diff --git a/chainntnfs/btcdnotify/btcd.go b/chainntnfs/btcdnotify/btcd.go
index bc85d1c9d..193d3d85d 100644
--- a/chainntnfs/btcdnotify/btcd.go
+++ b/chainntnfs/btcdnotify/btcd.go
@@ -2,7 +2,6 @@ package btcdnotify
 
 import (
 	"container/heap"
-	"strings"
 	"sync"
 	"sync/atomic"
 	"time"
@@ -212,6 +211,8 @@ func (b *BtcdNotifier) onRedeemingTx(tx *btcutil.Tx, details *btcjson.BlockDetai
 // notificationDispatcher is the primary goroutine which handles client
 // notification registrations, as well as notification dispatches.
 func (b *BtcdNotifier) notificationDispatcher() {
+	var currentHeight int32
+
 out:
 	for {
 		select {
@@ -226,9 +227,14 @@ out:
 				chainntnfs.Log.Infof("New confirmations "+
 					"subscription: txid=%v, numconfs=%v",
 					*msg.txid, msg.numConfirmations)
-				// TODO(roasbeef): perform a N-block look
-				// behind to catch race-condition due to faster
-				// inter-block time?
+
+				// If the notification can be partially or
+				// fully dispatched, then we can skip the first
+				// phase for ntfns.
+				if b.attemptHistoricalDispatch(msg, currentHeight) {
+					continue
+				}
+
 				txid := *msg.txid
 				b.confNotifications[txid] = append(b.confNotifications[txid], msg)
 			case *blockEpochRegistration:
@@ -252,6 +258,8 @@ out:
 			b.chainUpdates = b.chainUpdates[1:]
 			b.chainUpdateMtx.Unlock()
 
+			currentHeight = update.blockHeight
+
 			newBlock, err := b.chainConn.GetBlock(update.blockHash)
 			if err != nil {
 				chainntnfs.Log.Errorf("Unable to get block: %v", err)
@@ -329,6 +337,41 @@ out:
 	b.wg.Done()
 }
 
+// attemptHistoricalDispatch tries to use historical information to decide if a
+// notificaiton ca be disptahced immediately, or is partially confirmed so it
+// can skip straight to the confirmations heap.
+func (b *BtcdNotifier) attemptHistoricalDispatch(msg *confirmationsNotification,
+	currentHeight int32) bool {
+
+	// If the transaction already has some or all of the confirmations,
+	// then we may be able to
+	// dispatch it immediately.
+	tx, err := b.chainConn.GetRawTransactionVerbose(msg.txid)
+	if err != nil {
+		return false
+	}
+
+	// If the transaction has more that enough confirmations, then we can
+	// dispatch it immediately after obtaininig for information w.r.t
+	// exaclty *when* if got all its confirmations.
+	if uint32(tx.Confirmations) >= msg.numConfirmations {
+		msg.finConf <- int32(tx.Confirmations)
+		return true
+	}
+
+	// Otherwise, the transaciton has only been *partially* confirmed, so
+	// we need to insert it into the confirmationheap.
+	confsLeft := msg.numConfirmations - uint32(tx.Confirmations)
+	confHeight := uint32(currentHeight) + confsLeft
+	heapEntry := &confEntry{
+		msg,
+		confHeight,
+	}
+	heap.Push(b.confHeap, heapEntry)
+
+	return false
+}
+
 // notifyBlockEpochs notifies all registered block epoch clients of the newly
 // connected block to the main chain.
 func (b *BtcdNotifier) notifyBlockEpochs(newHeight int32, newSha *wire.ShaHash) {
@@ -506,19 +549,6 @@ func (b *BtcdNotifier) RegisterConfirmationsNtfn(txid *wire.ShaHash,
 
 	b.notificationRegistry <- ntfn
 
-	// The following conditional checks transaction confirmation notification
-	// requests so that if the transaction has already been included in a block
-	// with the requested number of confirmations, the notification will be
-	// dispatched immediately.
-	tx, err := b.chainConn.GetRawTransactionVerbose(txid)
-	if err != nil {
-		if !strings.Contains(err.Error(), "No information") {
-			return nil, err
-		}
-	} else if uint32(tx.Confirmations) > numConfs {
-		ntfn.finConf <- int32(tx.Confirmations)
-	}
-
 	return &chainntnfs.ConfirmationEvent{
 		Confirmed:    ntfn.finConf,
 		NegativeConf: ntfn.negativeConf,
diff --git a/chainntnfs/interface_test.go b/chainntnfs/interface_test.go
index 8ab5b039c..66d378848 100644
--- a/chainntnfs/interface_test.go
+++ b/chainntnfs/interface_test.go
@@ -413,15 +413,15 @@ func testMultiClientConfirmationNotification(miner *rpctest.Harness,
 }
 
 // Tests the case in which a confirmation notification is requested for a
-// transaction that has already been included in a block. In this case,
-// the confirmation notification should be dispatched immediately.
+// transaction that has already been included in a block. In this case, the
+// confirmation notification should be dispatched immediately.
 func testTxConfirmedBeforeNtfnRegistration(miner *rpctest.Harness,
 	notifier chainntnfs.ChainNotifier, t *testing.T) {
 
 	t.Logf("testing transaction confirmed before notification registration")
 
-	// First, let's send some coins to "ourself", obtainig a txid.
-	// We're spending from a coinbase output here, so we use the dedicated
+	// First, let's send some coins to "ourself", obtaining a txid.  We're
+	// spending from a coinbase output here, so we use the dedicated
 	// function.
 
 	txid, err := getTestTxId(miner)
@@ -429,10 +429,10 @@ func testTxConfirmedBeforeNtfnRegistration(miner *rpctest.Harness,
 		t.Fatalf("unable to create test tx: %v", err)
 	}
 
-	// Now generate one block. The notifier must check older blocks when the
-	// confirmation event is registered below to ensure that the TXID hasn't
-	// already been included in the chain, otherwise the notification will
-	// never be sent.
+	// Now generate one block. The notifier must check older blocks when
+	// the confirmation event is registered below to ensure that the TXID
+	// hasn't already been included in the chain, otherwise the
+	// notification will never be sent.
 	if _, err := miner.Node.Generate(1); err != nil {
 		t.Fatalf("unable to generate two blocks: %v", err)
 	}
@@ -456,6 +456,48 @@ func testTxConfirmedBeforeNtfnRegistration(miner *rpctest.Harness,
 	case <-time.After(2 * time.Second):
 		t.Fatalf("confirmation notification never received")
 	}
+
+	// Next, we want to test fully dispatching the notification for a
+	// transaction that has been *partially* confirmed. So we'll create
+	// another test txid.
+	txid, err = getTestTxId(miner)
+	if err != nil {
+		t.Fatalf("unable to create test tx: %v", err)
+	}
+
+	// We'll request 6 confirmations for the above generated txid, but we
+	// will generate the confirmations in chunks.
+	numConfs = 6
+
+	// First, generate 2 confirmations.
+	if _, err := miner.Node.Generate(2); err != nil {
+		t.Fatalf("unable to generate blocks: %v", err)
+	}
+
+	// Next, register for the notification *after* the transition has
+	// already been partially confirmed.
+	confIntent, err = notifier.RegisterConfirmationsNtfn(txid, numConfs)
+	if err != nil {
+		t.Fatalf("unable to register ntfn: %v", err)
+	}
+
+	// With the notification registered, generate another 4 blocks, this
+	// should dispatch the notification.
+	if _, err := miner.Node.Generate(4); err != nil {
+		t.Fatalf("unable to generate blocks: %v", err)
+	}
+
+	confSent = make(chan int32)
+	go func() {
+		confSent <- <-confIntent.Confirmed
+	}()
+
+	select {
+	case <-confSent:
+		break
+	case <-time.After(2 * time.Second):
+		t.Fatalf("confirmation notification never received")
+	}
 }
 
 // Tests the case in which a spend notification is requested for a spend that
@@ -466,11 +508,10 @@ func testSpendBeforeNtfnRegistration(miner *rpctest.Harness,
 
 	t.Logf("testing spend broadcast before notification registration")
 
-	// We'd like to test the spend notifications for all
-	// ChainNotifier concrete implemenations.
+	// We'd like to test the spend notifications for all ChainNotifier
+	// concrete implementations.
 	//
-	// To do so, we first create a new output to our test target
-	// address.
+	// To do so, we first create a new output to our test target address.
 	txid, err := getTestTxId(miner)
 	if err != nil {
 		t.Fatalf("unable to create test addr: %v", err)
@@ -488,8 +529,8 @@ func testSpendBeforeNtfnRegistration(miner *rpctest.Harness,
 	}
 	tx := wrappedTx.MsgTx()
 
-	// Locate the output index sent to us. We need this so we can
-	// construct a spending txn below.
+	// Locate the output index sent to us. We need this so we can construct
+	// a spending txn below.
 	outIndex := -1
 	var pkScript []byte
 	for i, txOut := range tx.TxOut {
@@ -534,8 +575,9 @@ func testSpendBeforeNtfnRegistration(miner *rpctest.Harness,
 		t.Fatalf("unable to generate single block: %v", err)
 	}
 
-	// Now, we register to be notified of a spend that has already happened.
-	// The notifier should dispatch a spend notification immediately.
+	// Now, we register to be notified of a spend that has already
+	// happened.  The notifier should dispatch a spend notification
+	// immediately.
 	spentIntent, err := notifier.RegisterSpendNtfn(outpoint)
 	if err != nil {
 		t.Fatalf("unable to register for spend ntfn: %v", err)