diff --git a/liquidity/easy_autoloop_exclusions_test.go b/liquidity/easy_autoloop_exclusions_test.go
new file mode 100644
index 00000000..b70af97c
--- /dev/null
+++ b/liquidity/easy_autoloop_exclusions_test.go
@@ -0,0 +1,115 @@
+package liquidity
+
+import (
+	"testing"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/lightninglabs/lndclient"
+	"github.com/lightningnetwork/lnd/lnwire"
+	"github.com/lightningnetwork/lnd/routing/route"
+	"github.com/stretchr/testify/require"
+)
+
+// TestEasyAutoloopExcludedPeers ensures that peers listed in
+// Parameters.EasyAutoloopExcludedPeers are not selected by
+// pickEasyAutoloopChannel even if they would otherwise be preferred.
+func TestEasyAutoloopExcludedPeers(t *testing.T) {
+	// Two channels, peer1 has the higher local balance and would be picked
+	// if not excluded.
+	ch1 := lndclient.ChannelInfo{
+		Active:        true,
+		ChannelID:     lnwire.NewShortChanIDFromInt(11).ToUint64(),
+		PubKeyBytes:   peer1,
+		LocalBalance:  90000,
+		RemoteBalance: 0,
+		Capacity:      100000,
+	}
+	ch2 := lndclient.ChannelInfo{
+		Active:        true,
+		ChannelID:     lnwire.NewShortChanIDFromInt(22).ToUint64(),
+		PubKeyBytes:   peer2,
+		LocalBalance:  80000,
+		RemoteBalance: 0,
+		Capacity:      100000,
+	}
+
+	params := defaultParameters
+	params.Autoloop = true
+	params.EasyAutoloop = true
+	params.EasyAutoloopTarget = 80000
+	params.ClientRestrictions.Minimum = btcutil.Amount(1)
+	params.ClientRestrictions.Maximum = btcutil.Amount(10000)
+	// Exclude peer1, even though its channel has more local balance.
+	params.EasyAutoloopExcludedPeers = []route.Vertex{peer1}
+
+	c := newAutoloopTestCtx(
+		t, params, []lndclient.ChannelInfo{ch1, ch2}, testRestrictions,
+	)
+
+	// Picking a channel should not pick the excluded peer's channel.
+	picked := c.manager.pickEasyAutoloopChannel(
+		[]lndclient.ChannelInfo{ch1, ch2}, &params.ClientRestrictions,
+		nil, nil, 1,
+	)
+	require.NotNil(t, picked)
+	require.Equal(
+		t, ch2.ChannelID, picked.ChannelID,
+		"should pick non-excluded peer's channel",
+	)
+}
+
+// TestEasyAutoloopIncludeAllPeers simulates the --includealleasypeers flag by
+// clearing the exclusion list and ensuring a previously excluded peer can be
+// selected again.
+func TestEasyAutoloopIncludeAllPeers(t *testing.T) {
+	ch1 := lndclient.ChannelInfo{
+		Active:        true,
+		ChannelID:     lnwire.NewShortChanIDFromInt(33).ToUint64(),
+		PubKeyBytes:   peer1,
+		LocalBalance:  90000,
+		RemoteBalance: 0,
+		Capacity:      100000,
+	}
+	ch2 := lndclient.ChannelInfo{
+		Active:        true,
+		ChannelID:     lnwire.NewShortChanIDFromInt(44).ToUint64(),
+		PubKeyBytes:   peer2,
+		LocalBalance:  80000,
+		RemoteBalance: 0,
+		Capacity:      100000,
+	}
+
+	params := defaultParameters
+	params.Autoloop = true
+	params.EasyAutoloop = true
+	params.EasyAutoloopTarget = 80000
+	params.ClientRestrictions.Minimum = btcutil.Amount(1)
+	params.ClientRestrictions.Maximum = btcutil.Amount(10000)
+	params.EasyAutoloopExcludedPeers = []route.Vertex{peer1}
+
+	c := newAutoloopTestCtx(
+		t, params, []lndclient.ChannelInfo{ch1, ch2}, testRestrictions,
+	)
+
+	// With exclusion active, peer1 should not be picked.
+	picked := c.manager.pickEasyAutoloopChannel(
+		[]lndclient.ChannelInfo{ch1, ch2}, &params.ClientRestrictions,
+		nil, nil, 1,
+	)
+	require.NotNil(t, picked)
+	require.Equal(t, ch2.ChannelID, picked.ChannelID)
+
+	// Simulate --includealleasypeers by clearing the exclusion list as the
+	// CLI does before sending to the server.
+	c.manager.params.EasyAutoloopExcludedPeers = nil
+
+	picked = c.manager.pickEasyAutoloopChannel(
+		[]lndclient.ChannelInfo{ch1, ch2}, &params.ClientRestrictions,
+		nil, nil, 1,
+	)
+	require.NotNil(t, picked)
+	require.Equal(
+		t, ch1.ChannelID, picked.ChannelID,
+		"after include-all, highest local balance should win again",
+	)
+}