diff --git a/Gopkg.lock b/Gopkg.lock
index 99cf81d67..3791d9da5 100644
--- a/Gopkg.lock
+++ b/Gopkg.lock
@@ -64,7 +64,7 @@
   revision = "e404fcfc888570cadd1610538e2dbc89f66af814"
 
 [[projects]]
-  digest = "1:f944518b25f8733eed1d13855eeaaeda9b1f56c2bc75223a7e3427c024168eba"
+  digest = "1:e0ab2aba19fe77b2367828b186e46a5efa57d35a94df282ae25adf624136ae5c"
   name = "github.com/btcsuite/btcd"
   packages = [
     "addrmgr",
@@ -82,7 +82,7 @@
     "wire",
   ]
   pruneopts = "UT"
-  revision = "f899737d7f2764dc13e4d01ff00108ec58f766a9"
+  revision = "79e00513b1011888b1e675157ab89f527f901cae"
 
 [[projects]]
   digest = "1:30d4a548e09bca4a0c77317c58e7407e2a65c15325e944f9c08a7b7992f8a59e"
@@ -107,7 +107,7 @@
   revision = "ab6388e0c60ae4834a1f57511e20c17b5f78be4b"
 
 [[projects]]
-  digest = "1:04bf3f47dafa64588795c5e0329dc662e867c3afa191051821dbacbe09ba2ca8"
+  digest = "1:b6aad1b935c1e7c6cb6be7ecb65288de11e0df0d6224d757816e40009ec52a2c"
   name = "github.com/btcsuite/btcwallet"
   packages = [
     "chain",
@@ -127,7 +127,7 @@
     "wtxmgr",
   ]
   pruneopts = "UT"
-  revision = "5fb94231d0c814f02ffc3110eee588278151b4e1"
+  revision = "7b84dc25a61634c450d21ec7f47d5e916eb88fdb"
 
 [[projects]]
   branch = "master"
@@ -266,16 +266,18 @@
   revision = "462a8a75388506b68f76661af8d649f0b88e5301"
 
 [[projects]]
-  digest = "1:11ab77a97c0db5cfe9c82f16cb7c47213612033e8bd711e6ddc9a32615fc747d"
+  digest = "1:17f1db965adb240de22a1662b4b712858ae767fe7da94ffd4e321b4dcb4bd553"
   name = "github.com/lightninglabs/neutrino"
   packages = [
     ".",
+    "cache",
+    "cache/lru",
     "filterdb",
     "headerfs",
     "headerlist",
   ]
   pruneopts = "UT"
-  revision = "0d0ce901538af81e234c1b2376babf20fe976b09"
+  revision = "166fe699d5964581d24e6bfff0aa329cfb6a8bc9"
 
 [[projects]]
   digest = "1:58ab6d6525898cbeb86dc29a68f8e9bfe95254b9032134eb9458779574872260"
diff --git a/Gopkg.toml b/Gopkg.toml
index 03a315d3d..2dec59e3c 100644
--- a/Gopkg.toml
+++ b/Gopkg.toml
@@ -40,7 +40,7 @@
 
 [[constraint]]
   name = "github.com/lightninglabs/neutrino"
-  revision = "0d0ce901538af81e234c1b2376babf20fe976b09"
+  revision = "166fe699d5964581d24e6bfff0aa329cfb6a8bc9"
 
 [[constraint]]
   name = "github.com/lightningnetwork/lightning-onion"
@@ -64,11 +64,11 @@
 
 [[constraint]]
   name = "github.com/btcsuite/btcd"
-  revision = "f899737d7f2764dc13e4d01ff00108ec58f766a9"
+  revision = "79e00513b1011888b1e675157ab89f527f901cae"
 
 [[constraint]]
   name = "github.com/btcsuite/btcwallet"
-  revision = "5fb94231d0c814f02ffc3110eee588278151b4e1"
+  revision = "7b84dc25a61634c450d21ec7f47d5e916eb88fdb"
 
 [[constraint]]
   name = "github.com/tv42/zbase32"
diff --git a/chainntnfs/bitcoindnotify/bitcoind.go b/chainntnfs/bitcoindnotify/bitcoind.go
index 134c591bb..82abfd984 100644
--- a/chainntnfs/bitcoindnotify/bitcoind.go
+++ b/chainntnfs/bitcoindnotify/bitcoind.go
@@ -3,6 +3,7 @@ package bitcoindnotify
 import (
 	"errors"
 	"fmt"
+	"strings"
 	"sync"
 	"sync/atomic"
 	"time"
@@ -268,7 +269,7 @@ out:
 				go func() {
 					defer b.wg.Done()
 
-					confDetails, err := b.historicalConfDetails(
+					confDetails, _, err := b.historicalConfDetails(
 						msg.TxID, msg.heightHint,
 						currentHeight,
 					)
@@ -447,50 +448,76 @@ func (b *BitcoindNotifier) handleRelevantTx(tx chain.RelevantTx, bestHeight int3
 // historicalConfDetails looks up whether a transaction is already included in a
 // block in the active chain and, if so, returns details about the confirmation.
 func (b *BitcoindNotifier) historicalConfDetails(txid *chainhash.Hash,
-	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation, error) {
+	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation,
+	chainntnfs.TxConfStatus, error) {
 
-	// First, we'll attempt to retrieve the transaction details using the
-	// backend node's transaction index.
-	txConf, err := b.confDetailsFromTxIndex(txid)
-	if err != nil {
-		return nil, err
+	// We'll first attempt to retrieve the transaction using the node's
+	// txindex.
+	txConf, txStatus, err := b.confDetailsFromTxIndex(txid)
+
+	// We'll then check the status of the transaction lookup returned to
+	// determine whether we should proceed with any fallback methods.
+	switch {
+
+	// We failed querying the index for the transaction, fall back to
+	// scanning manually.
+	case err != nil:
+		chainntnfs.Log.Debugf("Failed getting conf details from "+
+			"index (%v), scanning manually", err)
+		return b.confDetailsManually(txid, heightHint, currentHeight)
+
+	// The transaction was found within the node's mempool.
+	case txStatus == chainntnfs.TxFoundMempool:
+
+	// The transaction was found within the node's txindex.
+	case txStatus == chainntnfs.TxFoundIndex:
+
+	// The transaction was not found within the node's mempool or txindex.
+	case txStatus == chainntnfs.TxNotFoundIndex:
+
+	// Unexpected txStatus returned.
+	default:
+		return nil, txStatus,
+			fmt.Errorf("Got unexpected txConfStatus: %v", txStatus)
 	}
 
-	if txConf != nil {
-		return txConf, nil
-	}
-
-	// If the backend node's transaction index is not enabled, then we'll
-	// fall back to manually scanning the chain's blocks, looking for the
-	// block where the transaction was included in.
-	return b.confDetailsManually(txid, heightHint, currentHeight)
+	return txConf, txStatus, nil
 }
 
-// confDetailsFromTxIndex looks up whether a transaction is already included
-// in a block in the active chain by using the backend node's transaction index.
-// If the transaction is found, its confirmation details are returned.
-// Otherwise, nil is returned.
+// confDetailsFromTxIndex looks up whether a transaction is already included in
+// a block in the active chain by using the backend node's transaction index.
+// If the transaction is found its TxConfStatus is returned. If it was found in
+// the mempool this will be TxFoundMempool, if it is found in a block this will
+// be TxFoundIndex. Otherwise TxNotFoundIndex is returned. If the tx is found
+// in a block its confirmation details are also returned.
 func (b *BitcoindNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
-) (*chainntnfs.TxConfirmation, error) {
+) (*chainntnfs.TxConfirmation, chainntnfs.TxConfStatus, error) {
 
 	// If the transaction has some or all of its confirmations required,
 	// then we may be able to dispatch it immediately.
 	tx, err := b.chainConn.GetRawTransactionVerbose(txid)
 	if err != nil {
-		// Avoid returning an error if the transaction index is not
-		// enabled to proceed with fallback methods.
+		// If the transaction lookup was succesful, but it wasn't found
+		// within the index itself, then we can exit early. We'll also
+		// need to look at the error message returned as the error code
+		// is used for multiple errors.
+		txNotFoundErr := "No such mempool or blockchain transaction"
 		jsonErr, ok := err.(*btcjson.RPCError)
-		if !ok || jsonErr.Code != btcjson.ErrRPCNoTxInfo {
-			return nil, fmt.Errorf("unable to query for txid "+
-				"%v: %v", txid, err)
+		if ok && jsonErr.Code == btcjson.ErrRPCNoTxInfo &&
+			strings.Contains(jsonErr.Message, txNotFoundErr) {
+
+			return nil, chainntnfs.TxNotFoundIndex, nil
 		}
+
+		return nil, chainntnfs.TxNotFoundIndex,
+			fmt.Errorf("unable to query for txid %v: %v", txid, err)
 	}
 
 	// Make sure we actually retrieved a transaction that is included in a
-	// block. Without this, we won't be able to retrieve its confirmation
-	// details.
-	if tx == nil || tx.BlockHash == "" {
-		return nil, nil
+	// block. If not, the transaction must be unconfirmed (in the mempool),
+	// and we'll return TxFoundMempool together with a nil TxConfirmation.
+	if tx.BlockHash == "" {
+		return nil, chainntnfs.TxFoundMempool, nil
 	}
 
 	// As we need to fully populate the returned TxConfirmation struct,
@@ -498,14 +525,16 @@ func (b *BitcoindNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
 	// locate its exact index within the block.
 	blockHash, err := chainhash.NewHashFromStr(tx.BlockHash)
 	if err != nil {
-		return nil, fmt.Errorf("unable to get block hash %v for "+
-			"historical dispatch: %v", tx.BlockHash, err)
+		return nil, chainntnfs.TxNotFoundIndex,
+			fmt.Errorf("unable to get block hash %v for "+
+				"historical dispatch: %v", tx.BlockHash, err)
 	}
 
 	block, err := b.chainConn.GetBlockVerbose(blockHash)
 	if err != nil {
-		return nil, fmt.Errorf("unable to get block with hash %v for "+
-			"historical dispatch: %v", blockHash, err)
+		return nil, chainntnfs.TxNotFoundIndex,
+			fmt.Errorf("unable to get block with hash %v for "+
+				"historical dispatch: %v", blockHash, err)
 	}
 
 	// If the block was obtained, locate the transaction's index within the
@@ -513,18 +542,20 @@ func (b *BitcoindNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
 	targetTxidStr := txid.String()
 	for txIndex, txHash := range block.Tx {
 		if txHash == targetTxidStr {
-			return &chainntnfs.TxConfirmation{
+			details := &chainntnfs.TxConfirmation{
 				BlockHash:   blockHash,
 				BlockHeight: uint32(block.Height),
 				TxIndex:     uint32(txIndex),
-			}, nil
+			}
+			return details, chainntnfs.TxFoundIndex, nil
 		}
 	}
 
 	// We return an error because we should have found the transaction
 	// within the block, but didn't.
-	return nil, fmt.Errorf("unable to locate tx %v in block %v", txid,
-		blockHash)
+	return nil, chainntnfs.TxNotFoundIndex,
+		fmt.Errorf("unable to locate tx %v in block %v", txid,
+			blockHash)
 }
 
 // confDetailsManually looks up whether a transaction is already included in a
@@ -533,7 +564,8 @@ func (b *BitcoindNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
 // height in the chain. If the transaction is found, its confirmation details
 // are returned. Otherwise, nil is returned.
 func (b *BitcoindNotifier) confDetailsManually(txid *chainhash.Hash,
-	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation, error) {
+	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation,
+	chainntnfs.TxConfStatus, error) {
 
 	targetTxidStr := txid.String()
 
@@ -544,38 +576,42 @@ func (b *BitcoindNotifier) confDetailsManually(txid *chainhash.Hash,
 		// processing the next height.
 		select {
 		case <-b.quit:
-			return nil, ErrChainNotifierShuttingDown
+			return nil, chainntnfs.TxNotFoundManually,
+				ErrChainNotifierShuttingDown
 		default:
 		}
 
 		blockHash, err := b.chainConn.GetBlockHash(int64(height))
 		if err != nil {
-			return nil, fmt.Errorf("unable to get hash from block "+
-				"with height %d", height)
+			return nil, chainntnfs.TxNotFoundManually,
+				fmt.Errorf("unable to get hash from block "+
+					"with height %d", height)
 		}
 
 		block, err := b.chainConn.GetBlockVerbose(blockHash)
 		if err != nil {
-			return nil, fmt.Errorf("unable to get block with hash "+
-				"%v: %v", blockHash, err)
+			return nil, chainntnfs.TxNotFoundManually,
+				fmt.Errorf("unable to get block with hash "+
+					"%v: %v", blockHash, err)
 		}
 
 		for txIndex, txHash := range block.Tx {
 			// If we're able to find the transaction in this block,
 			// return its confirmation details.
 			if txHash == targetTxidStr {
-				return &chainntnfs.TxConfirmation{
+				details := &chainntnfs.TxConfirmation{
 					BlockHash:   blockHash,
 					BlockHeight: height,
 					TxIndex:     uint32(txIndex),
-				}, nil
+				}
+				return details, chainntnfs.TxFoundManually, nil
 			}
 		}
 	}
 
 	// If we reach here, then we were not able to find the transaction
 	// within a block, so we avoid returning an error.
-	return nil, nil
+	return nil, chainntnfs.TxNotFoundManually, nil
 }
 
 // handleBlockConnected applies a chain update for a new block. Any watched
diff --git a/chainntnfs/bitcoindnotify/bitcoind_debug.go b/chainntnfs/bitcoindnotify/bitcoind_debug.go
index 85842ca53..04cd030c6 100644
--- a/chainntnfs/bitcoindnotify/bitcoind_debug.go
+++ b/chainntnfs/bitcoindnotify/bitcoind_debug.go
@@ -1,3 +1,5 @@
+// +build debug
+
 package bitcoindnotify
 
 import (
diff --git a/chainntnfs/bitcoindnotify/bitcoind_test.go b/chainntnfs/bitcoindnotify/bitcoind_test.go
new file mode 100644
index 000000000..16bbc2edd
--- /dev/null
+++ b/chainntnfs/bitcoindnotify/bitcoind_test.go
@@ -0,0 +1,245 @@
+// +build debug
+
+package bitcoindnotify
+
+import (
+	"io/ioutil"
+	"testing"
+	"time"
+
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/btcsuite/btcd/integration/rpctest"
+	"github.com/btcsuite/btcwallet/chain"
+	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/channeldb"
+)
+
+func initHintCache(t *testing.T) *chainntnfs.HeightHintCache {
+	t.Helper()
+
+	tempDir, err := ioutil.TempDir("", "kek")
+	if err != nil {
+		t.Fatalf("unable to create temp dir: %v", err)
+	}
+	db, err := channeldb.Open(tempDir)
+	if err != nil {
+		t.Fatalf("unable to create db: %v", err)
+	}
+	hintCache, err := chainntnfs.NewHeightHintCache(db)
+	if err != nil {
+		t.Fatalf("unable to create hint cache: %v", err)
+	}
+
+	return hintCache
+}
+
+// setUpNotifier is a helper function to start a new notifier backed by a
+// bitcoind driver.
+func setUpNotifier(t *testing.T, bitcoindConn *chain.BitcoindConn,
+	spendHintCache chainntnfs.SpendHintCache,
+	confirmHintCache chainntnfs.ConfirmHintCache) *BitcoindNotifier {
+
+	t.Helper()
+
+	notifier := New(bitcoindConn, spendHintCache, confirmHintCache)
+	if err := notifier.Start(); err != nil {
+		t.Fatalf("unable to start notifier: %v", err)
+	}
+
+	return notifier
+}
+
+// syncNotifierWithMiner is a helper method that attempts to wait until the
+// notifier is synced (in terms of the chain) with the miner.
+func syncNotifierWithMiner(t *testing.T, notifier *BitcoindNotifier,
+	miner *rpctest.Harness) uint32 {
+
+	t.Helper()
+
+	_, minerHeight, err := miner.Node.GetBestBlock()
+	if err != nil {
+		t.Fatalf("unable to retrieve miner's current height: %v", err)
+	}
+
+	timeout := time.After(10 * time.Second)
+	for {
+		_, bitcoindHeight, err := notifier.chainConn.GetBestBlock()
+		if err != nil {
+			t.Fatalf("unable to retrieve bitcoind's current "+
+				"height: %v", err)
+		}
+
+		if bitcoindHeight == minerHeight {
+			return uint32(bitcoindHeight)
+		}
+
+		select {
+		case <-time.After(100 * time.Millisecond):
+		case <-timeout:
+			t.Fatalf("timed out waiting to sync notifier")
+		}
+	}
+}
+
+// TestHistoricalConfDetailsTxIndex ensures that we correctly retrieve
+// historical confirmation details using the backend node's txindex.
+func TestHistoricalConfDetailsTxIndex(t *testing.T) {
+	miner, tearDown := chainntnfs.NewMiner(
+		t, []string{"--txindex"}, true, 25,
+	)
+	defer tearDown()
+
+	bitcoindConn, cleanUp := chainntnfs.NewBitcoindBackend(
+		t, miner.P2PAddress(), true,
+	)
+	defer cleanUp()
+
+	hintCache := initHintCache(t)
+
+	notifier := setUpNotifier(t, bitcoindConn, hintCache, hintCache)
+	defer notifier.Stop()
+
+	syncNotifierWithMiner(t, notifier, miner)
+
+	// A transaction unknown to the node should not be found within the
+	// txindex even if it is enabled, so we should not proceed with any
+	// fallback methods.
+	var zeroHash chainhash.Hash
+	_, txStatus, err := notifier.historicalConfDetails(&zeroHash, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	switch txStatus {
+	case chainntnfs.TxNotFoundIndex:
+	case chainntnfs.TxNotFoundManually:
+		t.Fatal("should not have proceeded with fallback method, but did")
+	default:
+		t.Fatal("should not have found non-existent transaction, but did")
+	}
+
+	// Now, we'll create a test transaction, confirm it, and attempt to
+	// retrieve its confirmation details.
+	txid, _, err := chainntnfs.GetTestTxidAndScript(miner)
+	if err != nil {
+		t.Fatalf("unable to create tx: %v", err)
+	}
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
+		t.Fatal(err)
+	}
+
+	// The transaction should be found in the mempool at this point.
+	_, txStatus, err = notifier.historicalConfDetails(txid, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since it has yet to be included in a block, it should have been found
+	// within the mempool.
+	switch txStatus {
+	case chainntnfs.TxFoundMempool:
+	default:
+		t.Fatal("should have found the transaction within the "+
+			"mempool, but did not: %v", txStatus)
+	}
+
+	if _, err := miner.Node.Generate(1); err != nil {
+		t.Fatalf("unable to generate block: %v", err)
+	}
+
+	// Ensure the notifier and miner are synced to the same height to ensure
+	// the txindex includes the transaction just mined.
+	syncNotifierWithMiner(t, notifier, miner)
+
+	_, txStatus, err = notifier.historicalConfDetails(txid, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since the backend node's txindex is enabled and the transaction has
+	// confirmed, we should be able to retrieve it using the txindex.
+	switch txStatus {
+	case chainntnfs.TxFoundIndex:
+	default:
+		t.Fatal("should have found the transaction within the " +
+			"txindex, but did not")
+	}
+}
+
+// TestHistoricalConfDetailsNoTxIndex ensures that we correctly retrieve
+// historical confirmation details using the set of fallback methods when the
+// backend node's txindex is disabled.
+func TestHistoricalConfDetailsNoTxIndex(t *testing.T) {
+	miner, tearDown := chainntnfs.NewMiner(t, nil, true, 25)
+	defer tearDown()
+
+	bitcoindConn, cleanUp := chainntnfs.NewBitcoindBackend(
+		t, miner.P2PAddress(), false,
+	)
+	defer cleanUp()
+
+	hintCache := initHintCache(t)
+
+	notifier := setUpNotifier(t, bitcoindConn, hintCache, hintCache)
+	defer notifier.Stop()
+
+	// Since the node has its txindex disabled, we fall back to scanning the
+	// chain manually. A transaction unknown to the network should not be
+	// found.
+	var zeroHash chainhash.Hash
+	broadcastHeight := syncNotifierWithMiner(t, notifier, miner)
+	_, txStatus, err := notifier.historicalConfDetails(
+		&zeroHash, uint32(broadcastHeight), uint32(broadcastHeight),
+	)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	switch txStatus {
+	case chainntnfs.TxNotFoundManually:
+	case chainntnfs.TxNotFoundIndex:
+		t.Fatal("should have proceeded with fallback method, but did not")
+	default:
+		t.Fatal("should not have found non-existent transaction, but did")
+	}
+
+	// Now, we'll create a test transaction and attempt to retrieve its
+	// confirmation details. In order to fall back to manually scanning the
+	// chain, the transaction must be in the chain and not contain any
+	// unspent outputs. To ensure this, we'll create a transaction with only
+	// one output, which we will manually spend. The backend node's
+	// transaction index should also be disabled, which we've already
+	// ensured above.
+	output, pkScript := chainntnfs.CreateSpendableOutput(t, miner)
+	spendTx := chainntnfs.CreateSpendTx(t, output, pkScript)
+	spendTxHash, err := miner.Node.SendRawTransaction(spendTx, true)
+	if err != nil {
+		t.Fatalf("unable to broadcast tx: %v", err)
+	}
+	if err := chainntnfs.WaitForMempoolTx(miner, spendTxHash); err != nil {
+		t.Fatalf("tx not relayed to miner: %v", err)
+	}
+	if _, err := miner.Node.Generate(1); err != nil {
+		t.Fatalf("unable to generate block: %v", err)
+	}
+
+	// Ensure the notifier and miner are synced to the same height to ensure
+	// we can find the transaction when manually scanning the chain.
+	currentHeight := syncNotifierWithMiner(t, notifier, miner)
+	_, txStatus, err = notifier.historicalConfDetails(
+		&output.Hash, uint32(broadcastHeight), uint32(currentHeight),
+	)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since the backend node's txindex is disabled and the transaction has
+	// confirmed, we should be able to find it by falling back to scanning
+	// the chain manually.
+	switch txStatus {
+	case chainntnfs.TxFoundManually:
+	default:
+		t.Fatal("should have found the transaction by manually " +
+			"scanning the chain, but did not")
+	}
+}
diff --git a/chainntnfs/btcdnotify/btcd.go b/chainntnfs/btcdnotify/btcd.go
index 22febdd2d..157c6c732 100644
--- a/chainntnfs/btcdnotify/btcd.go
+++ b/chainntnfs/btcdnotify/btcd.go
@@ -3,6 +3,7 @@ package btcdnotify
 import (
 	"errors"
 	"fmt"
+	"strings"
 	"sync"
 	"sync/atomic"
 	"time"
@@ -337,7 +338,7 @@ out:
 				go func() {
 					defer b.wg.Done()
 
-					confDetails, err := b.historicalConfDetails(
+					confDetails, _, err := b.historicalConfDetails(
 						msg.TxID, msg.heightHint,
 						bestHeight,
 					)
@@ -516,50 +517,76 @@ out:
 // historicalConfDetails looks up whether a transaction is already included in a
 // block in the active chain and, if so, returns details about the confirmation.
 func (b *BtcdNotifier) historicalConfDetails(txid *chainhash.Hash,
-	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation, error) {
+	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation,
+	chainntnfs.TxConfStatus, error) {
 
-	// First, we'll attempt to retrieve the transaction details using the
-	// backend node's transaction index.
-	txConf, err := b.confDetailsFromTxIndex(txid)
-	if err != nil {
-		return nil, err
+	// We'll first attempt to retrieve the transaction using the node's
+	// txindex.
+	txConf, txStatus, err := b.confDetailsFromTxIndex(txid)
+
+	// We'll then check the status of the transaction lookup returned to
+	// determine whether we should proceed with any fallback methods.
+	switch {
+
+	// We failed querying the index for the transaction, fall back to
+	// scanning manually.
+	case err != nil:
+		chainntnfs.Log.Debugf("Failed getting conf details from "+
+			"index (%v), scanning manually", err)
+		return b.confDetailsManually(txid, heightHint, currentHeight)
+
+	// The transaction was found within the node's mempool.
+	case txStatus == chainntnfs.TxFoundMempool:
+
+	// The transaction was found within the node's txindex.
+	case txStatus == chainntnfs.TxFoundIndex:
+
+	// The transaction was not found within the node's mempool or txindex.
+	case txStatus == chainntnfs.TxNotFoundIndex:
+
+	// Unexpected txStatus returned.
+	default:
+		return nil, txStatus,
+			fmt.Errorf("Got unexpected txConfStatus: %v", txStatus)
 	}
 
-	if txConf != nil {
-		return txConf, nil
-	}
-
-	// If the backend node's transaction index is not enabled, then we'll
-	// fall back to manually scanning the chain's blocks, looking for the
-	// block where the transaction was included in.
-	return b.confDetailsManually(txid, heightHint, currentHeight)
+	return txConf, txStatus, nil
 }
 
-// confDetailsFromTxIndex looks up whether a transaction is already included
-// in a block in the active chain by using the backend node's transaction index.
-// If the transaction is found, its confirmation details are returned.
-// Otherwise, nil is returned.
+// confDetailsFromTxIndex looks up whether a transaction is already included in
+// a block in the active chain by using the backend node's transaction index.
+// If the transaction is found its TxConfStatus is returned. If it was found in
+// the mempool this will be TxFoundMempool, if it is found in a block this will
+// be TxFoundIndex. Otherwise TxNotFoundIndex is returned. If the tx is found
+// in a block its confirmation details are also returned.
 func (b *BtcdNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
-) (*chainntnfs.TxConfirmation, error) {
+) (*chainntnfs.TxConfirmation, chainntnfs.TxConfStatus, error) {
 
 	// If the transaction has some or all of its confirmations required,
 	// then we may be able to dispatch it immediately.
 	tx, err := b.chainConn.GetRawTransactionVerbose(txid)
 	if err != nil {
-		// Avoid returning an error if the transaction index is not
-		// enabled to proceed with fallback methods.
+		// If the transaction lookup was succesful, but it wasn't found
+		// within the index itself, then we can exit early. We'll also
+		// need to look at the error message returned as the error code
+		// is used for multiple errors.
+		txNotFoundErr := "No information available about transaction"
 		jsonErr, ok := err.(*btcjson.RPCError)
-		if !ok || jsonErr.Code != btcjson.ErrRPCNoTxInfo {
-			return nil, fmt.Errorf("unable to query for txid "+
-				"%v: %v", txid, err)
+		if ok && jsonErr.Code == btcjson.ErrRPCNoTxInfo &&
+			strings.Contains(jsonErr.Message, txNotFoundErr) {
+
+			return nil, chainntnfs.TxNotFoundIndex, nil
 		}
+
+		return nil, chainntnfs.TxNotFoundIndex,
+			fmt.Errorf("unable to query for txid %v: %v", txid, err)
 	}
 
 	// Make sure we actually retrieved a transaction that is included in a
-	// block. Without this, we won't be able to retrieve its confirmation
-	// details.
-	if tx == nil || tx.BlockHash == "" {
-		return nil, nil
+	// block. If not, the transaction must be unconfirmed (in the mempool),
+	// and we'll return TxFoundMempool together with a nil TxConfirmation.
+	if tx.BlockHash == "" {
+		return nil, chainntnfs.TxFoundMempool, nil
 	}
 
 	// As we need to fully populate the returned TxConfirmation struct,
@@ -567,14 +594,16 @@ func (b *BtcdNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
 	// locate its exact index within the block.
 	blockHash, err := chainhash.NewHashFromStr(tx.BlockHash)
 	if err != nil {
-		return nil, fmt.Errorf("unable to get block hash %v for "+
-			"historical dispatch: %v", tx.BlockHash, err)
+		return nil, chainntnfs.TxNotFoundIndex,
+			fmt.Errorf("unable to get block hash %v for "+
+				"historical dispatch: %v", tx.BlockHash, err)
 	}
 
 	block, err := b.chainConn.GetBlockVerbose(blockHash)
 	if err != nil {
-		return nil, fmt.Errorf("unable to get block with hash %v for "+
-			"historical dispatch: %v", blockHash, err)
+		return nil, chainntnfs.TxNotFoundIndex,
+			fmt.Errorf("unable to get block with hash %v for "+
+				"historical dispatch: %v", blockHash, err)
 	}
 
 	// If the block was obtained, locate the transaction's index within the
@@ -582,18 +611,20 @@ func (b *BtcdNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
 	targetTxidStr := txid.String()
 	for txIndex, txHash := range block.Tx {
 		if txHash == targetTxidStr {
-			return &chainntnfs.TxConfirmation{
+			details := &chainntnfs.TxConfirmation{
 				BlockHash:   blockHash,
 				BlockHeight: uint32(block.Height),
 				TxIndex:     uint32(txIndex),
-			}, nil
+			}
+			return details, chainntnfs.TxFoundIndex, nil
 		}
 	}
 
 	// We return an error because we should have found the transaction
 	// within the block, but didn't.
-	return nil, fmt.Errorf("unable to locate tx %v in block %v", txid,
-		blockHash)
+	return nil, chainntnfs.TxNotFoundIndex,
+		fmt.Errorf("unable to locate tx %v in block %v", txid,
+			blockHash)
 }
 
 // confDetailsManually looks up whether a transaction is already included in a
@@ -601,8 +632,9 @@ func (b *BtcdNotifier) confDetailsFromTxIndex(txid *chainhash.Hash,
 // earliest height the transaction could have been included in, to the current
 // height in the chain. If the transaction is found, its confirmation details
 // are returned. Otherwise, nil is returned.
-func (b *BtcdNotifier) confDetailsManually(txid *chainhash.Hash,
-	heightHint, currentHeight uint32) (*chainntnfs.TxConfirmation, error) {
+func (b *BtcdNotifier) confDetailsManually(txid *chainhash.Hash, heightHint,
+	currentHeight uint32) (*chainntnfs.TxConfirmation,
+	chainntnfs.TxConfStatus, error) {
 
 	targetTxidStr := txid.String()
 
@@ -613,39 +645,43 @@ func (b *BtcdNotifier) confDetailsManually(txid *chainhash.Hash,
 		// processing the next height.
 		select {
 		case <-b.quit:
-			return nil, ErrChainNotifierShuttingDown
+			return nil, chainntnfs.TxNotFoundManually,
+				ErrChainNotifierShuttingDown
 		default:
 		}
 
 		blockHash, err := b.chainConn.GetBlockHash(int64(height))
 		if err != nil {
-			return nil, fmt.Errorf("unable to get hash from block "+
-				"with height %d", height)
+			return nil, chainntnfs.TxNotFoundManually,
+				fmt.Errorf("unable to get hash from block "+
+					"with height %d", height)
 		}
 
 		// TODO: fetch the neutrino filters instead.
 		block, err := b.chainConn.GetBlockVerbose(blockHash)
 		if err != nil {
-			return nil, fmt.Errorf("unable to get block with hash "+
-				"%v: %v", blockHash, err)
+			return nil, chainntnfs.TxNotFoundManually,
+				fmt.Errorf("unable to get block with hash "+
+					"%v: %v", blockHash, err)
 		}
 
 		for txIndex, txHash := range block.Tx {
 			// If we're able to find the transaction in this block,
 			// return its confirmation details.
 			if txHash == targetTxidStr {
-				return &chainntnfs.TxConfirmation{
+				details := &chainntnfs.TxConfirmation{
 					BlockHash:   blockHash,
 					BlockHeight: height,
 					TxIndex:     uint32(txIndex),
-				}, nil
+				}
+				return details, chainntnfs.TxFoundManually, nil
 			}
 		}
 	}
 
 	// If we reach here, then we were not able to find the transaction
 	// within a block, so we avoid returning an error.
-	return nil, nil
+	return nil, chainntnfs.TxNotFoundManually, nil
 }
 
 // handleBlockConnected applies a chain update for a new block. Any watched
diff --git a/chainntnfs/btcdnotify/btcd_debug.go b/chainntnfs/btcdnotify/btcd_debug.go
index 47136f0b5..1c91d3f69 100644
--- a/chainntnfs/btcdnotify/btcd_debug.go
+++ b/chainntnfs/btcdnotify/btcd_debug.go
@@ -1,3 +1,5 @@
+// +build debug
+
 package btcdnotify
 
 import (
diff --git a/chainntnfs/btcdnotify/btcd_test.go b/chainntnfs/btcdnotify/btcd_test.go
new file mode 100644
index 000000000..34f53d5bd
--- /dev/null
+++ b/chainntnfs/btcdnotify/btcd_test.go
@@ -0,0 +1,204 @@
+// +build debug
+
+package btcdnotify
+
+import (
+	"io/ioutil"
+	"testing"
+
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/btcsuite/btcd/integration/rpctest"
+	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/channeldb"
+)
+
+func initHintCache(t *testing.T) *chainntnfs.HeightHintCache {
+	t.Helper()
+
+	tempDir, err := ioutil.TempDir("", "kek")
+	if err != nil {
+		t.Fatalf("unable to create temp dir: %v", err)
+	}
+	db, err := channeldb.Open(tempDir)
+	if err != nil {
+		t.Fatalf("unable to create db: %v", err)
+	}
+	hintCache, err := chainntnfs.NewHeightHintCache(db)
+	if err != nil {
+		t.Fatalf("unable to create hint cache: %v", err)
+	}
+
+	return hintCache
+}
+
+// setUpNotifier is a helper function to start a new notifier backed by a btcd
+// driver.
+func setUpNotifier(t *testing.T, h *rpctest.Harness) *BtcdNotifier {
+	hintCache := initHintCache(t)
+
+	rpcCfg := h.RPCConfig()
+	notifier, err := New(&rpcCfg, hintCache, hintCache)
+	if err != nil {
+		t.Fatalf("unable to create notifier: %v", err)
+	}
+	if err := notifier.Start(); err != nil {
+		t.Fatalf("unable to start notifier: %v", err)
+	}
+
+	return notifier
+}
+
+// TestHistoricalConfDetailsTxIndex ensures that we correctly retrieve
+// historical confirmation details using the backend node's txindex.
+func TestHistoricalConfDetailsTxIndex(t *testing.T) {
+	t.Parallel()
+
+	harness, tearDown := chainntnfs.NewMiner(
+		t, []string{"--txindex"}, true, 25,
+	)
+	defer tearDown()
+
+	notifier := setUpNotifier(t, harness)
+	defer notifier.Stop()
+
+	// A transaction unknown to the node should not be found within the
+	// txindex even if it is enabled, so we should not proceed with any
+	// fallback methods.
+	var zeroHash chainhash.Hash
+	_, txStatus, err := notifier.historicalConfDetails(&zeroHash, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	switch txStatus {
+	case chainntnfs.TxNotFoundIndex:
+	case chainntnfs.TxNotFoundManually:
+		t.Fatal("should not have proceeded with fallback method, but did")
+	default:
+		t.Fatal("should not have found non-existent transaction, but did")
+	}
+
+	// Now, we'll create a test transaction and attempt to retrieve its
+	// confirmation details.
+	txid, _, err := chainntnfs.GetTestTxidAndScript(harness)
+	if err != nil {
+		t.Fatalf("unable to create tx: %v", err)
+	}
+	if err := chainntnfs.WaitForMempoolTx(harness, txid); err != nil {
+		t.Fatalf("unable to find tx in the mempool: %v", err)
+	}
+
+	// The transaction should be found in the mempool at this point.
+	_, txStatus, err = notifier.historicalConfDetails(txid, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since it has yet to be included in a block, it should have been found
+	// within the mempool.
+	switch txStatus {
+	case chainntnfs.TxFoundMempool:
+	default:
+		t.Fatalf("should have found the transaction within the "+
+			"mempool, but did not: %v", txStatus)
+	}
+
+	// We'll now confirm this transaction and re-attempt to retrieve its
+	// confirmation details.
+	if _, err := harness.Node.Generate(1); err != nil {
+		t.Fatalf("unable to generate block: %v", err)
+	}
+
+	_, txStatus, err = notifier.historicalConfDetails(txid, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since the backend node's txindex is enabled and the transaction has
+	// confirmed, we should be able to retrieve it using the txindex.
+	switch txStatus {
+	case chainntnfs.TxFoundIndex:
+	default:
+		t.Fatal("should have found the transaction within the " +
+			"txindex, but did not")
+	}
+}
+
+// TestHistoricalConfDetailsNoTxIndex ensures that we correctly retrieve
+// historical confirmation details using the set of fallback methods when the
+// backend node's txindex is disabled.
+func TestHistoricalConfDetailsNoTxIndex(t *testing.T) {
+	t.Parallel()
+
+	harness, tearDown := chainntnfs.NewMiner(t, nil, true, 25)
+	defer tearDown()
+
+	notifier := setUpNotifier(t, harness)
+	defer notifier.Stop()
+
+	// Since the node has its txindex disabled, we fall back to scanning the
+	// chain manually. A transaction unknown to the network should not be
+	// found.
+	var zeroHash chainhash.Hash
+	_, txStatus, err := notifier.historicalConfDetails(&zeroHash, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	switch txStatus {
+	case chainntnfs.TxNotFoundManually:
+	case chainntnfs.TxNotFoundIndex:
+		t.Fatal("should have proceeded with fallback method, but did not")
+	default:
+		t.Fatal("should not have found non-existent transaction, but did")
+	}
+
+	// Now, we'll create a test transaction and attempt to retrieve its
+	// confirmation details. We'll note its broadcast height to use as the
+	// height hint when manually scanning the chain.
+	_, currentHeight, err := harness.Node.GetBestBlock()
+	if err != nil {
+		t.Fatalf("unable to retrieve current height: %v", err)
+	}
+
+	txid, _, err := chainntnfs.GetTestTxidAndScript(harness)
+	if err != nil {
+		t.Fatalf("unable to create tx: %v", err)
+	}
+	if err := chainntnfs.WaitForMempoolTx(harness, txid); err != nil {
+		t.Fatalf("unable to find tx in the mempool: %v", err)
+	}
+
+	_, txStatus, err = notifier.historicalConfDetails(txid, 0, 0)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since it has yet to be included in a block, it should have been found
+	// within the mempool.
+	if txStatus != chainntnfs.TxFoundMempool {
+		t.Fatal("should have found the transaction within the " +
+			"mempool, but did not")
+	}
+
+	// We'll now confirm this transaction and re-attempt to retrieve its
+	// confirmation details.
+	if _, err := harness.Node.Generate(1); err != nil {
+		t.Fatalf("unable to generate block: %v", err)
+	}
+
+	_, txStatus, err = notifier.historicalConfDetails(
+		txid, uint32(currentHeight), uint32(currentHeight)+1,
+	)
+	if err != nil {
+		t.Fatalf("unable to retrieve historical conf details: %v", err)
+	}
+
+	// Since the backend node's txindex is disabled and the transaction has
+	// confirmed, we should be able to find it by falling back to scanning
+	// the chain manually.
+	if txStatus != chainntnfs.TxFoundManually {
+		t.Fatal("should have found the transaction by manually " +
+			"scanning the chain, but did not")
+	}
+}
diff --git a/chainntnfs/interface.go b/chainntnfs/interface.go
index 7c7a2ec6b..9b8786693 100644
--- a/chainntnfs/interface.go
+++ b/chainntnfs/interface.go
@@ -9,6 +9,54 @@ import (
 	"github.com/btcsuite/btcd/wire"
 )
 
+// TxConfStatus denotes the status of a transaction's lookup.
+type TxConfStatus uint8
+
+const (
+	// TxFoundMempool denotes that the transaction was found within the
+	// backend node's mempool.
+	TxFoundMempool TxConfStatus = iota
+
+	// TxFoundIndex denotes that the transaction was found within the
+	// backend node's txindex.
+	TxFoundIndex
+
+	// TxNotFoundIndex denotes that the transaction was not found within the
+	// backend node's txindex.
+	TxNotFoundIndex
+
+	// TxFoundManually denotes that the transaction was found within the
+	// chain by scanning for it manually.
+	TxFoundManually
+
+	// TxNotFoundManually denotes that the transaction was not found within
+	// the chain by scanning for it manually.
+	TxNotFoundManually
+)
+
+// String returns the string representation of the TxConfStatus.
+func (t TxConfStatus) String() string {
+	switch t {
+	case TxFoundMempool:
+		return "TxFoundMempool"
+
+	case TxFoundIndex:
+		return "TxFoundIndex"
+
+	case TxNotFoundIndex:
+		return "TxNotFoundIndex"
+
+	case TxFoundManually:
+		return "TxFoundManually"
+
+	case TxNotFoundManually:
+		return "TxNotFoundManually"
+
+	default:
+		return "unknown"
+	}
+}
+
 // ChainNotifier represents a trusted source to receive notifications concerning
 // targeted events on the Bitcoin blockchain. The interface specification is
 // intentionally general in order to support a wide array of chain notification
diff --git a/chainntnfs/interface_debug.go b/chainntnfs/interface_debug.go
index f3e6eaf4a..aeb3461ba 100644
--- a/chainntnfs/interface_debug.go
+++ b/chainntnfs/interface_debug.go
@@ -1,3 +1,5 @@
+// +build debug
+
 package chainntnfs
 
 import "github.com/btcsuite/btcd/chaincfg/chainhash"
diff --git a/chainntnfs/interface_test.go b/chainntnfs/interface_test.go
index 242e9ed91..bdd4dca51 100644
--- a/chainntnfs/interface_test.go
+++ b/chainntnfs/interface_test.go
@@ -1,3 +1,5 @@
+// +build debug
+
 package chainntnfs_test
 
 import (
@@ -5,25 +7,15 @@ import (
 	"fmt"
 	"io/ioutil"
 	"log"
-	"math/rand"
-	"os"
-	"os/exec"
-	"path/filepath"
 	"sync"
 	"testing"
 	"time"
 
-	"github.com/btcsuite/btcd/btcec"
-	"github.com/btcsuite/btcd/btcjson"
-	"github.com/btcsuite/btcd/chaincfg"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/integration/rpctest"
 	"github.com/btcsuite/btcd/rpcclient"
-	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btcutil"
-	"github.com/btcsuite/btcwallet/chain"
-	"github.com/btcsuite/btcwallet/walletdb"
 	"github.com/lightninglabs/neutrino"
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/channeldb"
@@ -41,78 +33,10 @@ import (
 	"github.com/lightningnetwork/lnd/chainntnfs/neutrinonotify"
 
 	// Required to register the boltdb walletdb implementation.
+	"github.com/btcsuite/btcwallet/chain"
 	_ "github.com/btcsuite/btcwallet/walletdb/bdb"
 )
 
-var (
-	testPrivKey = []byte{
-		0x81, 0xb6, 0x37, 0xd8, 0xfc, 0xd2, 0xc6, 0xda,
-		0x63, 0x59, 0xe6, 0x96, 0x31, 0x13, 0xa1, 0x17,
-		0xd, 0xe7, 0x95, 0xe4, 0xb7, 0x25, 0xb8, 0x4d,
-		0x1e, 0xb, 0x4c, 0xfd, 0x9e, 0xc5, 0x8c, 0xe9,
-	}
-
-	netParams       = &chaincfg.RegressionNetParams
-	privKey, pubKey = btcec.PrivKeyFromBytes(btcec.S256(), testPrivKey)
-	addrPk, _       = btcutil.NewAddressPubKey(pubKey.SerializeCompressed(),
-		netParams)
-	testAddr = addrPk.AddressPubKeyHash()
-)
-
-func getTestTxIdAndScript(miner *rpctest.Harness) (*chainhash.Hash, []byte, error) {
-	script, err := txscript.PayToAddrScript(testAddr)
-	if err != nil {
-		return nil, nil, err
-	}
-
-	outputs := []*wire.TxOut{
-		{
-			Value:    2e8,
-			PkScript: script,
-		},
-	}
-
-	txid, err := miner.SendOutputs(outputs, 10)
-	if err != nil {
-		return nil, nil, err
-	}
-
-	return txid, script, nil
-}
-
-func waitForMempoolTx(r *rpctest.Harness, txid *chainhash.Hash) error {
-	var found bool
-	var tx *btcutil.Tx
-	var err error
-	timeout := time.After(10 * time.Second)
-	for !found {
-		// Do a short wait
-		select {
-		case <-timeout:
-			return fmt.Errorf("timeout after 10s")
-		default:
-		}
-		time.Sleep(100 * time.Millisecond)
-
-		// Check for the harness' knowledge of the txid
-		tx, err = r.Node.GetRawTransaction(txid)
-		if err != nil {
-			switch e := err.(type) {
-			case *btcjson.RPCError:
-				if e.Code == btcjson.ErrRPCNoTxInfo {
-					continue
-				}
-			default:
-			}
-			return err
-		}
-		if tx != nil && tx.MsgTx().TxHash() == *txid {
-			found = true
-		}
-	}
-	return nil
-}
-
 func testSingleConfirmationNotification(miner *rpctest.Harness,
 	notifier chainntnfs.TestChainNotifier, t *testing.T) {
 
@@ -122,14 +46,11 @@ func testSingleConfirmationNotification(miner *rpctest.Harness,
 	// So 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, pkScript, err := getTestTxIdAndScript(miner)
+	txid, pkScript, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -192,13 +113,11 @@ func testMultiConfirmationNotification(miner *rpctest.Harness,
 	//
 	// Again, we'll begin by creating a fresh transaction, so we can obtain
 	// a fresh txid.
-	txid, pkScript, err := getTestTxIdAndScript(miner)
+	txid, pkScript, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test addr: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -251,7 +170,7 @@ func testBatchConfirmationNotification(miner *rpctest.Harness,
 	// verify they're each notified at the proper number of confirmations
 	// below.
 	for i, numConfs := range confSpread {
-		txid, pkScript, err := getTestTxIdAndScript(miner)
+		txid, pkScript, err := chainntnfs.GetTestTxidAndScript(miner)
 		if err != nil {
 			t.Fatalf("unable to create test addr: %v", err)
 		}
@@ -262,8 +181,7 @@ func testBatchConfirmationNotification(miner *rpctest.Harness,
 			t.Fatalf("unable to register ntfn: %v", err)
 		}
 		confIntents[i] = confIntent
-		err = waitForMempoolTx(miner, txid)
-		if err != nil {
+		if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 			t.Fatalf("tx not relayed to miner: %v", err)
 		}
 
@@ -310,70 +228,6 @@ func testBatchConfirmationNotification(miner *rpctest.Harness,
 	}
 }
 
-func createSpendableOutput(miner *rpctest.Harness,
-	t *testing.T) (*wire.OutPoint, []byte) {
-
-	txid, _, err := getTestTxIdAndScript(miner)
-	if err != nil {
-		t.Fatalf("unable to create test addr: %v", err)
-	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
-		t.Fatalf("tx not relayed to miner: %v", err)
-	}
-
-	// Mine a single block which should include that txid above.
-	if _, err := miner.Node.Generate(1); err != nil {
-		t.Fatalf("unable to generate single block: %v", err)
-	}
-
-	// Now that we have the txid, fetch the transaction itself.
-	wrappedTx, err := miner.Node.GetRawTransaction(txid)
-	if err != nil {
-		t.Fatalf("unable to get new tx: %v", err)
-	}
-	tx := wrappedTx.MsgTx()
-
-	// 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 {
-		if bytes.Contains(txOut.PkScript, testAddr.ScriptAddress()) {
-			pkScript = txOut.PkScript
-			outIndex = i
-			break
-		}
-	}
-	if outIndex == -1 {
-		t.Fatalf("unable to locate new output")
-	}
-
-	return wire.NewOutPoint(txid, uint32(outIndex)), pkScript
-}
-
-func createSpendTx(outpoint *wire.OutPoint, pkScript []byte,
-	t *testing.T) *wire.MsgTx {
-
-	spendingTx := wire.NewMsgTx(1)
-	spendingTx.AddTxIn(&wire.TxIn{
-		PreviousOutPoint: *outpoint,
-	})
-	spendingTx.AddTxOut(&wire.TxOut{
-		Value:    1e8,
-		PkScript: pkScript,
-	})
-	sigScript, err := txscript.SignatureScript(spendingTx, 0, pkScript,
-		txscript.SigHashAll, privKey, true)
-	if err != nil {
-		t.Fatalf("unable to sign tx: %v", err)
-	}
-	spendingTx.TxIn[0].SignatureScript = sigScript
-
-	return spendingTx
-}
-
 func checkNotificationFields(ntfn *chainntnfs.SpendDetail,
 	outpoint *wire.OutPoint, spenderSha *chainhash.Hash,
 	height int32, t *testing.T) {
@@ -407,7 +261,7 @@ func testSpendNotification(miner *rpctest.Harness,
 	// concrete implementations.
 	//
 	// To do so, we first create a new output to our test target address.
-	outpoint, pkScript := createSpendableOutput(miner, t)
+	outpoint, pkScript := chainntnfs.CreateSpendableOutput(t, miner)
 
 	_, currentHeight, err := miner.Node.GetBestBlock()
 	if err != nil {
@@ -432,7 +286,7 @@ func testSpendNotification(miner *rpctest.Harness,
 	}
 
 	// Next, create a new transaction spending that output.
-	spendingTx := createSpendTx(outpoint, pkScript, t)
+	spendingTx := chainntnfs.CreateSpendTx(t, outpoint, pkScript)
 
 	// Broadcast our spending transaction.
 	spenderSha, err := miner.Node.SendRawTransaction(spendingTx, true)
@@ -440,8 +294,7 @@ func testSpendNotification(miner *rpctest.Harness,
 		t.Fatalf("unable to broadcast tx: %v", err)
 	}
 
-	err = waitForMempoolTx(miner, spenderSha)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, spenderSha); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -565,14 +418,11 @@ func testMultiClientConfirmationNotification(miner *rpctest.Harness,
 
 	// We'd like to test the case of a multiple clients registered to
 	// receive a confirmation notification for the same transaction.
-
-	txid, pkScript, err := getTestTxIdAndScript(miner)
+	txid, pkScript, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -632,14 +482,11 @@ func testTxConfirmedBeforeNtfnRegistration(miner *rpctest.Harness,
 	// 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.
-
-	txid3, pkScript3, err := getTestTxIdAndScript(miner)
+	txid3, pkScript3, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid3)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid3); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -653,23 +500,19 @@ func testTxConfirmedBeforeNtfnRegistration(miner *rpctest.Harness,
 		t.Fatalf("unable to generate block: %v", err)
 	}
 
-	txid1, pkScript1, err := getTestTxIdAndScript(miner)
+	txid1, pkScript1, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid1)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid1); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
-	txid2, pkScript2, err := getTestTxIdAndScript(miner)
+	txid2, pkScript2, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid2)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid2); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -791,13 +634,11 @@ func testLazyNtfnConsumer(miner *rpctest.Harness,
 
 	// Create a transaction to be notified about. We'll register for
 	// notifications on this transaction but won't be prompt in checking them
-	txid, pkScript, err := getTestTxIdAndScript(miner)
+	txid, pkScript, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -829,13 +670,11 @@ func testLazyNtfnConsumer(miner *rpctest.Harness,
 	// Now make another transaction, just because we haven't checked to see
 	// if the first transaction has confirmed doesn't mean that we shouldn't
 	// be able to see if this transaction confirms first
-	txid, pkScript, err = getTestTxIdAndScript(miner)
+	txid, pkScript, err = chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -884,16 +723,15 @@ func testSpendBeforeNtfnRegistration(miner *rpctest.Harness,
 	// concrete implementations.
 	//
 	// To do so, we first create a new output to our test target address.
-	outpoint, pkScript := createSpendableOutput(miner, t)
+	outpoint, pkScript := chainntnfs.CreateSpendableOutput(t, miner)
 
 	// We'll then spend this output and broadcast the spend transaction.
-	spendingTx := createSpendTx(outpoint, pkScript, t)
+	spendingTx := chainntnfs.CreateSpendTx(t, outpoint, pkScript)
 	spenderSha, err := miner.Node.SendRawTransaction(spendingTx, true)
 	if err != nil {
 		t.Fatalf("unable to broadcast tx: %v", err)
 	}
-	err = waitForMempoolTx(miner, spenderSha)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, spenderSha); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -989,7 +827,7 @@ func testCancelSpendNtfn(node *rpctest.Harness,
 
 	// First, we'll start by creating a new output that we can spend
 	// ourselves.
-	outpoint, pkScript := createSpendableOutput(node, t)
+	outpoint, pkScript := chainntnfs.CreateSpendableOutput(t, node)
 
 	_, currentHeight, err := node.Node.GetBestBlock()
 	if err != nil {
@@ -1013,7 +851,7 @@ func testCancelSpendNtfn(node *rpctest.Harness,
 	}
 
 	// Next, create a new transaction spending that output.
-	spendingTx := createSpendTx(outpoint, pkScript, t)
+	spendingTx := chainntnfs.CreateSpendTx(t, outpoint, pkScript)
 
 	// Before we broadcast the spending transaction, we'll cancel the
 	// notification of the first client.
@@ -1025,8 +863,7 @@ func testCancelSpendNtfn(node *rpctest.Harness,
 		t.Fatalf("unable to broadcast tx: %v", err)
 	}
 
-	err = waitForMempoolTx(node, spenderSha)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(node, spenderSha); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -1127,7 +964,7 @@ func testReorgConf(miner *rpctest.Harness, notifier chainntnfs.TestChainNotifier
 	t *testing.T) {
 
 	// Set up a new miner that we can use to cause a reorg.
-	miner2, err := rpctest.New(netParams, nil, nil)
+	miner2, err := rpctest.New(chainntnfs.NetParams, nil, []string{"--txindex"})
 	if err != nil {
 		t.Fatalf("unable to create mining node: %v", err)
 	}
@@ -1169,13 +1006,11 @@ func testReorgConf(miner *rpctest.Harness, notifier chainntnfs.TestChainNotifier
 		t.Fatalf("unable to remove node: %v", err)
 	}
 
-	txid, pkScript, err := getTestTxIdAndScript(miner)
+	txid, pkScript, err := chainntnfs.GetTestTxidAndScript(miner)
 	if err != nil {
 		t.Fatalf("unable to create test tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -1257,9 +1092,7 @@ func testReorgConf(miner *rpctest.Harness, notifier chainntnfs.TestChainNotifier
 	if err != nil {
 		t.Fatalf("unable to get send tx: %v", err)
 	}
-
-	err = waitForMempoolTx(miner, txid)
-	if err != nil {
+	if err := chainntnfs.WaitForMempoolTx(miner, txid); err != nil {
 		t.Fatalf("tx not relayed to miner: %v", err)
 	}
 
@@ -1470,7 +1303,7 @@ func testCatchUpOnMissedBlocksWithReorg(miner1 *rpctest.Harness,
 	var wg sync.WaitGroup
 
 	// Set up a new miner that we can use to cause a reorg.
-	miner2, err := rpctest.New(netParams, nil, nil)
+	miner2, err := rpctest.New(chainntnfs.NetParams, nil, []string{"--txindex"})
 	if err != nil {
 		t.Fatalf("unable to create mining node: %v", err)
 	}
@@ -1629,13 +1462,12 @@ func testCatchUpOnMissedBlocksWithReorg(miner1 *rpctest.Harness,
 
 type testCase struct {
 	name string
-
-	test func(node *rpctest.Harness, notifier chainntnfs.TestChainNotifier, t *testing.T)
+	test func(node *rpctest.Harness, notifier chainntnfs.TestChainNotifier,
+		t *testing.T)
 }
 
 type blockCatchupTestCase struct {
 	name string
-
 	test func(node *rpctest.Harness, notifier chainntnfs.TestChainNotifier,
 		t *testing.T)
 }
@@ -1722,25 +1554,14 @@ func TestInterfaces(t *testing.T) {
 	// dedicated miner to generate blocks, cause re-orgs, etc. We'll set up
 	// this node with a chain length of 125, so we have plenty of BTC to
 	// play around with.
-	miner, err := rpctest.New(netParams, nil, nil)
-	if err != nil {
-		t.Fatalf("unable to create mining node: %v", err)
-	}
-	defer miner.TearDown()
-	if err := miner.SetUp(true, 25); err != nil {
-		t.Fatalf("unable to set up mining node: %v", err)
-	}
+	miner, tearDown := chainntnfs.NewMiner(t, nil, true, 25)
+	defer tearDown()
 
 	rpcConfig := miner.RPCConfig()
 	p2pAddr := miner.P2PAddress()
 
-	log.Printf("Running %v ChainNotifier interface tests\n", len(ntfnTests))
-	var (
-		notifier chainntnfs.TestChainNotifier
-		cleanUp  func()
+	log.Printf("Running %v ChainNotifier interface tests", len(ntfnTests))
 
-		newNotifier func() (chainntnfs.TestChainNotifier, error)
-	)
 	for _, notifierDriver := range chainntnfs.RegisteredNotifiers() {
 		// Initialize a height hint cache for each notifier.
 		tempDir, err := ioutil.TempDir("", "channeldb")
@@ -1756,72 +1577,21 @@ func TestInterfaces(t *testing.T) {
 			t.Fatalf("unable to create height hint cache: %v", err)
 		}
 
-		notifierType := notifierDriver.NotifierType
+		var (
+			cleanUp      func()
+			newNotifier  func() (chainntnfs.TestChainNotifier, error)
+			notifierType = notifierDriver.NotifierType
+		)
+
 		switch notifierType {
 		case "bitcoind":
-			// Start a bitcoind instance.
-			tempBitcoindDir, err := ioutil.TempDir("", "bitcoind")
-			if err != nil {
-				t.Fatalf("Unable to create temp dir: %v", err)
-			}
-			zmqBlockHost := "ipc:///" + tempBitcoindDir + "/blocks.socket"
-			zmqTxHost := "ipc:///" + tempBitcoindDir + "/tx.socket"
-			cleanUp1 := func() {
-				os.RemoveAll(tempBitcoindDir)
-			}
-			cleanUp = cleanUp1
-			rpcPort := rand.Int()%(65536-1024) + 1024
-			bitcoind := exec.Command(
-				"bitcoind",
-				"-datadir="+tempBitcoindDir,
-				"-regtest",
-				"-connect="+p2pAddr,
-				"-txindex",
-				"-rpcauth=weks:469e9bb14ab2360f8e226efed5ca6f"+
-					"d$507c670e800a95284294edb5773b05544b"+
-					"220110063096c221be9933c82d38e1",
-				fmt.Sprintf("-rpcport=%d", rpcPort),
-				"-disablewallet",
-				"-zmqpubrawblock="+zmqBlockHost,
-				"-zmqpubrawtx="+zmqTxHost,
+			var bitcoindConn *chain.BitcoindConn
+			bitcoindConn, cleanUp = chainntnfs.NewBitcoindBackend(
+				t, p2pAddr, true,
 			)
-			err = bitcoind.Start()
-			if err != nil {
-				cleanUp1()
-				t.Fatalf("Couldn't start bitcoind: %v", err)
-			}
-			cleanUp2 := func() {
-				bitcoind.Process.Kill()
-				bitcoind.Wait()
-				cleanUp1()
-			}
-			cleanUp = cleanUp2
-
-			// Wait for the bitcoind instance to start up.
-			time.Sleep(time.Second)
-
-			host := fmt.Sprintf("127.0.0.1:%d", rpcPort)
-			chainConn, err := chain.NewBitcoindConn(
-				netParams, host, "weks", "weks", zmqBlockHost,
-				zmqTxHost, 100*time.Millisecond,
-			)
-			if err != nil {
-				t.Fatalf("unable to establish connection to "+
-					"bitcoind: %v", err)
-			}
-			if err := chainConn.Start(); err != nil {
-				t.Fatalf("unable to establish connection to "+
-					"bitcoind: %v", err)
-			}
-			cleanUp3 := func() {
-				chainConn.Stop()
-				cleanUp2()
-			}
-			cleanUp = cleanUp3
-
 			newNotifier = func() (chainntnfs.TestChainNotifier, error) {
 				return bitcoindnotify.New(
-					chainConn, hintCache, hintCache,
+					bitcoindConn, hintCache, hintCache,
 				), nil
 			}
 
@@ -1832,45 +1602,11 @@ func TestInterfaces(t *testing.T) {
 				)
 			}
 
-			cleanUp = func() {}
-
 		case "neutrino":
-			spvDir, err := ioutil.TempDir("", "neutrino")
-			if err != nil {
-				t.Fatalf("unable to create temp dir: %v", err)
-			}
-
-			dbName := filepath.Join(spvDir, "neutrino.db")
-			spvDatabase, err := walletdb.Create("bdb", dbName)
-			if err != nil {
-				t.Fatalf("unable to create walletdb: %v", err)
-			}
-
-			// Create an instance of neutrino connected to the
-			// running btcd instance.
-			spvConfig := neutrino.Config{
-				DataDir:      spvDir,
-				Database:     spvDatabase,
-				ChainParams:  *netParams,
-				ConnectPeers: []string{p2pAddr},
-			}
-			spvNode, err := neutrino.NewChainService(spvConfig)
-			if err != nil {
-				t.Fatalf("unable to create neutrino: %v", err)
-			}
-			spvNode.Start()
-
-			cleanUp = func() {
-				spvNode.Stop()
-				spvDatabase.Close()
-				os.RemoveAll(spvDir)
-			}
-
-			// We'll also wait for the instance to sync up fully to
-			// the chain generated by the btcd instance.
-			for !spvNode.IsCurrent() {
-				time.Sleep(time.Millisecond * 100)
-			}
+			var spvNode *neutrino.ChainService
+			spvNode, cleanUp = chainntnfs.NewNeutrinoBackend(
+				t, p2pAddr,
+			)
 			newNotifier = func() (chainntnfs.TestChainNotifier, error) {
 				return neutrinonotify.New(
 					spvNode, hintCache, hintCache,
@@ -1878,13 +1614,14 @@ func TestInterfaces(t *testing.T) {
 			}
 		}
 
-		t.Logf("Running ChainNotifier interface tests for: %v", notifierType)
+		log.Printf("Running ChainNotifier interface tests for: %v",
+			notifierType)
 
-		notifier, err = newNotifier()
+		notifier, err := newNotifier()
 		if err != nil {
-			t.Fatalf("unable to create %v notifier: %v", notifierType, err)
+			t.Fatalf("unable to create %v notifier: %v",
+				notifierType, err)
 		}
-
 		if err := notifier.Start(); err != nil {
 			t.Fatalf("unable to start notifier %v: %v",
 				notifierType, err)
@@ -1897,7 +1634,6 @@ func TestInterfaces(t *testing.T) {
 			success := t.Run(testName, func(t *testing.T) {
 				ntfnTest.test(miner, notifier, t)
 			})
-
 			if !success {
 				break
 			}
@@ -1905,8 +1641,8 @@ func TestInterfaces(t *testing.T) {
 
 		notifier.Stop()
 
-		// Run catchup tests separately since they require
-		// restarting the notifier every time.
+		// Run catchup tests separately since they require restarting
+		// the notifier every time.
 		for _, blockCatchupTest := range blockCatchupTests {
 			notifier, err = newNotifier()
 			if err != nil {
@@ -1931,6 +1667,5 @@ func TestInterfaces(t *testing.T) {
 		if cleanUp != nil {
 			cleanUp()
 		}
-		cleanUp = nil
 	}
 }
diff --git a/chainntnfs/neutrinonotify/neutrino.go b/chainntnfs/neutrinonotify/neutrino.go
index 5fb4d2a3f..a0e999d08 100644
--- a/chainntnfs/neutrinonotify/neutrino.go
+++ b/chainntnfs/neutrinonotify/neutrino.go
@@ -577,7 +577,7 @@ func (n *NeutrinoNotifier) historicalConfDetails(targetHash *chainhash.Hash,
 		// In the case that we do have a match, we'll fetch the block
 		// from the network so we can find the positional data required
 		// to send the proper response.
-		block, err := n.p2pNode.GetBlockFromNetwork(blockHash)
+		block, err := n.p2pNode.GetBlock(blockHash)
 		if err != nil {
 			return nil, fmt.Errorf("unable to get block from network: %v", err)
 		}
@@ -686,7 +686,7 @@ func (n *NeutrinoNotifier) handleBlockConnected(newBlock *filteredBlock) error {
 
 // getFilteredBlock is a utility to retrieve the full filtered block from a block epoch.
 func (n *NeutrinoNotifier) getFilteredBlock(epoch chainntnfs.BlockEpoch) (*filteredBlock, error) {
-	rawBlock, err := n.p2pNode.GetBlockFromNetwork(*epoch.Hash)
+	rawBlock, err := n.p2pNode.GetBlock(*epoch.Hash)
 	if err != nil {
 		return nil, fmt.Errorf("unable to get block: %v", err)
 	}
diff --git a/chainntnfs/neutrinonotify/neutrino_debug.go b/chainntnfs/neutrinonotify/neutrino_debug.go
index ece4af276..19085c38c 100644
--- a/chainntnfs/neutrinonotify/neutrino_debug.go
+++ b/chainntnfs/neutrinonotify/neutrino_debug.go
@@ -1,3 +1,5 @@
+// +build debug
+
 package neutrinonotify
 
 import (
diff --git a/chainntnfs/test_utils.go b/chainntnfs/test_utils.go
new file mode 100644
index 000000000..44c844d09
--- /dev/null
+++ b/chainntnfs/test_utils.go
@@ -0,0 +1,290 @@
+// +build debug
+
+package chainntnfs
+
+import (
+	"errors"
+	"fmt"
+	"io/ioutil"
+	"math/rand"
+	"os"
+	"os/exec"
+	"path/filepath"
+	"testing"
+	"time"
+
+	"github.com/btcsuite/btcd/btcec"
+	"github.com/btcsuite/btcd/btcjson"
+	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/btcsuite/btcd/integration/rpctest"
+	"github.com/btcsuite/btcd/txscript"
+	"github.com/btcsuite/btcd/wire"
+	"github.com/btcsuite/btcutil"
+	"github.com/btcsuite/btcwallet/chain"
+	"github.com/btcsuite/btcwallet/walletdb"
+	"github.com/lightninglabs/neutrino"
+)
+
+var (
+	// trickleInterval is the interval at which the miner should trickle
+	// transactions to its peers. We'll set it small to ensure the miner
+	// propagates transactions quickly in the tests.
+	trickleInterval = 10 * time.Millisecond
+)
+
+var (
+	NetParams = &chaincfg.RegressionNetParams
+
+	testPrivKey = []byte{
+		0x81, 0xb6, 0x37, 0xd8, 0xfc, 0xd2, 0xc6, 0xda,
+		0x63, 0x59, 0xe6, 0x96, 0x31, 0x13, 0xa1, 0x17,
+		0xd, 0xe7, 0x95, 0xe4, 0xb7, 0x25, 0xb8, 0x4d,
+		0x1e, 0xb, 0x4c, 0xfd, 0x9e, 0xc5, 0x8c, 0xe9,
+	}
+	privKey, pubKey = btcec.PrivKeyFromBytes(btcec.S256(), testPrivKey)
+	addrPk, _       = btcutil.NewAddressPubKey(
+		pubKey.SerializeCompressed(), NetParams,
+	)
+	testAddr = addrPk.AddressPubKeyHash()
+)
+
+// GetTestTxidAndScript generate a new test transaction and returns its txid and
+// the script of the output being generated.
+func GetTestTxidAndScript(h *rpctest.Harness) (*chainhash.Hash, []byte, error) {
+	script, err := txscript.PayToAddrScript(testAddr)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	output := &wire.TxOut{Value: 2e8, PkScript: script}
+	txid, err := h.SendOutputs([]*wire.TxOut{output}, 10)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	return txid, script, nil
+}
+
+// WaitForMempoolTx waits for the txid to be seen in the miner's mempool.
+func WaitForMempoolTx(miner *rpctest.Harness, txid *chainhash.Hash) error {
+	timeout := time.After(10 * time.Second)
+	trickle := time.After(2 * trickleInterval)
+	for {
+		// Check for the harness' knowledge of the txid.
+		tx, err := miner.Node.GetRawTransaction(txid)
+		if err != nil {
+			jsonErr, ok := err.(*btcjson.RPCError)
+			if ok && jsonErr.Code == btcjson.ErrRPCNoTxInfo {
+				continue
+			}
+			return err
+		}
+
+		if tx != nil && tx.Hash().IsEqual(txid) {
+			break
+		}
+
+		select {
+		case <-time.After(100 * time.Millisecond):
+		case <-timeout:
+			return errors.New("timed out waiting for tx")
+		}
+	}
+
+	// To ensure any transactions propagate from the miner to the peers
+	// before returning, ensure we have waited for at least
+	// 2*trickleInterval before returning.
+	select {
+	case <-trickle:
+	case <-timeout:
+		return errors.New("timeout waiting for trickle interval. " +
+			"Trickle interval to large?")
+	}
+
+	return nil
+}
+
+// CreateSpendableOutput creates and returns an output that can be spent later
+// on.
+func CreateSpendableOutput(t *testing.T, miner *rpctest.Harness) (*wire.OutPoint, []byte) {
+	t.Helper()
+
+	// Create a transaction that only has one output, the one destined for
+	// the recipient.
+	script, err := txscript.PayToAddrScript(testAddr)
+	if err != nil {
+		t.Fatalf("unable to create p2pkh script: %v", err)
+	}
+	output := &wire.TxOut{Value: 2e8, PkScript: script}
+	txid, err := miner.SendOutputsWithoutChange([]*wire.TxOut{output}, 10)
+	if err != nil {
+		t.Fatalf("unable to create tx: %v", err)
+	}
+
+	// Mine the transaction to mark the output as spendable.
+	if err := WaitForMempoolTx(miner, txid); err != nil {
+		t.Fatalf("tx not relayed to miner: %v", err)
+	}
+	if _, err := miner.Node.Generate(1); err != nil {
+		t.Fatalf("unable to generate single block: %v", err)
+	}
+
+	return wire.NewOutPoint(txid, 0), script
+}
+
+// CreateSpendTx creates a transaction spending the specified output.
+func CreateSpendTx(t *testing.T, outpoint *wire.OutPoint, pkScript []byte) *wire.MsgTx {
+	t.Helper()
+
+	spendingTx := wire.NewMsgTx(1)
+	spendingTx.AddTxIn(&wire.TxIn{PreviousOutPoint: *outpoint})
+	spendingTx.AddTxOut(&wire.TxOut{Value: 1e8, PkScript: pkScript})
+
+	sigScript, err := txscript.SignatureScript(
+		spendingTx, 0, pkScript, txscript.SigHashAll, privKey, true,
+	)
+	if err != nil {
+		t.Fatalf("unable to sign tx: %v", err)
+	}
+	spendingTx.TxIn[0].SignatureScript = sigScript
+
+	return spendingTx
+}
+
+// NewMiner spawns testing harness backed by a btcd node that can serve as a
+// miner.
+func NewMiner(t *testing.T, extraArgs []string, createChain bool,
+	spendableOutputs uint32) (*rpctest.Harness, func()) {
+
+	t.Helper()
+
+	// Add the trickle interval argument to the extra args.
+	trickle := fmt.Sprintf("--trickleinterval=%v", trickleInterval)
+	extraArgs = append(extraArgs, trickle)
+
+	node, err := rpctest.New(NetParams, nil, extraArgs)
+	if err != nil {
+		t.Fatalf("unable to create backend node: %v", err)
+	}
+	if err := node.SetUp(createChain, spendableOutputs); err != nil {
+		node.TearDown()
+		t.Fatalf("unable to set up backend node: %v", err)
+	}
+
+	return node, func() { node.TearDown() }
+}
+
+// NewBitcoindBackend spawns a new bitcoind node that connects to a miner at the
+// specified address. The txindex boolean can be set to determine whether the
+// backend node should maintain a transaction index. A connection to the newly
+// spawned bitcoind node is returned.
+func NewBitcoindBackend(t *testing.T, minerAddr string,
+	txindex bool) (*chain.BitcoindConn, func()) {
+
+	t.Helper()
+
+	tempBitcoindDir, err := ioutil.TempDir("", "bitcoind")
+	if err != nil {
+		t.Fatalf("unable to create temp dir: %v", err)
+	}
+
+	rpcPort := rand.Intn(65536-1024) + 1024
+	zmqBlockHost := "ipc:///" + tempBitcoindDir + "/blocks.socket"
+	zmqTxHost := "ipc:///" + tempBitcoindDir + "/tx.socket"
+
+	args := []string{
+		"-connect=" + minerAddr,
+		"-datadir=" + tempBitcoindDir,
+		"-regtest",
+		"-rpcauth=weks:469e9bb14ab2360f8e226efed5ca6fd$507c670e800a952" +
+			"84294edb5773b05544b220110063096c221be9933c82d38e1",
+		fmt.Sprintf("-rpcport=%d", rpcPort),
+		"-disablewallet",
+		"-zmqpubrawblock=" + zmqBlockHost,
+		"-zmqpubrawtx=" + zmqTxHost,
+	}
+	if txindex {
+		args = append(args, "-txindex")
+	}
+
+	bitcoind := exec.Command("bitcoind", args...)
+	if err := bitcoind.Start(); err != nil {
+		os.RemoveAll(tempBitcoindDir)
+		t.Fatalf("unable to start bitcoind: %v", err)
+	}
+
+	// Wait for the bitcoind instance to start up.
+	time.Sleep(time.Second)
+
+	host := fmt.Sprintf("127.0.0.1:%d", rpcPort)
+	conn, err := chain.NewBitcoindConn(
+		NetParams, host, "weks", "weks", zmqBlockHost, zmqTxHost,
+		100*time.Millisecond,
+	)
+	if err != nil {
+		bitcoind.Process.Kill()
+		bitcoind.Wait()
+		os.RemoveAll(tempBitcoindDir)
+		t.Fatalf("unable to establish connection to bitcoind: %v", err)
+	}
+	if err := conn.Start(); err != nil {
+		bitcoind.Process.Kill()
+		bitcoind.Wait()
+		os.RemoveAll(tempBitcoindDir)
+		t.Fatalf("unable to establish connection to bitcoind: %v", err)
+	}
+
+	return conn, func() {
+		conn.Stop()
+		bitcoind.Process.Kill()
+		bitcoind.Wait()
+		os.RemoveAll(tempBitcoindDir)
+	}
+}
+
+// NewNeutrinoBackend spawns a new neutrino node that connects to a miner at
+// the specified address.
+func NewNeutrinoBackend(t *testing.T, minerAddr string) (*neutrino.ChainService, func()) {
+	t.Helper()
+
+	spvDir, err := ioutil.TempDir("", "neutrino")
+	if err != nil {
+		t.Fatalf("unable to create temp dir: %v", err)
+	}
+
+	dbName := filepath.Join(spvDir, "neutrino.db")
+	spvDatabase, err := walletdb.Create("bdb", dbName)
+	if err != nil {
+		os.RemoveAll(spvDir)
+		t.Fatalf("unable to create walletdb: %v", err)
+	}
+
+	// Create an instance of neutrino connected to the running btcd
+	// instance.
+	spvConfig := neutrino.Config{
+		DataDir:      spvDir,
+		Database:     spvDatabase,
+		ChainParams:  *NetParams,
+		ConnectPeers: []string{minerAddr},
+	}
+	spvNode, err := neutrino.NewChainService(spvConfig)
+	if err != nil {
+		os.RemoveAll(spvDir)
+		spvDatabase.Close()
+		t.Fatalf("unable to create neutrino: %v", err)
+	}
+
+	// We'll also wait for the instance to sync up fully to the chain
+	// generated by the btcd instance.
+	spvNode.Start()
+	for !spvNode.IsCurrent() {
+		time.Sleep(time.Millisecond * 100)
+	}
+
+	return spvNode, func() {
+		spvNode.Stop()
+		spvDatabase.Close()
+		os.RemoveAll(spvDir)
+	}
+}
diff --git a/lnd_test.go b/lnd_test.go
index 892acbb04..e8236f245 100644
--- a/lnd_test.go
+++ b/lnd_test.go
@@ -1376,7 +1376,7 @@ func testOpenChannelAfterReorg(net *lntest.NetworkHarness, t *harnessTest) {
 	ctxb := context.Background()
 
 	// Set up a new miner that we can use to cause a reorg.
-	args := []string{"--rejectnonstd"}
+	args := []string{"--rejectnonstd", "--txindex"}
 	miner, err := rpctest.New(harnessNetParams,
 		&rpcclient.NotificationHandlers{}, args)
 	if err != nil {
@@ -12086,7 +12086,7 @@ func TestLightningNetworkDaemon(t *testing.T) {
 	// setting of accepting non-standard transactions on simnet to reject them.
 	// Transactions on the lightning network should always be standard to get
 	// better guarantees of getting included in to blocks.
-	args := []string{"--rejectnonstd"}
+	args := []string{"--rejectnonstd", "--txindex"}
 	handlers := &rpcclient.NotificationHandlers{
 		OnTxAccepted: func(hash *chainhash.Hash, amt btcutil.Amount) {
 			lndHarness.OnTxAccepted(hash)
diff --git a/lnwallet/interface_test.go b/lnwallet/interface_test.go
index 2ca744c4c..6bdffc24e 100644
--- a/lnwallet/interface_test.go
+++ b/lnwallet/interface_test.go
@@ -1778,7 +1778,7 @@ func testReorgWalletBalance(r *rpctest.Harness, w *lnwallet.LightningWallet,
 
 	// Now we cause a reorganization as follows.
 	// Step 1: create a new miner and start it.
-	r2, err := rpctest.New(r.ActiveNet, nil, nil)
+	r2, err := rpctest.New(r.ActiveNet, nil, []string{"--txindex"})
 	if err != nil {
 		t.Fatalf("unable to create mining node: %v", err)
 	}
@@ -2050,7 +2050,7 @@ func TestLightningWallet(t *testing.T) {
 	// dedicated miner to generate blocks, cause re-orgs, etc. We'll set
 	// up this node with a chain length of 125, so we have plenty of BTC
 	// to play around with.
-	miningNode, err := rpctest.New(netParams, nil, nil)
+	miningNode, err := rpctest.New(netParams, nil, []string{"--txindex"})
 	if err != nil {
 		t.Fatalf("unable to create mining node: %v", err)
 	}
diff --git a/routing/chainview/interface_test.go b/routing/chainview/interface_test.go
index 76a66bdea..24789b772 100644
--- a/routing/chainview/interface_test.go
+++ b/routing/chainview/interface_test.go
@@ -540,7 +540,7 @@ func testFilterBlockDisconnected(node *rpctest.Harness,
 
 	// Create a node that has a shorter chain than the main chain, so we
 	// can trigger a reorg.
-	reorgNode, err := rpctest.New(netParams, nil, nil)
+	reorgNode, err := rpctest.New(netParams, nil, []string{"--txindex"})
 	if err != nil {
 		t.Fatalf("unable to create mining node: %v", err)
 	}
@@ -902,7 +902,7 @@ func TestFilteredChainView(t *testing.T) {
 	// dedicated miner to generate blocks, cause re-orgs, etc. We'll set up
 	// this node with a chain length of 125, so we have plenty of BTC to
 	// play around with.
-	miner, err := rpctest.New(netParams, nil, nil)
+	miner, err := rpctest.New(netParams, nil, []string{"--txindex"})
 	if err != nil {
 		t.Fatalf("unable to create mining node: %v", err)
 	}
diff --git a/routing/chainview/neutrino.go b/routing/chainview/neutrino.go
index 56d16708b..6a22bbb12 100644
--- a/routing/chainview/neutrino.go
+++ b/routing/chainview/neutrino.go
@@ -273,7 +273,7 @@ func (c *CfFilteredChainView) FilterBlock(blockHash *chainhash.Hash) (*FilteredB
 	// If we reach this point, then there was a match, so we'll need to
 	// fetch the block itself so we can scan it for any actual matches (as
 	// there's a fp rate).
-	block, err := c.p2pNode.GetBlockFromNetwork(*blockHash)
+	block, err := c.p2pNode.GetBlock(*blockHash)
 	if err != nil {
 		return nil, err
 	}