diff --git a/cln-rpc/Makefile b/cln-rpc/Makefile
index 339894ae1..eff4fdbd4 100644
--- a/cln-rpc/Makefile
+++ b/cln-rpc/Makefile
@@ -16,5 +16,8 @@ target/${RUST_PROFILE}/examples/cln-rpc-getinfo: $(shell find cln-rpc -name *.rs
 target/${RUST_PROFILE}/examples/cln-plugin-startup: $(shell find cln-rpc -name *.rs)
 	cargo build ${CARGO_OPTS} --example cln-plugin-startup
 
+target/${RUST_PROFILE}/examples/cln-plugin-reentrant: $(shell find plugins/examples -name *.rs)
+	cargo build ${CARGO_OPTS} --example cln-plugin-reentrant
+
 
 cln-rpc-all: ${CLN_RPC_GEN_ALL} ${CLN_RPC_EXAMPLES}
diff --git a/plugins/Makefile b/plugins/Makefile
index 0928c3b6d..9a7b44eb9 100644
--- a/plugins/Makefile
+++ b/plugins/Makefile
@@ -1,5 +1,5 @@
 PLUGIN_PAY_SRC := plugins/pay.c
-PLUGIN_PAY_HEADER := 
+PLUGIN_PAY_HEADER :=
 PLUGIN_PAY_OBJS := $(PLUGIN_PAY_SRC:.c=.o)
 
 PLUGIN_AUTOCLEAN_SRC := plugins/autoclean.c
@@ -40,7 +40,7 @@ PLUGIN_FETCHINVOICE_OBJS := $(PLUGIN_FETCHINVOICE_SRC:.c=.o)
 PLUGIN_FETCHINVOICE_HEADER :=
 
 PLUGIN_SQL_SRC := plugins/sql.c
-PLUGIN_SQL_HEADER := 
+PLUGIN_SQL_HEADER :=
 PLUGIN_SQL_OBJS := $(PLUGIN_SQL_SRC:.c=.o)
 
 PLUGIN_SPENDER_SRC :=				\
@@ -188,7 +188,7 @@ plugins/autoclean: $(PLUGIN_AUTOCLEAN_OBJS) $(PLUGIN_LIB_OBJS) $(PLUGIN_COMMON_O
 
 plugins/chanbackup: $(PLUGIN_chanbackup_OBJS) $(PLUGIN_LIB_OBJS) $(PLUGIN_COMMON_OBJS) $(JSMN_OBJS)
 
-plugins/commando: $(PLUGIN_COMMANDO_OBJS) $(PLUGIN_LIB_OBJS) $(PLUGIN_COMMON_OBJS) $(JSMN_OBJS) 
+plugins/commando: $(PLUGIN_COMMANDO_OBJS) $(PLUGIN_LIB_OBJS) $(PLUGIN_COMMON_OBJS) $(JSMN_OBJS)
 
 # Topology wants to decode node_announcement, and peer_wiregen which
 # pulls in some of bitcoin/.
@@ -232,6 +232,7 @@ plugins/list_of_builtin_plugins_gen.h: plugins/Makefile Makefile config.vars
 
 CLN_PLUGIN_EXAMPLES := \
 	target/${RUST_PROFILE}/examples/cln-plugin-startup \
+	target/${RUST_PROFILE}/examples/cln-plugin-reentrant \
 	target/${RUST_PROFILE}/examples/cln-rpc-getinfo
 
 CLN_PLUGIN_SRC = $(shell find plugins/src -name "*.rs")
diff --git a/plugins/examples/cln-plugin-reentrant.rs b/plugins/examples/cln-plugin-reentrant.rs
new file mode 100644
index 000000000..c42c1d0ad
--- /dev/null
+++ b/plugins/examples/cln-plugin-reentrant.rs
@@ -0,0 +1,44 @@
+use anyhow::Error;
+use cln_plugin::{Builder, Plugin};
+use serde_json::json;
+use tokio::sync::broadcast;
+
+#[derive(Clone)]
+struct State {
+    tx: broadcast::Sender<()>,
+}
+
+#[tokio::main]
+async fn main() -> Result<(), Error> {
+    let (tx, _) = broadcast::channel(4);
+    let state = State { tx };
+
+    if let Some(plugin) = Builder::new(tokio::io::stdin(), tokio::io::stdout())
+        .hook("htlc_accepted", htlc_accepted_handler)
+        .rpcmethod("release", "Release all HTLCs we currently hold", release)
+        .start(state)
+        .await?
+    {
+        plugin.join().await?;
+        Ok(())
+    } else {
+        Ok(())
+    }
+}
+
+/// Release all waiting HTLCs
+async fn release(p: Plugin<State>, _v: serde_json::Value) -> Result<serde_json::Value, Error> {
+    p.state().tx.send(()).unwrap();
+    Ok(json!("Released!"))
+}
+
+async fn htlc_accepted_handler(
+    p: Plugin<State>,
+    v: serde_json::Value,
+) -> Result<serde_json::Value, Error> {
+    log::info!("Holding on to incoming HTLC {:?}", v);
+    // Wait for `release` to be called.
+    p.state().tx.subscribe().recv().await.unwrap();
+
+    Ok(json!({"result": "continue"}))
+}
diff --git a/tests/test_cln_rs.py b/tests/test_cln_rs.py
index c2a6a4a39..49ea388ae 100644
--- a/tests/test_cln_rs.py
+++ b/tests/test_cln_rs.py
@@ -249,6 +249,46 @@ def test_grpc_wrong_auth(node_factory):
     stub.Getinfo(nodepb.GetinfoRequest())
 
 
+@pytest.mark.xfail(
+    reason="Times out because we can't call the RPC method while currently holding on to HTLCs",
+    strict=True,
+)
+def test_cln_plugin_reentrant(node_factory, executor):
+    """Ensure that we continue processing events while already handling.
+
+    We should be continuing to handle incoming events even though a
+    prior event has not completed. This is important for things like
+    the `htlc_accepted` hook which needs to hold on to multiple
+    incoming HTLCs.
+
+    Scenario: l1 uses an `htlc_accepted` to hold on to incoming HTLCs,
+    and we release them using an RPC method.
+
+    """
+    bin_path = Path.cwd() / "target" / RUST_PROFILE / "examples" / "cln-plugin-reentrant"
+    l1 = node_factory.get_node(options={"plugin": str(bin_path)})
+    l2 = node_factory.get_node()
+    l2.connect(l1)
+    l2.fundchannel(l1)
+
+    # Now create two invoices, and pay them both. Neither should
+    # succeed, but we should queue them on the plugin.
+    i1 = l1.rpc.invoice(label='lbl1', msatoshi='42sat', description='desc')['bolt11']
+    i2 = l1.rpc.invoice(label='lbl2', msatoshi='31337sat', description='desc')['bolt11']
+
+    f1 = executor.submit(l2.rpc.pay, i1)
+    f2 = executor.submit(l2.rpc.pay, i2)
+
+    import time
+    time.sleep(3)
+
+    print("Releasing HTLCs after holding them")
+    l1.rpc.call('release')
+
+    assert f1.result()
+    assert f2.result()
+
+
 def test_grpc_keysend_routehint(bitcoind, node_factory):
     """The routehints are a bit special, test that conversions work.