diff --git a/invoices/invoiceregistry.go b/invoices/invoiceregistry.go
index 66043ff0..e53d7da8 100644
--- a/invoices/invoiceregistry.go
+++ b/invoices/invoiceregistry.go
@@ -148,9 +148,13 @@ func NewRegistry(cdb *channeldb.DB, expiryWatcher *InvoiceExpiryWatcher,
 }
 
 // scanInvoicesOnStart will scan all invoices on start and add active invoices
-// to the invoice expiry watcher.
+// to the invoice expirt watcher while also attempting to delete all canceled
+// invoices.
 func (i *InvoiceRegistry) scanInvoicesOnStart() error {
-	var pending map[lntypes.Hash]*channeldb.Invoice
+	var (
+		pending   map[lntypes.Hash]*channeldb.Invoice
+		removable []channeldb.InvoiceDeleteRef
+	)
 
 	reset := func() {
 		// Zero out our results on start and if the scan is ever run
@@ -159,6 +163,7 @@ func (i *InvoiceRegistry) scanInvoicesOnStart() error {
 		// using the etcd driver, where all transactions are allowed
 		// to retry for serializability).
 		pending = make(map[lntypes.Hash]*channeldb.Invoice)
+		removable = make([]channeldb.InvoiceDeleteRef, 0)
 	}
 
 	scanFunc := func(
@@ -166,8 +171,23 @@ func (i *InvoiceRegistry) scanInvoicesOnStart() error {
 
 		if invoice.IsPending() {
 			pending[paymentHash] = invoice
-		}
+		} else if invoice.State == channeldb.ContractCanceled {
+			// Consider invoice for removal if it is already
+			// canceled. Invoices that are expired but not yet
+			// canceled, will be queued up for cancellation after
+			// startup and will be deleted afterwards.
+			ref := channeldb.InvoiceDeleteRef{
+				PayHash:     paymentHash,
+				AddIndex:    invoice.AddIndex,
+				SettleIndex: invoice.SettleIndex,
+			}
 
+			if invoice.Terms.PaymentAddr != channeldb.BlankPayAddr {
+				ref.PayAddr = &invoice.Terms.PaymentAddr
+			}
+
+			removable = append(removable, ref)
+		}
 		return nil
 	}
 
@@ -180,6 +200,10 @@ func (i *InvoiceRegistry) scanInvoicesOnStart() error {
 		len(pending))
 	i.expiryWatcher.AddInvoices(pending)
 
+	if err := i.cdb.DeleteInvoice(removable); err != nil {
+		log.Warnf("Deleting old invoices failed: %v", err)
+	}
+
 	return nil
 }
 
diff --git a/invoices/invoiceregistry_test.go b/invoices/invoiceregistry_test.go
index c77b38ed..0da260a2 100644
--- a/invoices/invoiceregistry_test.go
+++ b/invoices/invoiceregistry_test.go
@@ -1,6 +1,7 @@
 package invoices
 
 import (
+	"math"
 	"testing"
 	"time"
 
@@ -1077,3 +1078,77 @@ func TestInvoiceExpiryWithRegistry(t *testing.T) {
 		}
 	}
 }
+
+// TestOldInvoiceRemovalOnStart tests that we'll attempt to remove old canceled
+// invoices upon start while keeping all settled ones.
+func TestOldInvoiceRemovalOnStart(t *testing.T) {
+	t.Parallel()
+
+	testClock := clock.NewTestClock(testTime)
+	cdb, cleanup, err := newTestChannelDB(testClock)
+	defer cleanup()
+
+	require.NoError(t, err)
+
+	cfg := RegistryConfig{
+		FinalCltvRejectDelta: testFinalCltvRejectDelta,
+		Clock:                testClock,
+	}
+
+	expiryWatcher := NewInvoiceExpiryWatcher(cfg.Clock)
+	registry := NewRegistry(cdb, expiryWatcher, &cfg)
+
+	// First prefill the Channel DB with some pre-existing expired invoices.
+	const numExpired = 5
+	const numPending = 0
+	existingInvoices := generateInvoiceExpiryTestData(
+		t, testTime, 0, numExpired, numPending,
+	)
+
+	i := 0
+	for paymentHash, invoice := range existingInvoices.expiredInvoices {
+		// Mark half of the invoices as settled, the other hald as
+		// canceled.
+		if i%2 == 0 {
+			invoice.State = channeldb.ContractSettled
+		} else {
+			invoice.State = channeldb.ContractCanceled
+		}
+
+		_, err := cdb.AddInvoice(invoice, paymentHash)
+		require.NoError(t, err)
+		i++
+	}
+
+	// Collect all settled invoices for our expectation set.
+	var expected []channeldb.Invoice
+
+	// Perform a scan query to collect all invoices.
+	query := channeldb.InvoiceQuery{
+		IndexOffset:    0,
+		NumMaxInvoices: math.MaxUint64,
+	}
+
+	response, err := cdb.QueryInvoices(query)
+	require.NoError(t, err)
+
+	// Save all settled invoices for our expectation set.
+	for _, invoice := range response.Invoices {
+		if invoice.State == channeldb.ContractSettled {
+			expected = append(expected, invoice)
+		}
+	}
+
+	// Start the registry which should collect and delete all canceled
+	// invoices upon start.
+	err = registry.Start()
+	require.NoError(t, err, "cannot start the registry")
+
+	// Perform a scan query to collect all invoices.
+	response, err = cdb.QueryInvoices(query)
+	require.NoError(t, err)
+
+	// Check that we really only kept the settled invoices after the
+	// registry start.
+	require.Equal(t, expected, response.Invoices)
+}