diff --git a/docs/release-notes/release-notes-0.17.4.md b/docs/release-notes/release-notes-0.17.4.md
index 7d1918f352..142880ef78 100644
--- a/docs/release-notes/release-notes-0.17.4.md
+++ b/docs/release-notes/release-notes-0.17.4.md
@@ -37,6 +37,11 @@
   caused memory leak for users running `lnd` with `bitcoind.rpcpolling=1`
   mode.
 
+* [Fix](https://github.com/lightningnetwork/lnd/pull/8428) an issue for pruned
+  nodes where the chain sync got lost because fetching of already pruned blocks
+  from our peers was not garbage collected when the request failed.
+
+
 
 # New Features
 ## Functional Enhancements
diff --git a/go.mod b/go.mod
index 1b0a9de893..9f282bb360 100644
--- a/go.mod
+++ b/go.mod
@@ -10,7 +10,7 @@ require (
 	github.com/btcsuite/btcd/btcutil/psbt v1.1.8
 	github.com/btcsuite/btcd/chaincfg/chainhash v1.1.0
 	github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f
-	github.com/btcsuite/btcwallet v0.16.10-0.20240122184004-f1648e92097f
+	github.com/btcsuite/btcwallet v0.16.10-0.20240127010340-16b422a2e8bf
 	github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2
 	github.com/btcsuite/btcwallet/wallet/txrules v1.2.0
 	github.com/btcsuite/btcwallet/walletdb v1.4.0
diff --git a/go.sum b/go.sum
index ea87b0c02a..7e56a0b5bc 100644
--- a/go.sum
+++ b/go.sum
@@ -95,8 +95,8 @@ github.com/btcsuite/btcd/chaincfg/chainhash v1.1.0/go.mod h1:7SFka0XMvUgj3hfZtyd
 github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f h1:bAs4lUbRJpnnkd9VhRV3jjAVU7DJVjMaK+IsvSeZvFo=
 github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f/go.mod h1:TdznJufoqS23FtqVCzL0ZqgP5MqXbb4fg/WgDys70nA=
 github.com/btcsuite/btcutil v0.0.0-20190425235716-9e5f4b9a998d/go.mod h1:+5NJ2+qvTyV9exUAL/rxXi3DcLg2Ts+ymUAY5y4NvMg=
-github.com/btcsuite/btcwallet v0.16.10-0.20240122184004-f1648e92097f h1:wtA3/5W+SAIQaWEuvnjMJqWEPjf2mWupXBB6KHbFKYA=
-github.com/btcsuite/btcwallet v0.16.10-0.20240122184004-f1648e92097f/go.mod h1:LzcW/LYkQLgDufv6Ouw4cOIW0YsY+A60MTtc61/OZTU=
+github.com/btcsuite/btcwallet v0.16.10-0.20240127010340-16b422a2e8bf h1:eNjj5R0tKP48NQxDkuKr+C9frZsdzTAemEwu75ZDQg0=
+github.com/btcsuite/btcwallet v0.16.10-0.20240127010340-16b422a2e8bf/go.mod h1:LzcW/LYkQLgDufv6Ouw4cOIW0YsY+A60MTtc61/OZTU=
 github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2 h1:etuLgGEojecsDOYTII8rYiGHjGyV5xTqsXi+ZQ715UU=
 github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2/go.mod h1:Zpk/LOb2sKqwP2lmHjaZT9AdaKsHPSbNLm2Uql5IQ/0=
 github.com/btcsuite/btcwallet/wallet/txrules v1.2.0 h1:BtEN5Empw62/RVnZ0VcJaVtVlBijnLlJY+dwjAye2Bg=