diff --git a/htlcswitch/link.go b/htlcswitch/link.go
index c245ea65..c88026f8 100644
--- a/htlcswitch/link.go
+++ b/htlcswitch/link.go
@@ -71,6 +71,9 @@ type ForwardingPolicy struct {
 	// lifetime of the channel.
 	MinHTLC lnwire.MilliSatoshi
 
+	// MaxHTLC is the largest HTLC that is to be forwarded.
+	MaxHTLC lnwire.MilliSatoshi
+
 	// BaseFee is the base fee, expressed in milli-satoshi that must be
 	// paid for each incoming HTLC. This field, combined with FeeRate is
 	// used to compute the required fee for a given HTLC.
diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 8a9bcddb..b3b79682 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -6336,3 +6336,9 @@ func (lc *LightningChannel) RemoteCommitHeight() uint64 {
 func (lc *LightningChannel) FwdMinHtlc() lnwire.MilliSatoshi {
 	return lc.localChanCfg.MinHTLC
 }
+
+// MaxPendingAmount returns the maximum HTLC value that can be pending at
+// any time over this channel.
+func (lc *LightningChannel) MaxPendingAmount() lnwire.MilliSatoshi {
+	return lc.localChanCfg.MaxPendingAmount
+}
diff --git a/peer.go b/peer.go
index 41a55892..d8793ca4 100644
--- a/peer.go
+++ b/peer.go
@@ -1670,15 +1670,17 @@ out:
 				continue
 			}
 
-			// We'll query the localChanCfg of the new channel to
-			// determine the minimum HTLC value that can be
-			// forwarded. For fees we'll use the default values, as
-			// they currently are always set to the default values
-			// at initial channel creation.
+			// We'll query the localChanCfg of the new channel to determine the
+			// minimum HTLC value that can be forwarded. For the maximum HTLC
+			// value that can be forwarded and fees we'll use the default
+			// values, as they currently are always set to the default values
+			// at initial channel creation. Note that the maximum HTLC value
+			// defaults to the cap on the total value of outstanding HTLCs.
 			fwdMinHtlc := lnChan.FwdMinHtlc()
 			defaultPolicy := p.server.cc.routingPolicy
 			forwardingPolicy := &htlcswitch.ForwardingPolicy{
 				MinHTLC:       fwdMinHtlc,
+				MaxHTLC:       lnChan.MaxPendingAmount(),
 				BaseFee:       defaultPolicy.BaseFee,
 				FeeRate:       defaultPolicy.FeeRate,
 				TimeLockDelta: defaultPolicy.TimeLockDelta,