diff --git a/tapdb/migrations.go b/tapdb/migrations.go
index a19ecbea2..3f6c96642 100644
--- a/tapdb/migrations.go
+++ b/tapdb/migrations.go
@@ -7,11 +7,13 @@ import (
 	"io"
 	"io/fs"
 	"net/http"
+	"os"
 	"strings"
 
 	"github.com/btcsuite/btclog"
 	"github.com/golang-migrate/migrate/v4"
 	"github.com/golang-migrate/migrate/v4/database"
+	"github.com/golang-migrate/migrate/v4/source"
 	"github.com/golang-migrate/migrate/v4/source/httpfs"
 	"github.com/lightninglabs/taproot-assets/fn"
 )
@@ -26,20 +28,29 @@ const (
 )
 
 // MigrationTarget is a functional option that can be passed to applyMigrations
-// to specify a target version to migrate to.
-type MigrationTarget func(mig *migrate.Migrate) error
+// to specify a target version to migrate to. `currentDbVersion` is the current
+// (migration) version of the database, or None if unknown.
+// `maxMigrationVersion` is the maximum migration version known to the driver,
+// or None if unknown.
+type MigrationTarget func(mig *migrate.Migrate,
+	currentDbVersion fn.Option[uint],
+	maxMigrationVersion fn.Option[uint]) error
 
 var (
 	// TargetLatest is a MigrationTarget that migrates to the latest
 	// version available.
-	TargetLatest = func(mig *migrate.Migrate) error {
+	TargetLatest = func(mig *migrate.Migrate, _ fn.Option[uint],
+		_ fn.Option[uint]) error {
+
 		return mig.Up()
 	}
 
 	// TargetVersion is a MigrationTarget that migrates to the given
 	// version.
 	TargetVersion = func(version uint) MigrationTarget {
-		return func(mig *migrate.Migrate) error {
+		return func(mig *migrate.Migrate, _ fn.Option[uint],
+			_ fn.Option[uint]) error {
+
 			return mig.Migrate(version)
 		}
 	}
@@ -109,6 +120,31 @@ func (m *migrationLogger) Verbose() bool {
 	return m.log.Level() <= btclog.LevelDebug
 }
 
+// maxKnownMigrationVersion returns the maximum migration version known to the
+// given source driver.
+func maxKnownMigrationVersion(sourceDriver source.Driver) (fn.Option[uint],
+	error) {
+
+	var (
+		// We start at version 1, if we start with 0 the next version
+		// is not returned correctly. This project is already beyond
+		// version 0, so this should be fine.
+		currentVersion uint = 1
+	)
+	for {
+		nextVersion, err := sourceDriver.Next(currentVersion)
+		switch {
+		case errors.Is(err, os.ErrNotExist):
+			return fn.Some(currentVersion), nil
+		case err != nil:
+			return fn.None[uint](), err
+		}
+
+		// Set the current version to the next version.
+		currentVersion = nextVersion
+	}
+}
+
 // applyMigrations executes database migration files found in the given file
 // system under the given path, using the passed database driver and database
 // name, up to or down to the given target version.
@@ -146,17 +182,43 @@ func applyMigrations(fs fs.FS, driver database.Driver, path, dbName string,
 			ErrMigrationDowngrade, migrationVersion, latestVersion)
 	}
 
-	log.Infof("Applying migrations from version=%v", migrationVersion)
+	// Compute the max migration version known to the driver.
+	maxMigrationVersion, err := maxKnownMigrationVersion(migrateFileServer)
+	if err != nil {
+		return fmt.Errorf("failed to determine max migration "+
+			"version: %v", err)
+	}
+
+	// Report the current version of the database before the migration.
+	currentDbVersion, _, err := driver.Version()
+	if err != nil {
+		return fmt.Errorf("unable to get current db version: %w", err)
+	}
+	log.Infof("Attempting to apply migration(s) "+
+		"(current_db_version=%v, max_migration_version=%v)",
+		currentDbVersion, maxMigrationVersion)
+
+	var currentDbV fn.Option[uint]
+	if currentDbVersion >= 0 {
+		currentDbV = fn.Some(uint(currentDbVersion))
+	}
 
 	// Apply our local logger to the migration instance.
 	sqlMigrate.Log = &migrationLogger{log}
 
 	// Execute the migration based on the target given.
-	err = targetVersion(sqlMigrate)
+	err = targetVersion(sqlMigrate, currentDbV, maxMigrationVersion)
 	if err != nil && !errors.Is(err, migrate.ErrNoChange) {
 		return err
 	}
 
+	// Report the current version of the database after the migration.
+	currentDbVersion, _, err = driver.Version()
+	if err != nil {
+		return fmt.Errorf("unable to get current db version: %w", err)
+	}
+	log.Infof("Database version after migration: %v", currentDbVersion)
+
 	return nil
 }