diff --git a/go.mod b/go.mod
index 60af5fb3d..3a559abb6 100644
--- a/go.mod
+++ b/go.mod
@@ -35,7 +35,7 @@ require (
 	github.com/lightningnetwork/lightning-onion v1.2.1-0.20240712235311-98bd56499dfb
 	github.com/lightningnetwork/lnd/cert v1.2.2
 	github.com/lightningnetwork/lnd/clock v1.1.1
-	github.com/lightningnetwork/lnd/fn v1.2.1
+	github.com/lightningnetwork/lnd/fn v1.2.2
 	github.com/lightningnetwork/lnd/healthcheck v1.2.5
 	github.com/lightningnetwork/lnd/kvdb v1.4.10
 	github.com/lightningnetwork/lnd/queue v1.1.1
diff --git a/go.sum b/go.sum
index 312b22578..ea51f3e95 100644
--- a/go.sum
+++ b/go.sum
@@ -453,8 +453,8 @@ github.com/lightningnetwork/lnd/cert v1.2.2 h1:71YK6hogeJtxSxw2teq3eGeuy4rHGKcFf
 github.com/lightningnetwork/lnd/cert v1.2.2/go.mod h1:jQmFn/Ez4zhDgq2hnYSw8r35bqGVxViXhX6Cd7HXM6U=
 github.com/lightningnetwork/lnd/clock v1.1.1 h1:OfR3/zcJd2RhH0RU+zX/77c0ZiOnIMsDIBjgjWdZgA0=
 github.com/lightningnetwork/lnd/clock v1.1.1/go.mod h1:mGnAhPyjYZQJmebS7aevElXKTFDuO+uNFFfMXK1W8xQ=
-github.com/lightningnetwork/lnd/fn v1.2.1 h1:pPsVGrwi9QBwdLJzaEGK33wmiVKOxs/zc8H7+MamFf0=
-github.com/lightningnetwork/lnd/fn v1.2.1/go.mod h1:SyFohpVrARPKH3XVAJZlXdVe+IwMYc4OMAvrDY32kw0=
+github.com/lightningnetwork/lnd/fn v1.2.2 h1:rVtmGW1cQTmYce2XdUbRcc5qLDxqu+aQ6IGRpyspakk=
+github.com/lightningnetwork/lnd/fn v1.2.2/go.mod h1:SyFohpVrARPKH3XVAJZlXdVe+IwMYc4OMAvrDY32kw0=
 github.com/lightningnetwork/lnd/healthcheck v1.2.5 h1:aTJy5xeBpcWgRtW/PGBDe+LMQEmNm/HQewlQx2jt7OA=
 github.com/lightningnetwork/lnd/healthcheck v1.2.5/go.mod h1:G7Tst2tVvWo7cx6mSBEToQC5L1XOGxzZTPB29g9Rv2I=
 github.com/lightningnetwork/lnd/kvdb v1.4.10 h1:vK89IVv1oVH9ubQWU+EmoCQFeVRaC8kfmOrqHbY5zoY=
diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index b66b14780..906c37e79 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -2906,6 +2906,19 @@ func (lc *LightningChannel) evaluateHTLCView(view *HtlcView, ourBalance,
 		NextHeight: nextHeight,
 	}
 
+	// The fee rate of our view is always the last UpdateFee message from
+	// the channel's OpeningParty.
+	openerUpdates := view.Updates.GetForParty(lc.channelState.Initiator())
+	feeUpdates := fn.Filter(func(u *paymentDescriptor) bool {
+		return u.EntryType == FeeUpdate
+	}, openerUpdates)
+	lastFeeUpdate := fn.Last(feeUpdates)
+	lastFeeUpdate.WhenSome(func(pd *paymentDescriptor) {
+		newView.FeePerKw = chainfee.SatPerKWeight(
+			pd.Amount.ToSatoshis(),
+		)
+	})
+
 	// We use two maps, one for the local log and one for the remote log to
 	// keep track of which entries we need to skip when creating the final
 	// htlc view. We skip an entry whenever we find a settle or a timeout
@@ -2921,21 +2934,8 @@ func (lc *LightningChannel) evaluateHTLCView(view *HtlcView, ourBalance,
 		case Add:
 			continue
 
-		// Process fee updates, updating the current feePerKw.
+		// Skip fee updates because we've already dealt with them above.
 		case FeeUpdate:
-			h := entry.addCommitHeights.GetForParty(
-				whoseCommitChain,
-			)
-
-			if h == 0 {
-				// If the update wasn't already locked in,
-				// update the current fee rate to reflect this
-				// update.
-				newView.FeePerKw = chainfee.SatPerKWeight(
-					entry.Amount.ToSatoshis(),
-				)
-			}
-
 			continue
 		}
 
@@ -2966,21 +2966,8 @@ func (lc *LightningChannel) evaluateHTLCView(view *HtlcView, ourBalance,
 		case Add:
 			continue
 
-		// Process fee updates, updating the current feePerKw.
+		// Skip fee updates because we've already dealt with them above.
 		case FeeUpdate:
-			h := entry.addCommitHeights.GetForParty(
-				whoseCommitChain,
-			)
-
-			if h == 0 {
-				// If the update wasn't already locked in,
-				// update the current fee rate to reflect this
-				// update.
-				newView.FeePerKw = chainfee.SatPerKWeight(
-					entry.Amount.ToSatoshis(),
-				)
-			}
-
 			continue
 		}
 
diff --git a/lnwallet/channel_test.go b/lnwallet/channel_test.go
index dd352dab1..62eb01e3e 100644
--- a/lnwallet/channel_test.go
+++ b/lnwallet/channel_test.go
@@ -8650,6 +8650,7 @@ func TestEvaluateView(t *testing.T) {
 		name             string
 		ourHtlcs         []*paymentDescriptor
 		theirHtlcs       []*paymentDescriptor
+		channelInitiator lntypes.ChannelParty
 		whoseCommitChain lntypes.ChannelParty
 		mutateState      bool
 
@@ -8679,6 +8680,7 @@ func TestEvaluateView(t *testing.T) {
 	}{
 		{
 			name:             "our fee update is applied",
+			channelInitiator: lntypes.Local,
 			whoseCommitChain: lntypes.Local,
 			mutateState:      false,
 			ourHtlcs: []*paymentDescriptor{
@@ -8696,6 +8698,7 @@ func TestEvaluateView(t *testing.T) {
 		},
 		{
 			name:             "their fee update is applied",
+			channelInitiator: lntypes.Remote,
 			whoseCommitChain: lntypes.Local,
 			mutateState:      false,
 			ourHtlcs:         []*paymentDescriptor{},
@@ -8911,8 +8914,10 @@ func TestEvaluateView(t *testing.T) {
 		test := test
 
 		t.Run(test.name, func(t *testing.T) {
+			isInitiator := test.channelInitiator == lntypes.Local
 			lc := LightningChannel{
 				channelState: &channeldb.OpenChannel{
+					IsInitiator:       isInitiator,
 					TotalMSatSent:     0,
 					TotalMSatReceived: 0,
 				},