diff --git a/aliasmgr/aliasmgr.go b/aliasmgr/aliasmgr.go
index f33eb391e..cae637f33 100644
--- a/aliasmgr/aliasmgr.go
+++ b/aliasmgr/aliasmgr.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"sync"
 
+	"github.com/lightningnetwork/lnd/fn"
 	"github.com/lightningnetwork/lnd/htlcswitch/hop"
 	"github.com/lightningnetwork/lnd/kvdb"
 	"github.com/lightningnetwork/lnd/lnwire"
@@ -68,6 +69,10 @@ var (
 	// errNoPeerAlias is returned when the peer's alias for a given
 	// channel is not found.
 	errNoPeerAlias = fmt.Errorf("no peer alias found")
+
+	// ErrAliasNotFound is returned when the alias is not found and can't
+	// be mapped to a base SCID.
+	ErrAliasNotFound = fmt.Errorf("alias not found")
 )
 
 // Manager is a struct that handles aliases for LND. It has an underlying
@@ -340,6 +345,61 @@ func (m *Manager) DeleteSixConfs(baseScid lnwire.ShortChannelID) error {
 	return nil
 }
 
+// DeleteLocalAlias removes a mapping from the database and the Manager's maps.
+func (m *Manager) DeleteLocalAlias(alias,
+	baseScid lnwire.ShortChannelID) error {
+
+	m.Lock()
+	defer m.Unlock()
+
+	err := kvdb.Update(m.backend, func(tx kvdb.RwTx) error {
+		aliasToBaseBucket, err := tx.CreateTopLevelBucket(aliasBucket)
+		if err != nil {
+			return err
+		}
+
+		var aliasBytes [8]byte
+		byteOrder.PutUint64(aliasBytes[:], alias.ToUint64())
+
+		// If the user attempts to delete an alias that doesn't exist,
+		// we'll want to inform them about it and not just do nothing.
+		if aliasToBaseBucket.Get(aliasBytes[:]) == nil {
+			return ErrAliasNotFound
+		}
+
+		return aliasToBaseBucket.Delete(aliasBytes[:])
+	}, func() {})
+	if err != nil {
+		return err
+	}
+
+	// Now that the database state has been updated, we'll delete the
+	// mapping from the Manager's maps.
+	aliasSet, ok := m.baseToSet[baseScid]
+	if !ok {
+		return ErrAliasNotFound
+	}
+
+	// We'll filter the alias set and remove the alias from it.
+	aliasSet = fn.Filter(func(a lnwire.ShortChannelID) bool {
+		return a.ToUint64() != alias.ToUint64()
+	}, aliasSet)
+
+	// If the alias set is empty, we'll delete the base SCID from the
+	// baseToSet map.
+	if len(aliasSet) == 0 {
+		delete(m.baseToSet, baseScid)
+	} else {
+		m.baseToSet[baseScid] = aliasSet
+	}
+
+	// Finally, we'll delete the aliasToBase mapping from the Manager's
+	// cache (but this is only set if we gossip the alias).
+	delete(m.aliasToBase, alias)
+
+	return nil
+}
+
 // PutPeerAlias stores the peer's alias SCID once we learn of it in the
 // channel_ready message.
 func (m *Manager) PutPeerAlias(chanID lnwire.ChannelID,
diff --git a/aliasmgr/aliasmgr_test.go b/aliasmgr/aliasmgr_test.go
index 17159ed87..e0e78ba70 100644
--- a/aliasmgr/aliasmgr_test.go
+++ b/aliasmgr/aliasmgr_test.go
@@ -68,6 +68,74 @@ func TestAliasStoreRequest(t *testing.T) {
 	require.Equal(t, nextAlias, alias2)
 }
 
+// TestAliasLifecycle tests that the aliases can be created and deleted.
+func TestAliasLifecycle(t *testing.T) {
+	t.Parallel()
+
+	// Create the backend database and use this to create the aliasStore.
+	dbPath := filepath.Join(t.TempDir(), "testdb")
+	db, err := kvdb.Create(
+		kvdb.BoltBackendName, dbPath, true, kvdb.DefaultDBTimeout,
+	)
+	require.NoError(t, err)
+	defer db.Close()
+
+	aliasStore, err := NewManager(db)
+	require.NoError(t, err)
+
+	const (
+		base  = uint64(123123123)
+		alias = uint64(456456456)
+	)
+
+	// Parse the aliases and base to short channel ID format.
+	baseScid := lnwire.NewShortChanIDFromInt(base)
+	aliasScid := lnwire.NewShortChanIDFromInt(alias)
+	aliasScid2 := lnwire.NewShortChanIDFromInt(alias + 1)
+
+	// Add the first alias.
+	err = aliasStore.AddLocalAlias(aliasScid, baseScid, false)
+	require.NoError(t, err)
+
+	// Query the aliases and verify the results.
+	aliasList := aliasStore.GetAliases(baseScid)
+	require.Len(t, aliasList, 1)
+	require.Contains(t, aliasList, aliasScid)
+
+	// Add the second alias.
+	err = aliasStore.AddLocalAlias(aliasScid2, baseScid, false)
+	require.NoError(t, err)
+
+	// Query the aliases and verify the results.
+	aliasList = aliasStore.GetAliases(baseScid)
+	require.Len(t, aliasList, 2)
+	require.Contains(t, aliasList, aliasScid)
+	require.Contains(t, aliasList, aliasScid2)
+
+	// Delete the first alias.
+	err = aliasStore.DeleteLocalAlias(aliasScid, baseScid)
+	require.NoError(t, err)
+
+	// We expect to get an error if we attempt to delete the same alias
+	// again.
+	err = aliasStore.DeleteLocalAlias(aliasScid, baseScid)
+	require.ErrorIs(t, err, ErrAliasNotFound)
+
+	// Query the aliases and verify that first one doesn't exist anymore.
+	aliasList = aliasStore.GetAliases(baseScid)
+	require.Len(t, aliasList, 1)
+	require.Contains(t, aliasList, aliasScid2)
+	require.NotContains(t, aliasList, aliasScid)
+
+	// Delete the second alias.
+	err = aliasStore.DeleteLocalAlias(aliasScid2, baseScid)
+	require.NoError(t, err)
+
+	// Query the aliases and verify that none exists.
+	aliasList = aliasStore.GetAliases(baseScid)
+	require.Len(t, aliasList, 0)
+}
+
 // TestGetNextScid tests that given a current lnwire.ShortChannelID,
 // getNextScid returns the expected alias to use next.
 func TestGetNextScid(t *testing.T) {