
+			msgRouter.Endpoints()[fundingEndpointName].Name(),
+		)
+	})
+
+	t.Run("duplicate endpoint reject", func(t *testing.T) {
+		// Next, we'll attempt to add the funding endpoint again. This
+		// should return an ErrDuplicateEndpoint error.
+		require.ErrorIs(
+			t, msgRouter.RegisterEndpoint(fundingEndpoint),
+			ErrDuplicateEndpoint,
+		)
+	})
+
+	t.Run("route to endpoint", func(t *testing.T) {
+		// Next, we'll add our other endpoint, then attempt to route a
+		// message.
+		require.NoError(t, msgRouter.RegisterEndpoint(commitEndpoint))
+
+		// If we try to route a message none of the endpoints know of,
+		// we should get an error.
+		require.ErrorIs(
+			t, msgRouter.RouteMsg(errorMsg), ErrUnableToRouteMsg,
+		)
+
+		fundingEndpoint.AssertCalled(t, "CanHandle", errorMsg)
+		commitEndpoint.AssertCalled(t, "CanHandle", errorMsg)
+
+		// Next, we'll route the open channel message. Only the
+		// fundingEndpoint should be used.
+		require.NoError(t, msgRouter.RouteMsg(openChanMsg))
+
+		fundingEndpoint.AssertCalled(t, "CanHandle", openChanMsg)
+		commitEndpoint.AssertCalled(t, "CanHandle", openChanMsg)
+
+		fundingEndpoint.AssertCalled(t, "SendMessage", openChanMsg)
+		commitEndpoint.AssertNotCalled(t, "SendMessage", openChanMsg)
+
+		// We'll do the same for the commit sig message.
+		require.NoError(t, msgRouter.RouteMsg(commitSigMsg))
+
+		fundingEndpoint.AssertCalled(t, "CanHandle", commitSigMsg)
+		commitEndpoint.AssertCalled(t, "CanHandle", commitSigMsg)
+
+		commitEndpoint.AssertCalled(t, "SendMessage", commitSigMsg)
+		fundingEndpoint.AssertNotCalled(t, "SendMessage", commitSigMsg)
+	})
+
+	t.Run("remove endpoints", func(t *testing.T) {
+		// Finally, we'll remove both endpoints.
+		require.NoError(
+			t, msgRouter.UnregisterEndpoint(fundingEndpointName),
+		)
+		require.NoError(
+			t, msgRouter.UnregisterEndpoint(commitEndpointName),
+		)
+
+		// There should be no endpoints registered.
+		require.Len(t, msgRouter.Endpoints(), 0)
+
+		// Trying to route a message should fail.
+		require.ErrorIs(
+			t, msgRouter.RouteMsg(openChanMsg),
+			ErrUnableToRouteMsg,
+		)
+		require.ErrorIs(
+			t, msgRouter.RouteMsg(commitSigMsg),
+			ErrUnableToRouteMsg,
+		)
+	})
+
+	commitEndpoint.AssertExpectations(t)
+	fundingEndpoint.AssertExpectations(t)
+}
diff --git a/routing/router.go b/routing/router.go
index 0bc2dee95..4583b9964 100644
--- a/routing/router.go
+++ b/routing/router.go
@@ -12,6 +12,7 @@ import (
 
 	"github.com/btcsuite/btcd/btcec/v2"
 	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/davecgh/go-spew/spew"
 	"github.com/go-errors/errors"
@@ -1510,8 +1511,8 @@ func (r *ChannelRouter) addZombieEdge(chanID uint64) error {
 // segwit v1 (taproot) channels.
 //
 // TODO(roasbeef: export and use elsewhere?
-func makeFundingScript(bitcoinKey1, bitcoinKey2 []byte,
-	chanFeatures []byte) ([]byte, error) {
+func makeFundingScript(bitcoinKey1, bitcoinKey2 []byte, chanFeatures []byte,
+	tapscriptRoot fn.Option[chainhash.Hash]) ([]byte, error) {
 
 	legacyFundingScript := func() ([]byte, error) {
 		witnessScript, err := input.GenMultiSigScript(
@@ -1557,8 +1558,15 @@ func makeFundingScript(bitcoinKey1, bitcoinKey2 []byte,
 			return nil, err
 		}
 
+		var fundingOpts []input.FundingScriptOpt
+		tapscriptRoot.WhenSome(func(root chainhash.Hash) {
+			fundingOpts = append(
+				fundingOpts, input.WithTapscriptRoot(root),
+			)
+		})
+
 		fundingScript, _, err := input.GenTaprootFundingScript(
-			pubKey1, pubKey2, 0,
+			pubKey1, pubKey2, 0, fundingOpts...,
 		)
 		if err != nil {
 			return nil, err
@@ -1683,7 +1691,7 @@ func (r *ChannelRouter) processUpdate(msg interface{},
 		// reality.
 		fundingPkScript, err := makeFundingScript(
 			msg.BitcoinKey1Bytes[:], msg.BitcoinKey2Bytes[:],
-			msg.Features,
+			msg.Features, msg.TapscriptRoot,
 		)
 		if err != nil {
 			return err
diff --git a/server.go b/server.go
index 8f7ddce67..f7b81f2b2 100644
--- a/server.go
+++ b/server.go
@@ -1505,8 +1505,9 @@ func newServer(cfg *Config, listenAddrs []net.Addr,
 		EnableUpfrontShutdown:         cfg.EnableUpfrontShutdown,
 		MaxAnchorsCommitFeeRate: chainfee.SatPerKVByte(
 			s.cfg.MaxCommitFeeRateAnchors * 1000).FeePerKWeight(),
-		DeleteAliasEdge: deleteAliasEdge,
-		AliasManager:    s.aliasMgr,
+		DeleteAliasEdge:      deleteAliasEdge,
+		AliasManager:         s.aliasMgr,
+		AuxFundingController: implCfg.AuxFundingController,
 	})
 	if err != nil {
 		return nil, err
@@ -3924,6 +3925,7 @@ func (s *server) peerConnected(conn net.Conn, connReq *connmgr.ConnReq,
 		DisallowRouteBlinding:  s.cfg.ProtocolOptions.NoRouteBlinding(),
 		Quit:                   s.quit,
 		AuxLeafStore:           s.implCfg.AuxLeafStore,
+		MsgRouter:              s.implCfg.MsgRouter,
 	}
 
 	copy(pCfg.PubKeyBytes[:], peerAddr.IdentityKey.SerializeCompressed())