diff --git a/lightningd/peer_htlcs.c b/lightningd/peer_htlcs.c
index 69f9fe2d2..91c0e52a0 100644
--- a/lightningd/peer_htlcs.c
+++ b/lightningd/peer_htlcs.c
@@ -1754,8 +1754,14 @@ void onchain_failed_our_htlc(const struct channel *channel,
 	} else if (hout->in) {
 		log_debug(channel->log, "HTLC id %"PRIu64" has incoming",
 			  htlc->id);
-		local_fail_in_htlc(hout->in,
-				   take(towire_permanent_channel_failure(NULL)));
+ 		/* Careful!  We might have already timed out incoming
+		 * HTLC in consider_failing_incoming */
+		if (hout->in->badonion == 0
+		    && !hout->in->failonion
+		    && !hout->in->preimage) {
+			local_fail_in_htlc(hout->in,
+					   take(towire_permanent_channel_failure(NULL)));
+		}
 		wallet_forwarded_payment_add(hout->key.channel->peer->ld->wallet,
 					 hout->in, FORWARD_STYLE_TLV,
 					 channel_scid_or_local_alias(channel), hout,
@@ -2661,6 +2667,43 @@ static u32 htlc_in_deadline(const struct lightningd *ld,
 	return hin->cltv_expiry - (ld->config.cltv_expiry_delta + 1)/2;
 }
 
+/* onchaind might fail to time out an HTLC: maybe fees spiked, or maybe
+ * it decided it wasn't worthwhile.  This risks cascading failure if
+ * it was routed: the incoming peer will get upset with us, too.
+ *
+ * So, if we're within 3 blocks of this happening, we fail upstream.
+ * It's weird to do this by looking at hout, rather than hin, but
+ * there's a pointer from hout->hin and not vice versa (we don't
+ * normally need it). */
+static void consider_failing_incoming(struct lightningd *ld,
+				      u32 height,
+				      struct htlc_out *hout)
+{
+	/* Already failed or succeeded? */
+	if (hout->failmsg || hout->failonion || hout->preimage)
+		return;
+
+	/* Has no corresponding input we should be stressed about? */
+	if (!hout->in)
+		return;
+
+	/* Already done it once? */
+	if (hout->in->failonion)
+		return;
+
+	/* OK, if we're within 3 blocks of upstream getting upset, force it
+	 * to fail without waiting for onchaind. */
+	if (height + 3 < hout->in->cltv_expiry)
+		return;
+
+	log_unusual(hout->key.channel->log,
+		    "Abandoning unresolved onchain HTLC at block %u"
+		    " (expired at %u) to avoid peer closing incoming HTLC at block %u",
+		    height, hout->cltv_expiry, hout->in->cltv_expiry);
+
+	local_fail_in_htlc(hout->in, take(towire_permanent_channel_failure(NULL)));
+}
+
 void htlcs_notify_new_block(struct lightningd *ld, u32 height)
 {
 	bool removed;
@@ -2687,8 +2730,10 @@ void htlcs_notify_new_block(struct lightningd *ld, u32 height)
 				continue;
 
 			/* Peer on chain already? */
-			if (channel_on_chain(hout->key.channel))
+			if (channel_on_chain(hout->key.channel)) {
+				consider_failing_incoming(ld, height, hout);
 				continue;
+			}
 
 			/* Peer already failed, or we hit it? */
 			if (hout->key.channel->error)
diff --git a/tests/test_closing.py b/tests/test_closing.py
index e61d2c20e..7ab7914c9 100644
--- a/tests/test_closing.py
+++ b/tests/test_closing.py
@@ -3796,7 +3796,6 @@ def test_closing_anchorspend_htlc_tx_rbf(node_factory, bitcoind):
     bitcoind.generate_block(1, needfeerate=4990)
 
 
-@pytest.mark.xfail(strict=True)
 @pytest.mark.developer("needs dev_disconnect")
 @pytest.mark.parametrize("anchors", [False, True])
 def test_htlc_no_force_close(node_factory, bitcoind, anchors):