diff --git a/channeldb/invoice_test.go b/channeldb/invoice_test.go
index 68512607..3f35586b 100644
--- a/channeldb/invoice_test.go
+++ b/channeldb/invoice_test.go
@@ -359,10 +359,10 @@ func TestDuplicateSettleInvoice(t *testing.T) {
 	}
 
 	// If we try to settle the invoice again, then we should get the very
-	// same invoice back.
+	// same invoice back, but with an error this time.
 	dbInvoice, err = db.SettleInvoice(payHash, amt)
-	if err != nil {
-		t.Fatalf("unable to settle invoice: %v", err)
+	if err != ErrInvoiceAlreadySettled {
+		t.Fatalf("expected ErrInvoiceAlreadySettled")
 	}
 
 	if dbInvoice == nil {
diff --git a/channeldb/invoices.go b/channeldb/invoices.go
index d7396376..c5223b17 100644
--- a/channeldb/invoices.go
+++ b/channeldb/invoices.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"crypto/sha256"
 	"encoding/binary"
+	"errors"
 	"fmt"
 	"io"
 	"time"
@@ -57,6 +58,10 @@ var (
 	//
 	//   settleIndexNo => invoiceKey
 	settleIndexBucket = []byte("invoice-settle-index")
+
+	// ErrInvoiceAlreadySettled is returned when the invoice is already
+	// settled.
+	ErrInvoiceAlreadySettled = errors.New("invoice already settled")
 )
 
 const (
@@ -626,21 +631,14 @@ func (d *DB) SettleInvoice(paymentHash [32]byte,
 			return ErrInvoiceNotFound
 		}
 
-		invoice, err := settleInvoice(
+		settledInvoice, err = settleInvoice(
 			invoices, settleIndex, invoiceNum, amtPaid,
 		)
-		if err != nil {
-			return err
-		}
 
-		settledInvoice = invoice
-		return nil
+		return err
 	})
-	if err != nil {
-		return nil, err
-	}
 
-	return settledInvoice, nil
+	return settledInvoice, err
 }
 
 // InvoicesSettledSince can be used by callers to catch up any settled invoices
@@ -898,10 +896,8 @@ func settleInvoice(invoices, settleIndex *bbolt.Bucket, invoiceNum []byte,
 		return nil, err
 	}
 
-	// Add idempotency to duplicate settles, return here to avoid
-	// overwriting the previous info.
 	if invoice.Terms.State == ContractSettled {
-		return &invoice, nil
+		return &invoice, ErrInvoiceAlreadySettled
 	}
 
 	// Now that we know the invoice hasn't already been settled, we'll
diff --git a/invoices/invoiceregistry.go b/invoices/invoiceregistry.go
index c4e45fe2..a34f7877 100644
--- a/invoices/invoiceregistry.go
+++ b/invoices/invoiceregistry.go
@@ -378,6 +378,14 @@ func (i *InvoiceRegistry) SettleInvoice(rHash lntypes.Hash,
 	// If this isn't a debug invoice, then we'll attempt to settle an
 	// invoice matching this rHash on disk (if one exists).
 	invoice, err := i.cdb.SettleInvoice(rHash, amtPaid)
+
+	// Implement idempotency by returning success if the invoice was already
+	// settled.
+	if err == channeldb.ErrInvoiceAlreadySettled {
+		log.Debugf("Invoice %v already settled", rHash)
+		return nil
+	}
+
 	if err != nil {
 		return err
 	}