diff --git a/invoiceregistry.go b/invoiceregistry.go
index ac65f606..752adce6 100644
--- a/invoiceregistry.go
+++ b/invoiceregistry.go
@@ -6,6 +6,7 @@ import (
 	"time"
 
 	"github.com/btcsuite/fastsha256"
+	"github.com/davecgh/go-spew/spew"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/roasbeef/btcd/wire"
 	"github.com/roasbeef/btcutil"
@@ -54,15 +55,21 @@ func newInvoiceRegistry(cdb *channeldb.DB) *invoiceRegistry {
 func (i *invoiceRegistry) AddDebugInvoice(amt btcutil.Amount, preimage wire.ShaHash) {
 	paymentHash := wire.ShaHash(fastsha256.Sum256(preimage[:]))
 
-	i.Lock()
-	i.debugInvoices[paymentHash] = &channeldb.Invoice{
+	invoice := &channeldb.Invoice{
 		CreationDate: time.Now(),
 		Terms: channeldb.ContractTerm{
 			Value:           amt,
 			PaymentPreimage: preimage,
 		},
 	}
+
+	i.Lock()
+	i.debugInvoices[paymentHash] = invoice
 	i.Unlock()
+
+	ltndLog.Debugf("Adding debug invoice %v", newLogClosure(func() string {
+		return spew.Sdump(invoice)
+	}))
 }
 
 // AddInvoice adds a regular invoice for the specified amount, identified by
@@ -71,6 +78,10 @@ func (i *invoiceRegistry) AddDebugInvoice(amt btcutil.Amount, preimage wire.ShaH
 // daemon add/forward HTLC's are able to obtain the proper preimage required
 // for redemption in the case that we're the final destination.
 func (i *invoiceRegistry) AddInvoice(invoice *channeldb.Invoice) error {
+	ltndLog.Debugf("Adding invoice %v", newLogClosure(func() string {
+		return spew.Sdump(invoice)
+	}))
+
 	// TODO(roasbeef): also check in memory for quick lookups/settles?
 	return i.cdb.AddInvoice(invoice)
 }
@@ -99,6 +110,8 @@ func (i *invoiceRegistry) LookupInvoice(rHash wire.ShaHash) (*channeldb.Invoice,
 // dbueg invoice, then this method is a nooop as debug invoices are never fully
 // settled.
 func (i *invoiceRegistry) SettleInvoice(rHash wire.ShaHash) error {
+	ltndLog.Debugf("Setting invoice %x", rHash[:])
+
 	// First check the in-memory debug invoice index to see if this is an
 	// existing invoice added for debugging.
 	i.RLock()
diff --git a/peer.go b/peer.go
index 4719efb2..5ca9e0c2 100644
--- a/peer.go
+++ b/peer.go
@@ -1120,8 +1120,7 @@ func (p *peer) handleUpstreamMsg(state *commitmentState, msg lnwire.Message) {
 		// We perform the HTLC forwarding to the switch in a distinct
 		// goroutine in order not to block the post-processing of
 		// HTLC's that are eligble for forwarding.
-		// TODO(roasbeef): no need to forward if have settled any of
-		// these.
+		// TODO(roasbeef): don't forward if we're going to settle them
 		go func() {
 			for _, htlc := range htlcsToForward {
 				// Send this fully activated HTLC to the htlc
@@ -1136,6 +1135,7 @@ func (p *peer) handleUpstreamMsg(state *commitmentState, msg lnwire.Message) {
 		// can them from the pending set, and signal the requster (if
 		// existing) that the payment has been fully fulfilled.
 		var bandwidthUpdate btcutil.Amount
+		var settledPayments []wire.ShaHash
 		numSettled := 0
 		for _, htlc := range htlcsToForward {
 			if p, ok := state.clearedHTCLs[htlc.ParentIndex]; ok {
@@ -1176,6 +1176,8 @@ func (p *peer) handleUpstreamMsg(state *commitmentState, msg lnwire.Message) {
 			delete(state.htlcsToSettle, htlc.Index)
 
 			bandwidthUpdate += invoice.Terms.Value
+			settledPayments = append(settledPayments,
+				wire.ShaHash(htlc.RHash))
 
 			numSettled++
 		}
@@ -1203,6 +1205,15 @@ func (p *peer) handleUpstreamMsg(state *commitmentState, msg lnwire.Message) {
 			// TODO(roasbeef): wait to delete from htlcsToSettle?
 			state.numUnAcked += 1
 		}
+
+		// Notify the invoiceRegistry of the invoices we just settled
+		// with this latest commitment update.
+		for _, invoice := range settledPayments {
+			err := p.server.invoices.SettleInvoice(invoice)
+			if err != nil {
+				peerLog.Errorf("unable to settle invoice: %v", err)
+			}
+		}
 	}
 }