diff --git a/routing/mock_test.go b/routing/mock_test.go
index 30d5dedc..cf828baf 100644
--- a/routing/mock_test.go
+++ b/routing/mock_test.go
@@ -302,20 +302,38 @@ func (m *mockControlTower) RegisterAttempt(phash lntypes.Hash,
 	m.Lock()
 	defer m.Unlock()
 
-	// Cannot register attempts for successful or failed payments.
-	if _, ok := m.successful[phash]; ok {
-		return channeldb.ErrPaymentAlreadySucceeded
-	}
-
-	if _, ok := m.failed[phash]; ok {
-		return channeldb.ErrPaymentAlreadyFailed
-	}
-
+	// Lookup payment.
 	p, ok := m.payments[phash]
 	if !ok {
 		return channeldb.ErrPaymentNotInitiated
 	}
 
+	var inFlight bool
+	for _, a := range p.attempts {
+		if a.Settle != nil {
+			continue
+		}
+
+		if a.Failure != nil {
+			continue
+		}
+
+		inFlight = true
+	}
+
+	// Cannot register attempts for successful or failed payments.
+	_, settled := m.successful[phash]
+	_, failed := m.failed[phash]
+
+	if settled && !inFlight {
+		return channeldb.ErrPaymentAlreadySucceeded
+	}
+
+	if failed && !inFlight {
+		return channeldb.ErrPaymentAlreadyFailed
+	}
+
+	// Add attempt to payment.
 	p.attempts = append(p.attempts, channeldb.HTLCAttempt{
 		HTLCAttemptInfo: *a,
 	})
diff --git a/routing/payment_lifecycle_test.go b/routing/payment_lifecycle_test.go
index 036dc8ff..e8aa8c51 100644
--- a/routing/payment_lifecycle_test.go
+++ b/routing/payment_lifecycle_test.go
@@ -615,6 +615,41 @@ func TestRouterPaymentStateMachine(t *testing.T) {
 			},
 			paymentErr: channeldb.FailureReasonPaymentDetails,
 		},
+		{
+			// A MP payment scenario when our path finding returns
+			// after we've just received a terminal failure, and
+			// demonstrates a bug where the payment will return with
+			// and "unexpected" ErrPaymentAlreadyFailed rather than
+			// failing with a permanent error. This results in the
+			// payment getting stuck.
+			name: "MP path found after failure",
+
+			steps: []string{
+				routerInitPayment,
+
+				// shard 0
+				routeRelease,
+				routerRegisterAttempt,
+				sendToSwitchSuccess,
+
+				// The first shard fail with a terminal error.
+				getPaymentResultTerminalFailure,
+				routerFailAttempt,
+				routerFailPayment,
+
+				// shard 1 fails because we've had a terminal
+				// failure.
+				routeRelease,
+				routerRegisterAttempt,
+
+				// Payment fails.
+				paymentError,
+			},
+			routes: []*route.Route{
+				shard, shard,
+			},
+			paymentErr: channeldb.ErrPaymentAlreadyFailed,
+		},
 	}
 
 	for _, test := range tests {