diff --git a/lnrpc/routerrpc/forward_interceptor.go b/lnrpc/routerrpc/forward_interceptor.go
index c644cd6b6..e0b0d4ca8 100644
--- a/lnrpc/routerrpc/forward_interceptor.go
+++ b/lnrpc/routerrpc/forward_interceptor.go
@@ -150,7 +150,7 @@ func (r *forwardInterceptor) holdAndForwardToClient(
 	htlc := forward.Packet()
 	inKey := htlc.IncomingCircuit
 
-	// ignore already held htlcs.
+	// Ignore already held htlcs.
 	if _, ok := r.holdForwards[inKey]; ok {
 		return nil
 	}
diff --git a/lntest/itest/lnd_forward_interceptor_test.go b/lntest/itest/lnd_forward_interceptor_test.go
index 26af2150b..035576594 100644
--- a/lntest/itest/lnd_forward_interceptor_test.go
+++ b/lntest/itest/lnd_forward_interceptor_test.go
@@ -33,7 +33,168 @@ type interceptorTestCase struct {
 	interceptorAction routerrpc.ResolveHoldForwardAction
 }
 
-// testForwardInterceptor tests the forward interceptor RPC layer.
+// testForwardInterceptorDedupHtlc tests that upon reconnection, duplicate
+// HTLCs aren't re-notified using the HTLC interceptor API.
+func testForwardInterceptorDedupHtlc(net *lntest.NetworkHarness, t *harnessTest) {
+	// Initialize the test context with 3 connected nodes.
+	alice := net.NewNode(t.t, "alice", nil)
+	defer shutdownAndAssert(net, t, alice)
+
+	bob := net.NewNode(t.t, "bob", nil)
+	defer shutdownAndAssert(net, t, alice)
+
+	carol := net.NewNode(t.t, "carol", nil)
+	defer shutdownAndAssert(net, t, alice)
+
+	tc := newInterceptorTestContext(t, net, alice, bob, carol)
+
+	const (
+		chanAmt = btcutil.Amount(300000)
+	)
+
+	// Open and wait for channels.
+	tc.openChannel(tc.alice, tc.bob, chanAmt)
+	tc.openChannel(tc.bob, tc.carol, chanAmt)
+	defer tc.closeChannels()
+	tc.waitForChannels()
+
+	ctxb := context.Background()
+	ctxt, cancelInterceptor := context.WithCancel(ctxb)
+	interceptor, err := tc.bob.RouterClient.HtlcInterceptor(ctxt)
+	require.NoError(tc.t.t, err, "failed to create HtlcInterceptor")
+
+	addResponse, err := tc.carol.AddInvoice(ctxb, &lnrpc.Invoice{
+		ValueMsat: 1000,
+	})
+	require.NoError(tc.t.t, err, "unable to add invoice")
+
+	invoice, err := tc.carol.LookupInvoice(ctxb, &lnrpc.PaymentHash{
+		RHashStr: hex.EncodeToString(addResponse.RHash),
+	})
+	require.NoError(tc.t.t, err, "unable to find invoice")
+
+	// We start the htlc interceptor with a simple implementation that
+	// saves all intercepted packets. These packets are held to simulate a
+	// pending payment.
+	interceptedPacketstMap := &sync.Map{}
+	var wg sync.WaitGroup
+	wg.Add(1)
+	go func() {
+		defer wg.Done()
+		for {
+			packet, err := interceptor.Recv()
+			if err != nil {
+				// If it is just the error result of the
+				// context cancellation the we exit silently.
+				status, ok := status.FromError(err)
+				if ok && status.Code() == codes.Canceled {
+					return
+				}
+
+				// Otherwise it an unexpected error, we fail
+				// the test.
+				require.NoError(
+					tc.t.t, err,
+					"unexpected error in interceptor.Recv()",
+				)
+				return
+			}
+			interceptedPacketstMap.Store(
+				packet.IncomingCircuitKey.HtlcId, packet,
+			)
+		}
+	}()
+
+	// We initiate a payment from Alice.
+	wg.Add(1)
+	go func() {
+		defer wg.Done()
+		_, _ = tc.sendAliceToCarolPayment(
+			ctxb, 1000,
+			invoice.RHash, invoice.PaymentAddr,
+		)
+	}()
+
+	// Here we should wait for the channel to contain a pending htlc, and
+	// also be shown as being active.
+	err = wait.Predicate(func() bool {
+		channels, err := tc.bob.ListChannels(ctxt, &lnrpc.ListChannelsRequest{
+			ActiveOnly: true,
+			Peer:       tc.alice.PubKey[:],
+		})
+		if err != nil {
+			return false
+		}
+		if len(channels.Channels) == 0 {
+			return false
+		}
+
+		aliceChan := channels.Channels[0]
+		if len(aliceChan.PendingHtlcs) == 0 {
+			return false
+		}
+		return aliceChan.Active
+	}, defaultTimeout)
+	require.NoError(
+		tc.t.t, err, "alice <> bob channel pending htlc never arrived",
+	)
+
+	// At this point we want to make bob's link send all pending htlcs to
+	// the switch again. We force this behavior by disconnecting and
+	// connecting to the peer.
+	if err := tc.net.DisconnectNodes(tc.bob, tc.alice); err != nil {
+		tc.t.Fatalf("failed to disconnect alice and bob")
+	}
+	tc.net.EnsureConnected(tc.t.t, tc.bob, tc.alice)
+
+	// Here we wait for the channel to be active again.
+	err = wait.Predicate(func() bool {
+		req := &lnrpc.ListChannelsRequest{
+			ActiveOnly: true,
+			Peer:       tc.alice.PubKey[:],
+		}
+
+		channels, err := tc.bob.ListChannels(ctxt, req)
+		return err == nil && len(channels.Channels) > 0
+	}, defaultTimeout)
+	require.NoError(
+		tc.t.t, err, "alice <> bob channel didn't re-activate",
+	)
+
+	// Now that the channel is active we make sure the test passes as
+	// expected.
+	payments, err := tc.alice.ListPayments(ctxb, &lnrpc.ListPaymentsRequest{
+		IncludeIncomplete: true,
+	})
+	require.NoError(tc.t.t, err, "failed to fetch payment")
+
+	// We expect one in flight payment since we held the htlcs.
+	require.Equal(tc.t.t, len(payments.Payments), 1)
+	require.Equal(tc.t.t, payments.Payments[0].Status, lnrpc.Payment_IN_FLIGHT)
+
+	// We now fail all htlcs to cancel the payment.
+	packetsCount := 0
+	interceptedPacketstMap.Range(func(_, packet interface{}) bool {
+		p := packet.(*routerrpc.ForwardHtlcInterceptRequest)
+		_ = interceptor.Send(&routerrpc.ForwardHtlcInterceptResponse{
+			IncomingCircuitKey: p.IncomingCircuitKey,
+			Action:             routerrpc.ResolveHoldForwardAction_FAIL,
+		})
+		packetsCount++
+		return true
+	})
+
+	// At this point if we have more than one held htlcs then we should
+	// fail.  This means we hold the same htlc twice which is a risk we
+	// want to eliminate. If we don't have the same htlc twice in theory we
+	// can cancel one and settle the other by mistake.
+	require.Equal(tc.t.t, packetsCount, 1)
+
+	cancelInterceptor()
+	wg.Wait()
+}
+
+// testForwardInterceptorBasic tests the forward interceptor RPC layer.
 // The test creates a cluster of 3 connected nodes: Alice -> Bob -> Carol
 // Alice sends 4 different payments to Carol while the interceptor handles
 // differently the htlcs.
@@ -43,7 +204,7 @@ type interceptorTestCase struct {
 // 3. Intercepted held htlcs result in no payment (invoice is not settled).
 // 4. When Interceptor disconnects it resumes all held htlcs, which result in
 //    valid payment (invoice is settled).
-func testForwardInterceptor(net *lntest.NetworkHarness, t *harnessTest) {
+func testForwardInterceptorBasic(net *lntest.NetworkHarness, t *harnessTest) {
 	// Initialize the test context with 3 connected nodes.
 	alice := net.NewNode(t.t, "alice", nil)
 	defer shutdownAndAssert(net, t, alice)
diff --git a/lntest/itest/lnd_test_list_on_test.go b/lntest/itest/lnd_test_list_on_test.go
index b5067433d..bfcb3450d 100644
--- a/lntest/itest/lnd_test_list_on_test.go
+++ b/lntest/itest/lnd_test_list_on_test.go
@@ -312,8 +312,12 @@ var allTestCases = []*testCase{
 		test: testRestAPI,
 	},
 	{
-		name: "intercept forwarded htlc packets",
-		test: testForwardInterceptor,
+		name: "forward interceptor",
+		test: testForwardInterceptorBasic,
+	},
+	{
+		name: "forward interceptor dedup htlcs",
+		test: testForwardInterceptorDedupHtlc,
 	},
 	{
 		name: "wumbo channels",