diff --git a/contractcourt/chain_watcher_reorg_test.go b/contractcourt/chain_watcher_reorg_test.go
new file mode 100644
index 000000000..141eda571
--- /dev/null
+++ b/contractcourt/chain_watcher_reorg_test.go
@@ -0,0 +1,404 @@
+package contractcourt
+
+import (
+	"testing"
+	"time"
+
+	"github.com/btcsuite/btcd/wire"
+	"pgregory.net/rapid"
+)
+
+// closeType represents the type of channel close for testing purposes.
+type closeType int
+
+const (
+	// closeTypeCoop represents a cooperative channel close.
+	closeTypeCoop closeType = iota
+
+	// closeTypeRemoteUnilateral represents a remote unilateral close
+	// (remote party broadcasting their commitment).
+	closeTypeRemoteUnilateral
+
+	// closeTypeLocalForce represents a local force close (us broadcasting
+	// our commitment).
+	closeTypeLocalForce
+
+	// closeTypeBreach represents a breach (remote party broadcasting a
+	// revoked commitment).
+	closeTypeBreach
+)
+
+// String returns a string representation of the close type.
+func (c closeType) String() string {
+	switch c {
+	case closeTypeCoop:
+		return "cooperative"
+	case closeTypeRemoteUnilateral:
+		return "remote_unilateral"
+	case closeTypeLocalForce:
+		return "local_force"
+	case closeTypeBreach:
+		return "breach"
+	default:
+		return "unknown"
+	}
+}
+
+// createCloseTx creates a close transaction of the specified type using the
+// harness.
+func createCloseTx(h *chainWatcherTestHarness, ct closeType,
+	outputValue int64) *wire.MsgTx {
+
+	switch ct {
+	case closeTypeCoop:
+		return h.createCoopCloseTx(outputValue)
+	case closeTypeRemoteUnilateral:
+		return h.createRemoteForceCloseTx()
+	case closeTypeLocalForce:
+		return h.createLocalForceCloseTx()
+	case closeTypeBreach:
+		return h.createBreachCloseTx()
+	default:
+		h.t.Fatalf("unknown close type: %v", ct)
+		return nil
+	}
+}
+
+// waitForCloseEvent waits for the appropriate close event based on close type.
+func waitForCloseEvent(h *chainWatcherTestHarness, ct closeType,
+	timeout time.Duration) any {
+
+	switch ct {
+	case closeTypeCoop:
+		return h.waitForCoopClose(timeout)
+	case closeTypeRemoteUnilateral:
+		return h.waitForRemoteUnilateralClose(timeout)
+	case closeTypeLocalForce:
+		return h.waitForLocalUnilateralClose(timeout)
+	case closeTypeBreach:
+		return h.waitForBreach(timeout)
+	default:
+		h.t.Fatalf("unknown close type: %v", ct)
+		return nil
+	}
+}
+
+// assertCloseEventTx asserts that the close event matches the expected
+// transaction based on close type.
+func assertCloseEventTx(h *chainWatcherTestHarness, ct closeType,
+	event any, expectedTx *wire.MsgTx) {
+
+	switch ct {
+	case closeTypeCoop:
+		coopInfo, ok := event.(*CooperativeCloseInfo)
+		if !ok {
+			h.t.Fatalf("expected CooperativeCloseInfo, got %T",
+				event)
+		}
+		h.assertCoopCloseTx(coopInfo, expectedTx)
+
+	case closeTypeRemoteUnilateral:
+		remoteInfo, ok := event.(*RemoteUnilateralCloseInfo)
+		if !ok {
+			h.t.Fatalf("expected RemoteUnilateralCloseInfo, got %T",
+				event)
+		}
+		h.assertRemoteUnilateralCloseTx(remoteInfo, expectedTx)
+
+	case closeTypeLocalForce:
+		localInfo, ok := event.(*LocalUnilateralCloseInfo)
+		if !ok {
+			h.t.Fatalf("expected LocalUnilateralCloseInfo, got %T",
+				event)
+		}
+		h.assertLocalUnilateralCloseTx(localInfo, expectedTx)
+
+	case closeTypeBreach:
+		breachInfo, ok := event.(*BreachCloseInfo)
+		if !ok {
+			h.t.Fatalf("expected BreachCloseInfo, got %T", event)
+		}
+		h.assertBreachTx(breachInfo, expectedTx)
+
+	default:
+		h.t.Fatalf("unknown close type: %v", ct)
+	}
+}
+
+// generateAltTxsForReorgs generates alternative transactions for reorg
+// scenarios. For commitment-based closes (breach, remote/local force), the same
+// tx is reused since we can only have one commitment tx per channel state. For
+// coop closes, new transactions with different output values are created.
+func generateAltTxsForReorgs(h *chainWatcherTestHarness, ct closeType,
+	originalTx *wire.MsgTx, numReorgs int, sameTxAtEnd bool) []*wire.MsgTx {
+
+	altTxs := make([]*wire.MsgTx, numReorgs)
+
+	for i := 0; i < numReorgs; i++ {
+		switch ct {
+		case closeTypeBreach, closeTypeRemoteUnilateral,
+			closeTypeLocalForce:
+
+			// Non-coop closes can only have one commitment tx, so
+			// all reorgs use the same transaction.
+			altTxs[i] = originalTx
+
+		case closeTypeCoop:
+			if i == numReorgs-1 && sameTxAtEnd {
+				// Last reorg goes back to original transaction.
+				altTxs[i] = originalTx
+			} else {
+				// Create different coop close tx with different
+				// output value to make it unique.
+				outputValue := int64(5000 - (i+1)*100)
+				altTxs[i] = createCloseTx(h, ct, outputValue)
+			}
+		}
+	}
+
+	return altTxs
+}
+
+// testReorgProperties is the main property-based test for reorg handling
+// across all close types.
+//
+// The testingT parameter is captured from the outer test function and used
+// for operations that require *testing.T (like channel creation), while the
+// rapid.T is used for all test reporting and property generation.
+func testReorgProperties(testingT *testing.T) func(*rapid.T) {
+	return func(t *rapid.T) {
+		// Generate random close type.
+		allCloseTypes := []closeType{
+			closeTypeCoop,
+			closeTypeRemoteUnilateral,
+			closeTypeLocalForce,
+			closeTypeBreach,
+		}
+		ct := rapid.SampledFrom(allCloseTypes).Draw(t, "closeType")
+
+		// Generate random number of required confirmations (2-6). We
+		// use at least 2 so we have room for reorgs during
+		// confirmation.
+		requiredConfs := rapid.IntRange(2, 6).Draw(t, "requiredConfs")
+
+		// Generate number of reorgs (1-3 to keep test runtime
+		// reasonable).
+		numReorgs := rapid.IntRange(1, 3).Draw(t, "numReorgs")
+
+		// Generate whether the final transaction is the same as the
+		// original.
+		sameTxAtEnd := rapid.Bool().Draw(t, "sameTxAtEnd")
+
+		// Log test parameters for debugging.
+		t.Logf("Testing %s close with %d confs, %d reorgs, "+
+			"sameTxAtEnd=%v",
+			ct, requiredConfs, numReorgs, sameTxAtEnd)
+
+		// Create test harness using both the concrete *testing.T for
+		// channel creation and the rapid.T for test reporting.
+		harness := newChainWatcherTestHarnessFromReporter(
+			testingT, t, withRequiredConfs(uint32(requiredConfs)),
+		)
+
+		// Create initial transaction.
+		tx1 := createCloseTx(harness, ct, 5000)
+
+		// Generate alternative transactions for each reorg.
+		altTxs := generateAltTxsForReorgs(
+			harness, ct, tx1, numReorgs, sameTxAtEnd,
+		)
+
+		// Send the initial spend.
+		harness.sendSpend(tx1)
+		harness.waitForConfRegistration()
+
+		// Execute the set of re-orgs, based on our random sample, we'll
+		// mine N blocks, do a re-org of size N, then wait for
+		// detection, and repeat.
+		for i := 0; i < numReorgs; i++ {
+			// Generate random reorg depth (1 to requiredConfs-1).
+			// We cap it to avoid reorging too far back.
+			reorgDepth := rapid.IntRange(
+				1, requiredConfs-1,
+			).Draw(t, "reorgDepth")
+
+			// Mine some blocks (but less than required confs).
+			blocksToMine := rapid.IntRange(
+				1, requiredConfs-1,
+			).Draw(t, "blocksToMine")
+			harness.mineBlocks(int32(blocksToMine))
+
+			// Trigger reorg.
+			if i == 0 {
+				harness.triggerReorg(
+					tx1, int32(reorgDepth),
+				)
+			} else {
+				harness.triggerReorg(
+					altTxs[i-1], int32(reorgDepth),
+				)
+			}
+
+			harness.waitForSpendRegistration()
+
+			harness.sendSpend(altTxs[i])
+			harness.waitForConfRegistration()
+		}
+
+		// Mine enough blocks to confirm final transaction.
+		harness.mineBlocks(1)
+		finalTx := altTxs[numReorgs-1]
+		harness.confirmTx(finalTx, harness.currentHeight)
+
+		// Wait for and verify close event.
+		event := waitForCloseEvent(harness, ct, 10*time.Second)
+		assertCloseEventTx(harness, ct, event, finalTx)
+	}
+}
+
+// TestChainWatcherReorgAllCloseTypes runs property-based tests for reorg
+// handling across all channel close types. It generates random combinations of
+// the following:
+// - Close type (coop, remote unilateral, local force, breach)
+// - Number of confirmations required (2-6)
+// - Number of reorgs (1-3)
+// - Whether the final tx is same as original or different.
+func TestChainWatcherReorgAllCloseTypes(t *testing.T) {
+	t.Parallel()
+
+	rapid.Check(t, testReorgProperties(t))
+}
+
+// TestRemoteUnilateralCloseWithSingleReorg tests that a remote unilateral
+// close is properly handled when a single reorg occurs during confirmation.
+func TestRemoteUnilateralCloseWithSingleReorg(t *testing.T) {
+	t.Parallel()
+
+	harness := newChainWatcherTestHarness(t)
+
+	// Create two remote unilateral close transactions.
+	// Since these are commitment transactions, we can only have one per
+	// state, so we'll use the current one as tx1.
+	tx1 := harness.createRemoteForceCloseTx()
+
+	// Advance channel state to get a different commitment.
+	_ = harness.createBreachCloseTx()
+	tx2 := harness.createRemoteForceCloseTx()
+
+	// Send initial spend.
+	harness.sendSpend(tx1)
+	harness.waitForConfRegistration()
+
+	// Mine a block and trigger reorg.
+	harness.mineBlocks(1)
+	harness.triggerReorg(tx1, 1)
+
+	// Send alternative transaction after reorg.
+	harness.waitForSpendRegistration()
+	harness.sendSpend(tx2)
+	harness.waitForConfRegistration()
+	harness.mineBlocks(1)
+	harness.confirmTx(tx2, harness.currentHeight)
+
+	// Verify correct event.
+	closeInfo := harness.waitForRemoteUnilateralClose(5 * time.Second)
+	harness.assertRemoteUnilateralCloseTx(closeInfo, tx2)
+}
+
+// TestLocalForceCloseWithMultipleReorgs tests that a local force close is
+// properly handled through multiple consecutive reorgs.
+func TestLocalForceCloseWithMultipleReorgs(t *testing.T) {
+	t.Parallel()
+
+	harness := newChainWatcherTestHarness(t)
+
+	// For local force close, we can only broadcast our current commitment.
+	// We'll simulate multiple reorgs where the same tx keeps getting
+	// reorganized out and re-broadcast.
+	tx := harness.createLocalForceCloseTx()
+
+	// First spend and reorg.
+	harness.sendSpend(tx)
+	harness.waitForConfRegistration()
+	harness.mineBlocks(1)
+	harness.triggerReorg(tx, 1)
+
+	// Second spend and reorg.
+	harness.waitForSpendRegistration()
+	harness.sendSpend(tx)
+	harness.waitForConfRegistration()
+	harness.mineBlocks(1)
+	harness.triggerReorg(tx, 1)
+
+	// Third spend - this one confirms.
+	harness.waitForSpendRegistration()
+	harness.sendSpend(tx)
+	harness.waitForConfRegistration()
+	harness.mineBlocks(1)
+	harness.confirmTx(tx, harness.currentHeight)
+
+	// Verify correct event.
+	closeInfo := harness.waitForLocalUnilateralClose(5 * time.Second)
+	harness.assertLocalUnilateralCloseTx(closeInfo, tx)
+}
+
+// TestBreachCloseWithDeepReorg tests that a breach (revoked commitment) is
+// properly detected after a deep reorganization.
+func TestBreachCloseWithDeepReorg(t *testing.T) {
+	t.Parallel()
+
+	harness := newChainWatcherTestHarness(t)
+
+	// Create a revoked commitment transaction.
+	revokedTx := harness.createBreachCloseTx()
+
+	// Send spend and wait for confirmation registration.
+	harness.sendSpend(revokedTx)
+	harness.waitForConfRegistration()
+
+	// Mine several blocks and then trigger a deep reorg.
+	harness.mineBlocks(5)
+	harness.triggerReorg(revokedTx, 5)
+
+	// Re-broadcast same transaction after reorg.
+	harness.waitForSpendRegistration()
+	harness.sendSpend(revokedTx)
+	harness.waitForConfRegistration()
+	harness.mineBlocks(1)
+	harness.confirmTx(revokedTx, harness.currentHeight)
+
+	// Verify breach detection.
+	breachInfo := harness.waitForBreach(5 * time.Second)
+	harness.assertBreachTx(breachInfo, revokedTx)
+}
+
+// TestCoopCloseReorgToForceClose tests the edge case where a cooperative
+// close gets reorged out and is replaced by a force close.
+func TestCoopCloseReorgToForceClose(t *testing.T) {
+	t.Parallel()
+
+	harness := newChainWatcherTestHarness(t)
+
+	// Create a cooperative close and a force close transaction.
+	coopTx := harness.createCoopCloseTx(5000)
+	forceTx := harness.createRemoteForceCloseTx()
+
+	// Send cooperative close.
+	harness.sendSpend(coopTx)
+	harness.waitForConfRegistration()
+
+	// Trigger reorg that removes coop close.
+	harness.mineBlocks(1)
+	harness.triggerReorg(coopTx, 1)
+
+	// Send force close as alternative.
+	harness.waitForSpendRegistration()
+	harness.sendSpend(forceTx)
+	harness.waitForConfRegistration()
+	harness.mineBlocks(1)
+	harness.confirmTx(forceTx, harness.currentHeight)
+
+	// Should receive remote unilateral close event, not coop close.
+	closeInfo := harness.waitForRemoteUnilateralClose(5 * time.Second)
+	harness.assertRemoteUnilateralCloseTx(closeInfo, forceTx)
+}