diff --git a/channeldb/reject_cache.go b/channeldb/reject_cache.go
new file mode 100644
index 00000000..acadb878
--- /dev/null
+++ b/channeldb/reject_cache.go
@@ -0,0 +1,95 @@
+package channeldb
+
+// rejectFlags is a compact representation of various metadata stored by the
+// reject cache about a particular channel.
+type rejectFlags uint8
+
+const (
+	// rejectFlagExists is a flag indicating whether the channel exists,
+	// i.e. the channel is open and has a recent channel update. If this
+	// flag is not set, the channel is either a zombie or unknown.
+	rejectFlagExists rejectFlags = 1 << iota
+
+	// rejectFlagZombie is a flag indicating whether the channel is a
+	// zombie, i.e. the channel is open but has no recent channel updates.
+	rejectFlagZombie
+)
+
+// packRejectFlags computes the rejectFlags corresponding to the passed boolean
+// values indicating whether the edge exists or is a zombie.
+func packRejectFlags(exists, isZombie bool) rejectFlags {
+	var flags rejectFlags
+	if exists {
+		flags |= rejectFlagExists
+	}
+	if isZombie {
+		flags |= rejectFlagZombie
+	}
+
+	return flags
+}
+
+// unpack returns the booleans packed into the rejectFlags. The first indicates
+// if the edge exists in our graph, the second indicates if the edge is a
+// zombie.
+func (f rejectFlags) unpack() (bool, bool) {
+	return f&rejectFlagExists == rejectFlagExists,
+		f&rejectFlagZombie == rejectFlagZombie
+}
+
+// rejectCacheEntry caches frequently accessed information about a channel,
+// including the timestamps of its latest edge policies and whether or not the
+// channel exists in the graph.
+type rejectCacheEntry struct {
+	upd1Time int64
+	upd2Time int64
+	flags    rejectFlags
+}
+
+// rejectCache is an in-memory cache used to improve the performance of
+// HasChannelEdge. It caches information about the whether or channel exists, as
+// well as the most recent timestamps for each policy (if they exists).
+type rejectCache struct {
+	n     int
+	edges map[uint64]rejectCacheEntry
+}
+
+// newRejectCache creates a new rejectCache with maximum capacity of n entries.
+func newRejectCache(n int) *rejectCache {
+	return &rejectCache{
+		n:     n,
+		edges: make(map[uint64]rejectCacheEntry, n),
+	}
+}
+
+// get returns the entry from the cache for chanid, if it exists.
+func (c *rejectCache) get(chanid uint64) (rejectCacheEntry, bool) {
+	entry, ok := c.edges[chanid]
+	return entry, ok
+}
+
+// insert adds the entry to the reject cache. If an entry for chanid already
+// exists, it will be replaced with the new entry. If the entry doesn't exists,
+// it will be inserted to the cache, performing a random eviction if the cache
+// is at capacity.
+func (c *rejectCache) insert(chanid uint64, entry rejectCacheEntry) {
+	// If entry exists, replace it.
+	if _, ok := c.edges[chanid]; ok {
+		c.edges[chanid] = entry
+		return
+	}
+
+	// Otherwise, evict an entry at random and insert.
+	if len(c.edges) == c.n {
+		for id := range c.edges {
+			delete(c.edges, id)
+			break
+		}
+	}
+	c.edges[chanid] = entry
+}
+
+// remove deletes an entry for chanid from the cache, if it exists.
+func (c *rejectCache) remove(chanid uint64) {
+	delete(c.edges, chanid)
+}
diff --git a/channeldb/reject_cache_test.go b/channeldb/reject_cache_test.go
new file mode 100644
index 00000000..6974f425
--- /dev/null
+++ b/channeldb/reject_cache_test.go
@@ -0,0 +1,107 @@
+package channeldb
+
+import (
+	"reflect"
+	"testing"
+)
+
+// TestRejectCache checks the behavior of the rejectCache with respect to insertion,
+// eviction, and removal of cache entries.
+func TestRejectCache(t *testing.T) {
+	const cacheSize = 100
+
+	// Create a new reject cache with the configured max size.
+	c := newRejectCache(cacheSize)
+
+	// As a sanity check, assert that querying the empty cache does not
+	// return an entry.
+	_, ok := c.get(0)
+	if ok {
+		t.Fatalf("reject cache should be empty")
+	}
+
+	// Now, fill up the cache entirely.
+	for i := uint64(0); i < cacheSize; i++ {
+		c.insert(i, entryForInt(i))
+	}
+
+	// Assert that the cache has all of the entries just inserted, since no
+	// eviction should occur until we try to surpass the max size.
+	assertHasEntries(t, c, 0, cacheSize)
+
+	// Now, insert a new element that causes the cache to evict an element.
+	c.insert(cacheSize, entryForInt(cacheSize))
+
+	// Assert that the cache has this last entry, as the cache should evict
+	// some prior element and not the newly inserted one.
+	assertHasEntries(t, c, cacheSize, cacheSize)
+
+	// Iterate over all inserted elements and construct a set of the evicted
+	// elements.
+	evicted := make(map[uint64]struct{})
+	for i := uint64(0); i < cacheSize+1; i++ {
+		_, ok := c.get(i)
+		if !ok {
+			evicted[i] = struct{}{}
+		}
+	}
+
+	// Assert that exactly one element has been evicted.
+	numEvicted := len(evicted)
+	if numEvicted != 1 {
+		t.Fatalf("expected one evicted entry, got: %d", numEvicted)
+	}
+
+	// Remove the highest item which initially caused the eviction and
+	// reinsert the element that was evicted prior.
+	c.remove(cacheSize)
+	for i := range evicted {
+		c.insert(i, entryForInt(i))
+	}
+
+	// Since the removal created an extra slot, the last insertion should
+	// not have caused an eviction and the entries for all channels in the
+	// original set that filled the cache should be present.
+	assertHasEntries(t, c, 0, cacheSize)
+
+	// Finally, reinsert the existing set back into the cache and test that
+	// the cache still has all the entries. If the randomized eviction were
+	// happening on inserts for existing cache items, we expect this to fail
+	// with high probability.
+	for i := uint64(0); i < cacheSize; i++ {
+		c.insert(i, entryForInt(i))
+	}
+	assertHasEntries(t, c, 0, cacheSize)
+
+}
+
+// assertHasEntries queries the reject cache for all channels in the range [start,
+// end), asserting that they exist and their value matches the entry produced by
+// entryForInt.
+func assertHasEntries(t *testing.T, c *rejectCache, start, end uint64) {
+	t.Helper()
+
+	for i := start; i < end; i++ {
+		entry, ok := c.get(i)
+		if !ok {
+			t.Fatalf("reject cache should contain chan %d", i)
+		}
+
+		expEntry := entryForInt(i)
+		if !reflect.DeepEqual(entry, expEntry) {
+			t.Fatalf("entry mismatch, want: %v, got: %v",
+				expEntry, entry)
+		}
+	}
+}
+
+// entryForInt generates a unique rejectCacheEntry given an integer.
+func entryForInt(i uint64) rejectCacheEntry {
+	exists := i%2 == 0
+	isZombie := i%3 == 0
+	return rejectCacheEntry{
+		upd1Time: int64(2 * i),
+		upd2Time: int64(2*i + 1),
+		flags:    packRejectFlags(exists, isZombie),
+	}
+}