diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index 70d658e323..d0809de4dc 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -3775,6 +3775,7 @@ bool CWallet::CreateTransactionInternal(
                         CAmount minimum_value_for_change = GetDustThreshold(change_prototype_txout, discard_rate);
                         if (nFeeRet >= fee_needed_with_change + minimum_value_for_change) {
                             pick_new_inputs = false;
+                            one_more_try_20347 = bnb_used;
                             nFeeRet = fee_needed_with_change;
                             continue;
                         }
diff --git a/test/functional/feature_issuance.py b/test/functional/feature_issuance.py
index d10e6e37dd..6a9794f7fb 100755
--- a/test/functional/feature_issuance.py
+++ b/test/functional/feature_issuance.py
@@ -480,5 +480,23 @@ class IssuanceTest(BitcoinTestFramework):
         self.nodes[0].generate(1)
         assert_equal(self.nodes[0].gettransaction(tx_id)["confirmations"], 1)
 
+        ## Regression for one form of https://github.com/bitcoin/bitcoin/issues/20347
+        # 1. Leave node 1 with only a single small explicit output
+        self.nodes[1].sendtoaddress(self.nodes[0].getnewaddress(), self.nodes[1].getbalance()['bitcoin'], "", "", True)
+        blind_addr = self.nodes[1].getnewaddress()
+        nonblind_addr = self.nodes[1].validateaddress(blind_addr)['unconfidential']
+        self.nodes[0].sendtoaddress(nonblind_addr, 0.0005)
+        self.sync_all()
+        self.nodes[0].generate(2)
+        self.sync_all()
+
+        # 2. Try to do an unblinded issuance with only tokens -- the result will
+        #    be an entirely unblinded tx in the 3-output case but a blinded tx
+        #    in the 4-output case. As the bug causes us to do coin selection for
+        #    the former while attempting to produce the latter, we will trigger
+        #    an "impossible" case and a confusing/generic error message.
+        txid = self.nodes[1].issueasset(0, 1, False)["txid"]
+        tx = self.nodes[1].getrawtransaction(txid, True)
+
 if __name__ == '__main__':
     IssuanceTest ().main ()