diff --git a/config_builder.go b/config_builder.go
index 1f4551edc..6f427ffd2 100644
--- a/config_builder.go
+++ b/config_builder.go
@@ -1033,7 +1033,7 @@ func waitForWalletPassword(cfg *Config,
 					"signer config disabled")
 			}
 
-			birthday = initMsg.ExtendedKeyBirthday
+			birthday = initMsg.WatchOnlyBirthday
 			newWallet, err = loader.CreateNewWatchingOnlyWallet(
 				password, birthday,
 			)
diff --git a/docs/release-notes/release-notes-0.16.0.md b/docs/release-notes/release-notes-0.16.0.md
index 37b26d1b8..8a79e851f 100644
--- a/docs/release-notes/release-notes-0.16.0.md
+++ b/docs/release-notes/release-notes-0.16.0.md
@@ -53,6 +53,10 @@
   wallet](https://github.com/lightningnetwork/lnd/pull/6775). NOTE that funding
   PSBTs from imported tap scripts is not currently possible.
 
+* [The wallet birthday is now used properly when creating a watch-only wallet
+  to avoid scanning the whole
+  chain](https://github.com/lightningnetwork/lnd/pull/7056).
+
 ## Build
 
 [The project has updated to Go