diff --git a/lnwire/dyn_propose_test.go b/lnwire/dyn_propose_test.go
new file mode 100644
index 000000000..2b2549776
--- /dev/null
+++ b/lnwire/dyn_propose_test.go
@@ -0,0 +1,86 @@
+package lnwire
+
+import (
+	"bytes"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+// TestDynProposeEncodeDecode checks that the Encode and Decode methods work as
+// expected.
+func TestDynProposeEncodeDecode(t *testing.T) {
+	t.Parallel()
+
+	// Generate random channel ID.
+	chanIDBytes, err := generateRandomBytes(32)
+	require.NoError(t, err)
+
+	var chanID ChannelID
+	copy(chanID[:], chanIDBytes)
+
+	// Create test data for the TLVs. The actual value doesn't matter, as we
+	// only care about that the raw bytes can be decoded into a msg, and the
+	// msg can be encoded into the exact same raw bytes.
+	testTlvData := []byte{
+		// DustLimit tlv.
+		0x0,                        // type.
+		0x5,                        // length.
+		0xfe, 0x0, 0xf, 0x42, 0x40, // value (BigSize:  1_000_000).
+
+		// ExtraData - unknown tlv record.
+		//
+		// NOTE: This record is optional and occupies the type 1.
+		0x1,        // type.
+		0x2,        // length.
+		0x79, 0x79, // value.
+
+		// MaxValueInFlight tlv.
+		0x2,                        // type.
+		0x5,                        // length.
+		0xfe, 0x0, 0xf, 0x42, 0x40, // value (BigSize: 1_000_000).
+
+		// HtlcMinimum tlv.
+		0x4,                        // type.
+		0x5,                        // length.
+		0xfe, 0x0, 0xf, 0x42, 0x40, // value (BigSize: 1_000_000).
+		//
+		// ChannelReserve tlv.
+		0x6,                        // type.
+		0x5,                        // length.
+		0xfe, 0x0, 0xf, 0x42, 0x40, // value (BigSize: 1_000_000).
+
+		// CsvDelay tlv.
+		0x8,      // type.
+		0x2,      // length.
+		0x0, 0x8, // value.
+
+		// MaxAcceptedHTLCs tlv.
+		0xa,      // type.
+		0x2,      // length.
+		0x0, 0x8, // value.
+
+		// ChannelType tlv is empty.
+		//
+		// ExtraData - unknown tlv record.
+		0x6f,       // type.
+		0x2,        // length.
+		0x79, 0x79, // value.
+	}
+
+	msg := &DynPropose{}
+
+	rawBytes := make([]byte, 0, len(chanIDBytes)+len(testTlvData))
+	rawBytes = append(rawBytes, chanIDBytes...)
+	rawBytes = append(rawBytes, testTlvData...)
+
+	r := bytes.NewBuffer(rawBytes)
+	err = msg.Decode(r, 0)
+	require.NoError(t, err)
+
+	w := new(bytes.Buffer)
+	err = msg.Encode(w, 0)
+	require.NoError(t, err)
+
+	require.Equal(t, rawBytes, w.Bytes())
+}