diff --git a/channeldb/payments_test.go b/channeldb/payments_test.go
index 450b4acf..d13e039d 100644
--- a/channeldb/payments_test.go
+++ b/channeldb/payments_test.go
@@ -40,6 +40,14 @@ func makeFakePayment() *OutgoingPayment {
 	return fakePayment
 }
 
+func makeFakePaymentHash() [32]byte {
+	var paymentHash [32]byte
+	rBytes, _ := randomBytes(0, 32)
+	copy(paymentHash[:], rBytes)
+
+	return paymentHash
+}
+
 // randomBytes creates random []byte with length in range [minLen, maxLen)
 func randomBytes(minLen, maxLen int) ([]byte, error) {
 	randBuf := make([]byte, minLen+rand.Intn(maxLen-minLen))
@@ -195,3 +203,51 @@ func TestOutgoingPaymentWorkflow(t *testing.T) {
 			len(paymentsAfterDeletion), 0)
 	}
 }
+
+func TestPaymentStatusWorkflow(t *testing.T) {
+	t.Parallel()
+
+	db, cleanUp, err := makeTestDB()
+	defer cleanUp()
+	if err != nil {
+		t.Fatalf("unable to make test db: %v", err)
+	}
+
+	testCases := []struct {
+		paymentHash [32]byte
+		status      PaymentStatus
+	}{
+		{
+			paymentHash: makeFakePaymentHash(),
+			status:      StatusGrounded,
+		},
+		{
+			paymentHash: makeFakePaymentHash(),
+			status:      StatusInFlight,
+		},
+		{
+			paymentHash: makeFakePaymentHash(),
+			status:      StatusCompleted,
+		},
+	}
+
+	for _, testCase := range testCases {
+		err := db.UpdatePaymentStatus(testCase.paymentHash, testCase.status)
+		if err != nil {
+			t.Fatalf("unable to put payment in DB: %v", err)
+		}
+
+		status, err := db.FetchPaymentStatus(testCase.paymentHash)
+		if err != nil {
+			t.Fatalf("unable to fetch payments from DB: %v", err)
+		}
+
+		if status != testCase.status {
+			t.Fatalf("Wrong payments status after reading from DB."+
+				"Got %v, want %v",
+				spew.Sdump(status),
+				spew.Sdump(testCase.status),
+			)
+		}
+	}
+}