diff --git a/lightning/src/ln/functional_tests.rs b/lightning/src/ln/functional_tests.rs
index cb8d64ecf15..4c47382958d 100644
--- a/lightning/src/ln/functional_tests.rs
+++ b/lightning/src/ln/functional_tests.rs
@@ -4672,6 +4672,122 @@ macro_rules! check_spendable_outputs {
 	}
 }
 
+#[test]
+fn test_peer_storage_on_revoked_txn() {
+	let chanmon_cfgs = create_chanmon_cfgs(2);
+	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
+	let (persister, chain_monitor);
+	let (persister_fund_recoverer, chain_monitor_fund_recoverer);
+
+	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None]);
+	let nodes_0_deserialized;
+	let nodes_0_deserialized_fund_recoverer;
+	let mut nodes = create_network(2, &node_cfgs, &node_chanmgrs);
+	let nodes_0_serialized = nodes[0].node.encode();
+
+	let (_a, _b, channel_id, funding_tx) = create_announced_chan_between_nodes(&nodes, 1, 0);
+
+	send_payment(&nodes[1], &vec!(&nodes[0])[..], 10000);
+	send_payment(&nodes[1], &vec!(&nodes[0])[..], 10000);
+
+	let revoked_local_txn = get_local_commitment_txn!(nodes[1], channel_id);
+	assert_eq!(revoked_local_txn[0].input.len(), 1);
+	assert_eq!(revoked_local_txn[0].input[0].previous_output.txid, funding_tx.txid());
+
+	send_payment(&nodes[1], &vec!(&nodes[0])[..], 10000);
+
+	nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id());
+	nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id());
+
+	// Lets drop the monitor and clear the chain_monitor as well.
+	nodes[0].chain_source.remove_watched_txn_and_outputs(
+	OutPoint { txid: funding_tx.txid(), index: 0 },
+		funding_tx.output[0].script_pubkey.clone()
+	);
+
+	reload_node!(nodes[0], test_default_channel_config(), &nodes_0_serialized, &[], persister, chain_monitor, nodes_0_deserialized);
+
+	// Reconnect peers to see if we send YourPeerStorage
+	nodes[1].node.peer_connected(&nodes[0].node.get_our_node_id(), &msgs::Init {
+		features: nodes[0].node.init_features(), networks: None, remote_network_address: None
+	}, false).unwrap();
+	let reestablish_2 = get_chan_reestablish_msgs!(nodes[1], nodes[0]);
+	assert_eq!(reestablish_2.len(), 1);
+
+	nodes[0].node.peer_connected(&nodes[1].node.get_our_node_id(), &msgs::Init {
+		features: nodes[1].node.init_features(), networks: None, remote_network_address: None
+	}, true).unwrap();
+	let reestablish_1 = get_chan_reestablish_msgs!(nodes[0], nodes[1]);
+	assert_eq!(reestablish_1.len(), 0);
+
+	nodes[0].node.peer_disconnected(&nodes[1].node.get_our_node_id());
+	nodes[1].node.peer_disconnected(&nodes[0].node.get_our_node_id());
+
+	let chanstub = get_stub!(nodes[0], channel_id).encode();
+
+	// Lets drop the monitor and clear the chain_monitor as well.
+	nodes[0].chain_source.remove_watched_txn_and_outputs(
+	OutPoint { txid: funding_tx.txid(), index: 0 },
+		funding_tx.output[0].script_pubkey.clone()
+	);
+
+	reload_node_with_stubs!(nodes[0], &nodes_0_serialized, &[], &[&chanstub], persister_fund_recoverer, chain_monitor_fund_recoverer, nodes_0_deserialized_fund_recoverer);
+
+	let fundrecoverer: FundRecoverer<&test_utils::TestKeysInterface, &TestLogger, &test_utils::TestChainMonitor> 
+	= FundRecoverer::new(&chain_monitor_fund_recoverer, node_cfgs[0].logger, test_default_channel_config(), ChainParameters{network: Network::Testnet,
+																																		   best_block: BestBlock::from_network(Network::Testnet)});
+
+	fundrecoverer.peer_connected(&nodes[1].node.get_our_node_id(), &msgs::Init {
+			features: nodes[0].node.init_features(), networks: None, remote_network_address: None
+	}, true).unwrap();
+	let mut closing_msg_events = fundrecoverer.get_and_clear_pending_msg_events();
+	assert_eq!(closing_msg_events.len(), 1);
+	let bogus_chan_reestablish = remove_first_msg_event_to_node(&nodes[1].node.get_our_node_id(), &mut closing_msg_events);
+
+	nodes[1].node.peer_connected(&nodes[0].node.get_our_node_id(), &msgs::Init {
+		features: nodes[0].node.init_features(), networks: None, remote_network_address: None
+	}, true).unwrap();
+	let reestablish_1 = get_chan_reestablish_msgs!(nodes[1], nodes[0]);
+	assert_eq!(reestablish_1.len(), 1);
+
+	match bogus_chan_reestablish {
+		MessageSendEvent::SendChannelReestablish {ref node_id, ref msg} => {
+			assert_eq!(nodes[1].node.get_our_node_id(), *node_id);
+			nodes[1].node.handle_channel_reestablish(&nodes[0].node.get_our_node_id(), msg);
+		},
+		_ => panic!("Unexpected event"),
+	}
+
+	fundrecoverer.handle_channel_reestablish(&nodes[1].node.get_our_node_id(), &reestablish_1[0]);
+
+	let block = create_dummy_block(nodes[1].best_block_hash(), 42, vec![revoked_local_txn[0].clone()]);
+	connect_block(&nodes[0], &block);
+	connect_block(&nodes[1], &block);
+	check_closed_broadcast!(nodes[1], true);
+
+	let events_2 = nodes[1].node.get_and_clear_pending_events();
+	assert_eq!(events_2.len(), 1);
+	match events_2[0] {
+		Event::ChannelClosed {..} => {}, // If we actually processed we'd receive the payment
+		_ => panic!("Unexpected event"),
+	}
+	check_added_monitors!(nodes[1], 1);
+
+	let panelty = nodes[0].tx_broadcaster.txn_broadcasted.lock().unwrap().clone();
+	assert_eq!(panelty.len(), 1);
+	assert_eq!(panelty[0].input.len(), 1);
+
+	let block = create_dummy_block(nodes[1].best_block_hash(), 42, vec![panelty[0].clone()]);
+	connect_block(&nodes[1], &block);
+	connect_block(&nodes[0], &block);
+
+	connect_blocks(&nodes[0], CHAN_CONFIRM_DEPTH);
+	let spend_txn = check_spendable_outputs!(nodes[0], node_cfgs[0].keys_manager);
+	assert_eq!(spend_txn.len(), 1);
+	assert_eq!(spend_txn[0].input.len(), 1);
+	check_spends!(spend_txn[0], panelty[0]);
+}
+
 #[test]
 fn test_claim_sizeable_push_msat() {
 	// Incidentally test SpendableOutput event generation due to detection of to_local output on commitment tx