diff --git a/loopd/daemon.go b/loopd/daemon.go
index 880e19621..6aca1c7cc 100644
--- a/loopd/daemon.go
+++ b/loopd/daemon.go
@@ -571,6 +571,27 @@ func (d *Daemon) initialize(withMacaroonService bool) error {
 		}
 	})
 
+	// Start the HTLC recovery worker that handles HTLC-confirmed
+	// notifications with a direct sweep attempt.
+	htlcConfirmedRecovery := &htlcConfirmedRecoveryManager{
+		notificationSource: notificationManager,
+		swapStore:          swapDb,
+		chainParams:        d.lnd.ChainParams,
+		notifier:           d.lnd.ChainNotifier,
+		wallet:             d.lnd.WalletKit,
+		signer:             d.lnd.Signer,
+	}
+
+	d.wg.Go(func() {
+		debugf("Starting htlc confirmed recovery worker")
+		defer debugf("Htlc confirmed recovery worker stopped")
+
+		err := htlcConfirmedRecovery.run(d.mainCtx)
+		if shouldReportManagerErr(err) {
+			debugf("htlc confirmed recovery worker failed: %v", err)
+		}
+	})
+
 	var (
 		staticAddressManager *address.Manager
 		depositManager       *deposit.Manager
diff --git a/loopd/htlc_confirmed_recovery.go b/loopd/htlc_confirmed_recovery.go
new file mode 100644
index 000000000..7d63bd871
--- /dev/null
+++ b/loopd/htlc_confirmed_recovery.go
@@ -0,0 +1,118 @@
+package loopd
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcd/wire"
+	"github.com/lightninglabs/loop/looprpc"
+	"github.com/lightninglabs/loop/swapserverrpc"
+)
+
+const (
+	// htlcConfirmedRecoverySatPerVByte is the fixed fee rate used by the
+	// HTLC recovery worker.
+	htlcConfirmedRecoverySatPerVByte = 10
+)
+
+// htlcConfirmedSubscriber exposes the HTLC-confirmed notification stream used
+// by the recovery worker.
+type htlcConfirmedSubscriber interface {
+	SubscribeHtlcConfirmed(ctx context.Context,
+	) <-chan *swapserverrpc.ServerHtlcConfirmedNotification
+}
+
+// htlcConfirmedRecoveryManager consumes HTLC-confirmed notifications and
+// reuses sweepHtlc to recover the notified loop-out HTLC.
+type htlcConfirmedRecoveryManager struct {
+	notificationSource htlcConfirmedSubscriber
+	swapStore          loopOutStore
+	chainParams        *chaincfg.Params
+	notifier           htlcChainNotifier
+	wallet             htlcWallet
+	signer             htlcSigner
+}
+
+// run starts the HTLC recovery worker.
+func (m *htlcConfirmedRecoveryManager) run(ctx context.Context) error {
+	if m.notificationSource == nil {
+		return nil
+	}
+
+	ntfnChan := m.notificationSource.SubscribeHtlcConfirmed(ctx)
+
+	for {
+		select {
+		case <-ctx.Done():
+			return ctx.Err()
+
+		case ntfn, ok := <-ntfnChan:
+			if !ok {
+				return nil
+			}
+
+			m.handleNotification(ctx, ntfn)
+		}
+	}
+}
+
+// handleNotification validates a notification and triggers a direct sweep
+// attempt for the notified HTLC.
+func (m *htlcConfirmedRecoveryManager) handleNotification(ctx context.Context,
+	ntfn *swapserverrpc.ServerHtlcConfirmedNotification) {
+
+	if ntfn == nil {
+		debugf("Ignoring nil HTLC recovery notification")
+
+		return
+	}
+
+	// Require all dependencies up front so the optional recovery path
+	// exits quietly when the daemon is not wired for sweeping.
+	if m.swapStore == nil || m.chainParams == nil || m.notifier == nil ||
+		m.wallet == nil || m.signer == nil {
+
+		debugf("HTLC recovery dependencies unavailable")
+
+		return
+	}
+
+	outpoint, htlcAddress, err := m.parseNotification(ntfn)
+	if err != nil {
+		debugf("Ignoring HTLC recovery notification: %v", err)
+
+		return
+	}
+
+	// Reuse sweepHtlc so the worker follows the same success-path spend
+	// construction and destination selection as the manual sweep path.
+	_, err = sweepHtlc(
+		ctx, &looprpc.SweepHtlcRequest{
+			Outpoint:    outpoint.String(),
+			HtlcAddress: htlcAddress,
+			SatPerVbyte: htlcConfirmedRecoverySatPerVByte,
+			Publish:     true,
+		}, m.chainParams, m.swapStore, m.notifier, m.wallet, m.signer,
+	)
+	if err != nil {
+		debugf("Unable to recover HTLC outpoint %s: %v", outpoint, err)
+	}
+}
+
+// parseNotification parses the swap hash and outpoint from a notification.
+func (m *htlcConfirmedRecoveryManager) parseNotification(
+	ntfn *swapserverrpc.ServerHtlcConfirmedNotification) (*wire.OutPoint,
+	string, error) {
+
+	outpoint, err := wire.NewOutPointFromString(ntfn.HtlcOutpoint)
+	if err != nil {
+		return nil, "", fmt.Errorf("bad outpoint: %w", err)
+	}
+
+	if ntfn.HtlcAddress == "" {
+		return nil, "", fmt.Errorf("missing HTLC address")
+	}
+
+	return outpoint, ntfn.HtlcAddress, nil
+}
diff --git a/loopd/htlc_confirmed_recovery_test.go b/loopd/htlc_confirmed_recovery_test.go
new file mode 100644
index 000000000..4c7f03c80
--- /dev/null
+++ b/loopd/htlc_confirmed_recovery_test.go
@@ -0,0 +1,359 @@
+package loopd
+
+import (
+	"bytes"
+	"context"
+	"testing"
+	"time"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/txscript"
+	"github.com/btcsuite/btcd/wire"
+	"github.com/lightninglabs/loop/loopdb"
+	"github.com/lightninglabs/loop/swap"
+	"github.com/lightninglabs/loop/swapserverrpc"
+	"github.com/lightninglabs/loop/test"
+	"github.com/lightninglabs/loop/utils"
+	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/keychain"
+	"github.com/lightningnetwork/lnd/lntypes"
+	"github.com/stretchr/testify/require"
+)
+
+const (
+	// htlcConfirmedRecoveryTestTimeout bounds recovery worker tests so
+	// channel interactions cannot block the suite indefinitely.
+	htlcConfirmedRecoveryTestTimeout = 5 * time.Second
+
+	// htlcConfirmedRecoveryNoEventWait bounds negative channel assertions.
+	htlcConfirmedRecoveryNoEventWait = 100 * time.Millisecond
+)
+
+// mockHtlcConfirmedSubscriber exposes a controllable HTLC-confirmed
+// notification stream for recovery worker tests.
+type mockHtlcConfirmedSubscriber struct {
+	ntfnChan chan *swapserverrpc.ServerHtlcConfirmedNotification
+}
+
+// newMockHtlcConfirmedSubscriber creates a buffered notification source for
+// the recovery worker tests.
+func newMockHtlcConfirmedSubscriber() *mockHtlcConfirmedSubscriber {
+	return &mockHtlcConfirmedSubscriber{
+		ntfnChan: make(
+			chan *swapserverrpc.ServerHtlcConfirmedNotification, 2,
+		),
+	}
+}
+
+// SubscribeHtlcConfirmed returns the test-controlled notification stream.
+func (m *mockHtlcConfirmedSubscriber) SubscribeHtlcConfirmed(
+	context.Context) <-chan *swapserverrpc.ServerHtlcConfirmedNotification {
+
+	return m.ntfnChan
+}
+
+// htlcConfirmedRecoveryFixture bundles the mocks and swap data used by the
+// recovery worker tests.
+type htlcConfirmedRecoveryFixture struct {
+	lnd          *test.LndMockServices
+	store        *loopdb.StoreMock
+	subscriber   *mockHtlcConfirmedSubscriber
+	manager      *htlcConfirmedRecoveryManager
+	swap         *loopdb.LoopOut
+	htlc         *swap.Htlc
+	fundingTx    *wire.MsgTx
+	outpoint     wire.OutPoint
+	destPkScript []byte
+}
+
+// newHtlcConfirmedRecoveryFixture builds a loop-out swap and the mock daemon
+// services needed to recover its HTLC.
+func newHtlcConfirmedRecoveryFixture(
+	t *testing.T) *htlcConfirmedRecoveryFixture {
+
+	t.Helper()
+
+	lnd := test.NewMockLnd()
+	store := loopdb.NewStoreMock(t)
+
+	preimage := lntypes.Preimage{1, 2, 3, 4}
+	swapHash := preimage.Hash()
+
+	// Construct deterministic HTLC keys so the test reconstructs a stable
+	// swap script and outpoint.
+	_, senderPub := test.CreateKey(0)
+	_, receiverPub := test.CreateKey(1)
+
+	var senderKey, receiverKey [33]byte
+	copy(senderKey[:], senderPub.SerializeCompressed())
+	copy(receiverKey[:], receiverPub.SerializeCompressed())
+
+	htlcKeys := loopdb.HtlcKeys{
+		SenderScriptKey:   senderKey,
+		ReceiverScriptKey: receiverKey,
+		ClientScriptKeyLocator: keychain.KeyLocator{
+			Family: keychain.KeyFamily(swap.KeyFamily),
+			Index:  7,
+		},
+	}
+
+	destAddr, err := btcutil.NewAddressWitnessPubKeyHash(
+		bytes.Repeat([]byte{2}, 20), lnd.ChainParams,
+	)
+	require.NoError(t, err)
+
+	swapContract := &loopdb.LoopOutContract{
+		SwapContract: loopdb.SwapContract{
+			Preimage:         preimage,
+			AmountRequested:  100_000,
+			HtlcKeys:         htlcKeys,
+			CltvExpiry:       500,
+			InitiationHeight: 123,
+			ProtocolVersion:  loopdb.ProtocolVersionHtlcV2,
+		},
+		DestAddr: destAddr,
+	}
+
+	loopOut := &loopdb.LoopOut{
+		Loop: loopdb.Loop{
+			Hash: swapHash,
+		},
+		Contract: swapContract,
+	}
+	store.LoopOutSwaps[swapHash] = swapContract
+
+	// Fund the reconstructed HTLC with a single output so the worker has a
+	// recoverable success-path spend target.
+	htlc, err := utils.GetHtlc(
+		swapHash, &swapContract.SwapContract, lnd.ChainParams,
+	)
+	require.NoError(t, err)
+
+	fundingTx := wire.NewMsgTx(2)
+	fundingTx.AddTxOut(&wire.TxOut{
+		Value:    int64(swapContract.AmountRequested),
+		PkScript: htlc.PkScript,
+	})
+
+	outpoint := wire.OutPoint{
+		Hash:  fundingTx.TxHash(),
+		Index: 0,
+	}
+
+	destPkScript, err := txscript.PayToAddrScript(destAddr)
+	require.NoError(t, err)
+
+	subscriber := newMockHtlcConfirmedSubscriber()
+	manager := &htlcConfirmedRecoveryManager{
+		notificationSource: subscriber,
+		swapStore:          store,
+		chainParams:        lnd.ChainParams,
+		notifier:           lnd.ChainNotifier,
+		wallet:             lnd.WalletKit,
+		signer:             lnd.Signer,
+	}
+
+	return &htlcConfirmedRecoveryFixture{
+		lnd:          lnd,
+		store:        store,
+		subscriber:   subscriber,
+		manager:      manager,
+		swap:         loopOut,
+		htlc:         htlc,
+		fundingTx:    fundingTx,
+		outpoint:     outpoint,
+		destPkScript: destPkScript,
+	}
+}
+
+// waitForConfRegistration waits for the recovery worker to register a single
+// confirmation notification.
+func waitForConfRegistration(t *testing.T, ctx context.Context,
+	lnd *test.LndMockServices) *test.ConfRegistration {
+
+	t.Helper()
+
+	select {
+	case reg := <-lnd.RegisterConfChannel:
+		return reg
+
+	case <-ctx.Done():
+		t.Fatalf("timed out waiting for confirmation registration: %v",
+			ctx.Err())
+
+		return nil
+	}
+}
+
+// waitForSignOutputRawRequest waits for the worker to request a signature.
+func waitForSignOutputRawRequest(t *testing.T, ctx context.Context,
+	lnd *test.LndMockServices) test.SignOutputRawRequest {
+
+	t.Helper()
+
+	select {
+	case req := <-lnd.SignOutputRawChannel:
+		return req
+
+	case <-ctx.Done():
+		t.Fatalf("timed out waiting for sign request: %v", ctx.Err())
+
+		return test.SignOutputRawRequest{}
+	}
+}
+
+// waitForPublishedTx waits for the recovery worker to publish its sweep.
+func waitForPublishedTx(t *testing.T, ctx context.Context,
+	lnd *test.LndMockServices) *wire.MsgTx {
+
+	t.Helper()
+
+	select {
+	case tx := <-lnd.TxPublishChannel:
+		return tx
+
+	case <-ctx.Done():
+		t.Fatalf("timed out waiting for published tx: %v", ctx.Err())
+
+		return nil
+	}
+}
+
+// waitForManagerExit waits for the recovery worker goroutine to stop.
+func waitForManagerExit(t *testing.T, ctx context.Context,
+	runErrChan <-chan error) error {
+
+	t.Helper()
+
+	select {
+	case err := <-runErrChan:
+		return err
+
+	case <-ctx.Done():
+		t.Fatalf("timed out waiting for recovery worker exit: %v",
+			ctx.Err())
+
+		return nil
+	}
+}
+
+// assertNoRecoveryActivity verifies that the recovery worker did not start a
+// sweep attempt.
+func assertNoRecoveryActivity(t *testing.T, lnd *test.LndMockServices) {
+	t.Helper()
+
+	select {
+	case reg := <-lnd.RegisterConfChannel:
+		t.Fatalf("unexpected confirmation registration: %+v", reg)
+
+	case <-time.After(htlcConfirmedRecoveryNoEventWait):
+	}
+
+	select {
+	case req := <-lnd.SignOutputRawChannel:
+		t.Fatalf("unexpected sign request: %+v", req)
+
+	case <-time.After(htlcConfirmedRecoveryNoEventWait):
+	}
+
+	select {
+	case tx := <-lnd.TxPublishChannel:
+		t.Fatalf("unexpected published tx: %v", tx.TxHash())
+
+	case <-time.After(htlcConfirmedRecoveryNoEventWait):
+	}
+}
+
+// TestHtlcConfirmedRecoveryManagerPublishesSweep verifies that a valid
+// notification triggers a direct sweep to the stored destination address.
+func TestHtlcConfirmedRecoveryManagerPublishesSweep(t *testing.T) {
+	defer test.Guard(t)()
+
+	setLogger(newFormatLogger())
+
+	fixture := newHtlcConfirmedRecoveryFixture(t)
+
+	ctx, cancel := context.WithTimeout(
+		t.Context(), htlcConfirmedRecoveryTestTimeout,
+	)
+	defer cancel()
+
+	runErrChan := make(chan error, 1)
+
+	go func() {
+		runErrChan <- fixture.manager.run(ctx)
+	}()
+
+	ntfn := &swapserverrpc.ServerHtlcConfirmedNotification{
+		SwapHash:     fixture.swap.Hash[:],
+		HtlcOutpoint: fixture.outpoint.String(),
+		HtlcAddress:  fixture.htlc.Address.String(),
+	}
+	fixture.subscriber.ntfnChan <- ntfn
+	close(fixture.subscriber.ntfnChan)
+
+	reg := waitForConfRegistration(t, ctx, fixture.lnd)
+	require.NotNil(t, reg.TxID)
+	require.Equal(t, fixture.outpoint.Hash, *reg.TxID)
+	require.Equal(t, fixture.htlc.PkScript, reg.PkScript)
+
+	fixture.lnd.ConfChannel <- &chainntnfs.TxConfirmation{
+		Tx:          fixture.fundingTx,
+		BlockHeight: 321,
+	}
+
+	signReq := waitForSignOutputRawRequest(t, ctx, fixture.lnd)
+	require.Equal(
+		t, fixture.outpoint, signReq.Tx.TxIn[0].PreviousOutPoint,
+	)
+	require.Len(t, signReq.Tx.TxOut, 1)
+	require.Equal(
+		t, fixture.destPkScript, signReq.Tx.TxOut[0].PkScript,
+	)
+
+	publishedTx := waitForPublishedTx(t, ctx, fixture.lnd)
+	require.Equal(
+		t, fixture.outpoint, publishedTx.TxIn[0].PreviousOutPoint,
+	)
+	require.Len(t, publishedTx.TxOut, 1)
+	require.Equal(
+		t, fixture.destPkScript, publishedTx.TxOut[0].PkScript,
+	)
+	require.NotEmpty(t, publishedTx.TxIn[0].Witness)
+
+	require.NoError(t, waitForManagerExit(t, ctx, runErrChan))
+	require.NoError(t, fixture.lnd.IsDone())
+}
+
+// TestHtlcConfirmedRecoveryManagerIgnoresBadNotification verifies that a bad
+// notification is ignored without starting a sweep attempt.
+func TestHtlcConfirmedRecoveryManagerIgnoresBadNotification(t *testing.T) {
+	defer test.Guard(t)()
+
+	setLogger(newFormatLogger())
+
+	fixture := newHtlcConfirmedRecoveryFixture(t)
+
+	ctx, cancel := context.WithTimeout(
+		t.Context(), htlcConfirmedRecoveryTestTimeout,
+	)
+	defer cancel()
+
+	runErrChan := make(chan error, 1)
+
+	go func() {
+		runErrChan <- fixture.manager.run(ctx)
+	}()
+
+	ntfn := &swapserverrpc.ServerHtlcConfirmedNotification{
+		SwapHash:     fixture.swap.Hash[:],
+		HtlcOutpoint: "not-an-outpoint",
+		HtlcAddress:  fixture.htlc.Address.String(),
+	}
+	fixture.subscriber.ntfnChan <- ntfn
+	close(fixture.subscriber.ntfnChan)
+
+	require.NoError(t, waitForManagerExit(t, ctx, runErrChan))
+	assertNoRecoveryActivity(t, fixture.lnd)
+	require.NoError(t, fixture.lnd.IsDone())
+}
diff --git a/loopd/log.go b/loopd/log.go
index 6d102bc59..7d92c120b 100644
--- a/loopd/log.go
+++ b/loopd/log.go
@@ -43,6 +43,11 @@ func tracef(format string, params ...any) {
 	log().Tracef(format, params...)
 }
 
+// debugf logs a message with level DEBUG.
+func debugf(format string, params ...any) {
+	log().Debugf(format, params...)
+}
+
 // infof logs a message with level INFO.
 func infof(format string, params ...any) {
 	log().Infof(format, params...)
diff --git a/loopd/sweep_htlc.go b/loopd/sweep_htlc.go
index c613b5d7c..a95727f3b 100644
--- a/loopd/sweep_htlc.go
+++ b/loopd/sweep_htlc.go
@@ -106,8 +106,8 @@ func sweepHtlc(ctx context.Context, req *looprpc.SweepHtlcRequest,
 		return nil, status.Error(codes.InvalidArgument, err.Error())
 	}
 
-	// Destination address: honor a provided override or derive a fresh
-	// wallet address from the default account.
+	// Destination address: honor a provided override immediately so request
+	// validation stays independent from swap lookup.
 	var sweepAddr btcutil.Address
 	if req.DestAddress != "" {
 		sweepAddr, err = btcutil.DecodeAddress(
@@ -117,30 +117,10 @@ func sweepHtlc(ctx context.Context, req *looprpc.SweepHtlcRequest,
 			return nil, status.Errorf(codes.InvalidArgument,
 				"invalid dest_address: %v", err)
 		}
-	} else {
-		sweepAddr, err = wallet.NextAddr(
-			ctx, lnwallet.DefaultAccountName,
-			walletrpc.AddressType_TAPROOT_PUBKEY,
-			false,
-		)
-		if err != nil {
-			return nil, status.Errorf(codes.Internal,
-				"derive sweep address: %v", err)
-		}
-		infof("sweephtlc: generated new destination address: %v",
-			sweepAddr.EncodeAddress())
-	}
-
-	sweepPkScript, err := txscript.PayToAddrScript(sweepAddr)
-	if err != nil {
-		return nil, err
 	}
 
-	infof("sweephtlc: start sweep for %v -> %v", req.Outpoint,
-		sweepAddr.EncodeAddress())
-
 	// Locate the loop-out swap whose HTLC script matches the outpoint so
-	// we can obtain keys and the stored preimage.
+	// we can obtain keys, the stored preimage, and the default destination.
 	swaps, err := store.FetchLoopOutSwaps(ctx)
 	if err != nil {
 		return nil, err
@@ -172,6 +152,34 @@ func sweepHtlc(ctx context.Context, req *looprpc.SweepHtlcRequest,
 			"no matching swap HTLC found")
 	}
 
+	// Prefer the stored swap destination for recovery sweeps and only
+	// derive a fresh wallet address when neither the request nor DB
+	// specifies one.
+	if sweepAddr == nil {
+		sweepAddr = targetSwap.Contract.DestAddr
+	}
+	if sweepAddr == nil {
+		sweepAddr, err = wallet.NextAddr(
+			ctx, lnwallet.DefaultAccountName,
+			walletrpc.AddressType_TAPROOT_PUBKEY,
+			false,
+		)
+		if err != nil {
+			return nil, status.Errorf(codes.Internal,
+				"derive sweep address: %v", err)
+		}
+		infof("sweephtlc: generated new destination address: %v",
+			sweepAddr.EncodeAddress())
+	}
+
+	sweepPkScript, err := txscript.PayToAddrScript(sweepAddr)
+	if err != nil {
+		return nil, err
+	}
+
+	infof("sweephtlc: start sweep for %v -> %v", req.Outpoint,
+		sweepAddr.EncodeAddress())
+
 	infof("sweephtlc: matched swap %v at height hint %v",
 		targetSwap.Hash, targetSwap.Contract.InitiationHeight)
 
diff --git a/loopd/sweep_htlc_test.go b/loopd/sweep_htlc_test.go
index 139eca823..7be675cc6 100644
--- a/loopd/sweep_htlc_test.go
+++ b/loopd/sweep_htlc_test.go
@@ -8,6 +8,7 @@ import (
 	"time"
 
 	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/btcsuite/btclog/v2"
 	"github.com/lightninglabs/loop/loopdb"
@@ -17,7 +18,9 @@ import (
 	"github.com/lightninglabs/loop/utils"
 	"github.com/lightningnetwork/lnd/chainntnfs"
 	"github.com/lightningnetwork/lnd/keychain"
+	"github.com/lightningnetwork/lnd/lnrpc/walletrpc"
 	"github.com/lightningnetwork/lnd/lntypes"
+	"github.com/lightningnetwork/lnd/lnwallet"
 	"github.com/lightningnetwork/lnd/lnwallet/chainfee"
 	"github.com/stretchr/testify/require"
 )
@@ -45,7 +48,6 @@ var sweepHtlcTests = []struct {
 		satPerVByte:    10,
 		expectRegister: true,
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -63,7 +65,6 @@ var sweepHtlcTests = []struct {
 		satPerVByte:    10,
 		expectRegister: true,
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -83,7 +84,6 @@ var sweepHtlcTests = []struct {
 		satPerVByte:    10,
 		expectRegister: true,
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -105,7 +105,6 @@ var sweepHtlcTests = []struct {
 		expectErrMsg:   "fee exceeds",
 		expectRegister: true,
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -124,7 +123,6 @@ var sweepHtlcTests = []struct {
 		expectErrMsg:   "fee too low for relay after clamp",
 		expectRegister: true,
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -182,10 +180,7 @@ var sweepHtlcTests = []struct {
 		expectErrMsg:   "no matching swap",
 		expectRegister: false,
 		noSwap:         true,
-		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
-			"sweephtlc: start sweep for %v -> %v",
-		},
+		expectLogs:     []string{},
 	},
 	{
 		name:           "invalid initiation height",
@@ -197,7 +192,6 @@ var sweepHtlcTests = []struct {
 			contract.InitiationHeight = 0
 		},
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 		},
@@ -212,7 +206,6 @@ var sweepHtlcTests = []struct {
 			reg.ErrChan <- errors.New("boom")
 		},
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -230,7 +223,6 @@ var sweepHtlcTests = []struct {
 			txOut.PkScript = []byte{0x6a}
 		},
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -245,7 +237,6 @@ var sweepHtlcTests = []struct {
 		expectErrMsg:   "fee exceeds HTLC value",
 		expectRegister: true,
 		expectLogs: []string{
-			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
 			"sweephtlc: matched swap %v at height hint %v",
 			"sweephtlc: registering conf ntfn for %v hint=%v",
@@ -264,6 +255,23 @@ var sweepHtlcTests = []struct {
 		modifyReq: func(req *looprpc.SweepHtlcRequest) {
 			req.Preimage = bytes.Repeat([]byte{9}, 32)
 		},
+		expectLogs: []string{
+			"sweephtlc: start sweep for %v -> %v",
+			"sweephtlc: matched swap %v at height hint %v",
+			"sweephtlc: registering conf ntfn for %v hint=%v",
+			"sweephtlc: waiting for confirmation of %v",
+			"sweephtlc: funding confirmed at height %v",
+			"sweephtlc: swap hash validated for %v",
+		},
+	},
+	{
+		name:           "fallback to generated destination",
+		amount:         100_000,
+		satPerVByte:    10,
+		expectRegister: true,
+		mutateSwap: func(contract *loopdb.LoopOutContract) {
+			contract.DestAddr = nil
+		},
 		expectLogs: []string{
 			"sweephtlc: generated new destination address: %v",
 			"sweephtlc: start sweep for %v -> %v",
@@ -272,6 +280,9 @@ var sweepHtlcTests = []struct {
 			"sweephtlc: waiting for confirmation of %v",
 			"sweephtlc: funding confirmed at height %v",
 			"sweephtlc: swap hash validated for %v",
+			"sweephtlc: sweeping to %v with feerate %v sat/vbyte",
+			"sweephtlc: signing sweep spending %v",
+			"sweephtlc: witness assembled, tx size=%d vbytes",
 		},
 	},
 }
@@ -336,7 +347,7 @@ func TestSweepHtlc(t *testing.T) {
 			}
 
 			destAddr, err := btcutil.NewAddressWitnessPubKeyHash(
-				make([]byte, 20), lnd.ChainParams,
+				bytes.Repeat([]byte{1}, 20), lnd.ChainParams,
 			)
 			require.NoError(t, err)
 
@@ -498,6 +509,33 @@ func TestSweepHtlc(t *testing.T) {
 			)
 			require.NotEmpty(t, sweepTx.TxIn[0].Witness)
 
+			// Verify that the sweep uses the stored destination address and
+			// only falls back to wallet address generation when the swap
+			// record does not define one.
+			expectedAddr := loopOut.Contract.DestAddr
+			if req.DestAddress != "" {
+				expectedAddr, err = btcutil.DecodeAddress(
+					req.DestAddress, lnd.ChainParams,
+				)
+				require.NoError(t, err)
+			}
+			if expectedAddr == nil {
+				expectedAddr, err = lnd.WalletKit.NextAddr(
+					ctx, lnwallet.DefaultAccountName,
+					walletrpc.AddressType_TAPROOT_PUBKEY, false,
+				)
+				require.NoError(t, err)
+			}
+
+			expectedPkScript, err := txscript.PayToAddrScript(
+				expectedAddr,
+			)
+			require.NoError(t, err)
+			require.Len(t, sweepTx.TxOut, 1)
+			require.Equal(
+				t, expectedPkScript, sweepTx.TxOut[0].PkScript,
+			)
+
 			if tc.publish {
 				// For publish=true we should see a
 				// publish (or a publish failure
diff --git a/notifications/manager.go b/notifications/manager.go
index bd1ac4170..3eda5d652 100644
--- a/notifications/manager.go
+++ b/notifications/manager.go
@@ -29,6 +29,10 @@ const (
 	// NotificationTypeUnfinishedSwap is the notification type for unfinished
 	// swap notifications.
 	NotificationTypeUnfinishedSwap
+
+	// NotificationTypeHtlcConfirmed is the notification type for HTLC
+	// confirmed notifications.
+	NotificationTypeHtlcConfirmed
 )
 
 const (
@@ -37,6 +41,10 @@ const (
 	// successful connection.
 	defaultMinAliveConnTime = time.Minute
 
+	// htlcConfirmedSubscriberSendTimeout is how long we wait for a busy
+	// htlc-confirmed subscriber before dropping the notification.
+	htlcConfirmedSubscriberSendTimeout = 200 * time.Millisecond
+
 	// current_version is the current version of the notification listener.
 	current_version = swapserverrpc.SubscribeNotificationsRequest_V1
 )
@@ -164,6 +172,27 @@ func (m *Manager) SubscribeUnfinishedSwaps(ctx context.Context,
 	return notifChan
 }
 
+// SubscribeHtlcConfirmed subscribes to the HTLC confirmed notifications.
+func (m *Manager) SubscribeHtlcConfirmed(ctx context.Context,
+) <-chan *swapserverrpc.ServerHtlcConfirmedNotification {
+
+	notifChan := make(
+		chan *swapserverrpc.ServerHtlcConfirmedNotification, 1,
+	)
+	sub := subscriber{
+		subCtx:   ctx,
+		recvChan: notifChan,
+	}
+
+	m.addSubscriber(NotificationTypeHtlcConfirmed, sub)
+	context.AfterFunc(ctx, func() {
+		m.removeSubscriber(NotificationTypeHtlcConfirmed, sub)
+		close(notifChan)
+	})
+
+	return notifChan
+}
+
 // Run starts the notification manager. It will keep on running until the
 // context is canceled. It will subscribe to notifications and forward them to
 // the subscribers. On a first successful connection to the server, it will
@@ -333,9 +362,30 @@ func (m *Manager) handleNotification(ntfn *swapserverrpc.
 			recvChan <- unfinishedSwapNtfn
 		}
 
+	case *swapserverrpc.SubscribeNotificationsResponse_HtlcConfirmed:
+		// We'll forward the htlc confirmed notification to all
+		// subscribers. We wait briefly for a slow subscriber and
+		// then drop to avoid stalling the notification pipeline.
+		htlcConfirmedNtfn := ntfn.GetHtlcConfirmed()
+		m.Lock()
+		defer m.Unlock()
+
+		subscribers := m.subscribers[NotificationTypeHtlcConfirmed]
+		for _, sub := range subscribers {
+			recvChan := sub.recvChan.(chan *swapserverrpc.
+				ServerHtlcConfirmedNotification)
+
+			select {
+			case recvChan <- htlcConfirmedNtfn:
+
+			case <-time.After(htlcConfirmedSubscriberSendTimeout):
+				log.Infof("Dropping htlc confirmed " +
+					"notification, subscriber busy")
+			}
+		}
+
 	default:
-		log.Warnf("Received unknown notification type: %v",
-			ntfn)
+		log.Debugf("Received unknown notification type: %v", ntfn)
 	}
 }
 
diff --git a/notifications/manager_test.go b/notifications/manager_test.go
index 9a06503e8..52a72d852 100644
--- a/notifications/manager_test.go
+++ b/notifications/manager_test.go
@@ -3,9 +3,11 @@ package notifications
 import (
 	"context"
 	"errors"
+	"fmt"
 	"io"
 	"sync"
 	"testing"
+	"testing/synctest"
 	"time"
 
 	"github.com/lightninglabs/aperture/l402"
@@ -428,3 +430,178 @@ func TestManager_Backoff_Pending_Token(t *testing.T) {
 		"Expected to backoff for at ~3 seconds due to pending token",
 	)
 }
+
+// TestManager_HtlcConfirmedNotification tests that the Manager correctly
+// forwards htlc confirmed notifications to subscribers via the end-to-end
+// subscription path.
+func TestManager_HtlcConfirmedNotification(t *testing.T) {
+	t.Parallel()
+
+	// Create a mock notification client.
+	recvChan := make(
+		chan *swapserverrpc.SubscribeNotificationsResponse, 1,
+	)
+	errChan := make(chan error, 1)
+	mockStream := &mockSubscribeNotificationsClient{
+		recvChan:    recvChan,
+		recvErrChan: errChan,
+	}
+	mockClient := &mockNotificationsClient{
+		mockStream: mockStream,
+	}
+
+	mgr := NewManager(&Config{
+		Client: mockClient,
+		CurrentToken: func() (*l402.Token, error) {
+			return &l402.Token{
+				Preimage: lntypes.Preimage{1, 2, 3},
+			}, nil
+		},
+	})
+
+	// Subscribe to htlc confirmed notifications.
+	ctx := t.Context()
+	subCtx, subCancel := context.WithCancel(ctx)
+	defer subCancel()
+	subChan := mgr.SubscribeHtlcConfirmed(subCtx)
+
+	// Run the manager.
+	go func() {
+		_ = mgr.Run(ctx)
+	}()
+
+	// Wait for the manager to subscribe to the server stream.
+	require.Eventually(t, func() bool {
+		mockClient.Lock()
+		defer mockClient.Unlock()
+
+		return mockClient.timesCalled > 0
+	}, time.Second*5, 10*time.Millisecond)
+
+	// Send an htlc confirmed notification via the mock stream.
+	testSwapHash := []byte("test_hash_32_bytes_long_padding!")
+	testNtfn := &swapserverrpc.SubscribeNotificationsResponse{
+		Notification: &swapserverrpc.SubscribeNotificationsResponse_HtlcConfirmed{ // nolint: lll
+			HtlcConfirmed: &swapserverrpc.ServerHtlcConfirmedNotification{ // nolint: lll
+				SwapHash:     testSwapHash,
+				HtlcOutpoint: "abc123:0",
+				HtlcAddress:  "tb1qexamplehtlcaddress",
+			},
+		},
+	}
+	recvChan <- testNtfn
+
+	// Verify the subscriber receives it.
+	select {
+	case received := <-subChan:
+		require.NotNil(t, received)
+		require.Equal(t, testSwapHash, received.SwapHash)
+		require.Equal(t, "abc123:0", received.HtlcOutpoint)
+		require.Equal(t, "tb1qexamplehtlcaddress", received.HtlcAddress)
+
+	case <-time.After(5 * time.Second):
+		t.Fatal("did not receive htlc confirmed notification")
+	}
+
+	// Cancel the subscription and verify the channel closes.
+	subCancel()
+	require.Eventually(t, func() bool {
+		select {
+		case _, ok := <-subChan:
+			return !ok
+
+		default:
+			return false
+		}
+	}, time.Second*5, 10*time.Millisecond)
+}
+
+// TestManager_HtlcConfirmedNonBlocking tests that a slow htlc confirmed
+// subscriber does not block the notification pipeline.
+func TestManager_HtlcConfirmedNonBlocking(t *testing.T) {
+	t.Parallel()
+
+	synctest.Test(t, func(t *testing.T) {
+		recvChan := make(
+			chan *swapserverrpc.SubscribeNotificationsResponse, 1,
+		)
+		errChan := make(chan error, 1)
+		mockStream := &mockSubscribeNotificationsClient{
+			recvChan:    recvChan,
+			recvErrChan: errChan,
+		}
+		mockClient := &mockNotificationsClient{
+			mockStream: mockStream,
+		}
+
+		mgr := NewManager(&Config{
+			Client: mockClient,
+			CurrentToken: func() (*l402.Token, error) {
+				return &l402.Token{
+					Preimage: lntypes.Preimage{1, 2, 3},
+				}, nil
+			},
+		})
+
+		// Subscribe but never read from the channel.
+		subCtx, subCancel := context.WithCancel(t.Context())
+		defer subCancel()
+		_ = mgr.SubscribeHtlcConfirmed(subCtx)
+
+		ctx, cancel := context.WithCancel(t.Context())
+		defer cancel()
+		go func() {
+			_ = mgr.Run(ctx)
+		}()
+
+		// Wait for the manager to connect and block on stream Recv().
+		synctest.Wait()
+		mockClient.Lock()
+		require.Greater(t, mockClient.timesCalled, 0)
+		mockClient.Unlock()
+
+		// Also send a reservation notification to prove the pipeline
+		// is not blocked — it should still be dispatched once the
+		// timed htlc fanout drop has elapsed.
+		resChan := mgr.SubscribeReservations(subCtx)
+
+		// Send two notifications rapidly. The subscriber channel has
+		// buffer 1, so the first should be delivered and the second
+		// should be dropped after waiting for the timeout.
+		for i := range 2 {
+			ntfn := &swapserverrpc.SubscribeNotificationsResponse{
+				Notification: &swapserverrpc.SubscribeNotificationsResponse_HtlcConfirmed{ // nolint: lll
+					HtlcConfirmed: &swapserverrpc.ServerHtlcConfirmedNotification{ // nolint: lll
+						SwapHash:     fmt.Appendf(nil, "hash_%d_padding_to_32bytes!!", i), // nolint: lll
+						HtlcOutpoint: "abc:0",
+						HtlcAddress:  "tb1qexamplehtlcaddress",
+					},
+				},
+			}
+			recvChan <- ntfn
+		}
+
+		resNtfn := &swapserverrpc.SubscribeNotificationsResponse{
+			Notification: &swapserverrpc.SubscribeNotificationsResponse_ReservationNotification{ // nolint: lll
+				ReservationNotification: &swapserverrpc.ServerReservationNotification{ // nolint: lll
+					ReservationId: []byte("res1"),
+				},
+			},
+		}
+		recvChan <- resNtfn
+
+		select {
+		case res := <-resChan:
+			require.Equal(t, []byte("res1"), res.ReservationId)
+
+		case <-time.After(5 * htlcConfirmedSubscriberSendTimeout):
+			t.Fatal("reservation notification blocked by slow " +
+				"htlc confirmed subscriber")
+		}
+
+		// Stop the manager and ensure all goroutines in the test exit.
+		cancel()
+		close(recvChan)
+		synctest.Wait()
+	})
+}
diff --git a/swapserverrpc/server.pb.go b/swapserverrpc/server.pb.go
index 0ba23bde8..c29e1fb8b 100644
--- a/swapserverrpc/server.pb.go
+++ b/swapserverrpc/server.pb.go
@@ -2789,6 +2789,7 @@ type SubscribeNotificationsResponse struct {
 	//	*SubscribeNotificationsResponse_UnfinishedSwap
 	//	*SubscribeNotificationsResponse_StaticLoopInRiskAccepted
 	//	*SubscribeNotificationsResponse_StaticLoopInRiskRejected
+	//	*SubscribeNotificationsResponse_HtlcConfirmed
 	Notification  isSubscribeNotificationsResponse_Notification `protobuf_oneof:"notification"`
 	unknownFields protoimpl.UnknownFields
 	sizeCache     protoimpl.SizeCache
@@ -2876,6 +2877,15 @@ func (x *SubscribeNotificationsResponse) GetStaticLoopInRiskRejected() *ServerSt
 	return nil
 }
 
+func (x *SubscribeNotificationsResponse) GetHtlcConfirmed() *ServerHtlcConfirmedNotification {
+	if x != nil {
+		if x, ok := x.Notification.(*SubscribeNotificationsResponse_HtlcConfirmed); ok {
+			return x.HtlcConfirmed
+		}
+	}
+	return nil
+}
+
 type isSubscribeNotificationsResponse_Notification interface {
 	isSubscribeNotificationsResponse_Notification()
 }
@@ -2900,6 +2910,10 @@ type SubscribeNotificationsResponse_StaticLoopInRiskRejected struct {
 	StaticLoopInRiskRejected *ServerStaticLoopInRiskRejectedNotification `protobuf:"bytes,5,opt,name=static_loop_in_risk_rejected,json=staticLoopInRiskRejected,proto3,oneof"`
 }
 
+type SubscribeNotificationsResponse_HtlcConfirmed struct {
+	HtlcConfirmed *ServerHtlcConfirmedNotification `protobuf:"bytes,6,opt,name=htlc_confirmed,json=htlcConfirmed,proto3,oneof"`
+}
+
 func (*SubscribeNotificationsResponse_ReservationNotification) isSubscribeNotificationsResponse_Notification() {
 }
 
@@ -2915,6 +2929,9 @@ func (*SubscribeNotificationsResponse_StaticLoopInRiskAccepted) isSubscribeNotif
 func (*SubscribeNotificationsResponse_StaticLoopInRiskRejected) isSubscribeNotificationsResponse_Notification() {
 }
 
+func (*SubscribeNotificationsResponse_HtlcConfirmed) isSubscribeNotificationsResponse_Notification() {
+}
+
 // ServerStaticLoopInSweepNotification is a request from the server to the
 // client to cosign a transaction that contains deposits from a finished static
 // loop ins.
@@ -3143,6 +3160,72 @@ func (x *ServerUnfinishedSwapNotification) GetIsLoopIn() bool {
 	return false
 }
 
+// ServerHtlcConfirmedNotification is a notification from the server to the
+// client that the on-chain HTLC for a loop out swap has been confirmed.
+type ServerHtlcConfirmedNotification struct {
+	state protoimpl.MessageState `protogen:"open.v1"`
+	// The swap hash of the loop out swap.
+	SwapHash []byte `protobuf:"bytes,1,opt,name=swap_hash,json=swapHash,proto3" json:"swap_hash,omitempty"`
+	// htlc_outpoint is the outpoint of the confirmed HTLC in the format
+	// "txid:output_index".
+	HtlcOutpoint string `protobuf:"bytes,2,opt,name=htlc_outpoint,json=htlcOutpoint,proto3" json:"htlc_outpoint,omitempty"`
+	// htlc_address is the address of the confirmed HTLC output.
+	HtlcAddress   string `protobuf:"bytes,3,opt,name=htlc_address,json=htlcAddress,proto3" json:"htlc_address,omitempty"`
+	unknownFields protoimpl.UnknownFields
+	sizeCache     protoimpl.SizeCache
+}
+
+func (x *ServerHtlcConfirmedNotification) Reset() {
+	*x = ServerHtlcConfirmedNotification{}
+	mi := &file_server_proto_msgTypes[40]
+	ms := protoimpl.X.MessageStateOf(protoimpl.Pointer(x))
+	ms.StoreMessageInfo(mi)
+}
+
+func (x *ServerHtlcConfirmedNotification) String() string {
+	return protoimpl.X.MessageStringOf(x)
+}
+
+func (*ServerHtlcConfirmedNotification) ProtoMessage() {}
+
+func (x *ServerHtlcConfirmedNotification) ProtoReflect() protoreflect.Message {
+	mi := &file_server_proto_msgTypes[40]
+	if x != nil {
+		ms := protoimpl.X.MessageStateOf(protoimpl.Pointer(x))
+		if ms.LoadMessageInfo() == nil {
+			ms.StoreMessageInfo(mi)
+		}
+		return ms
+	}
+	return mi.MessageOf(x)
+}
+
+// Deprecated: Use ServerHtlcConfirmedNotification.ProtoReflect.Descriptor instead.
+func (*ServerHtlcConfirmedNotification) Descriptor() ([]byte, []int) {
+	return file_server_proto_rawDescGZIP(), []int{40}
+}
+
+func (x *ServerHtlcConfirmedNotification) GetSwapHash() []byte {
+	if x != nil {
+		return x.SwapHash
+	}
+	return nil
+}
+
+func (x *ServerHtlcConfirmedNotification) GetHtlcOutpoint() string {
+	if x != nil {
+		return x.HtlcOutpoint
+	}
+	return ""
+}
+
+func (x *ServerHtlcConfirmedNotification) GetHtlcAddress() string {
+	if x != nil {
+		return x.HtlcAddress
+	}
+	return ""
+}
+
 var File_server_proto protoreflect.FileDescriptor
 
 const file_server_proto_rawDesc = "" +
@@ -3311,13 +3394,14 @@ const file_server_proto_rawDesc = "" +
 	"\x0fListenerVersion\x12\n" +
 	"\n" +
 	"\x06LEGACY\x10\x00\x12\x06\n" +
-	"\x02V1\x10\x01\"\xba\x04\n" +
+	"\x02V1\x10\x01\"\x8d\x05\n" +
 	"\x1eSubscribeNotificationsResponse\x12c\n" +
 	"\x18reservation_notification\x18\x01 \x01(\v2&.looprpc.ServerReservationNotificationH\x00R\x17reservationNotification\x12_\n" +
 	"\x14static_loop_in_sweep\x18\x02 \x01(\v2,.looprpc.ServerStaticLoopInSweepNotificationH\x00R\x11staticLoopInSweep\x12T\n" +
 	"\x0funfinished_swap\x18\x03 \x01(\v2).looprpc.ServerUnfinishedSwapNotificationH\x00R\x0eunfinishedSwap\x12u\n" +
 	"\x1cstatic_loop_in_risk_accepted\x18\x04 \x01(\v23.looprpc.ServerStaticLoopInRiskAcceptedNotificationH\x00R\x18staticLoopInRiskAccepted\x12u\n" +
-	"\x1cstatic_loop_in_risk_rejected\x18\x05 \x01(\v23.looprpc.ServerStaticLoopInRiskRejectedNotificationH\x00R\x18staticLoopInRiskRejectedB\x0e\n" +
+	"\x1cstatic_loop_in_risk_rejected\x18\x05 \x01(\v23.looprpc.ServerStaticLoopInRiskRejectedNotificationH\x00R\x18staticLoopInRiskRejected\x12Q\n" +
+	"\x0ehtlc_confirmed\x18\x06 \x01(\v2(.looprpc.ServerHtlcConfirmedNotificationH\x00R\rhtlcConfirmedB\x0e\n" +
 	"\fnotification\"\xd2\x02\n" +
 	"#ServerStaticLoopInSweepNotification\x12\"\n" +
 	"\rsweep_tx_psbt\x18\x01 \x01(\fR\vsweepTxPsbt\x12\x1b\n" +
@@ -3334,7 +3418,11 @@ const file_server_proto_rawDesc = "" +
 	" ServerUnfinishedSwapNotification\x12\x1b\n" +
 	"\tswap_hash\x18\x01 \x01(\fR\bswapHash\x12\x1c\n" +
 	"\n" +
-	"is_loop_in\x18\x02 \x01(\bR\bisLoopIn*\xef\x01\n" +
+	"is_loop_in\x18\x02 \x01(\bR\bisLoopIn\"\x86\x01\n" +
+	"\x1fServerHtlcConfirmedNotification\x12\x1b\n" +
+	"\tswap_hash\x18\x01 \x01(\fR\bswapHash\x12#\n" +
+	"\rhtlc_outpoint\x18\x02 \x01(\tR\fhtlcOutpoint\x12!\n" +
+	"\fhtlc_address\x18\x03 \x01(\tR\vhtlcAddress*\xef\x01\n" +
 	"\x0fProtocolVersion\x12\n" +
 	"\n" +
 	"\x06LEGACY\x10\x00\x12\x12\n" +
@@ -3417,7 +3505,7 @@ func file_server_proto_rawDescGZIP() []byte {
 }
 
 var file_server_proto_enumTypes = make([]protoimpl.EnumInfo, 6)
-var file_server_proto_msgTypes = make([]protoimpl.MessageInfo, 41)
+var file_server_proto_msgTypes = make([]protoimpl.MessageInfo, 42)
 var file_server_proto_goTypes = []any{
 	(ProtocolVersion)(0),                               // 0: looprpc.ProtocolVersion
 	(ServerSwapState)(0),                               // 1: looprpc.ServerSwapState
@@ -3465,16 +3553,17 @@ var file_server_proto_goTypes = []any{
 	(*ServerStaticLoopInRiskAcceptedNotification)(nil), // 43: looprpc.ServerStaticLoopInRiskAcceptedNotification
 	(*ServerStaticLoopInRiskRejectedNotification)(nil), // 44: looprpc.ServerStaticLoopInRiskRejectedNotification
 	(*ServerUnfinishedSwapNotification)(nil),           // 45: looprpc.ServerUnfinishedSwapNotification
-	nil,                                                // 46: looprpc.ServerStaticLoopInSweepNotification.DepositToNoncesEntry
-	(*RouteHint)(nil),                                  // 47: looprpc.RouteHint
-	(*ServerReservationNotification)(nil),              // 48: looprpc.ServerReservationNotification
+	(*ServerHtlcConfirmedNotification)(nil),            // 46: looprpc.ServerHtlcConfirmedNotification
+	nil,                                                // 47: looprpc.ServerStaticLoopInSweepNotification.DepositToNoncesEntry
+	(*RouteHint)(nil),                                  // 48: looprpc.RouteHint
+	(*ServerReservationNotification)(nil),              // 49: looprpc.ServerReservationNotification
 }
 var file_server_proto_depIdxs = []int32{
 	0,  // 0: looprpc.ServerLoopOutRequest.protocol_version:type_name -> looprpc.ProtocolVersion
 	0,  // 1: looprpc.ServerLoopOutQuoteRequest.protocol_version:type_name -> looprpc.ProtocolVersion
 	0,  // 2: looprpc.ServerLoopOutTermsRequest.protocol_version:type_name -> looprpc.ProtocolVersion
 	0,  // 3: looprpc.ServerLoopInRequest.protocol_version:type_name -> looprpc.ProtocolVersion
-	47, // 4: looprpc.ServerLoopInQuoteRequest.route_hints:type_name -> looprpc.RouteHint
+	48, // 4: looprpc.ServerLoopInQuoteRequest.route_hints:type_name -> looprpc.RouteHint
 	0,  // 5: looprpc.ServerLoopInQuoteRequest.protocol_version:type_name -> looprpc.ProtocolVersion
 	0,  // 6: looprpc.ServerLoopInTermsRequest.protocol_version:type_name -> looprpc.ProtocolVersion
 	0,  // 7: looprpc.ServerLoopOutPushPreimageRequest.protocol_version:type_name -> looprpc.ProtocolVersion
@@ -3487,7 +3576,7 @@ var file_server_proto_depIdxs = []int32{
 	0,  // 14: looprpc.CancelLoopOutSwapRequest.protocol_version:type_name -> looprpc.ProtocolVersion
 	23, // 15: looprpc.CancelLoopOutSwapRequest.route_cancel:type_name -> looprpc.RouteCancel
 	0,  // 16: looprpc.ServerProbeRequest.protocol_version:type_name -> looprpc.ProtocolVersion
-	47, // 17: looprpc.ServerProbeRequest.route_hints:type_name -> looprpc.RouteHint
+	48, // 17: looprpc.ServerProbeRequest.route_hints:type_name -> looprpc.RouteHint
 	0,  // 18: looprpc.RecommendRoutingPluginReq.protocol_version:type_name -> looprpc.ProtocolVersion
 	4,  // 19: looprpc.RecommendRoutingPluginRes.plugin:type_name -> looprpc.RoutingPlugin
 	0,  // 20: looprpc.ReportRoutingResultReq.protocol_version:type_name -> looprpc.ProtocolVersion
@@ -3496,52 +3585,53 @@ var file_server_proto_depIdxs = []int32{
 	34, // 23: looprpc.MuSig2SignSweepReq.prevout_info:type_name -> looprpc.PrevoutInfo
 	0,  // 24: looprpc.ServerPushKeyReq.protocol_version:type_name -> looprpc.ProtocolVersion
 	5,  // 25: looprpc.SubscribeNotificationsRequest.version:type_name -> looprpc.SubscribeNotificationsRequest.ListenerVersion
-	48, // 26: looprpc.SubscribeNotificationsResponse.reservation_notification:type_name -> looprpc.ServerReservationNotification
+	49, // 26: looprpc.SubscribeNotificationsResponse.reservation_notification:type_name -> looprpc.ServerReservationNotification
 	42, // 27: looprpc.SubscribeNotificationsResponse.static_loop_in_sweep:type_name -> looprpc.ServerStaticLoopInSweepNotification
 	45, // 28: looprpc.SubscribeNotificationsResponse.unfinished_swap:type_name -> looprpc.ServerUnfinishedSwapNotification
 	43, // 29: looprpc.SubscribeNotificationsResponse.static_loop_in_risk_accepted:type_name -> looprpc.ServerStaticLoopInRiskAcceptedNotification
 	44, // 30: looprpc.SubscribeNotificationsResponse.static_loop_in_risk_rejected:type_name -> looprpc.ServerStaticLoopInRiskRejectedNotification
-	46, // 31: looprpc.ServerStaticLoopInSweepNotification.deposit_to_nonces:type_name -> looprpc.ServerStaticLoopInSweepNotification.DepositToNoncesEntry
-	34, // 32: looprpc.ServerStaticLoopInSweepNotification.prevout_info:type_name -> looprpc.PrevoutInfo
-	10, // 33: looprpc.SwapServer.LoopOutTerms:input_type -> looprpc.ServerLoopOutTermsRequest
-	6,  // 34: looprpc.SwapServer.NewLoopOutSwap:input_type -> looprpc.ServerLoopOutRequest
-	18, // 35: looprpc.SwapServer.LoopOutPushPreimage:input_type -> looprpc.ServerLoopOutPushPreimageRequest
-	8,  // 36: looprpc.SwapServer.LoopOutQuote:input_type -> looprpc.ServerLoopOutQuoteRequest
-	16, // 37: looprpc.SwapServer.LoopInTerms:input_type -> looprpc.ServerLoopInTermsRequest
-	12, // 38: looprpc.SwapServer.NewLoopInSwap:input_type -> looprpc.ServerLoopInRequest
-	14, // 39: looprpc.SwapServer.LoopInQuote:input_type -> looprpc.ServerLoopInQuoteRequest
-	20, // 40: looprpc.SwapServer.SubscribeLoopOutUpdates:input_type -> looprpc.SubscribeUpdatesRequest
-	20, // 41: looprpc.SwapServer.SubscribeLoopInUpdates:input_type -> looprpc.SubscribeUpdatesRequest
-	25, // 42: looprpc.SwapServer.CancelLoopOutSwap:input_type -> looprpc.CancelLoopOutSwapRequest
-	27, // 43: looprpc.SwapServer.Probe:input_type -> looprpc.ServerProbeRequest
-	29, // 44: looprpc.SwapServer.RecommendRoutingPlugin:input_type -> looprpc.RecommendRoutingPluginReq
-	31, // 45: looprpc.SwapServer.ReportRoutingResult:input_type -> looprpc.ReportRoutingResultReq
-	33, // 46: looprpc.SwapServer.MuSig2SignSweep:input_type -> looprpc.MuSig2SignSweepReq
-	36, // 47: looprpc.SwapServer.PushKey:input_type -> looprpc.ServerPushKeyReq
-	38, // 48: looprpc.SwapServer.FetchL402:input_type -> looprpc.FetchL402Request
-	40, // 49: looprpc.SwapServer.SubscribeNotifications:input_type -> looprpc.SubscribeNotificationsRequest
-	11, // 50: looprpc.SwapServer.LoopOutTerms:output_type -> looprpc.ServerLoopOutTerms
-	7,  // 51: looprpc.SwapServer.NewLoopOutSwap:output_type -> looprpc.ServerLoopOutResponse
-	19, // 52: looprpc.SwapServer.LoopOutPushPreimage:output_type -> looprpc.ServerLoopOutPushPreimageResponse
-	9,  // 53: looprpc.SwapServer.LoopOutQuote:output_type -> looprpc.ServerLoopOutQuote
-	17, // 54: looprpc.SwapServer.LoopInTerms:output_type -> looprpc.ServerLoopInTerms
-	13, // 55: looprpc.SwapServer.NewLoopInSwap:output_type -> looprpc.ServerLoopInResponse
-	15, // 56: looprpc.SwapServer.LoopInQuote:output_type -> looprpc.ServerLoopInQuoteResponse
-	21, // 57: looprpc.SwapServer.SubscribeLoopOutUpdates:output_type -> looprpc.SubscribeLoopOutUpdatesResponse
-	22, // 58: looprpc.SwapServer.SubscribeLoopInUpdates:output_type -> looprpc.SubscribeLoopInUpdatesResponse
-	26, // 59: looprpc.SwapServer.CancelLoopOutSwap:output_type -> looprpc.CancelLoopOutSwapResponse
-	28, // 60: looprpc.SwapServer.Probe:output_type -> looprpc.ServerProbeResponse
-	30, // 61: looprpc.SwapServer.RecommendRoutingPlugin:output_type -> looprpc.RecommendRoutingPluginRes
-	32, // 62: looprpc.SwapServer.ReportRoutingResult:output_type -> looprpc.ReportRoutingResultRes
-	35, // 63: looprpc.SwapServer.MuSig2SignSweep:output_type -> looprpc.MuSig2SignSweepRes
-	37, // 64: looprpc.SwapServer.PushKey:output_type -> looprpc.ServerPushKeyRes
-	39, // 65: looprpc.SwapServer.FetchL402:output_type -> looprpc.FetchL402Response
-	41, // 66: looprpc.SwapServer.SubscribeNotifications:output_type -> looprpc.SubscribeNotificationsResponse
-	50, // [50:67] is the sub-list for method output_type
-	33, // [33:50] is the sub-list for method input_type
-	33, // [33:33] is the sub-list for extension type_name
-	33, // [33:33] is the sub-list for extension extendee
-	0,  // [0:33] is the sub-list for field type_name
+	46, // 31: looprpc.SubscribeNotificationsResponse.htlc_confirmed:type_name -> looprpc.ServerHtlcConfirmedNotification
+	47, // 32: looprpc.ServerStaticLoopInSweepNotification.deposit_to_nonces:type_name -> looprpc.ServerStaticLoopInSweepNotification.DepositToNoncesEntry
+	34, // 33: looprpc.ServerStaticLoopInSweepNotification.prevout_info:type_name -> looprpc.PrevoutInfo
+	10, // 34: looprpc.SwapServer.LoopOutTerms:input_type -> looprpc.ServerLoopOutTermsRequest
+	6,  // 35: looprpc.SwapServer.NewLoopOutSwap:input_type -> looprpc.ServerLoopOutRequest
+	18, // 36: looprpc.SwapServer.LoopOutPushPreimage:input_type -> looprpc.ServerLoopOutPushPreimageRequest
+	8,  // 37: looprpc.SwapServer.LoopOutQuote:input_type -> looprpc.ServerLoopOutQuoteRequest
+	16, // 38: looprpc.SwapServer.LoopInTerms:input_type -> looprpc.ServerLoopInTermsRequest
+	12, // 39: looprpc.SwapServer.NewLoopInSwap:input_type -> looprpc.ServerLoopInRequest
+	14, // 40: looprpc.SwapServer.LoopInQuote:input_type -> looprpc.ServerLoopInQuoteRequest
+	20, // 41: looprpc.SwapServer.SubscribeLoopOutUpdates:input_type -> looprpc.SubscribeUpdatesRequest
+	20, // 42: looprpc.SwapServer.SubscribeLoopInUpdates:input_type -> looprpc.SubscribeUpdatesRequest
+	25, // 43: looprpc.SwapServer.CancelLoopOutSwap:input_type -> looprpc.CancelLoopOutSwapRequest
+	27, // 44: looprpc.SwapServer.Probe:input_type -> looprpc.ServerProbeRequest
+	29, // 45: looprpc.SwapServer.RecommendRoutingPlugin:input_type -> looprpc.RecommendRoutingPluginReq
+	31, // 46: looprpc.SwapServer.ReportRoutingResult:input_type -> looprpc.ReportRoutingResultReq
+	33, // 47: looprpc.SwapServer.MuSig2SignSweep:input_type -> looprpc.MuSig2SignSweepReq
+	36, // 48: looprpc.SwapServer.PushKey:input_type -> looprpc.ServerPushKeyReq
+	38, // 49: looprpc.SwapServer.FetchL402:input_type -> looprpc.FetchL402Request
+	40, // 50: looprpc.SwapServer.SubscribeNotifications:input_type -> looprpc.SubscribeNotificationsRequest
+	11, // 51: looprpc.SwapServer.LoopOutTerms:output_type -> looprpc.ServerLoopOutTerms
+	7,  // 52: looprpc.SwapServer.NewLoopOutSwap:output_type -> looprpc.ServerLoopOutResponse
+	19, // 53: looprpc.SwapServer.LoopOutPushPreimage:output_type -> looprpc.ServerLoopOutPushPreimageResponse
+	9,  // 54: looprpc.SwapServer.LoopOutQuote:output_type -> looprpc.ServerLoopOutQuote
+	17, // 55: looprpc.SwapServer.LoopInTerms:output_type -> looprpc.ServerLoopInTerms
+	13, // 56: looprpc.SwapServer.NewLoopInSwap:output_type -> looprpc.ServerLoopInResponse
+	15, // 57: looprpc.SwapServer.LoopInQuote:output_type -> looprpc.ServerLoopInQuoteResponse
+	21, // 58: looprpc.SwapServer.SubscribeLoopOutUpdates:output_type -> looprpc.SubscribeLoopOutUpdatesResponse
+	22, // 59: looprpc.SwapServer.SubscribeLoopInUpdates:output_type -> looprpc.SubscribeLoopInUpdatesResponse
+	26, // 60: looprpc.SwapServer.CancelLoopOutSwap:output_type -> looprpc.CancelLoopOutSwapResponse
+	28, // 61: looprpc.SwapServer.Probe:output_type -> looprpc.ServerProbeResponse
+	30, // 62: looprpc.SwapServer.RecommendRoutingPlugin:output_type -> looprpc.RecommendRoutingPluginRes
+	32, // 63: looprpc.SwapServer.ReportRoutingResult:output_type -> looprpc.ReportRoutingResultRes
+	35, // 64: looprpc.SwapServer.MuSig2SignSweep:output_type -> looprpc.MuSig2SignSweepRes
+	37, // 65: looprpc.SwapServer.PushKey:output_type -> looprpc.ServerPushKeyRes
+	39, // 66: looprpc.SwapServer.FetchL402:output_type -> looprpc.FetchL402Response
+	41, // 67: looprpc.SwapServer.SubscribeNotifications:output_type -> looprpc.SubscribeNotificationsResponse
+	51, // [51:68] is the sub-list for method output_type
+	34, // [34:51] is the sub-list for method input_type
+	34, // [34:34] is the sub-list for extension type_name
+	34, // [34:34] is the sub-list for extension extendee
+	0,  // [0:34] is the sub-list for field type_name
 }
 
 func init() { file_server_proto_init() }
@@ -3560,6 +3650,7 @@ func file_server_proto_init() {
 		(*SubscribeNotificationsResponse_UnfinishedSwap)(nil),
 		(*SubscribeNotificationsResponse_StaticLoopInRiskAccepted)(nil),
 		(*SubscribeNotificationsResponse_StaticLoopInRiskRejected)(nil),
+		(*SubscribeNotificationsResponse_HtlcConfirmed)(nil),
 	}
 	type x struct{}
 	out := protoimpl.TypeBuilder{
@@ -3567,7 +3658,7 @@ func file_server_proto_init() {
 			GoPackagePath: reflect.TypeOf(x{}).PkgPath(),
 			RawDescriptor: unsafe.Slice(unsafe.StringData(file_server_proto_rawDesc), len(file_server_proto_rawDesc)),
 			NumEnums:      6,
-			NumMessages:   41,
+			NumMessages:   42,
 			NumExtensions: 0,
 			NumServices:   1,
 		},
diff --git a/swapserverrpc/server.proto b/swapserverrpc/server.proto
index 0957fafaa..62e9fea16 100644
--- a/swapserverrpc/server.proto
+++ b/swapserverrpc/server.proto
@@ -683,6 +683,7 @@ message SubscribeNotificationsResponse {
             static_loop_in_risk_accepted = 4;
         ServerStaticLoopInRiskRejectedNotification
             static_loop_in_risk_rejected = 5;
+        ServerHtlcConfirmedNotification htlc_confirmed = 6;
     }
 }
 
@@ -729,3 +730,17 @@ message ServerUnfinishedSwapNotification {
     // Whether the swap is a loop in or loop out.
     bool is_loop_in = 2;
 }
+
+// ServerHtlcConfirmedNotification is a notification from the server to the
+// client that the on-chain HTLC for a loop out swap has been confirmed.
+message ServerHtlcConfirmedNotification {
+    // The swap hash of the loop out swap.
+    bytes swap_hash = 1;
+
+    // htlc_outpoint is the outpoint of the confirmed HTLC in the format
+    // "txid:output_index".
+    string htlc_outpoint = 2;
+
+    // htlc_address is the address of the confirmed HTLC output.
+    string htlc_address = 3;
+}