diff --git a/docs/release-notes/release-notes-0.17.0.md b/docs/release-notes/release-notes-0.17.0.md
index 2329751ad..9569b2707 100644
--- a/docs/release-notes/release-notes-0.17.0.md
+++ b/docs/release-notes/release-notes-0.17.0.md
@@ -152,6 +152,9 @@ unlock or create.
 * Make sure payment stream returns all the events by [subscribing it before
   sending](https://github.com/lightningnetwork/lnd/pull/7722).
 
+* Fixed a memory leak found in mempool management handled by
+  [`btcwallet`](https://github.com/lightningnetwork/lnd/pull/7767).
+
 ### Tooling and documentation
 
 * Add support for [custom `RPCHOST` and
@@ -181,5 +184,6 @@ unlock or create.
 * Satarupa Deb
 * Shaurya Arora
 * Torkel Rogstad
+* Yong Yu
 * ziggie1984
 * zx9r
diff --git a/go.mod b/go.mod
index d6ac2b50c..69840b3a8 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,7 @@ require (
 	github.com/btcsuite/btcd/btcutil/psbt v1.1.8
 	github.com/btcsuite/btcd/chaincfg/chainhash v1.0.2
 	github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f
-	github.com/btcsuite/btcwallet v0.16.10-0.20230517173256-aa62c04afcdf
+	github.com/btcsuite/btcwallet v0.16.10-0.20230621165747-9c21f464ce13
 	github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2
 	github.com/btcsuite/btcwallet/wallet/txrules v1.2.0
 	github.com/btcsuite/btcwallet/walletdb v1.4.0
diff --git a/go.sum b/go.sum
index 6dafdde88..f4f2db957 100644
--- a/go.sum
+++ b/go.sum
@@ -89,8 +89,8 @@ github.com/btcsuite/btcd/chaincfg/chainhash v1.0.2/go.mod h1:7SFka0XMvUgj3hfZtyd
 github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f h1:bAs4lUbRJpnnkd9VhRV3jjAVU7DJVjMaK+IsvSeZvFo=
 github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f/go.mod h1:TdznJufoqS23FtqVCzL0ZqgP5MqXbb4fg/WgDys70nA=
 github.com/btcsuite/btcutil v0.0.0-20190425235716-9e5f4b9a998d/go.mod h1:+5NJ2+qvTyV9exUAL/rxXi3DcLg2Ts+ymUAY5y4NvMg=
-github.com/btcsuite/btcwallet v0.16.10-0.20230517173256-aa62c04afcdf h1:YRY292S4axfeDPJrZYkDq4+JaRhaPvjMueZ65evmUfc=
-github.com/btcsuite/btcwallet v0.16.10-0.20230517173256-aa62c04afcdf/go.mod h1:T3DjEAMZYIqQ28l+ixlB6DX4mFJXCX8Pzz+yACQcLsc=
+github.com/btcsuite/btcwallet v0.16.10-0.20230621165747-9c21f464ce13 h1:7i0CzK+PP4+Dth9ia/eIBFRw8+K6MT8MfoFqBH43Xts=
+github.com/btcsuite/btcwallet v0.16.10-0.20230621165747-9c21f464ce13/go.mod h1:Hl4PP/tSNcgN6himfx/020mYSa19a1qkqTuqQBUU97w=
 github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2 h1:etuLgGEojecsDOYTII8rYiGHjGyV5xTqsXi+ZQ715UU=
 github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2/go.mod h1:Zpk/LOb2sKqwP2lmHjaZT9AdaKsHPSbNLm2Uql5IQ/0=
 github.com/btcsuite/btcwallet/wallet/txrules v1.2.0 h1:BtEN5Empw62/RVnZ0VcJaVtVlBijnLlJY+dwjAye2Bg=