diff --git a/discovery/gossiper.go b/discovery/gossiper.go
index 0b59c8af9..d79fe7a74 100644
--- a/discovery/gossiper.go
+++ b/discovery/gossiper.go
@@ -3260,6 +3260,26 @@ func (d *AuthenticatedGossiper) handleChanUpdate(ctx context.Context,
 		ExtraOpaqueData:           upd.ExtraOpaqueData,
 	}
 
+	// Extract the inbound fee from the ExtraOpaqueData, if present.
+	//
+	// TODO(elle): this can be removed once we define the optional TLV
+	// field on the lnwire.ChannelUpdate itself.
+	var inboundFee lnwire.Fee
+	typeMap, err := upd.ExtraOpaqueData.ExtractRecords(&inboundFee)
+	if err != nil {
+		rErr := fmt.Errorf("%w: %w", graphdb.ErrParsingExtraTLVBytes,
+			err)
+
+		log.Error(rErr)
+		nMsg.err <- rErr
+		return nil, false
+	}
+
+	val, ok := typeMap[lnwire.FeeRecordType]
+	if ok && val == nil {
+		update.InboundFee = fn.Some(inboundFee)
+	}
+
 	if err := d.cfg.Graph.UpdateEdge(update, ops...); err != nil {
 		if graph.IsError(
 			err, graph.ErrOutdated,
diff --git a/graph/builder.go b/graph/builder.go
index 3350eeb33..32aac9434 100644
--- a/graph/builder.go
+++ b/graph/builder.go
@@ -11,6 +11,7 @@ import (
 	"github.com/go-errors/errors"
 	"github.com/lightningnetwork/lnd/batch"
 	"github.com/lightningnetwork/lnd/chainntnfs"
+	"github.com/lightningnetwork/lnd/fn/v2"
 	graphdb "github.com/lightningnetwork/lnd/graph/db"
 	"github.com/lightningnetwork/lnd/graph/db/models"
 	"github.com/lightningnetwork/lnd/lnutils"
@@ -943,7 +944,7 @@ func (b *Builder) ApplyChannelUpdate(msg *lnwire.ChannelUpdate1) bool {
 		return false
 	}
 
-	err = b.UpdateEdge(&models.ChannelEdgePolicy{
+	update := &models.ChannelEdgePolicy{
 		SigBytes:                  msg.Signature.ToSignatureBytes(),
 		ChannelID:                 msg.ShortChannelID.ToUint64(),
 		LastUpdate:                time.Unix(int64(msg.Timestamp), 0),
@@ -955,7 +956,25 @@ func (b *Builder) ApplyChannelUpdate(msg *lnwire.ChannelUpdate1) bool {
 		FeeBaseMSat:               lnwire.MilliSatoshi(msg.BaseFee),
 		FeeProportionalMillionths: lnwire.MilliSatoshi(msg.FeeRate),
 		ExtraOpaqueData:           msg.ExtraOpaqueData,
-	})
+	}
+
+	// Extract the inbound fee from the ExtraOpaqueData, if present.
+	//
+	// TODO(elle): this can be removed once we define the optional TLV
+	// field on the lnwire.ChannelUpdate itself.
+	var inboundFee lnwire.Fee
+	typeMap, err := update.ExtraOpaqueData.ExtractRecords(&inboundFee)
+	if err != nil {
+		log.Errorf("%v: %v", graphdb.ErrParsingExtraTLVBytes, err)
+		return false
+	}
+
+	val, ok := typeMap[lnwire.FeeRecordType]
+	if ok && val == nil {
+		update.InboundFee = fn.Some(inboundFee)
+	}
+
+	err = b.UpdateEdge(update)
 	if err != nil && !IsError(err, ErrIgnored, ErrOutdated) {
 		log.Errorf("Unable to apply channel update: %v", err)
 		return false
diff --git a/graph/notifications_test.go b/graph/notifications_test.go
index 71c6f4a34..2f2ec1b4b 100644
--- a/graph/notifications_test.go
+++ b/graph/notifications_test.go
@@ -121,6 +121,7 @@ func randEdgePolicy(chanID *lnwire.ShortChannelID,
 		FeeBaseMSat:               lnwire.MilliSatoshi(prand.Int31()),
 		FeeProportionalMillionths: lnwire.MilliSatoshi(prand.Int31()),
 		ToNode:                    node.PubKeyBytes,
+		InboundFee:                fn.Some(inboundFee),
 		ExtraOpaqueData:           extraOpaqueData,
 	}, nil
 }
diff --git a/routing/localchans/manager.go b/routing/localchans/manager.go
index 3beb28525..492f8f18c 100644
--- a/routing/localchans/manager.go
+++ b/routing/localchans/manager.go
@@ -127,12 +127,10 @@ func (r *Manager) UpdatePolicy(newSchema routing.ChannelPolicy,
 			Edge: edge,
 		})
 
-		// Extract inbound fees from the ExtraOpaqueData.
 		var inboundWireFee lnwire.Fee
-		_, err = edge.ExtraOpaqueData.ExtractRecords(&inboundWireFee)
-		if err != nil {
-			return err
-		}
+		edge.InboundFee.WhenSome(func(fee lnwire.Fee) {
+			inboundWireFee = fee
+		})
 		inboundFee := models.NewInboundFeeFromWire(inboundWireFee)
 
 		// Add updated policy to list of policies to send to switch.
@@ -372,6 +370,8 @@ func (r *Manager) updateEdge(chanPoint wire.OutPoint,
 	err = fn.MapOptionZ(newSchema.InboundFee,
 		func(f models.InboundFee) error {
 			inboundWireFee := f.ToWire()
+			edge.InboundFee = fn.Some(inboundWireFee)
+
 			return edge.ExtraOpaqueData.PackRecords(
 				&inboundWireFee,
 			)