diff --git a/src/wallet/test/coinselection_tests.cpp b/src/wallet/test/coinselection_tests.cpp
index 347e00f7273..fb3b0b19a8a 100644
--- a/src/wallet/test/coinselection_tests.cpp
+++ b/src/wallet/test/coinselection_tests.cpp
@@ -236,5 +236,30 @@ BOOST_AUTO_TEST_CASE(bnb_feerate_sensitivity_test)
     TestBnBSuccess("Prefer two light inputs over two heavy inputs at high feerates", high_feerate_pool, /*selection_target=*/13 * CENT, /*expected_input_amounts=*/{3 * CENT, 10 * CENT}, high_feerate_params);
 }
 
+static void TestSRDFail(std::string test_title, std::vector<OutputGroup>& utxo_pool, const CAmount& selection_target, const CoinSelectionParams& cs_params = default_cs_params, int max_selection_weight = MAX_STANDARD_TX_WEIGHT, const bool expect_max_weight_exceeded = false)
+{
+    const auto result = SelectCoinsSRD(utxo_pool, selection_target, cs_params.m_change_fee, cs_params.rng_fast, max_selection_weight);
+    BOOST_CHECK_MESSAGE(!result, "SRD-Fail: " + test_title);
+    bool max_weight_exceeded = util::ErrorString(result).original.find("The inputs size exceeds the maximum weight") != std::string::npos;
+    BOOST_CHECK(expect_max_weight_exceeded == max_weight_exceeded);
+}
+
+BOOST_AUTO_TEST_CASE(srd_test)
+{
+    for (int feerate : FEERATES) {
+        std::vector<OutputGroup> utxo_pool;
+
+        const CoinSelectionParams cs_params = init_cs_params(feerate);
+
+        TestSRDFail("Empty UTXO pool", utxo_pool, /*selection_target=*/1 * CENT, cs_params);
+
+        AddCoins(utxo_pool, {1 * CENT, 3 * CENT, 5 * CENT}, cs_params);
+
+        TestSRDFail("Undershoot minimum change by one sat", utxo_pool, /*selection_target=*/9 * CENT - cs_params.m_change_fee - CHANGE_LOWER + 1, cs_params);
+        TestSRDFail("Spend more than available", utxo_pool, /*selection_target=*/9 * CENT + 1, cs_params);
+        TestSRDFail("Spend everything", utxo_pool, /*selection_target=*/9 * CENT, cs_params);
+    }
+}
+
 BOOST_AUTO_TEST_SUITE_END()
 } // namespace wallet
diff --git a/src/wallet/test/coinselector_tests.cpp b/src/wallet/test/coinselector_tests.cpp
index fe33e9347e7..740079d2c66 100644
--- a/src/wallet/test/coinselector_tests.cpp
+++ b/src/wallet/test/coinselector_tests.cpp
@@ -1217,24 +1217,6 @@ BOOST_AUTO_TEST_CASE(srd_tests)
             /*avoid_partial=*/false,
     };
 
-    {
-        // #########################################################
-        // 1) Insufficient funds, select all provided coins and fail
-        // #########################################################
-        CAmount target = 49.5L * COIN;
-        int max_selection_weight = 10000; // high enough to not fail for this reason.
-        const auto& res = SelectCoinsSRD(target, dummy_params, m_node, max_selection_weight, [&](CWallet& wallet) {
-            CoinsResult available_coins;
-            for (int j = 0; j < 10; ++j) {
-                add_coin(available_coins, wallet, CAmount(1 * COIN));
-                add_coin(available_coins, wallet, CAmount(2 * COIN));
-            }
-            return available_coins;
-        });
-        BOOST_CHECK(!res);
-        BOOST_CHECK(util::ErrorString(res).empty()); // empty means "insufficient funds"
-    }
-
     {
         // ###########################
         // 2) Test max weight exceeded