diff --git a/chainreg/chainregistry.go b/chainreg/chainregistry.go
index ff500820..d3b84130 100644
--- a/chainreg/chainregistry.go
+++ b/chainreg/chainregistry.go
@@ -19,6 +19,7 @@ import (
 	"github.com/btcsuite/btcwallet/chain"
 	"github.com/btcsuite/btcwallet/wallet"
 	"github.com/lightninglabs/neutrino"
+	"github.com/lightningnetwork/lnd/blockcache"
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/chainntnfs/bitcoindnotify"
 	"github.com/lightningnetwork/lnd/chainntnfs/btcdnotify"
@@ -306,6 +307,9 @@ func NewChainControl(cfg *Config) (*ChainControl, func(), error) {
 			"cache: %v", err)
 	}
 
+	// Initialize a new block cache.
+	blockCache := blockcache.NewBlockCache(cfg.BlockCacheSize)
+
 	// If spv mode is active, then we'll be using a distinct set of
 	// chainControl interfaces that interface directly with the p2p network
 	// of the selected chain.
@@ -641,7 +645,7 @@ func NewChainControl(cfg *Config) (*ChainControl, func(), error) {
 		return nil, nil, err
 	}
 
-	wc, err := btcwallet.New(*walletConfig)
+	wc, err := btcwallet.New(*walletConfig, blockCache)
 	if err != nil {
 		fmt.Printf("unable to create wallet controller: %v\n", err)
 		return nil, ccCleanup, err
diff --git a/lnwallet/btcwallet/blockchain.go b/lnwallet/btcwallet/blockchain.go
index f59c462e..1b114748 100644
--- a/lnwallet/btcwallet/blockchain.go
+++ b/lnwallet/btcwallet/blockchain.go
@@ -131,7 +131,7 @@ func (b *BtcWallet) GetUtxo(op *wire.OutPoint, pkScript []byte,
 //
 // This method is a part of the lnwallet.BlockChainIO interface.
 func (b *BtcWallet) GetBlock(blockHash *chainhash.Hash) (*wire.MsgBlock, error) {
-	return b.chain.GetBlock(blockHash)
+	return b.blockCache.GetBlock(blockHash, b.chain.GetBlock)
 }
 
 // GetBlockHash returns the hash of the block in the best blockchain at the
diff --git a/lnwallet/btcwallet/btcwallet.go b/lnwallet/btcwallet/btcwallet.go
index be5d570e..63919e5e 100644
--- a/lnwallet/btcwallet/btcwallet.go
+++ b/lnwallet/btcwallet/btcwallet.go
@@ -24,6 +24,7 @@ import (
 	"github.com/btcsuite/btcwallet/wallet/txrules"
 	"github.com/btcsuite/btcwallet/walletdb"
 	"github.com/btcsuite/btcwallet/wtxmgr"
+	"github.com/lightningnetwork/lnd/blockcache"
 	"github.com/lightningnetwork/lnd/keychain"
 	"github.com/lightningnetwork/lnd/lnwallet"
 	"github.com/lightningnetwork/lnd/lnwallet/chainfee"
@@ -74,6 +75,8 @@ type BtcWallet struct {
 	netParams *chaincfg.Params
 
 	chainKeyScope waddrmgr.KeyScope
+
+	blockCache *blockcache.BlockCache
 }
 
 // A compile time check to ensure that BtcWallet implements the
@@ -83,7 +86,7 @@ var _ lnwallet.BlockChainIO = (*BtcWallet)(nil)
 
 // New returns a new fully initialized instance of BtcWallet given a valid
 // configuration struct.
-func New(cfg Config) (*BtcWallet, error) {
+func New(cfg Config, blockCache *blockcache.BlockCache) (*BtcWallet, error) {
 	// Ensure the wallet exists or create it when the create flag is set.
 	netDir := NetworkDir(cfg.DataDir, cfg.NetParams)
 
@@ -142,6 +145,7 @@ func New(cfg Config) (*BtcWallet, error) {
 		chain:         cfg.ChainSource,
 		netParams:     cfg.NetParams,
 		chainKeyScope: chainKeyScope,
+		blockCache:    blockCache,
 	}, nil
 }
 
diff --git a/lnwallet/btcwallet/driver.go b/lnwallet/btcwallet/driver.go
index 4939c16f..55cdfb09 100644
--- a/lnwallet/btcwallet/driver.go
+++ b/lnwallet/btcwallet/driver.go
@@ -4,6 +4,7 @@ import (
 	"fmt"
 
 	"github.com/btcsuite/btcwallet/chain"
+	"github.com/lightningnetwork/lnd/blockcache"
 	"github.com/lightningnetwork/lnd/lnwallet"
 )
 
@@ -16,9 +17,9 @@ const (
 // properly create an instance of the lnwallet.WalletDriver struct for
 // BtcWallet.
 func createNewWallet(args ...interface{}) (lnwallet.WalletController, error) {
-	if len(args) != 1 {
+	if len(args) != 2 {
 		return nil, fmt.Errorf("incorrect number of arguments to .New(...), "+
-			"expected 1, instead passed %v", len(args))
+			"expected 2, instead passed %v", len(args))
 	}
 
 	config, ok := args[0].(*Config)
@@ -27,7 +28,13 @@ func createNewWallet(args ...interface{}) (lnwallet.WalletController, error) {
 			"incorrect, expected a *rpcclient.ConnConfig")
 	}
 
-	return New(*config)
+	blockCache, ok := args[1].(*blockcache.BlockCache)
+	if !ok {
+		return nil, fmt.Errorf("second argument to btcdnotifier.New is " +
+			"incorrect, expected a *blockcache.BlockCache")
+	}
+
+	return New(*config, blockCache)
 }
 
 // init registers a driver for the BtcWallet concrete implementation of the
diff --git a/lnwallet/test/test_interface.go b/lnwallet/test/test_interface.go
index c57fb49c..cd01232e 100644
--- a/lnwallet/test/test_interface.go
+++ b/lnwallet/test/test_interface.go
@@ -32,6 +32,7 @@ import (
 	_ "github.com/btcsuite/btcwallet/walletdb/bdb"
 	"github.com/davecgh/go-spew/spew"
 	"github.com/lightninglabs/neutrino"
+	"github.com/lightningnetwork/lnd/blockcache"
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/chainntnfs/btcdnotify"
 	"github.com/lightningnetwork/lnd/channeldb"
@@ -3262,6 +3263,8 @@ func runTests(t *testing.T, walletDriver *lnwallet.WalletDriver,
 	}
 	defer os.RemoveAll(tempTestDirBob)
 
+	blockCache := blockcache.NewBlockCache(10000)
+
 	walletType := walletDriver.WalletType
 	switch walletType {
 	case "btcwallet":
@@ -3430,7 +3433,9 @@ func runTests(t *testing.T, walletDriver *lnwallet.WalletDriver,
 			// wallet starts in recovery mode
 			RecoveryWindow: 2,
 		}
-		aliceWalletController, err = walletDriver.New(aliceWalletConfig)
+		aliceWalletController, err = walletDriver.New(
+			aliceWalletConfig, blockCache,
+		)
 		if err != nil {
 			t.Fatalf("unable to create btcwallet: %v", err)
 		}
@@ -3455,7 +3460,9 @@ func runTests(t *testing.T, walletDriver *lnwallet.WalletDriver,
 			// wallet starts without recovery mode
 			RecoveryWindow: 0,
 		}
-		bobWalletController, err = walletDriver.New(bobWalletConfig)
+		bobWalletController, err = walletDriver.New(
+			bobWalletConfig, blockCache,
+		)
 		if err != nil {
 			t.Fatalf("unable to create btcwallet: %v", err)
 		}