diff --git a/staticaddr/deposit/manager.go b/staticaddr/deposit/manager.go
index 22f97d23..5a5b8fc4 100644
--- a/staticaddr/deposit/manager.go
+++ b/staticaddr/deposit/manager.go
@@ -128,9 +128,11 @@ func (m *Manager) Run(ctx context.Context, initChan chan struct{}) error {
 		return err
 	}
 
+	var startupHeight uint32
 	select {
 	case height := <-newBlockChan:
-		m.currentHeight.Store(uint32(height))
+		startupHeight = uint32(height)
+		m.currentHeight.Store(startupHeight)
 
 	case err = <-newBlockErrChan:
 		return err
@@ -154,6 +156,13 @@ func (m *Manager) Run(ctx context.Context, initChan chan struct{}) error {
 		log.Errorf("unable to reconcile deposits: %v", err)
 	}
 
+	// The startup height was consumed before recovered deposit FSMs existed.
+	// Replay it so already-expired recovered deposits can act immediately.
+	err = m.notifyActiveDeposits(ctx, startupHeight)
+	if err != nil {
+		return err
+	}
+
 	// Start the deposit notifier.
 	m.pollDeposits(ctx)
 
@@ -171,24 +180,9 @@ func (m *Manager) Run(ctx context.Context, initChan chan struct{}) error {
 				log.Errorf("unable to reconcile deposits: %v", err)
 			}
 
-			// Inform all active deposits about a new block arrival.
-			m.mu.Lock()
-			activeDeposits := make([]*FSM, 0, len(m.activeDeposits))
-			for _, fsm := range m.activeDeposits {
-				activeDeposits = append(activeDeposits, fsm)
-			}
-			m.mu.Unlock()
-
-			for _, fsm := range activeDeposits {
-				select {
-				case fsm.blockNtfnChan <- uint32(height):
-
-				case <-fsm.quitChan:
-					continue
-
-				case <-ctx.Done():
-					return ctx.Err()
-				}
+			err = m.notifyActiveDeposits(ctx, uint32(height))
+			if err != nil {
+				return err
 			}
 
 		case outpoint := <-m.finalizedDepositChan:
@@ -205,6 +199,33 @@ func (m *Manager) Run(ctx context.Context, initChan chan struct{}) error {
 	}
 }
 
+// notifyActiveDeposits informs all active deposit FSMs about a new block
+// height.
+func (m *Manager) notifyActiveDeposits(ctx context.Context,
+	height uint32) error {
+
+	m.mu.Lock()
+	activeDeposits := make([]*FSM, 0, len(m.activeDeposits))
+	for _, fsm := range m.activeDeposits {
+		activeDeposits = append(activeDeposits, fsm)
+	}
+	m.mu.Unlock()
+
+	for _, fsm := range activeDeposits {
+		select {
+		case fsm.blockNtfnChan <- height:
+
+		case <-fsm.quitChan:
+			continue
+
+		case <-ctx.Done():
+			return ctx.Err()
+		}
+	}
+
+	return nil
+}
+
 // recoverDeposits recovers static address parameters, previous deposits and
 // state machines from the database and starts the deposit notifier.
 func (m *Manager) recoverDeposits(ctx context.Context) error {
diff --git a/staticaddr/deposit/manager_test.go b/staticaddr/deposit/manager_test.go
index 8999fc77..1d70e3f4 100644
--- a/staticaddr/deposit/manager_test.go
+++ b/staticaddr/deposit/manager_test.go
@@ -346,6 +346,61 @@ func TestManager(t *testing.T) {
 	}
 }
 
+// TestManagerReplaysStartupBlockToRecoveredDeposits verifies that the initial
+// block epoch consumed during startup is delivered to recovered deposit FSMs.
+func TestManagerReplaysStartupBlockToRecoveredDeposits(t *testing.T) {
+	ctx, cancel := context.WithCancel(t.Context())
+	defer cancel()
+
+	const defaultTimeout = 30 * time.Second
+
+	testContext := newManagerTestContext(t)
+
+	initChan := make(chan struct{})
+	runErrChan := make(chan error, 1)
+	go func() {
+		runErrChan <- testContext.manager.Run(ctx, initChan)
+	}()
+
+	// Send only the startup block at the recovered deposit's expiry height.
+	testContext.blockChan <- int32(
+		defaultDepositConfirmations + defaultExpiry,
+	)
+
+	select {
+	case <-initChan:
+
+	case err := <-runErrChan:
+		require.NoError(t, err, "manager failed to start")
+
+	case <-time.After(defaultTimeout):
+		t.Fatal("manager timed out starting")
+	}
+
+	select {
+	case <-testContext.mockLnd.SignOutputRawChannel:
+
+	case <-time.After(defaultTimeout):
+		t.Fatal("did not receive sign request")
+	}
+
+	select {
+	case <-testContext.mockLnd.TxPublishChannel:
+
+	case <-time.After(defaultTimeout):
+		t.Fatal("did not receive published expiry tx")
+	}
+
+	cancel()
+	select {
+	case err := <-runErrChan:
+		require.ErrorIs(t, err, context.Canceled)
+
+	case <-time.After(defaultTimeout):
+		t.Fatal("manager did not stop")
+	}
+}
+
 // ManagerTestContext is a helper struct that contains all the necessary
 // components to test the reservation manager.
 type ManagerTestContext struct {