diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index aa8e21e76..d7489f942 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -9269,13 +9269,19 @@ func CreateCooperativeCloseTx(fundingTxIn wire.TxIn,
 		closeTx.LockTime = lockTime
 	})
 
-	// TODO(roasbeef): needs support for dropping inputs
-
-	// Create both cooperative closure outputs, properly respecting the
-	// dust limits of both parties.
+	// Create both cooperative closure outputs, properly respecting the dust
+	// limits of both parties.
 	var localOutputIdx fn.Option[int]
 	haveLocalOutput := ourBalance >= localDust
 	if haveLocalOutput {
+		// If our script is an OP_RETURN, then we set our balance to
+		// zero.
+		if opts.customSequence.IsSome() &&
+			input.ScriptIsOpReturn(ourDeliveryScript) {
+
+			ourBalance = 0
+		}
+
 		closeTx.AddTxOut(&wire.TxOut{
 			PkScript: ourDeliveryScript,
 			Value:    int64(ourBalance),
@@ -9287,6 +9293,14 @@ func CreateCooperativeCloseTx(fundingTxIn wire.TxIn,
 	var remoteOutputIdx fn.Option[int]
 	haveRemoteOutput := theirBalance >= remoteDust
 	if haveRemoteOutput {
+		// If a party's script is an OP_RETURN, then we set their
+		// balance to zero.
+		if opts.customSequence.IsSome() &&
+			input.ScriptIsOpReturn(theirDeliveryScript) {
+
+			theirBalance = 0
+		}
+
 		closeTx.AddTxOut(&wire.TxOut{
 			PkScript: theirDeliveryScript,
 			Value:    int64(theirBalance),
diff --git a/lnwallet/channel_test.go b/lnwallet/channel_test.go
index 9da174a3d..0a0ca261c 100644
--- a/lnwallet/channel_test.go
+++ b/lnwallet/channel_test.go
@@ -20,6 +20,7 @@ import (
 	"github.com/btcsuite/btcd/btcutil"
 	"github.com/btcsuite/btcd/btcutil/txsort"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/btcsuite/btcd/mempool"
 	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/davecgh/go-spew/spew"
@@ -2450,6 +2451,72 @@ func TestCooperativeCloseDustAdherence(t *testing.T) {
 	}
 }
 
+// TestCooperativeCloseOpReturn tests that if either party's script is an
+// OP_RETURN script, then we'll set their output value as zero on the closing
+// transaction.
+func TestCooperativeCloseOpReturn(t *testing.T) {
+	t.Parallel()
+
+	// Create a test channel which will be used for the duration of this
+	// unittest. The channel will be funded evenly with Alice having 5 BTC,
+	// and Bob having 5 BTC.
+	aliceChannel, bobChannel, err := CreateTestChannels(
+		t, channeldb.SingleFunderTweaklessBit,
+	)
+	require.NoError(t, err, "unable to create test channels")
+
+	// Alice will have a "normal" looking script, while Bob will have a
+	// script that's just an OP_RETURN.
+	aliceDeliveryScript := bobsPrivKey
+	bobDeliveryScript := []byte{txscript.OP_RETURN}
+
+	aliceFeeRate := chainfee.SatPerKWeight(
+		aliceChannel.channelState.LocalCommitment.FeePerKw,
+	)
+	aliceFee := aliceChannel.CalcFee(aliceFeeRate) + 1000
+
+	assertBobOpReturn := func(tx *wire.MsgTx) {
+		// We should still have two outputs on the commitment
+		// transaction, as Alice's is non-dust.
+		require.Len(t, tx.TxOut, 2)
+
+		// We should find that Bob's output has a zero value.
+		bobTxOut := fn.Filter(tx.TxOut, func(txOut *wire.TxOut) bool {
+			return bytes.Equal(txOut.PkScript, bobDeliveryScript)
+		})
+		require.Len(t, bobTxOut, 1)
+
+		require.True(t, bobTxOut[0].Value == 0)
+	}
+
+	// Next, we'll make a new co-op close proposal, initiated by Alice.
+	aliceSig, closeTxAlice, _, err := aliceChannel.CreateCloseProposal(
+		aliceFee, aliceDeliveryScript, bobDeliveryScript,
+		// We use a custom sequence as this rule only applies to the RBF
+		// coop channel type.
+		WithCustomSequence(mempool.MaxRBFSequence),
+	)
+	require.NoError(t, err, "unable to close channel")
+
+	assertBobOpReturn(closeTxAlice)
+
+	bobSig, _, _, err := bobChannel.CreateCloseProposal(
+		aliceFee, bobDeliveryScript, aliceDeliveryScript,
+		WithCustomSequence(mempool.MaxRBFSequence),
+	)
+	require.NoError(t, err, "unable to close channel")
+
+	// We should now be able to complete the cooperative channel closure,
+	// finding that the close tx still only has a single output.
+	closeTx, _, err := bobChannel.CompleteCooperativeClose(
+		bobSig, aliceSig, bobDeliveryScript, aliceDeliveryScript,
+		aliceFee, WithCustomSequence(mempool.MaxRBFSequence),
+	)
+	require.NoError(t, err, "unable to accept channel close")
+
+	assertBobOpReturn(closeTx)
+}
+
 // TestUpdateFeeAdjustments tests that the state machine is able to properly
 // accept valid fee changes, as well as reject any invalid fee updates.
 func TestUpdateFeeAdjustments(t *testing.T) {