diff --git a/contractcourt/chain_watcher_test.go b/contractcourt/chain_watcher_test.go
index f0e07628..466662c1 100644
--- a/contractcourt/chain_watcher_test.go
+++ b/contractcourt/chain_watcher_test.go
@@ -26,6 +26,7 @@ func (m *mockNotifier) RegisterConfirmationsNtfn(txid *chainhash.Hash, _ []byte,
 	heightHint uint32) (*chainntnfs.ConfirmationEvent, error) {
 	return &chainntnfs.ConfirmationEvent{
 		Confirmed: m.confChan,
+		Cancel:    func() {},
 	}, nil
 }
 
diff --git a/contractcourt/commit_sweep_resolver_test.go b/contractcourt/commit_sweep_resolver_test.go
new file mode 100644
index 00000000..957e0802
--- /dev/null
+++ b/contractcourt/commit_sweep_resolver_test.go
@@ -0,0 +1,225 @@
+package contractcourt
+
+import (
+	"reflect"
+	"testing"
+	"time"
+
+	"github.com/btcsuite/btcd/wire"
+	"github.com/btcsuite/btcutil"
+	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/input"
+	"github.com/lightningnetwork/lnd/lnwallet"
+	"github.com/lightningnetwork/lnd/sweep"
+)
+
+type commitSweepResolverTestContext struct {
+	resolver           *commitSweepResolver
+	notifier           *mockNotifier
+	sweeper            *mockSweeper
+	resolverResultChan chan resolveResult
+	t                  *testing.T
+}
+
+func newCommitSweepResolverTestContext(t *testing.T,
+	resolution *lnwallet.CommitOutputResolution) *commitSweepResolverTestContext {
+
+	notifier := &mockNotifier{
+		epochChan: make(chan *chainntnfs.BlockEpoch),
+		spendChan: make(chan *chainntnfs.SpendDetail),
+		confChan:  make(chan *chainntnfs.TxConfirmation),
+	}
+
+	sweeper := newMockSweeper()
+
+	checkPointChan := make(chan struct{}, 1)
+
+	chainCfg := ChannelArbitratorConfig{
+		ChainArbitratorConfig: ChainArbitratorConfig{
+			Notifier: notifier,
+			Sweeper:  sweeper,
+		},
+	}
+
+	cfg := ResolverConfig{
+		ChannelArbitratorConfig: chainCfg,
+		Checkpoint: func(_ ContractResolver) error {
+			checkPointChan <- struct{}{}
+			return nil
+		},
+	}
+
+	resolver := newCommitSweepResolver(
+		*resolution, 0, wire.OutPoint{}, cfg,
+	)
+
+	return &commitSweepResolverTestContext{
+		resolver: resolver,
+		notifier: notifier,
+		sweeper:  sweeper,
+		t:        t,
+	}
+}
+
+func (i *commitSweepResolverTestContext) resolve() {
+	// Start resolver.
+	i.resolverResultChan = make(chan resolveResult, 1)
+	go func() {
+		nextResolver, err := i.resolver.Resolve()
+		i.resolverResultChan <- resolveResult{
+			nextResolver: nextResolver,
+			err:          err,
+		}
+	}()
+}
+
+func (i *commitSweepResolverTestContext) notifyEpoch(height int32) {
+	i.notifier.epochChan <- &chainntnfs.BlockEpoch{
+		Height: height,
+	}
+}
+
+func (i *commitSweepResolverTestContext) waitForResult() {
+	i.t.Helper()
+
+	result := <-i.resolverResultChan
+	if result.err != nil {
+		i.t.Fatal(result.err)
+	}
+
+	if result.nextResolver != nil {
+		i.t.Fatal("expected no next resolver")
+	}
+}
+
+type mockSweeper struct {
+	sweptInputs chan input.Input
+}
+
+func newMockSweeper() *mockSweeper {
+	return &mockSweeper{
+		sweptInputs: make(chan input.Input),
+	}
+}
+
+func (s *mockSweeper) SweepInput(input input.Input,
+	feePreference sweep.FeePreference) (chan sweep.Result, error) {
+
+	s.sweptInputs <- input
+
+	result := make(chan sweep.Result, 1)
+	result <- sweep.Result{
+		Tx: &wire.MsgTx{},
+	}
+	return result, nil
+}
+
+func (s *mockSweeper) CreateSweepTx(inputs []input.Input, feePref sweep.FeePreference,
+	currentBlockHeight uint32) (*wire.MsgTx, error) {
+
+	return nil, nil
+}
+
+var _ UtxoSweeper = &mockSweeper{}
+
+// TestCommitSweepResolverNoDelay tests resolution of a direct commitment output
+// unencumbered by a time lock.
+func TestCommitSweepResolverNoDelay(t *testing.T) {
+	t.Parallel()
+	defer timeout(t)()
+
+	res := lnwallet.CommitOutputResolution{
+		SelfOutputSignDesc: input.SignDescriptor{
+			Output: &wire.TxOut{
+				Value: 100,
+			},
+		},
+	}
+
+	ctx := newCommitSweepResolverTestContext(t, &res)
+	ctx.resolve()
+
+	ctx.notifier.confChan <- &chainntnfs.TxConfirmation{}
+
+	// No csv delay, so the input should be swept immediately.
+	<-ctx.sweeper.sweptInputs
+
+	ctx.waitForResult()
+}
+
+// TestCommitSweepResolverDelay tests resolution of a direct commitment output
+// that is encumbered by a time lock.
+func TestCommitSweepResolverDelay(t *testing.T) {
+	t.Parallel()
+	defer timeout(t)()
+
+	amt := int64(100)
+	outpoint := wire.OutPoint{
+		Index: 5,
+	}
+	res := lnwallet.CommitOutputResolution{
+		SelfOutputSignDesc: input.SignDescriptor{
+			Output: &wire.TxOut{
+				Value: amt,
+			},
+		},
+		MaturityDelay: 3,
+		SelfOutPoint:  outpoint,
+	}
+
+	ctx := newCommitSweepResolverTestContext(t, &res)
+
+	report := ctx.resolver.report()
+	if !reflect.DeepEqual(report, &ContractReport{
+		Outpoint:     outpoint,
+		Type:         ReportOutputUnencumbered,
+		Amount:       btcutil.Amount(amt),
+		LimboBalance: btcutil.Amount(amt),
+	}) {
+		t.Fatal("unexpected resolver report")
+	}
+
+	ctx.resolve()
+
+	ctx.notifier.confChan <- &chainntnfs.TxConfirmation{
+		BlockHeight: testInitialBlockHeight - 1,
+	}
+
+	// Allow resolver to process confirmation.
+	time.Sleep(100 * time.Millisecond)
+
+	// Expect report to be updated.
+	report = ctx.resolver.report()
+	if report.MaturityHeight != testInitialBlockHeight+2 {
+		t.Fatal("report maturity height incorrect")
+	}
+
+	// Notify initial block height. The csv lock is still in effect, so we
+	// don't expect any sweep to happen yet.
+	ctx.notifyEpoch(testInitialBlockHeight)
+
+	select {
+	case <-ctx.sweeper.sweptInputs:
+		t.Fatal("no sweep expected")
+	case <-time.After(100 * time.Millisecond):
+	}
+
+	// A new block arrives. The commit tx confirmed at height -1 and the csv
+	// is 3, so a spend will be valid in the first block after height +1.
+	ctx.notifyEpoch(testInitialBlockHeight + 1)
+
+	<-ctx.sweeper.sweptInputs
+
+	ctx.waitForResult()
+
+	report = ctx.resolver.report()
+	if !reflect.DeepEqual(report, &ContractReport{
+		Outpoint:         outpoint,
+		Type:             ReportOutputUnencumbered,
+		Amount:           btcutil.Amount(amt),
+		RecoveredBalance: btcutil.Amount(amt),
+		MaturityHeight:   testInitialBlockHeight + 2,
+	}) {
+		t.Fatal("unexpected resolver report")
+	}
+}