diff --git a/lntest/itest/lnd_test_list_on_test.go b/lntest/itest/lnd_test_list_on_test.go
index 0cf1c106e..ac2adad83 100644
--- a/lntest/itest/lnd_test_list_on_test.go
+++ b/lntest/itest/lnd_test_list_on_test.go
@@ -439,4 +439,8 @@ var allTestCases = []*testCase{
 		name: "taproot coop close",
 		test: testTaprootCoopClose,
 	},
+	{
+		name: "trackpayments",
+		test: testTrackPayments,
+	},
 }
diff --git a/lntest/itest/lnd_trackpayments_test.go b/lntest/itest/lnd_trackpayments_test.go
new file mode 100644
index 000000000..8819b95cc
--- /dev/null
+++ b/lntest/itest/lnd_trackpayments_test.go
@@ -0,0 +1,102 @@
+package itest
+
+import (
+	"context"
+	"encoding/hex"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/lightningnetwork/lnd/lnrpc"
+	"github.com/lightningnetwork/lnd/lnrpc/routerrpc"
+	"github.com/lightningnetwork/lnd/lntest"
+	"github.com/stretchr/testify/require"
+)
+
+// testTrackPayments tests whether a client that calls the TrackPayments api
+// receives payment updates.
+func testTrackPayments(net *lntest.NetworkHarness, t *harnessTest) {
+	// Open a channel between alice and bob.
+	net.EnsureConnected(t.t, net.Alice, net.Bob)
+	channel := openChannelAndAssert(
+		t, net, net.Alice, net.Bob,
+		lntest.OpenChannelParams{
+			Amt: btcutil.Amount(300000),
+		},
+	)
+	defer closeChannelAndAssert(t, net, net.Alice, channel, true)
+
+	err := net.Alice.WaitForNetworkChannelOpen(channel)
+	require.NoError(t.t, err, "unable to wait for channel to open")
+
+	ctxb := context.Background()
+	ctxt, cancelTracker := context.WithCancel(ctxb)
+	defer cancelTracker()
+
+	// Call the TrackPayments api to listen for payment updates.
+	tracker, err := net.Alice.RouterClient.TrackPayments(
+		ctxt,
+		&routerrpc.TrackPaymentsRequest{
+			NoInflightUpdates: false,
+		},
+	)
+	require.NoError(t.t, err, "failed to call TrackPayments successfully.")
+
+	// Create an invoice from bob.
+	var amountMsat int64 = 1000
+	invoiceResp, err := net.Bob.AddInvoice(
+		ctxb,
+		&lnrpc.Invoice{
+			ValueMsat: amountMsat,
+		},
+	)
+	require.NoError(t.t, err, "unable to add invoice.")
+
+	invoice, err := net.Bob.LookupInvoice(
+		ctxb,
+		&lnrpc.PaymentHash{
+			RHashStr: hex.EncodeToString(invoiceResp.RHash),
+		},
+	)
+	require.NoError(t.t, err, "unable to find invoice.")
+
+	// Send payment from alice to bob.
+	paymentClient, err := net.Alice.RouterClient.SendPaymentV2(
+		ctxb,
+		&routerrpc.SendPaymentRequest{
+			PaymentRequest: invoice.PaymentRequest,
+			TimeoutSeconds: 60,
+		},
+	)
+	require.NoError(t.t, err, "unable to send payment.")
+
+	// Make sure the payment doesn't error due to invalid parameters or so.
+	_, err = paymentClient.Recv()
+	require.NoError(t.t, err, "unable to get payment update.")
+
+	// Assert the first payment update is an inflight update.
+	update1, err := tracker.Recv()
+	require.NoError(t.t, err, "unable to receive payment update 1.")
+
+	require.Equal(
+		t.t, lnrpc.PaymentFailureReason_FAILURE_REASON_NONE,
+		update1.FailureReason,
+	)
+	require.Equal(t.t, lnrpc.Payment_IN_FLIGHT, update1.Status)
+	require.Equal(t.t, invoice.PaymentRequest, update1.PaymentRequest)
+	require.Equal(t.t, amountMsat, update1.ValueMsat)
+
+	// Assert the second payment update is a payment success update.
+	update2, err := tracker.Recv()
+	require.NoError(t.t, err, "unable to receive payment update 2.")
+
+	require.Equal(
+		t.t, lnrpc.PaymentFailureReason_FAILURE_REASON_NONE,
+		update2.FailureReason,
+	)
+	require.Equal(t.t, lnrpc.Payment_SUCCEEDED, update2.Status)
+	require.Equal(t.t, invoice.PaymentRequest, update2.PaymentRequest)
+	require.Equal(t.t, amountMsat, update2.ValueMsat)
+	require.Equal(
+		t.t, hex.EncodeToString(invoice.RPreimage),
+		update2.PaymentPreimage,
+	)
+}