diff --git a/loopd/swapclient_server.go b/loopd/swapclient_server.go
index 99a53ef5..f6e0c9fe 100644
--- a/loopd/swapclient_server.go
+++ b/loopd/swapclient_server.go
@@ -1365,6 +1365,17 @@ func (s *swapClientServer) StopDaemon(ctx context.Context,
 	return &looprpc.StopDaemonResponse{}, nil
 }
 
+// SweepHtlc spends a Loop HTLC output using the success path and a known
+// preimage.
+func (s *swapClientServer) SweepHtlc(ctx context.Context,
+	req *looprpc.SweepHtlcRequest) (*looprpc.SweepHtlcResponse, error) {
+
+	return sweepHtlc(
+		ctx, req, s.lnd.ChainParams, s.impl.Store,
+		s.lnd.ChainNotifier, s.lnd.WalletKit, s.lnd.Signer,
+	)
+}
+
 // GetLiquidityParams gets our current liquidity manager's parameters.
 func (s *swapClientServer) GetLiquidityParams(_ context.Context,
 	_ *looprpc.GetLiquidityParamsRequest) (*looprpc.LiquidityParameters,
diff --git a/loopd/sweep_htlc.go b/loopd/sweep_htlc.go
new file mode 100644
index 00000000..c613b5d7
--- /dev/null
+++ b/loopd/sweep_htlc.go
@@ -0,0 +1,402 @@
+package loopd
+
+import (
+	"bytes"
+	"context"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/btcsuite/btcd/txscript"
+	"github.com/btcsuite/btcd/wire"
+	"github.com/lightninglabs/lndclient"
+	"github.com/lightninglabs/loop/labels"
+	"github.com/lightninglabs/loop/loopdb"
+	"github.com/lightninglabs/loop/looprpc"
+	"github.com/lightninglabs/loop/swap"
+	"github.com/lightninglabs/loop/sweep"
+	"github.com/lightninglabs/loop/utils"
+	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/input"
+	"github.com/lightningnetwork/lnd/keychain"
+	"github.com/lightningnetwork/lnd/lnrpc/walletrpc"
+	"github.com/lightningnetwork/lnd/lntypes"
+	"github.com/lightningnetwork/lnd/lnwallet"
+	"github.com/lightningnetwork/lnd/lnwallet/chainfee"
+	"google.golang.org/grpc/codes"
+	"google.golang.org/grpc/status"
+)
+
+// loopOutStore abstracts the minimal store API needed to look up loop-out
+// swaps.
+type loopOutStore interface {
+	// FetchLoopOutSwaps returns all loop-out swaps currently in the store.
+	FetchLoopOutSwaps(ctx context.Context) ([]*loopdb.LoopOut, error)
+}
+
+// htlcChainNotifier defines the minimal notifier API to watch for a tx
+// confirmation.
+type htlcChainNotifier interface {
+	RegisterConfirmationsNtfn(ctx context.Context, txid *chainhash.Hash,
+		pkScript []byte, numConfs, heightHint int32,
+		opts ...lndclient.NotifierOption) (
+		chan *chainntnfs.TxConfirmation, chan error, error)
+}
+
+// htlcWallet abstracts the wallet calls used for sweeping.
+type htlcWallet interface {
+	// NextAddr derives the next address from the given account and type.
+	NextAddr(ctx context.Context, account string,
+		addrType walletrpc.AddressType,
+		change bool) (btcutil.Address, error)
+
+	// PublishTransaction broadcasts the transaction with the given label.
+	PublishTransaction(ctx context.Context, tx *wire.MsgTx,
+		label string) error
+
+	// MinRelayFee returns the current minimum relay fee in sat/kw.
+	MinRelayFee(ctx context.Context) (chainfee.SatPerKWeight, error)
+}
+
+// htlcSigner signs the success path spend.
+type htlcSigner interface {
+	SignOutputRaw(ctx context.Context, tx *wire.MsgTx,
+		signDescriptors []*lndclient.SignDescriptor,
+		prevOutputs []*wire.TxOut) ([][]byte, error)
+}
+
+// sweepHtlc spends a Loop HTLC output using the success path and a known
+// preimage.
+func sweepHtlc(ctx context.Context, req *looprpc.SweepHtlcRequest,
+	chainParams *chaincfg.Params, store loopOutStore,
+	notifier htlcChainNotifier, wallet htlcWallet,
+	signer htlcSigner) (*looprpc.SweepHtlcResponse, error) {
+
+	// Make sure that the request has all required inputs.
+	if req.Outpoint == "" {
+		return nil, status.Error(codes.InvalidArgument,
+			"outpoint required")
+	}
+	if req.HtlcAddress == "" {
+		return nil, status.Error(codes.InvalidArgument,
+			"htlc_address required")
+	}
+	if req.SatPerVbyte == 0 {
+		return nil, status.Error(codes.InvalidArgument,
+			"sat_per_vbyte required")
+	}
+
+	// Parse the inputs.
+	htlcAddr, err := btcutil.DecodeAddress(
+		req.HtlcAddress, chainParams,
+	)
+	if err != nil {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"invalid htlc_address: %v", err)
+	}
+
+	htlcPkScript, err := txscript.PayToAddrScript(htlcAddr)
+	if err != nil {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"invalid htlc_address script: %v", err)
+	}
+
+	htlcOutpoint, err := wire.NewOutPointFromString(req.Outpoint)
+	if err != nil {
+		return nil, status.Error(codes.InvalidArgument, err.Error())
+	}
+
+	// Destination address: honor a provided override or derive a fresh
+	// wallet address from the default account.
+	var sweepAddr btcutil.Address
+	if req.DestAddress != "" {
+		sweepAddr, err = btcutil.DecodeAddress(
+			req.DestAddress, chainParams,
+		)
+		if err != nil {
+			return nil, status.Errorf(codes.InvalidArgument,
+				"invalid dest_address: %v", err)
+		}
+	} else {
+		sweepAddr, err = wallet.NextAddr(
+			ctx, lnwallet.DefaultAccountName,
+			walletrpc.AddressType_TAPROOT_PUBKEY,
+			false,
+		)
+		if err != nil {
+			return nil, status.Errorf(codes.Internal,
+				"derive sweep address: %v", err)
+		}
+		infof("sweephtlc: generated new destination address: %v",
+			sweepAddr.EncodeAddress())
+	}
+
+	sweepPkScript, err := txscript.PayToAddrScript(sweepAddr)
+	if err != nil {
+		return nil, err
+	}
+
+	infof("sweephtlc: start sweep for %v -> %v", req.Outpoint,
+		sweepAddr.EncodeAddress())
+
+	// Locate the loop-out swap whose HTLC script matches the outpoint so
+	// we can obtain keys and the stored preimage.
+	swaps, err := store.FetchLoopOutSwaps(ctx)
+	if err != nil {
+		return nil, err
+	}
+
+	var (
+		targetSwap *loopdb.LoopOut
+		targetHtlc *swap.Htlc
+	)
+
+	for _, swp := range swaps {
+		htlc, htlcErr := utils.GetHtlc(
+			swp.Hash, &swp.Contract.SwapContract,
+			chainParams,
+		)
+		if htlcErr != nil {
+			return nil, htlcErr
+		}
+
+		if bytes.Equal(htlc.PkScript, htlcPkScript) {
+			targetSwap = swp
+			targetHtlc = htlc
+			break
+		}
+	}
+
+	if targetSwap == nil || targetHtlc == nil {
+		return nil, status.Error(codes.NotFound,
+			"no matching swap HTLC found")
+	}
+
+	infof("sweephtlc: matched swap %v at height hint %v",
+		targetSwap.Hash, targetSwap.Contract.InitiationHeight)
+
+	if targetSwap.Contract.InitiationHeight <= 0 {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"invalid initiation height %d",
+			targetSwap.Contract.InitiationHeight)
+	}
+
+	// Wait for a confirmation so we can read the full transaction even if
+	// it's not in our wallet.
+	infof("sweephtlc: registering conf ntfn for %v hint=%v",
+		req.Outpoint, targetSwap.Contract.InitiationHeight)
+	confChan, errChan, err := notifier.RegisterConfirmationsNtfn(
+		ctx, &htlcOutpoint.Hash, htlcPkScript, 1,
+		targetSwap.Contract.InitiationHeight,
+	)
+	if err != nil {
+		return nil, status.Errorf(codes.Internal,
+			"register conf ntfn: %v", err)
+	}
+
+	var (
+		htlcTxOut *wire.TxOut
+		fundingTx *wire.MsgTx
+	)
+
+	infof("sweephtlc: waiting for confirmation of %v", req.Outpoint)
+	select {
+	case conf := <-confChan:
+		fundingTx = conf.Tx
+		infof("sweephtlc: funding confirmed at height %v",
+			conf.BlockHeight)
+
+	case ntfnErr := <-errChan:
+		infof("sweephtlc: conf ntfn error for %v: %v",
+			req.Outpoint, ntfnErr)
+
+		return nil, status.Errorf(codes.Internal,
+			"conf ntfn: %v", ntfnErr)
+
+	case <-ctx.Done():
+		infof("sweephtlc: context done waiting for %v: %v",
+			req.Outpoint, ctx.Err())
+
+		return nil, status.Errorf(codes.DeadlineExceeded,
+			"waiting for transaction details")
+	}
+
+	if int(htlcOutpoint.Index) >= len(fundingTx.TxOut) {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"vout %d out of range", htlcOutpoint.Index)
+	}
+
+	htlcTxOut = fundingTx.TxOut[htlcOutpoint.Index]
+
+	if !bytes.Equal(htlcTxOut.PkScript, htlcPkScript) {
+		return nil, status.Error(codes.InvalidArgument,
+			"outpoint script does not match HTLC address")
+	}
+
+	infof("sweephtlc: swap hash validated for %v", req.Outpoint)
+
+	// Pick a preimage: prefer the caller-provided override, otherwise use
+	// the swap's stored preimage.
+	var preimage lntypes.Preimage
+	if len(req.Preimage) > 0 {
+		preimage, err = lntypes.MakePreimage(req.Preimage)
+		if err != nil {
+			return nil, status.Errorf(codes.InvalidArgument,
+				"invalid preimage: %v", err)
+		}
+	} else {
+		preimage = targetSwap.Contract.Preimage
+	}
+
+	if preimage.Hash() != targetHtlc.Hash {
+		return nil, status.Error(codes.InvalidArgument,
+			"preimage does not match HTLC hash")
+	}
+
+	infof("sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+		sweepAddr.EncodeAddress(), req.SatPerVbyte)
+
+	// Estimate fee for the success-path spend weight.
+	var estimator input.TxWeightEstimator
+	err = targetHtlc.AddSuccessToEstimator(&estimator)
+	if err != nil {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"failed to estimate tx input weight: %v", err)
+	}
+	err = sweep.AddOutputEstimate(&estimator, sweepAddr)
+	if err != nil {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"failed to estimate tx output weight: %v", err)
+	}
+
+	// Convert the requested fee rate to sat/kw for fee computation.
+	feeRate := chainfee.SatPerVByte(req.SatPerVbyte).FeePerKWeight()
+	fee := feeRate.FeeForWeightRoundUp(estimator.Weight())
+
+	// Make sure the fee is fine.
+	htlcValue := btcutil.Amount(htlcTxOut.Value)
+	if htlcValue <= fee {
+		return nil, status.Error(codes.InvalidArgument,
+			"fee exceeds HTLC value")
+	}
+
+	minRelayFeeRate, err := wallet.MinRelayFee(ctx)
+	if err != nil {
+		return nil, status.Errorf(codes.Internal,
+			"min relay fee: %v", err)
+	}
+
+	fee, clamped, err := utils.ClampSweepFee(
+		fee, htlcValue, utils.MaxFeeToAmountRatio, minRelayFeeRate,
+		estimator.Weight(),
+	)
+	if err != nil {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"fee too low for relay after clamp: %v", err)
+	}
+	if clamped {
+		return nil, status.Errorf(codes.InvalidArgument,
+			"fee exceeds %.0f%% of HTLC value; lower sat_per_vbyte",
+			utils.MaxFeeToAmountRatio*100,
+		)
+	}
+
+	// Build the sweep transaction spending the HTLC via the success path.
+	sweepTx := wire.NewMsgTx(2)
+	sweepTx.AddTxIn(&wire.TxIn{
+		PreviousOutPoint: *htlcOutpoint,
+		Sequence:         targetHtlc.SuccessSequence(),
+	})
+	sweepTx.AddTxOut(&wire.TxOut{
+		PkScript: sweepPkScript,
+		Value:    int64(htlcValue - fee),
+	})
+
+	infof("sweephtlc: signing sweep spending %v", req.Outpoint)
+
+	prevOut := &wire.TxOut{
+		Value:    int64(htlcValue),
+		PkScript: targetHtlc.PkScript,
+	}
+	signDesc := lndclient.SignDescriptor{
+		WitnessScript: targetHtlc.SuccessScript(),
+		Output:        prevOut,
+		HashType:      targetHtlc.SigHash(),
+		InputIndex:    0,
+		KeyDesc: keychain.KeyDescriptor{
+			KeyLocator: targetSwap.Contract.HtlcKeys.
+				ClientScriptKeyLocator,
+		},
+	}
+	if targetHtlc.Version == swap.HtlcV3 {
+		signDesc.SignMethod = input.TaprootScriptSpendSignMethod
+	}
+
+	// Sign the HTLC spend.
+	rawSigs, err := signer.SignOutputRaw(
+		ctx, sweepTx, []*lndclient.SignDescriptor{&signDesc},
+		[]*wire.TxOut{prevOut},
+	)
+	if err != nil {
+		return nil, err
+	}
+	sig := rawSigs[0]
+
+	infof("sweephtlc: witness assembled, tx size=%d vbytes",
+		sweepTx.SerializeSize())
+
+	// Assemble the success witness using the signature and preimage.
+	witness, err := targetHtlc.GenSuccessWitness(sig, preimage)
+	if err != nil {
+		return nil, err
+	}
+	sweepTx.TxIn[0].Witness = witness
+
+	var rawBuf bytes.Buffer
+	err = sweepTx.Serialize(&rawBuf)
+	if err != nil {
+		return nil, err
+	}
+	rawTx := rawBuf.Bytes()
+
+	// Optionally publish immediately if requested; otherwise caller can
+	// broadcast the signed tx themselves.
+	if req.Publish {
+		err = wallet.PublishTransaction(
+			ctx, sweepTx,
+			labels.LoopOutSweepSuccess(targetSwap.Hash.String()),
+		)
+		if err != nil {
+			errorf("sweephtlc: publish failed for %v: %v",
+				req.Outpoint, err)
+
+			return &looprpc.SweepHtlcResponse{
+				SweepTx: rawTx,
+				FeeSats: uint64(fee),
+				Publish: &looprpc.SweepHtlcResponse_Failed{
+					Failed: &looprpc.PublishFailed{
+						Error: err.Error(),
+					},
+				},
+			}, nil
+		}
+
+		infof("sweephtlc: published sweep %v", sweepTx.TxHash())
+	}
+
+	resp := &looprpc.SweepHtlcResponse{
+		SweepTx: rawTx,
+		FeeSats: uint64(fee),
+	}
+	if req.Publish {
+		resp.Publish = &looprpc.SweepHtlcResponse_Published{
+			Published: &looprpc.PublishSucceeded{},
+		}
+	} else {
+		resp.Publish = &looprpc.SweepHtlcResponse_NotRequested{
+			NotRequested: &looprpc.PublishNotRequested{},
+		}
+	}
+
+	return resp, nil
+}
diff --git a/loopd/sweep_htlc_test.go b/loopd/sweep_htlc_test.go
new file mode 100644
index 00000000..3829066e
--- /dev/null
+++ b/loopd/sweep_htlc_test.go
@@ -0,0 +1,581 @@
+package loopd
+
+import (
+	"bytes"
+	"context"
+	"errors"
+	"testing"
+	"time"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/wire"
+	"github.com/btcsuite/btclog/v2"
+	"github.com/lightninglabs/loop/loopdb"
+	"github.com/lightninglabs/loop/looprpc"
+	"github.com/lightninglabs/loop/swap"
+	"github.com/lightninglabs/loop/test"
+	"github.com/lightninglabs/loop/utils"
+	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/keychain"
+	"github.com/lightningnetwork/lnd/lntypes"
+	"github.com/lightningnetwork/lnd/lnwallet/chainfee"
+	"github.com/stretchr/testify/require"
+)
+
+// sweepHtlcTests is a collection of table tests for TestSweepHtlc.
+var sweepHtlcTests = []struct {
+	name           string
+	amount         btcutil.Amount
+	satPerVByte    uint32
+	minRelayFee    chainfee.SatPerKWeight
+	expectErrMsg   string
+	expectLogs     []string
+	expectRegister bool
+	noSwap         bool
+	publish        bool
+	publishErr     bool
+	modifyReq      func(*looprpc.SweepHtlcRequest)
+	mutateSwap     func(*loopdb.LoopOutContract)
+	mutateTxOut    func(*wire.TxOut)
+	sendConf       func(*test.ConfRegistration)
+}{
+	{
+		name:           "success low fee",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectRegister: true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+			"sweephtlc: signing sweep spending %v",
+			"sweephtlc: witness assembled, tx size=%d vbytes",
+		},
+	},
+	{
+		name:           "success low fee, publish",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectRegister: true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+			"sweephtlc: signing sweep spending %v",
+			"sweephtlc: witness assembled, tx size=%d vbytes",
+			"sweephtlc: published sweep %v",
+		},
+		publish: true,
+	},
+	{
+		name:           "publish failure reported",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectRegister: true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+			"sweephtlc: signing sweep spending %v",
+			"sweephtlc: witness assembled, tx size=%d vbytes",
+			"sweephtlc: publish failed for %v: %v",
+		},
+		publish:    true,
+		publishErr: true,
+	},
+	{
+		name:           "fee clamped over ratio",
+		amount:         100_000,
+		satPerVByte:    200,
+		expectErrMsg:   "fee exceeds",
+		expectRegister: true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+		},
+	},
+	{
+		name:   "clamped below min relay",
+		amount: 10_000,
+		// Will clamp further.
+		satPerVByte:    5,
+		minRelayFee:    chainfee.SatPerKWeight(1_000_000),
+		expectErrMsg:   "fee too low for relay after clamp",
+		expectRegister: true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+		},
+	},
+	{
+		name:           "missing outpoint",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "outpoint required",
+		expectLogs:     []string{},
+		expectRegister: false,
+		modifyReq: func(req *looprpc.SweepHtlcRequest) {
+			req.Outpoint = ""
+		},
+	},
+	{
+		name:           "missing htlc address",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "htlc_address required",
+		expectLogs:     []string{},
+		expectRegister: false,
+		modifyReq: func(req *looprpc.SweepHtlcRequest) {
+			req.HtlcAddress = ""
+		},
+	},
+	{
+		name:           "missing feerate",
+		amount:         100_000,
+		satPerVByte:    0,
+		expectErrMsg:   "sat_per_vbyte required",
+		expectLogs:     []string{},
+		expectRegister: false,
+	},
+	{
+		name:           "invalid htlc address",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "invalid htlc_address",
+		expectLogs:     []string{},
+		expectRegister: false,
+		modifyReq: func(req *looprpc.SweepHtlcRequest) {
+			req.HtlcAddress = "notanaddress"
+		},
+	},
+	{
+		name:           "no matching swap",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "no matching swap",
+		expectRegister: false,
+		noSwap:         true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+		},
+	},
+	{
+		name:           "invalid initiation height",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "invalid initiation height",
+		expectRegister: false,
+		mutateSwap: func(contract *loopdb.LoopOutContract) {
+			contract.InitiationHeight = 0
+		},
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+		},
+	},
+	{
+		name:           "conf ntfn error",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "conf ntfn",
+		expectRegister: true,
+		sendConf: func(reg *test.ConfRegistration) {
+			reg.ErrChan <- errors.New("boom")
+		},
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: conf ntfn error for %v: %v",
+		},
+	},
+	{
+		name:           "outpoint script mismatch",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "outpoint script does not match HTLC address",
+		expectRegister: true,
+		mutateTxOut: func(txOut *wire.TxOut) {
+			txOut.PkScript = []byte{0x6a}
+		},
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+		},
+	},
+	{
+		name:           "fee exceeds htlc value",
+		amount:         100_000,
+		satPerVByte:    2_000_000,
+		expectErrMsg:   "fee exceeds HTLC value",
+		expectRegister: true,
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+		},
+	},
+	{
+		name:           "preimage mismatch",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectErrMsg:   "preimage does not match HTLC hash",
+		expectRegister: true,
+		modifyReq: func(req *looprpc.SweepHtlcRequest) {
+			req.Preimage = bytes.Repeat([]byte{9}, 32)
+		},
+		expectLogs: []string{
+			"sweephtlc: generated new destination address: %v",
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+		},
+	},
+}
+
+// TestSweepHtlc runs a table of happy-path and fee-related rejection cases for
+// the sweep helper.
+func TestSweepHtlc(t *testing.T) {
+	// shortDelay is used to check that nothing is produced from a channel.
+	const shortDelay = 100 * time.Millisecond
+
+	for _, tc := range sweepHtlcTests {
+		t.Run(tc.name, func(t *testing.T) {
+			// Catch leaked goroutines and constrain test time.
+			defer test.Guard(t)()
+
+			// Fresh logger per test to capture emitted formats.
+			logger := newFormatLogger()
+			setLogger(logger)
+
+			// Base mocks for wallet/notifier/signer.
+			lnd := test.NewMockLnd()
+			if tc.publishErr {
+				lnd.PublishHandler = func(ctx context.Context,
+					_ *wire.MsgTx, _ string) error {
+
+					return errors.New("publish-fail")
+				}
+			}
+			if tc.minRelayFee != 0 {
+				lnd.SetMinRelayFee(tc.minRelayFee)
+			}
+			store := loopdb.NewStoreMock(t)
+
+			preimage := lntypes.Preimage{1, 2, 3, 4}
+			swapHash := preimage.Hash()
+
+			_, senderPub := test.CreateKey(0)
+			_, receiverPub := test.CreateKey(1)
+
+			var senderKey, receiverKey [33]byte
+			copy(senderKey[:], senderPub.SerializeCompressed())
+			copy(receiverKey[:], receiverPub.SerializeCompressed())
+
+			htlcKeys := loopdb.HtlcKeys{
+				SenderScriptKey:   senderKey,
+				ReceiverScriptKey: receiverKey,
+				ClientScriptKeyLocator: keychain.KeyLocator{
+					Family: keychain.KeyFamily(
+						swap.KeyFamily,
+					),
+					Index: 0,
+				},
+			}
+
+			swapContract := loopdb.SwapContract{
+				Preimage:         preimage,
+				AmountRequested:  tc.amount,
+				HtlcKeys:         htlcKeys,
+				CltvExpiry:       500,
+				InitiationHeight: 123,
+				ProtocolVersion:  loopdb.ProtocolVersionHtlcV2,
+			}
+
+			destAddr, err := btcutil.NewAddressWitnessPubKeyHash(
+				make([]byte, 20), lnd.ChainParams,
+			)
+			require.NoError(t, err)
+
+			loopOut := &loopdb.LoopOut{
+				Loop: loopdb.Loop{
+					Hash: swapHash,
+				},
+				Contract: &loopdb.LoopOutContract{
+					SwapContract: swapContract,
+					DestAddr:     destAddr,
+				},
+			}
+
+			// Store the swap unless this case disables it.
+			if tc.mutateSwap != nil {
+				tc.mutateSwap(loopOut.Contract)
+			}
+			if !tc.noSwap {
+				store.LoopOutSwaps[swapHash] = loopOut.Contract
+			}
+
+			// Build HTLC details and funding tx.
+			htlc, err := utils.GetHtlc(
+				swapHash, &loopOut.Contract.SwapContract,
+				lnd.ChainParams,
+			)
+			require.NoError(t, err)
+
+			fundingTx := wire.NewMsgTx(2)
+			txOut := &wire.TxOut{
+				Value: int64(
+					loopOut.Contract.AmountRequested,
+				),
+				PkScript: htlc.PkScript,
+			}
+			if tc.mutateTxOut != nil {
+				tc.mutateTxOut(txOut)
+			}
+			fundingTx.AddTxOut(txOut)
+			fundingHash := fundingTx.TxHash()
+			outpoint := wire.OutPoint{Hash: fundingHash, Index: 0}
+
+			ctx, cancel := context.WithTimeout(
+				t.Context(), 5*time.Second,
+			)
+			defer cancel()
+
+			// Drain signer requests to avoid blocking.
+			go func() {
+				select {
+				case <-lnd.SignOutputRawChannel:
+
+				case <-ctx.Done():
+				}
+			}()
+
+			pubChan := make(chan *wire.MsgTx, 1)
+
+			// If publish is requested, drain TxPublishChannel so
+			// the mock PublishTransaction does not block.
+			if tc.publish {
+				go func() {
+					select {
+					case tx := <-lnd.TxPublishChannel:
+						pubChan <- tx
+
+					case <-ctx.Done():
+					}
+				}()
+			}
+
+			// Handle confirmation registration caused by the call.
+			if tc.expectRegister {
+				// Consume notifier registration.
+				go func() {
+					var reg *test.ConfRegistration
+					select {
+					case reg = <-lnd.RegisterConfChannel:
+						// Got registration.
+
+					case <-ctx.Done():
+						return
+					}
+
+					// Either send an error or a
+					// confirmation.
+					if tc.sendConf != nil {
+						tc.sendConf(reg)
+
+						return
+					}
+
+					conf := &chainntnfs.TxConfirmation{
+						Tx: fundingTx,
+					}
+					reg.ConfChan <- conf
+				}()
+			}
+
+			// Build request with optional mutation.
+			req := &looprpc.SweepHtlcRequest{
+				Outpoint:    outpoint.String(),
+				SatPerVbyte: tc.satPerVByte,
+				Publish:     tc.publish,
+				HtlcAddress: htlc.Address.String(),
+				DestAddress: "",
+				Preimage:    nil,
+			}
+			if tc.modifyReq != nil {
+				tc.modifyReq(req)
+			}
+
+			// Invoke sweepHtlc and forward the result.
+			resp, err := sweepHtlc(
+				ctx, req, lnd.ChainParams, store,
+				lnd.ChainNotifier, lnd.WalletKit,
+				lnd.Signer,
+			)
+
+			// Handle confirmation registration caused by the call
+			// when not expected.
+			if !tc.expectRegister {
+				select {
+				case reg := <-lnd.RegisterConfChannel:
+					t.Fatalf("unexpected registration: %+v",
+						reg)
+
+				case <-time.After(shortDelay):
+				}
+			}
+
+			// Make sure it produced the expected logs.
+			logs := logger.formats
+			if logs == nil {
+				logs = []string{}
+			}
+			require.Equal(t, tc.expectLogs, logs)
+
+			// Ensure all mock channels are drained.
+			defer require.NoError(t, lnd.IsDone())
+
+			// Error path.
+			if tc.expectErrMsg != "" {
+				require.ErrorContains(t, err, tc.expectErrMsg)
+
+				return
+			}
+
+			// Success path.
+			require.NoError(t, err)
+
+			// Parse the produced signed transaction.
+			require.NotEmpty(t, resp.SweepTx)
+			var sweepTx wire.MsgTx
+			err = sweepTx.Deserialize(bytes.NewReader(resp.SweepTx))
+			require.NoError(t, err)
+			require.Equal(
+				t, outpoint, sweepTx.TxIn[0].PreviousOutPoint,
+			)
+			require.NotEmpty(t, sweepTx.TxIn[0].Witness)
+
+			if tc.publish {
+				// For publish=true we should see a
+				// publish (or a publish failure
+				// response which skips broadcast).
+				select {
+				case tx := <-pubChan:
+					require.NotNil(t, tx)
+
+				case <-time.After(shortDelay):
+					if !tc.publishErr {
+						t.Fatal("expected publish")
+					}
+				}
+			} else {
+				// For publish=false we should not
+				// publish.
+				select {
+				case <-lnd.TxPublishChannel:
+					t.Fatal("unexpected publish")
+
+				case <-time.After(shortDelay):
+				}
+			}
+		})
+	}
+}
+
+// formatLogger captures format strings passed to the logger interface so we
+// can assert on log invocations.
+type formatLogger struct {
+	btclog.Logger
+
+	formats []string
+}
+
+// newFormatLogger builds a logger that records format strings while discarding
+// actual log output.
+func newFormatLogger() *formatLogger {
+	return &formatLogger{Logger: btclog.Disabled}
+}
+
+// record stores the raw format string.
+func (f *formatLogger) record(format string) {
+	f.formats = append(f.formats, format)
+}
+
+// Tracef logs a trace and records its format.
+func (f *formatLogger) Tracef(format string, params ...interface{}) {
+	f.record(format)
+	f.Logger.Tracef(format, params...)
+}
+
+// Debugf logs a debug message and records its format.
+func (f *formatLogger) Debugf(format string, params ...interface{}) {
+	f.record(format)
+	f.Logger.Debugf(format, params...)
+}
+
+// Infof logs an info message and records its format.
+func (f *formatLogger) Infof(format string, params ...interface{}) {
+	f.record(format)
+	f.Logger.Infof(format, params...)
+}
+
+// Warnf logs a warning and records its format.
+func (f *formatLogger) Warnf(format string, params ...interface{}) {
+	f.record(format)
+	f.Logger.Warnf(format, params...)
+}
+
+// Errorf logs an error and records its format.
+func (f *formatLogger) Errorf(format string, params ...interface{}) {
+	f.record(format)
+	f.Logger.Errorf(format, params...)
+}
+
+// Criticalf logs a critical message and records its format.
+func (f *formatLogger) Criticalf(format string, params ...interface{}) {
+	f.record(format)
+	f.Logger.Criticalf(format, params...)
+}