diff --git a/channeldb/invoices.go b/channeldb/invoices.go
index f7912987..18f00da6 100644
--- a/channeldb/invoices.go
+++ b/channeldb/invoices.go
@@ -1224,9 +1224,9 @@ func (d *DB) updateInvoice(hash lntypes.Hash, invoices, settleIndex *bbolt.Bucke
 			if !ok {
 				return nil, fmt.Errorf("unknown htlc %v", key)
 			}
-			if htlc.State == HtlcStateSettled {
-				return nil, fmt.Errorf("cannot cancel a " +
-					"settled htlc")
+			if htlc.State != HtlcStateAccepted {
+				return nil, fmt.Errorf("can only cancel " +
+					"accepted htlcs")
 			}
 
 			htlc.State = HtlcStateCancelled
diff --git a/invoices/invoiceregistry.go b/invoices/invoiceregistry.go
index 602014d4..2859e1c5 100644
--- a/invoices/invoiceregistry.go
+++ b/invoices/invoiceregistry.go
@@ -640,7 +640,21 @@ func (i *InvoiceRegistry) CancelInvoice(payHash lntypes.Hash) error {
 		canceledHtlcs := make(
 			map[channeldb.CircuitKey]*channeldb.HtlcAcceptDesc,
 		)
-		for key := range invoice.Htlcs {
+		for key, htlc := range invoice.Htlcs {
+			switch htlc.State {
+
+			// If we get here, there shouldn't be any settled htlcs.
+			case channeldb.HtlcStateSettled:
+				return nil, errors.New("cannot cancel " +
+					"invoice with settled htlc(s)")
+
+			// Don't cancel htlcs that were already cancelled,
+			// because it would incorrectly modify the invoice paid
+			// amt.
+			case channeldb.HtlcStateCancelled:
+				continue
+			}
+
 			canceledHtlcs[key] = nil
 		}