diff --git a/lightning/src/ln/channelmanager.rs b/lightning/src/ln/channelmanager.rs
index 040bd7a5ead..88957661dcd 100644
--- a/lightning/src/ln/channelmanager.rs
+++ b/lightning/src/ln/channelmanager.rs
@@ -8263,6 +8263,53 @@ where
 						}
 					}
 				}
+
+				// Whether the downstream channel was closed or not, try to re-apply any payment
+				// preimages from it which may be needed in upstream channels for forwarded
+				// payments.
+				for (htlc_source, (htlc, preimage_opt)) in monitor.get_all_current_outbound_htlcs() {
+					match htlc_source {
+						HTLCSource::PreviousHopData(prev_hop_data) => {
+							if let Some(payment_preimage) =  preimage_opt {
+								let mut is_chan_open = false;
+								if let Some((node_id, chan_id)) = short_to_chan_info.get(&prev_hop_data.short_channel_id) {
+									if let Some(mut peer) = per_peer_state.get_mut(node_id).map(|node| node.lock().unwrap()) {
+										if let Some(chan) = peer.channel_by_id.get_mut(chan_id) {
+											is_chan_open = true;
+											match chan.get_update_fulfill_htlc_and_commit(prev_hop_data.htlc_id, payment_preimage, &args.logger) {
+												UpdateFulfillCommitFetch::DuplicateClaim {} => {},
+												UpdateFulfillCommitFetch::NewClaim { monitor_update, .. } => {
+													// The ChannelMonitor that gave us this
+													// preimage is for a now-closed channel -
+													// no further updates to that channel can
+													// happen which would result in the
+													// preimage being removed, thus we're
+													// guaranteed to regenerate this claim on
+													// restart as long as the source monitor
+													// sticks around.
+													pending_background_events.push(
+														BackgroundEvent::MonitorUpdateRegeneratedOnStartup(
+															(*node_id, prev_hop_data.outpoint,
+															 monitor_update.clone())));
+												},
+											}
+										}
+									}
+								}
+								if !is_chan_open {
+									let monitor_update = ChannelMonitorUpdate {
+										update_id: CLOSED_CHANNEL_UPDATE_ID,
+										updates: vec![ChannelMonitorUpdateStep::PaymentPreimage { payment_preimage }],
+									};
+									pending_background_events.push(BackgroundEvent::
+										ClosingMonitorUpdateRegeneratedOnStartup(
+											(prev_hop_data.outpoint, monitor_update)));
+								}
+							}
+						},
+						_ => {},
+					}
+				}
 			}
 		}