diff --git a/instantout/actions.go b/instantout/actions.go
index 25842652..fffe987c 100644
--- a/instantout/actions.go
+++ b/instantout/actions.go
@@ -293,6 +293,15 @@ func (f *FSM) BuildHTLCAction(ctx context.Context,
 	}
 
 	f.htlcMusig2Sessions = htlcSessions
+	defer func() {
+		err := cleanupMuSig2Sessions(
+			ctx, f.cfg.Signer, f.htlcMusig2Sessions,
+		)
+		if err != nil {
+			f.Errorf("unable to clean up HTLC MuSig2 sessions: %v", err)
+		}
+		f.htlcMusig2Sessions = nil
+	}()
 
 	// Send the server the client nonces.
 	htlcInitRes, err := f.cfg.InstantOutClient.InitHtlcSig(
@@ -382,6 +391,15 @@ func (f *FSM) PushPreimageAction(ctx context.Context,
 	}
 
 	f.sweeplessSweepSessions = coopSessions
+	defer func() {
+		err := cleanupMuSig2Sessions(
+			ctx, f.cfg.Signer, f.sweeplessSweepSessions,
+		)
+		if err != nil {
+			f.Errorf("unable to clean up sweep MuSig2 sessions: %v", err)
+		}
+		f.sweeplessSweepSessions = nil
+	}()
 
 	// Get the feerate for the coop sweep.
 	feeRate, err := f.cfg.Wallet.EstimateFeeRate(ctx, normalConfTarget)
diff --git a/instantout/instantout.go b/instantout/instantout.go
index 16f91d45..eade26e0 100644
--- a/instantout/instantout.go
+++ b/instantout/instantout.go
@@ -5,6 +5,7 @@ import (
 	"errors"
 	"fmt"
 	"reflect"
+	"time"
 
 	"github.com/btcsuite/btcd/btcec/v2"
 	"github.com/btcsuite/btcd/btcec/v2/schnorr/musig2"
@@ -25,6 +26,8 @@ import (
 	"github.com/lightningnetwork/lnd/lnwallet/chainfee"
 )
 
+const muSig2CleanupTimeout = 5 * time.Second
+
 // InstantOut holds the necessary information to execute an instant out swap.
 type InstantOut struct {
 	// SwapHash is the hash of the swap.
@@ -112,7 +115,10 @@ func (i *InstantOut) createMusig2Session(ctx context.Context,
 	for idx, reservation := range i.Reservations {
 		session, err := reservation.Musig2CreateSession(ctx, signer)
 		if err != nil {
-			return nil, nil, err
+			cleanupErr := cleanupMuSig2Sessions(
+				ctx, signer, musig2Sessions[:idx],
+			)
+			return nil, nil, errors.Join(err, cleanupErr)
 		}
 
 		musig2Sessions[idx] = session
@@ -122,6 +128,32 @@ func (i *InstantOut) createMusig2Session(ctx context.Context,
 	return musig2Sessions, clientNonces, nil
 }
 
+// cleanupMuSig2Sessions removes completed or abandoned MuSig2 sessions from
+// lnd. Cleanup uses a bounded context that survives cancellation of the swap
+// action that created the sessions.
+func cleanupMuSig2Sessions(ctx context.Context, signer lndclient.SignerClient,
+	sessions []*input.MuSig2SessionInfo) error {
+
+	cleanupCtx, cancel := context.WithTimeout(
+		context.WithoutCancel(ctx), muSig2CleanupTimeout,
+	)
+	defer cancel()
+
+	var cleanupErr error
+	for _, session := range sessions {
+		if session == nil {
+			continue
+		}
+
+		err := signer.MuSig2Cleanup(cleanupCtx, session.SessionID)
+		if err != nil {
+			cleanupErr = errors.Join(cleanupErr, err)
+		}
+	}
+
+	return cleanupErr
+}
+
 // getInputReservations returns the input reservations for the instant out.
 func (i *InstantOut) getInputReservations() (InputReservations, error) {
 	if len(i.Reservations) == 0 {
@@ -384,6 +416,11 @@ func (i *InstantOut) finalizeMusig2Transaction(ctx context.Context,
 			return nil, fmt.Errorf("missing sigs")
 		}
 
+		// lnd removes a MuSig2 session automatically once all signatures
+		// have been combined. Clear the local entry so the caller's deferred
+		// cleanup only targets sessions abandoned on an error path.
+		musig2Sessions[idx] = nil
+
 		tx.TxIn[idx].Witness = wire.TxWitness{finalSig}
 
 		vm, err := txscript.NewEngine(
diff --git a/instantout/instantout_test.go b/instantout/instantout_test.go
index f2ba3241..fd45b788 100644
--- a/instantout/instantout_test.go
+++ b/instantout/instantout_test.go
@@ -23,6 +23,19 @@ func (s *invalidFinalSigSigner) MuSig2CombineSig(context.Context, [32]byte,
 	return true, make([]byte, 64), nil
 }
 
+type cleanupTrackingSigner struct {
+	lndclient.SignerClient
+
+	cleaned [][32]byte
+}
+
+func (s *cleanupTrackingSigner) MuSig2Cleanup(_ context.Context,
+	sessionID [32]byte) error {
+
+	s.cleaned = append(s.cleaned, sessionID)
+	return nil
+}
+
 // TestMuSig2VectorLengthValidation verifies that malformed server-controlled
 // vectors are rejected before they can be indexed.
 func TestMuSig2VectorLengthValidation(t *testing.T) {
@@ -76,9 +89,27 @@ func TestFinalizeMuSig2TransactionVerifiesSignature(t *testing.T) {
 	tx.AddTxIn(&wire.TxIn{PreviousOutPoint: *res.Outpoint})
 	tx.AddTxOut(&wire.TxOut{Value: 90_000})
 
+	sessions := []*input.MuSig2SessionInfo{{}}
 	_, err := instantOut.finalizeMusig2Transaction(
 		context.Background(), &invalidFinalSigSigner{},
-		[]*input.MuSig2SessionInfo{{}}, tx, [][]byte{{1}},
+		sessions, tx, [][]byte{{1}},
 	)
 	require.ErrorContains(t, err, "invalid final MuSig2 signature")
+	require.Nil(t, sessions[0])
+}
+
+// TestCleanupMuSig2Sessions verifies that all allocated sessions are released
+// while nil entries from partial session creation are skipped.
+func TestCleanupMuSig2Sessions(t *testing.T) {
+	firstID := [32]byte{1}
+	secondID := [32]byte{2}
+	signer := &cleanupTrackingSigner{}
+
+	err := cleanupMuSig2Sessions(
+		t.Context(), signer, []*input.MuSig2SessionInfo{
+			{SessionID: firstID}, nil, {SessionID: secondID},
+		},
+	)
+	require.NoError(t, err)
+	require.Equal(t, [][32]byte{firstID, secondID}, signer.cleaned)
 }