diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index ea3a9ca56..a4e9c36f5 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -6821,7 +6821,10 @@ func (lc *LightningChannel) validateFeeRate(feePerKw chainfee.SatPerKWeight) err
 	// be above our reserve balance. Otherwise, we'll reject the fee
 	// update.
 	availableBalance, txWeight := lc.availableBalance()
-	oldFee := lnwire.NewMSatFromSatoshis(lc.localCommitChain.tip().fee)
+
+	oldFee := lnwire.NewMSatFromSatoshis(
+		lc.localCommitChain.tip().feePerKw.FeeForWeight(txWeight),
+	)
 
 	// Our base balance is the total amount of satoshis we can commit
 	// towards fees before factoring in the channel reserve.
@@ -6843,17 +6846,6 @@ func (lc *LightningChannel) validateFeeRate(feePerKw chainfee.SatPerKWeight) err
 			newFee, baseBalance)
 	}
 
-	// If this new balance is below our reserve, then we can't accommodate
-	// the fee change, so we'll reject it.
-	balanceAfterFee := baseBalance - newFee
-	if balanceAfterFee.ToSatoshis() < lc.channelState.LocalChanCfg.ChanReserve {
-		return fmt.Errorf("cannot apply fee_update=%v sat/kw, "+
-			"new balance=%v would dip below channel reserve=%v",
-			int64(feePerKw),
-			balanceAfterFee.ToSatoshis(),
-			lc.channelState.LocalChanCfg.ChanReserve)
-	}
-
 	// TODO(halseth): should fail if fee update is unreasonable,
 	// as specified in BOLT#2.
 	//  * COMMENT(roasbeef): can cross-check with our ideal fee rate
diff --git a/lnwallet/channel_test.go b/lnwallet/channel_test.go
index a490b9502..e626a22db 100644
--- a/lnwallet/channel_test.go
+++ b/lnwallet/channel_test.go
@@ -5,9 +5,11 @@ import (
 	"container/list"
 	"crypto/sha256"
 	"fmt"
+	"math/rand"
 	"reflect"
 	"runtime"
 	"testing"
+	"testing/quick"
 
 	"github.com/btcsuite/btcd/blockchain"
 	"github.com/btcsuite/btcd/btcec"
@@ -8014,6 +8016,25 @@ func TestChannelMaxFeeRate(t *testing.T) {
 				"allocation of %v, got %v", expFeeRate,
 				maxAlloc, maxFeeRate)
 		}
+
+		if err := c.validateFeeRate(maxFeeRate); err != nil {
+			t.Fatalf("fee rate validation failed: %v", err)
+		}
+	}
+
+	// propertyTest tests that the validateFeeRate function always passes
+	// for the output returned by MaxFeeRate for any valid random inputs
+	// fed to MaxFeeRate.
+	propertyTest := func(c *LightningChannel) func(alloc maxAlloc,
+		anchorMax fee) bool {
+
+		return func(ma maxAlloc, anchorMax fee) bool {
+			maxFeeRate := c.MaxFeeRate(
+				float64(ma), chainfee.SatPerKWeight(anchorMax),
+			)
+
+			return c.validateFeeRate(maxFeeRate) == nil
+		}
 	}
 
 	aliceChannel, _, cleanUp, err := CreateTestChannels(
@@ -8024,6 +8045,10 @@ func TestChannelMaxFeeRate(t *testing.T) {
 	}
 	defer cleanUp()
 
+	if err = quick.Check(propertyTest(aliceChannel), nil); err != nil {
+		t.Fatal(err)
+	}
+
 	assertMaxFeeRate(aliceChannel, 1.0, 0, 676794154)
 	assertMaxFeeRate(aliceChannel, 0.001, 0, 676794)
 	assertMaxFeeRate(aliceChannel, 0.000001, 0, 676)
@@ -8038,6 +8063,10 @@ func TestChannelMaxFeeRate(t *testing.T) {
 	}
 	defer cleanUp()
 
+	if err = quick.Check(propertyTest(anchorChannel), nil); err != nil {
+		t.Fatal(err)
+	}
+
 	// Anchor commitments are heavier, hence will the same allocation lead
 	// to slightly lower fee rates.
 	assertMaxFeeRate(
@@ -8052,6 +8081,24 @@ func TestChannelMaxFeeRate(t *testing.T) {
 	)
 }
 
+type maxAlloc float64
+
+// Generate ensures that the random value generated by the testing quick
+// package for maxAlloc is always a positive float64 between 0 and 1.
+func (maxAlloc) Generate(r *rand.Rand, _ int) reflect.Value {
+	ma := maxAlloc(r.Float64())
+	return reflect.ValueOf(ma)
+}
+
+type fee chainfee.SatPerKWeight
+
+// Generate ensures that the random value generated by the testing quick
+// package for a fee is always a positive int64.
+func (fee) Generate(r *rand.Rand, _ int) reflect.Value {
+	am := fee(r.Int63())
+	return reflect.ValueOf(am)
+}
+
 // TestChannelFeeRateFloor asserts that valid commitments can be proposed and
 // received using chainfee.FeePerKwFloor as the initiator's fee rate.
 func TestChannelFeeRateFloor(t *testing.T) {