diff --git a/channeldb/mp_payment.go b/channeldb/mp_payment.go
index cf5669a5057..b94bfd418d1 100644
--- a/channeldb/mp_payment.go
+++ b/channeldb/mp_payment.go
@@ -10,7 +10,10 @@ import (
 
 	"github.com/btcsuite/btcd/btcec/v2"
 	"github.com/btcsuite/btcd/wire"
+	"github.com/davecgh/go-spew/spew"
+	sphinx "github.com/lightningnetwork/lightning-onion"
 	"github.com/lightningnetwork/lnd/lntypes"
+	"github.com/lightningnetwork/lnd/lnutils"
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/routing/route"
 )
@@ -45,12 +48,19 @@ type HTLCAttemptInfo struct {
 	// in which the payment's PaymentHash in the PaymentCreationInfo should
 	// be used.
 	Hash *lntypes.Hash
+
+	// onionBlob is the cached value for onion blob created from the sphinx
+	// construction.
+	onionBlob [lnwire.OnionPacketSize]byte
+
+	// circuit is the cached value for sphinx circuit.
+	circuit *sphinx.Circuit
 }
 
 // NewHtlcAttempt creates a htlc attempt.
 func NewHtlcAttempt(attemptID uint64, sessionKey *btcec.PrivateKey,
 	route route.Route, attemptTime time.Time,
-	hash *lntypes.Hash) *HTLCAttempt {
+	hash *lntypes.Hash) (*HTLCAttempt, error) {
 
 	var scratch [btcec.PrivKeyBytesLen]byte
 	copy(scratch[:], sessionKey.Serialize())
@@ -64,7 +74,11 @@ func NewHtlcAttempt(attemptID uint64, sessionKey *btcec.PrivateKey,
 		Hash:             hash,
 	}
 
-	return &HTLCAttempt{HTLCAttemptInfo: info}
+	if err := info.attachOnionBlobAndCircuit(); err != nil {
+		return nil, err
+	}
+
+	return &HTLCAttempt{HTLCAttemptInfo: info}, nil
 }
 
 // SessionKey returns the ephemeral key used for a htlc attempt. This function
@@ -79,6 +93,45 @@ func (h *HTLCAttemptInfo) SessionKey() *btcec.PrivateKey {
 	return h.cachedSessionKey
 }
 
+// OnionBlob returns the onion blob created from the sphinx construction.
+func (h *HTLCAttemptInfo) OnionBlob() ([lnwire.OnionPacketSize]byte, error) {
+	var zeroBytes [lnwire.OnionPacketSize]byte
+	if h.onionBlob == zeroBytes {
+		if err := h.attachOnionBlobAndCircuit(); err != nil {
+			return zeroBytes, err
+		}
+	}
+
+	return h.onionBlob, nil
+}
+
+// Circuit returns the sphinx circuit for this attempt.
+func (h *HTLCAttemptInfo) Circuit() (*sphinx.Circuit, error) {
+	if h.circuit == nil {
+		if err := h.attachOnionBlobAndCircuit(); err != nil {
+			return nil, err
+		}
+	}
+
+	return h.circuit, nil
+}
+
+// attachOnionBlobAndCircuit creates a sphinx packet and caches the onion blob
+// and circuit for this attempt.
+func (h *HTLCAttemptInfo) attachOnionBlobAndCircuit() error {
+	onionBlob, circuit, err := generateSphinxPacket(
+		&h.Route, h.Hash[:], h.SessionKey(),
+	)
+	if err != nil {
+		return err
+	}
+
+	copy(h.onionBlob[:], onionBlob)
+	h.circuit = circuit
+
+	return nil
+}
+
 // HTLCAttempt contains information about a specific HTLC attempt for a given
 // payment. It contains the HTLCAttemptInfo used to send the HTLC, as well
 // as a timestamp and any known outcome of the attempt.
@@ -629,3 +682,69 @@ func serializeTime(w io.Writer, t time.Time) error {
 	_, err := w.Write(scratch[:])
 	return err
 }
+
+// generateSphinxPacket generates then encodes a sphinx packet which encodes
+// the onion route specified by the passed layer 3 route. The blob returned
+// from this function can immediately be included within an HTLC add packet to
+// be sent to the first hop within the route.
+func generateSphinxPacket(rt *route.Route, paymentHash []byte,
+	sessionKey *btcec.PrivateKey) ([]byte, *sphinx.Circuit, error) {
+
+	// Now that we know we have an actual route, we'll map the route into a
+	// sphinx payment path which includes per-hop payloads for each hop
+	// that give each node within the route the necessary information
+	// (fees, CLTV value, etc.) to properly forward the payment.
+	sphinxPath, err := rt.ToSphinxPath()
+	if err != nil {
+		return nil, nil, err
+	}
+
+	log.Tracef("Constructed per-hop payloads for payment_hash=%x: %v",
+		paymentHash, lnutils.NewLogClosure(func() string {
+			path := make(
+				[]sphinx.OnionHop, sphinxPath.TrueRouteLength(),
+			)
+			for i := range path {
+				hopCopy := sphinxPath[i]
+				path[i] = hopCopy
+			}
+
+			return spew.Sdump(path)
+		}),
+	)
+
+	// Next generate the onion routing packet which allows us to perform
+	// privacy preserving source routing across the network.
+	sphinxPacket, err := sphinx.NewOnionPacket(
+		sphinxPath, sessionKey, paymentHash,
+		sphinx.DeterministicPacketFiller,
+	)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	// Finally, encode Sphinx packet using its wire representation to be
+	// included within the HTLC add packet.
+	var onionBlob bytes.Buffer
+	if err := sphinxPacket.Encode(&onionBlob); err != nil {
+		return nil, nil, err
+	}
+
+	log.Tracef("Generated sphinx packet: %v",
+		lnutils.NewLogClosure(func() string {
+			// We make a copy of the ephemeral key and unset the
+			// internal curve here in order to keep the logs from
+			// getting noisy.
+			key := *sphinxPacket.EphemeralKey
+			packetCopy := *sphinxPacket
+			packetCopy.EphemeralKey = &key
+
+			return spew.Sdump(packetCopy)
+		}),
+	)
+
+	return onionBlob.Bytes(), &sphinx.Circuit{
+		SessionKey:  sessionKey,
+		PaymentPath: sphinxPath.NodeKeys(),
+	}, nil
+}
diff --git a/channeldb/mp_payment_test.go b/channeldb/mp_payment_test.go
index 51eda72bb0a..13e39871a98 100644
--- a/channeldb/mp_payment_test.go
+++ b/channeldb/mp_payment_test.go
@@ -5,12 +5,22 @@ import (
 	"fmt"
 	"testing"
 
+	"github.com/btcsuite/btcd/btcec/v2"
 	"github.com/lightningnetwork/lnd/lntypes"
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/routing/route"
 	"github.com/stretchr/testify/require"
 )
 
+var (
+	testHash = [32]byte{
+		0xb7, 0x94, 0x38, 0x5f, 0x2d, 0x1e, 0xf7, 0xab,
+		0x4d, 0x92, 0x73, 0xd1, 0x90, 0x63, 0x81, 0xb4,
+		0x4f, 0x2f, 0x6f, 0x25, 0x88, 0xa3, 0xef, 0xb9,
+		0x6a, 0x49, 0x18, 0x83, 0x31, 0x98, 0x47, 0x53,
+	}
+)
+
 // TestLazySessionKeyDeserialize tests that we can read htlc attempt session
 // keys that were previously serialized as a private key as raw bytes.
 func TestLazySessionKeyDeserialize(t *testing.T) {
@@ -578,3 +588,15 @@ func makeAttemptInfo(total, amtForwarded int) HTLCAttemptInfo {
 		},
 	}
 }
+
+// TestEmptyRoutesGenerateSphinxPacket tests that the generateSphinxPacket
+// function is able to gracefully handle being passed a nil set of hops for the
+// route by the caller.
+func TestEmptyRoutesGenerateSphinxPacket(t *testing.T) {
+	t.Parallel()
+
+	sessionKey, _ := btcec.NewPrivateKey()
+	emptyRoute := &route.Route{}
+	_, _, err := generateSphinxPacket(emptyRoute, testHash[:], sessionKey)
+	require.ErrorIs(t, err, route.ErrNoRouteHopsProvided)
+}
diff --git a/channeldb/payment_control_test.go b/channeldb/payment_control_test.go
index fb965bb321c..9bc486a8311 100644
--- a/channeldb/payment_control_test.go
+++ b/channeldb/payment_control_test.go
@@ -28,7 +28,7 @@ func genPreimage() ([32]byte, error) {
 	return preimage, nil
 }
 
-func genInfo() (*PaymentCreationInfo, *HTLCAttemptInfo,
+func genInfo(t *testing.T) (*PaymentCreationInfo, *HTLCAttemptInfo,
 	lntypes.Preimage, error) {
 
 	preimage, err := genPreimage()
@@ -38,9 +38,14 @@ func genInfo() (*PaymentCreationInfo, *HTLCAttemptInfo,
 	}
 
 	rhash := sha256.Sum256(preimage[:])
-	attempt := NewHtlcAttempt(
-		0, priv, *testRoute.Copy(), time.Time{}, nil,
+	var hash lntypes.Hash
+	copy(hash[:], rhash[:])
+
+	attempt, err := NewHtlcAttempt(
+		0, priv, *testRoute.Copy(), time.Time{}, &hash,
 	)
+	require.NoError(t, err)
+
 	return &PaymentCreationInfo{
 		PaymentIdentifier: rhash,
 		Value:             testRoute.ReceiverAmt(),
@@ -60,7 +65,7 @@ func TestPaymentControlSwitchFail(t *testing.T) {
 
 	pControl := NewPaymentControl(db)
 
-	info, attempt, preimg, err := genInfo()
+	info, attempt, preimg, err := genInfo(t)
 	require.NoError(t, err, "unable to generate htlc message")
 
 	// Sends base htlc message which initiate StatusInFlight.
@@ -196,7 +201,7 @@ func TestPaymentControlSwitchDoubleSend(t *testing.T) {
 
 	pControl := NewPaymentControl(db)
 
-	info, attempt, preimg, err := genInfo()
+	info, attempt, preimg, err := genInfo(t)
 	require.NoError(t, err, "unable to generate htlc message")
 
 	// Sends base htlc message which initiate base status and move it to
@@ -266,7 +271,7 @@ func TestPaymentControlSuccessesWithoutInFlight(t *testing.T) {
 
 	pControl := NewPaymentControl(db)
 
-	info, _, preimg, err := genInfo()
+	info, _, preimg, err := genInfo(t)
 	require.NoError(t, err, "unable to generate htlc message")
 
 	// Attempt to complete the payment should fail.
@@ -291,7 +296,7 @@ func TestPaymentControlFailsWithoutInFlight(t *testing.T) {
 
 	pControl := NewPaymentControl(db)
 
-	info, _, _, err := genInfo()
+	info, _, _, err := genInfo(t)
 	require.NoError(t, err, "unable to generate htlc message")
 
 	// Calling Fail should return an error.
@@ -346,7 +351,7 @@ func TestPaymentControlDeleteNonInFlight(t *testing.T) {
 	var numSuccess, numInflight int
 
 	for _, p := range payments {
-		info, attempt, preimg, err := genInfo()
+		info, attempt, preimg, err := genInfo(t)
 		if err != nil {
 			t.Fatalf("unable to generate htlc message: %v", err)
 		}
@@ -684,7 +689,7 @@ func TestPaymentControlMultiShard(t *testing.T) {
 
 		pControl := NewPaymentControl(db)
 
-		info, attempt, preimg, err := genInfo()
+		info, attempt, preimg, err := genInfo(t)
 		if err != nil {
 			t.Fatalf("unable to generate htlc message: %v", err)
 		}
@@ -948,7 +953,7 @@ func TestPaymentControlMPPRecordValidation(t *testing.T) {
 
 	pControl := NewPaymentControl(db)
 
-	info, attempt, _, err := genInfo()
+	info, attempt, _, err := genInfo(t)
 	require.NoError(t, err, "unable to generate htlc message")
 
 	// Init the payment.
@@ -997,7 +1002,7 @@ func TestPaymentControlMPPRecordValidation(t *testing.T) {
 
 	// Create and init a new payment. This time we'll check that we cannot
 	// register an MPP attempt if we already registered a non-MPP one.
-	info, attempt, _, err = genInfo()
+	info, attempt, _, err = genInfo(t)
 	require.NoError(t, err, "unable to generate htlc message")
 
 	err = pControl.InitPayment(info.PaymentIdentifier, info)
@@ -1271,7 +1276,7 @@ func createTestPayments(t *testing.T, p *PaymentControl, payments []*payment) {
 	attemptID := uint64(0)
 
 	for i := 0; i < len(payments); i++ {
-		info, attempt, preimg, err := genInfo()
+		info, attempt, preimg, err := genInfo(t)
 		require.NoError(t, err, "unable to generate htlc message")
 
 		// Set the payment id accordingly in the payments slice.
diff --git a/channeldb/payments_test.go b/channeldb/payments_test.go
index 0c3753e6626..b2a0292a490 100644
--- a/channeldb/payments_test.go
+++ b/channeldb/payments_test.go
@@ -64,7 +64,6 @@ var (
 		TotalAmount:   1234567,
 		SourcePubKey:  vertex,
 		Hops: []*route.Hop{
-			testHop3,
 			testHop2,
 			testHop1,
 		},
@@ -98,7 +97,7 @@ var (
 	}
 )
 
-func makeFakeInfo() (*PaymentCreationInfo, *HTLCAttemptInfo) {
+func makeFakeInfo(t *testing.T) (*PaymentCreationInfo, *HTLCAttemptInfo) {
 	var preimg lntypes.Preimage
 	copy(preimg[:], rev[:])
 
@@ -113,9 +112,10 @@ func makeFakeInfo() (*PaymentCreationInfo, *HTLCAttemptInfo) {
 		PaymentRequest: []byte("test"),
 	}
 
-	a := NewHtlcAttempt(
+	a, err := NewHtlcAttempt(
 		44, priv, testRoute, time.Unix(100, 0), &hash,
 	)
+	require.NoError(t, err)
 
 	return c, &a.HTLCAttemptInfo
 }
@@ -123,7 +123,7 @@ func makeFakeInfo() (*PaymentCreationInfo, *HTLCAttemptInfo) {
 func TestSentPaymentSerialization(t *testing.T) {
 	t.Parallel()
 
-	c, s := makeFakeInfo()
+	c, s := makeFakeInfo(t)
 
 	var b bytes.Buffer
 	require.NoError(t, serializePaymentCreationInfo(&b, c), "serialize")
@@ -174,6 +174,9 @@ func TestSentPaymentSerialization(t *testing.T) {
 	require.NoError(t, err, "deserialize")
 	require.Equal(t, s.Route, newWireInfo.Route)
 
+	err = newWireInfo.attachOnionBlobAndCircuit()
+	require.NoError(t, err)
+
 	// Clear routes to allow DeepEqual to compare the remaining fields.
 	newWireInfo.Route = route.Route{}
 	s.Route = route.Route{}
@@ -517,7 +520,7 @@ func TestQueryPayments(t *testing.T) {
 
 			for i := 0; i < nonDuplicatePayments; i++ {
 				// Generate a test payment.
-				info, _, preimg, err := genInfo()
+				info, _, preimg, err := genInfo(t)
 				if err != nil {
 					t.Fatalf("unable to create test "+
 						"payment: %v", err)
@@ -618,7 +621,7 @@ func TestFetchPaymentWithSequenceNumber(t *testing.T) {
 	pControl := NewPaymentControl(db)
 
 	// Generate a test payment which does not have duplicates.
-	noDuplicates, _, _, err := genInfo()
+	noDuplicates, _, _, err := genInfo(t)
 	require.NoError(t, err)
 
 	// Create a new payment entry in the database.
@@ -632,7 +635,7 @@ func TestFetchPaymentWithSequenceNumber(t *testing.T) {
 	require.NoError(t, err)
 
 	// Generate a test payment which we will add duplicates to.
-	hasDuplicates, _, preimg, err := genInfo()
+	hasDuplicates, _, preimg, err := genInfo(t)
 	require.NoError(t, err)
 
 	// Create a new payment entry in the database.
@@ -783,7 +786,7 @@ func putDuplicatePayment(t *testing.T, duplicateBucket kvdb.RwBucket,
 	require.NoError(t, err)
 
 	// Generate fake information for the duplicate payment.
-	info, _, _, err := genInfo()
+	info, _, _, err := genInfo(t)
 	require.NoError(t, err)
 
 	// Write the payment info to disk under the creation info key. This code
diff --git a/docs/release-notes/release-notes-0.19.0.md b/docs/release-notes/release-notes-0.19.0.md
index 44df0bd3c3b..9f09ceade6e 100644
--- a/docs/release-notes/release-notes-0.19.0.md
+++ b/docs/release-notes/release-notes-0.19.0.md
@@ -68,6 +68,11 @@
   fail to persist (and hence, propagate) node announcements containing address 
   types (such as a DNS hostname) unknown to LND.
 
+* [Fixed an edge case](https://github.com/lightningnetwork/lnd/pull/9150) where
+  the payment may become stuck if the invoice times out while the node
+  restarts, for details check [this
+  issue](https://github.com/lightningnetwork/lnd/issues/8975#issuecomment-2270528222).
+
 # New Features
 
 * [Support](https://github.com/lightningnetwork/lnd/pull/8390) for 
diff --git a/itest/lnd_multi-hop_force_close_test.go b/itest/lnd_multi-hop_force_close_test.go
index a7db9ea2888..da760a2895b 100644
--- a/itest/lnd_multi-hop_force_close_test.go
+++ b/itest/lnd_multi-hop_force_close_test.go
@@ -357,8 +357,11 @@ func runLocalClaimOutgoingHTLC(ht *lntest.HarnessTest,
 	// We'll create two random payment hashes unknown to carol, then send
 	// each of them by manually specifying the HTLC details.
 	carolPubKey := carol.PubKey[:]
-	dustPayHash := ht.Random32Bytes()
-	payHash := ht.Random32Bytes()
+
+	preimageDust := ht.RandomPreimage()
+	preimage := ht.RandomPreimage()
+	dustPayHash := preimageDust.Hash()
+	payHash := preimage.Hash()
 
 	// If this is a taproot channel, then we'll need to make some manual
 	// route hints so Alice can actually find a route.
@@ -370,7 +373,7 @@ func runLocalClaimOutgoingHTLC(ht *lntest.HarnessTest,
 	req := &routerrpc.SendPaymentRequest{
 		Dest:           carolPubKey,
 		Amt:            int64(dustHtlcAmt),
-		PaymentHash:    dustPayHash,
+		PaymentHash:    dustPayHash[:],
 		FinalCltvDelta: finalCltvDelta,
 		FeeLimitMsat:   noFeeLimitMsat,
 		RouteHints:     routeHints,
@@ -380,7 +383,7 @@ func runLocalClaimOutgoingHTLC(ht *lntest.HarnessTest,
 	req = &routerrpc.SendPaymentRequest{
 		Dest:           carolPubKey,
 		Amt:            int64(htlcAmt),
-		PaymentHash:    payHash,
+		PaymentHash:    payHash[:],
 		FinalCltvDelta: finalCltvDelta,
 		FeeLimitMsat:   noFeeLimitMsat,
 		RouteHints:     routeHints,
@@ -530,6 +533,25 @@ func runLocalClaimOutgoingHTLC(ht *lntest.HarnessTest,
 	// Once this transaction has been confirmed, Bob should detect that he
 	// no longer has any pending channels.
 	ht.AssertNumPendingForceClose(bob, 0)
+
+	// Now that Bob has claimed his HTLCs, Alice should mark the two
+	// payments as failed.
+	//
+	// Alice will mark this payment as failed with no route as the only
+	// route she has is Alice->Bob->Carol. This won't be the case if she
+	// has a second route, as another attempt will be tried.
+	//
+	// TODO(yy): we should instead mark this payment as timed out if she has
+	// a second route to try this payment, which is the timeout set by Alice
+	// when sending the payment.
+	expectedReason := lnrpc.PaymentFailureReason_FAILURE_REASON_NO_ROUTE
+	p := ht.AssertPaymentFailureReason(alice, preimage, expectedReason)
+	require.Equal(ht, lnrpc.Failure_PERMANENT_CHANNEL_FAILURE,
+		p.Htlcs[0].Failure.Code)
+
+	p = ht.AssertPaymentFailureReason(alice, preimageDust, expectedReason)
+	require.Equal(ht, lnrpc.Failure_PERMANENT_CHANNEL_FAILURE,
+		p.Htlcs[0].Failure.Code)
 }
 
 // testMultiHopReceiverPreimageClaimAnchor tests
diff --git a/lntest/harness_assertion.go b/lntest/harness_assertion.go
index 8130ac1679e..9af81a7cd2a 100644
--- a/lntest/harness_assertion.go
+++ b/lntest/harness_assertion.go
@@ -1600,8 +1600,11 @@ func (h *HarnessTest) AssertPaymentStatus(hn *node.HarnessNode,
 
 // AssertPaymentFailureReason asserts that the given node lists a payment with
 // the given preimage which has the expected failure reason.
-func (h *HarnessTest) AssertPaymentFailureReason(hn *node.HarnessNode,
-	preimage lntypes.Preimage, reason lnrpc.PaymentFailureReason) {
+func (h *HarnessTest) AssertPaymentFailureReason(
+	hn *node.HarnessNode, preimage lntypes.Preimage,
+	reason lnrpc.PaymentFailureReason) *lnrpc.Payment {
+
+	var payment *lnrpc.Payment
 
 	payHash := preimage.Hash()
 	err := wait.NoError(func() error {
@@ -1610,14 +1613,19 @@ func (h *HarnessTest) AssertPaymentFailureReason(hn *node.HarnessNode,
 			return err
 		}
 
+		payment = p
+
 		if reason == p.FailureReason {
 			return nil
 		}
 
 		return fmt.Errorf("payment: %v failure reason not match, "+
-			"want %s got %s", payHash, reason, p.Status)
+			"want %s(%d) got %s(%d)", payHash, reason, reason,
+			p.FailureReason, p.FailureReason)
 	}, DefaultTimeout)
 	require.NoError(h, err, "timeout checking payment failure reason")
+
+	return payment
 }
 
 // AssertActiveNodesSynced asserts all active nodes have synced to the chain.
diff --git a/routing/control_tower_test.go b/routing/control_tower_test.go
index 5fb271afa61..532e639d6aa 100644
--- a/routing/control_tower_test.go
+++ b/routing/control_tower_test.go
@@ -535,15 +535,23 @@ func genInfo() (*channeldb.PaymentCreationInfo, *channeldb.HTLCAttemptInfo,
 	}
 
 	rhash := sha256.Sum256(preimage[:])
+	var hash lntypes.Hash
+	copy(hash[:], rhash[:])
+
+	attempt, err := channeldb.NewHtlcAttempt(
+		1, priv, testRoute, time.Time{}, &hash,
+	)
+	if err != nil {
+		return nil, nil, lntypes.Preimage{}, err
+	}
+
 	return &channeldb.PaymentCreationInfo{
 			PaymentIdentifier: rhash,
 			Value:             testRoute.ReceiverAmt(),
 			CreationTime:      time.Unix(time.Now().Unix(), 0),
 			PaymentRequest:    []byte("hola"),
 		},
-		&channeldb.NewHtlcAttempt(
-			1, priv, testRoute, time.Time{}, nil,
-		).HTLCAttemptInfo, preimage, nil
+		&attempt.HTLCAttemptInfo, preimage, nil
 }
 
 func genPreimage() ([32]byte, error) {
diff --git a/routing/payment_lifecycle.go b/routing/payment_lifecycle.go
index 180d38a631b..9a741407930 100644
--- a/routing/payment_lifecycle.go
+++ b/routing/payment_lifecycle.go
@@ -24,6 +24,17 @@ import (
 // the payment lifecycle is exiting .
 var ErrPaymentLifecycleExiting = errors.New("payment lifecycle exiting")
 
+// switchResult is the result sent back from the switch after processing the
+// HTLC.
+type switchResult struct {
+	// attempt is the HTLC sent to the switch.
+	attempt *channeldb.HTLCAttempt
+
+	// result is sent from the switch which contains either a preimage if
+	// ths HTLC is settled or an error if it's failed.
+	result *htlcswitch.PaymentResult
+}
+
 // paymentLifecycle holds all information about the current state of a payment
 // needed to resume if from any point.
 type paymentLifecycle struct {
@@ -39,11 +50,9 @@ type paymentLifecycle struct {
 	// to stop.
 	quit chan struct{}
 
-	// resultCollected is used to signal that the result of an attempt has
-	// been collected. A nil error means the attempt is either successful
-	// or failed with temporary error. Otherwise, we should exit the
-	// lifecycle loop as a terminal error has occurred.
-	resultCollected chan error
+	// resultCollected is used to send the result returned from the switch
+	// for a given HTLC attempt.
+	resultCollected chan *switchResult
 
 	// resultCollector is a function that is used to collect the result of
 	// an HTLC attempt, which is always mounted to `p.collectResultAsync`
@@ -66,7 +75,7 @@ func newPaymentLifecycle(r *ChannelRouter, feeLimit lnwire.MilliSatoshi,
 		shardTracker:          shardTracker,
 		currentHeight:         currentHeight,
 		quit:                  make(chan struct{}),
-		resultCollected:       make(chan error, 1),
+		resultCollected:       make(chan *switchResult, 1),
 		firstHopCustomRecords: firstHopCustomRecords,
 	}
 
@@ -112,6 +121,13 @@ const (
 )
 
 // decideNextStep is used to determine the next step in the payment lifecycle.
+// It first checks whether the current state of the payment allows more HTLC
+// attempts to be made. If allowed, it will return so the lifecycle can continue
+// making new attempts. Otherwise, it checks whether we need to wait for the
+// results of already sent attempts. If needed, it will block until one of the
+// results is sent back. then process its result here. When there's no need to
+// wait for results, the method will exit with `stepExit` such that the payment
+// lifecycle loop will terminate.
 func (p *paymentLifecycle) decideNextStep(
 	payment DBMPPayment) (stateStep, error) {
 
@@ -121,46 +137,53 @@ func (p *paymentLifecycle) decideNextStep(
 		return stepExit, err
 	}
 
-	if !allow {
-		// Check whether we need to wait for results.
-		wait, err := payment.NeedWaitAttempts()
-		if err != nil {
-			return stepExit, err
-		}
+	// Exit early we need to make more attempts.
+	if allow {
+		return stepProceed, nil
+	}
 
-		// If we are not allowed to make new HTLC attempts and there's
-		// no need to wait, the lifecycle is done and we can exit.
-		if !wait {
-			return stepExit, nil
-		}
+	// We cannot make more attempts, we now check whether we need to wait
+	// for results.
+	wait, err := payment.NeedWaitAttempts()
+	if err != nil {
+		return stepExit, err
+	}
 
-		log.Tracef("Waiting for attempt results for payment %v",
-			p.identifier)
+	// If we are not allowed to make new HTLC attempts and there's no need
+	// to wait, the lifecycle is done and we can exit.
+	if !wait {
+		return stepExit, nil
+	}
 
-		// Otherwise we wait for one HTLC attempt then continue
-		// the lifecycle.
-		//
-		// NOTE: we don't check `p.quit` since `decideNextStep` is
-		// running in the same goroutine as `resumePayment`.
-		select {
-		case err := <-p.resultCollected:
-			// If an error is returned, exit with it.
-			if err != nil {
-				return stepExit, err
-			}
+	log.Tracef("Waiting for attempt results for payment %v", p.identifier)
 
-			log.Tracef("Received attempt result for payment %v",
-				p.identifier)
+	// Otherwise we wait for the result for one HTLC attempt then continue
+	// the lifecycle.
+	select {
+	case r := <-p.resultCollected:
+		log.Tracef("Received attempt result for payment %v",
+			p.identifier)
 
-		case <-p.router.quit:
-			return stepExit, ErrRouterShuttingDown
+		// Handle the result here. If there's no error, we will return
+		// stepSkip and move to the next lifecycle iteration, which will
+		// refresh the payment and wait for the next attempt result, if
+		// any.
+		_, err := p.handleAttemptResult(r.attempt, r.result)
+
+		// We would only get a DB-related error here, which will cause
+		// us to abort the payment flow.
+		if err != nil {
+			return stepExit, err
 		}
 
-		return stepSkip, nil
+	case <-p.quit:
+		return stepExit, ErrPaymentLifecycleExiting
+
+	case <-p.router.quit:
+		return stepExit, ErrRouterShuttingDown
 	}
 
-	// Otherwise we need to make more attempts.
-	return stepProceed, nil
+	return stepSkip, nil
 }
 
 // resumePayment resumes the paymentLifecycle from the current state.
@@ -175,20 +198,11 @@ func (p *paymentLifecycle) resumePayment(ctx context.Context) ([32]byte,
 	// If we had any existing attempts outstanding, we'll start by spinning
 	// up goroutines that'll collect their results and deliver them to the
 	// lifecycle loop below.
-	payment, err := p.router.cfg.Control.FetchPayment(p.identifier)
+	payment, err := p.reloadInflightAttempts()
 	if err != nil {
 		return [32]byte{}, nil, err
 	}
 
-	for _, a := range payment.InFlightHTLCs() {
-		a := a
-
-		log.Infof("Resuming HTLC attempt %v for payment %v",
-			a.AttemptID, p.identifier)
-
-		p.resultCollector(&a)
-	}
-
 	// Get the payment status.
 	status := payment.GetStatus()
 
@@ -211,23 +225,18 @@ func (p *paymentLifecycle) resumePayment(ctx context.Context) ([32]byte,
 	// critical error during path finding.
 lifecycle:
 	for {
-		// We update the payment state on every iteration. Since the
-		// payment state is affected by multiple goroutines (ie,
-		// collectResultAsync), it is NOT guaranteed that we always
-		// have the latest state here. This is fine as long as the
-		// state is consistent as a whole.
-		payment, err = p.router.cfg.Control.FetchPayment(p.identifier)
+		// We update the payment state on every iteration.
+		currentPayment, ps, err := p.reloadPayment()
 		if err != nil {
 			return exitWithErr(err)
 		}
 
-		ps := payment.GetState()
-		remainingFees := p.calcFeeBudget(ps.FeesPaid)
+		// Reassign status so it can be read in `exitWithErr`.
+		status = currentPayment.GetStatus()
 
-		status = payment.GetStatus()
-		log.Debugf("Payment %v: status=%v, active_shards=%v, "+
-			"rem_value=%v, fee_limit=%v", p.identifier, status,
-			ps.NumAttemptsInFlight, ps.RemainingAmt, remainingFees)
+		// Reassign payment such that when the lifecycle exits, the
+		// latest payment can be read when we access its terminal info.
+		payment = currentPayment
 
 		// We now proceed our lifecycle with the following tasks in
 		// order,
@@ -288,13 +297,6 @@ lifecycle:
 
 		log.Tracef("Found route: %s", spew.Sdump(rt.Hops))
 
-		// Allow the traffic shaper to add custom records to the
-		// outgoing HTLC and also adjust the amount if needed.
-		err = p.amendFirstHopData(rt)
-		if err != nil {
-			return exitWithErr(err)
-		}
-
 		// We found a route to try, create a new HTLC attempt to try.
 		attempt, err := p.registerAttempt(rt, ps.RemainingAmt)
 		if err != nil {
@@ -391,6 +393,13 @@ func (p *paymentLifecycle) requestRoute(
 
 	// Exit early if there's no error.
 	if err == nil {
+		// Allow the traffic shaper to add custom records to the
+		// outgoing HTLC and also adjust the amount if needed.
+		err = p.amendFirstHopData(rt)
+		if err != nil {
+			return nil, err
+		}
+
 		return rt, nil
 	}
 
@@ -444,62 +453,60 @@ type attemptResult struct {
 }
 
 // collectResultAsync launches a goroutine that will wait for the result of the
-// given HTLC attempt to be available then handle its result. Once received, it
-// will send a nil error to channel `resultCollected` to indicate there's a
-// result.
+// given HTLC attempt to be available then save its result in a map. Once
+// received, it will send the result returned from the switch to channel
+// `resultCollected`.
 func (p *paymentLifecycle) collectResultAsync(attempt *channeldb.HTLCAttempt) {
 	log.Debugf("Collecting result for attempt %v in payment %v",
 		attempt.AttemptID, p.identifier)
 
 	go func() {
-		// Block until the result is available.
-		_, err := p.collectResult(attempt)
+		result, err := p.collectResult(attempt)
 		if err != nil {
-			log.Errorf("Error collecting result for attempt %v "+
-				"in payment %v: %v", attempt.AttemptID,
+			log.Errorf("Error collecting result for attempt %v in "+
+				"payment %v: %v", attempt.AttemptID,
 				p.identifier, err)
+
+			return
 		}
 
 		log.Debugf("Result collected for attempt %v in payment %v",
 			attempt.AttemptID, p.identifier)
 
-		// Once the result is collected, we signal it by writing the
-		// error to `resultCollected`.
+		// Create a switch result and send it to the resultCollected
+		// chan, which gets processed when the lifecycle is waiting for
+		// a result to be received in decideNextStep.
+		r := &switchResult{
+			attempt: attempt,
+			result:  result,
+		}
+
+		// Signal that a result has been collected.
 		select {
-		// Send the signal or quit.
-		case p.resultCollected <- err:
+		// Send the result so decideNextStep can proceed.
+		case p.resultCollected <- r:
 
 		case <-p.quit:
 			log.Debugf("Lifecycle exiting while collecting "+
 				"result for payment %v", p.identifier)
 
 		case <-p.router.quit:
-			return
 		}
 	}()
 }
 
-// collectResult waits for the result for the given attempt to be available
-// from the Switch, then records the attempt outcome with the control tower.
-// An attemptResult is returned, indicating the final outcome of this HTLC
-// attempt.
-func (p *paymentLifecycle) collectResult(attempt *channeldb.HTLCAttempt) (
-	*attemptResult, error) {
+// collectResult waits for the result of the given HTLC attempt to be sent by
+// the switch and returns it.
+func (p *paymentLifecycle) collectResult(
+	attempt *channeldb.HTLCAttempt) (*htlcswitch.PaymentResult, error) {
 
 	log.Tracef("Collecting result for attempt %v", spew.Sdump(attempt))
 
-	// We'll retrieve the hash specific to this shard from the
-	// shardTracker, since it will be needed to regenerate the circuit
-	// below.
-	hash, err := p.shardTracker.GetHash(attempt.AttemptID)
-	if err != nil {
-		return p.failAttempt(attempt.AttemptID, err)
-	}
+	result := &htlcswitch.PaymentResult{}
 
 	// Regenerate the circuit for this attempt.
-	_, circuit, err := generateSphinxPacket(
-		&attempt.Route, hash[:], attempt.SessionKey(),
-	)
+	circuit, err := attempt.Circuit()
+
 	// TODO(yy): We generate this circuit to create the error decryptor,
 	// which is then used in htlcswitch as the deobfuscator to decode the
 	// error from `UpdateFailHTLC`. However, suppose it's an
@@ -512,8 +519,7 @@ func (p *paymentLifecycle) collectResult(attempt *channeldb.HTLCAttempt) (
 	if err != nil {
 		log.Debugf("Unable to generate circuit for attempt %v: %v",
 			attempt.AttemptID, err)
-
-		return p.failAttempt(attempt.AttemptID, err)
+		return nil, err
 	}
 
 	// Using the created circuit, initialize the error decrypter, so we can
@@ -539,22 +545,21 @@ func (p *paymentLifecycle) collectResult(attempt *channeldb.HTLCAttempt) (
 		log.Errorf("Failed getting result for attemptID %d "+
 			"from switch: %v", attempt.AttemptID, err)
 
-		return p.handleSwitchErr(attempt, err)
+		result.Error = err
+
+		return result, nil
 	}
 
 	// The switch knows about this payment, we'll wait for a result to be
 	// available.
-	var (
-		result *htlcswitch.PaymentResult
-		ok     bool
-	)
-
 	select {
-	case result, ok = <-resultChan:
+	case r, ok := <-resultChan:
 		if !ok {
 			return nil, htlcswitch.ErrSwitchExiting
 		}
 
+		result = r
+
 	case <-p.quit:
 		return nil, ErrPaymentLifecycleExiting
 
@@ -562,46 +567,7 @@ func (p *paymentLifecycle) collectResult(attempt *channeldb.HTLCAttempt) (
 		return nil, ErrRouterShuttingDown
 	}
 
-	// In case of a payment failure, fail the attempt with the control
-	// tower and return.
-	if result.Error != nil {
-		return p.handleSwitchErr(attempt, result.Error)
-	}
-
-	// We successfully got a payment result back from the switch.
-	log.Debugf("Payment %v succeeded with pid=%v",
-		p.identifier, attempt.AttemptID)
-
-	// Report success to mission control.
-	err = p.router.cfg.MissionControl.ReportPaymentSuccess(
-		attempt.AttemptID, &attempt.Route,
-	)
-	if err != nil {
-		log.Errorf("Error reporting payment success to mc: %v", err)
-	}
-
-	// In case of success we atomically store settle result to the DB move
-	// the shard to the settled state.
-	htlcAttempt, err := p.router.cfg.Control.SettleAttempt(
-		p.identifier, attempt.AttemptID,
-		&channeldb.HTLCSettleInfo{
-			Preimage:   result.Preimage,
-			SettleTime: p.router.cfg.Clock.Now(),
-		},
-	)
-	if err != nil {
-		log.Errorf("Error settling attempt %v for payment %v with "+
-			"preimage %v: %v", attempt.AttemptID, p.identifier,
-			result.Preimage, err)
-
-		// We won't mark the attempt as failed since we already have
-		// the preimage.
-		return nil, err
-	}
-
-	return &attemptResult{
-		attempt: htlcAttempt,
-	}, nil
+	return result, nil
 }
 
 // registerAttempt is responsible for creating and saving an HTLC attempt in db
@@ -675,11 +641,9 @@ func (p *paymentLifecycle) createNewPaymentAttempt(rt *route.Route,
 
 	// We now have all the information needed to populate the current
 	// attempt information.
-	attempt := channeldb.NewHtlcAttempt(
+	return channeldb.NewHtlcAttempt(
 		attemptID, sessionKey, *rt, p.router.cfg.Clock.Now(), &hash,
 	)
-
-	return attempt, nil
 }
 
 // sendAttempt attempts to send the current attempt to the switch to complete
@@ -711,9 +675,7 @@ func (p *paymentLifecycle) sendAttempt(
 	// Generate the raw encoded sphinx packet to be included along
 	// with the htlcAdd message that we send directly to the
 	// switch.
-	onionBlob, _, err := generateSphinxPacket(
-		&rt, attempt.Hash[:], attempt.SessionKey(),
-	)
+	onionBlob, err := attempt.OnionBlob()
 	if err != nil {
 		log.Errorf("Failed to create onion blob: attempt=%d in "+
 			"payment=%v, err:%v", attempt.AttemptID,
@@ -722,7 +684,7 @@ func (p *paymentLifecycle) sendAttempt(
 		return p.failAttempt(attempt.AttemptID, err)
 	}
 
-	copy(htlcAdd.OnionBlob[:], onionBlob)
+	htlcAdd.OnionBlob = onionBlob
 
 	// Send it to the Switch. When this method returns we assume
 	// the Switch successfully has persisted the payment attempt,
@@ -885,8 +847,8 @@ func (p *paymentLifecycle) handleSwitchErr(attempt *channeldb.HTLCAttempt,
 	// case we can safely send a new payment attempt, and wait for its
 	// result to be available.
 	if errors.Is(sendErr, htlcswitch.ErrPaymentIDNotFound) {
-		log.Debugf("Attempt ID %v for payment %v not found in the "+
-			"Switch, retrying.", attempt.AttemptID, p.identifier)
+		log.Warnf("Failing attempt=%v for payment=%v as it's not "+
+			"found in the Switch", attempt.AttemptID, p.identifier)
 
 		return p.failAttempt(attemptID, sendErr)
 	}
@@ -1097,3 +1059,106 @@ func marshallError(sendError error, time time.Time) *channeldb.HTLCFailInfo {
 
 	return response
 }
+
+// reloadInflightAttempts is called when the payment lifecycle is resumed after
+// a restart. It reloads all inflight attempts from the control tower and
+// collects the results of the attempts that have been sent before.
+func (p *paymentLifecycle) reloadInflightAttempts() (DBMPPayment, error) {
+	payment, err := p.router.cfg.Control.FetchPayment(p.identifier)
+	if err != nil {
+		return nil, err
+	}
+
+	for _, a := range payment.InFlightHTLCs() {
+		a := a
+
+		log.Infof("Resuming HTLC attempt %v for payment %v",
+			a.AttemptID, p.identifier)
+
+		p.resultCollector(&a)
+	}
+
+	return payment, nil
+}
+
+// reloadPayment returns the latest payment found in the db (control tower).
+func (p *paymentLifecycle) reloadPayment() (DBMPPayment,
+	*channeldb.MPPaymentState, error) {
+
+	// Read the db to get the latest state of the payment.
+	payment, err := p.router.cfg.Control.FetchPayment(p.identifier)
+	if err != nil {
+		return nil, nil, err
+	}
+
+	ps := payment.GetState()
+	remainingFees := p.calcFeeBudget(ps.FeesPaid)
+
+	log.Debugf("Payment %v: status=%v, active_shards=%v, rem_value=%v, "+
+		"fee_limit=%v", p.identifier, payment.GetStatus(),
+		ps.NumAttemptsInFlight, ps.RemainingAmt, remainingFees)
+
+	return payment, ps, nil
+}
+
+// handleAttemptResult processes the result of an HTLC attempt returned from
+// the htlcswitch.
+func (p *paymentLifecycle) handleAttemptResult(attempt *channeldb.HTLCAttempt,
+	result *htlcswitch.PaymentResult) (*attemptResult, error) {
+
+	// If the result has an error, we need to further process it by failing
+	// the attempt and maybe fail the payment.
+	if result.Error != nil {
+		return p.handleSwitchErr(attempt, result.Error)
+	}
+
+	// We got an attempt settled result back from the switch.
+	log.Debugf("Payment(%v): attempt(%v) succeeded", p.identifier,
+		attempt.AttemptID)
+
+	// Report success to mission control.
+	err := p.router.cfg.MissionControl.ReportPaymentSuccess(
+		attempt.AttemptID, &attempt.Route,
+	)
+	if err != nil {
+		log.Errorf("Error reporting payment success to mc: %v", err)
+	}
+
+	// In case of success we atomically store settle result to the DB and
+	// move the shard to the settled state.
+	htlcAttempt, err := p.router.cfg.Control.SettleAttempt(
+		p.identifier, attempt.AttemptID,
+		&channeldb.HTLCSettleInfo{
+			Preimage:   result.Preimage,
+			SettleTime: p.router.cfg.Clock.Now(),
+		},
+	)
+	if err != nil {
+		log.Errorf("Error settling attempt %v for payment %v with "+
+			"preimage %v: %v", attempt.AttemptID, p.identifier,
+			result.Preimage, err)
+
+		// We won't mark the attempt as failed since we already have
+		// the preimage.
+		return nil, err
+	}
+
+	return &attemptResult{
+		attempt: htlcAttempt,
+	}, nil
+}
+
+// collectAndHandleResult waits for the result for the given attempt to be
+// available from the Switch, then records the attempt outcome with the control
+// tower. An attemptResult is returned, indicating the final outcome of this
+// HTLC attempt.
+func (p *paymentLifecycle) collectAndHandleResult(
+	attempt *channeldb.HTLCAttempt) (*attemptResult, error) {
+
+	result, err := p.collectResult(attempt)
+	if err != nil {
+		return nil, err
+	}
+
+	return p.handleAttemptResult(attempt, result)
+}
diff --git a/routing/payment_lifecycle_test.go b/routing/payment_lifecycle_test.go
index 72aa6314194..b04b04d4be3 100644
--- a/routing/payment_lifecycle_test.go
+++ b/routing/payment_lifecycle_test.go
@@ -260,10 +260,15 @@ func createDummyRoute(t *testing.T, amt lnwire.MilliSatoshi) *route.Route {
 func makeSettledAttempt(t *testing.T, total int,
 	preimage lntypes.Preimage) *channeldb.HTLCAttempt {
 
-	return &channeldb.HTLCAttempt{
+	a := &channeldb.HTLCAttempt{
 		HTLCAttemptInfo: makeAttemptInfo(t, total),
 		Settle:          &channeldb.HTLCSettleInfo{Preimage: preimage},
 	}
+
+	hash := preimage.Hash()
+	a.Hash = &hash
+
+	return a
 }
 
 func makeFailedAttempt(t *testing.T, total int) *channeldb.HTLCAttempt {
@@ -279,6 +284,7 @@ func makeAttemptInfo(t *testing.T, amt int) channeldb.HTLCAttemptInfo {
 	rt := createDummyRoute(t, lnwire.MilliSatoshi(amt))
 	return channeldb.HTLCAttemptInfo{
 		Route: *rt,
+		Hash:  &lntypes.Hash{1, 2, 3},
 	}
 }
 
@@ -516,7 +522,8 @@ func TestRequestRouteFailPaymentError(t *testing.T) {
 	ct.AssertExpectations(t)
 }
 
-// TestDecideNextStep checks the method `decideNextStep` behaves as expected.
+// TestDecideNextStep checks the method `decideNextStep` behaves as expected
+// given the returned values from `AllowMoreAttempts` and `NeedWaitAttempts`.
 func TestDecideNextStep(t *testing.T) {
 	t.Parallel()
 
@@ -531,15 +538,8 @@ func TestDecideNextStep(t *testing.T) {
 		name              string
 		allowMoreAttempts *mockReturn
 		needWaitAttempts  *mockReturn
-
-		// When the attemptResultChan has returned.
-		closeResultChan bool
-
-		// Whether the router has quit.
-		routerQuit bool
-
-		expectedStep stateStep
-		expectedErr  error
+		expectedStep      stateStep
+		expectedErr       error
 	}{
 		{
 			name:              "allow more attempts",
@@ -548,52 +548,36 @@ func TestDecideNextStep(t *testing.T) {
 			expectedErr:       nil,
 		},
 		{
-			name:              "error on allow more attempts",
+			name:              "error checking allow more attempts",
 			allowMoreAttempts: &mockReturn{false, errDummy},
 			expectedStep:      stepExit,
 			expectedErr:       errDummy,
 		},
 		{
-			name:              "no wait and exit",
+			name:              "no need to wait attempts",
 			allowMoreAttempts: &mockReturn{false, nil},
 			needWaitAttempts:  &mockReturn{false, nil},
 			expectedStep:      stepExit,
 			expectedErr:       nil,
 		},
 		{
-			name:              "wait returns an error",
+			name:              "error checking wait attempts",
 			allowMoreAttempts: &mockReturn{false, nil},
 			needWaitAttempts:  &mockReturn{false, errDummy},
 			expectedStep:      stepExit,
 			expectedErr:       errDummy,
 		},
-
-		{
-			name:              "wait and exit on result chan",
-			allowMoreAttempts: &mockReturn{false, nil},
-			needWaitAttempts:  &mockReturn{true, nil},
-			closeResultChan:   true,
-			expectedStep:      stepSkip,
-			expectedErr:       nil,
-		},
-		{
-			name:              "wait and exit on router quit",
-			allowMoreAttempts: &mockReturn{false, nil},
-			needWaitAttempts:  &mockReturn{true, nil},
-			routerQuit:        true,
-			expectedStep:      stepExit,
-			expectedErr:       ErrRouterShuttingDown,
-		},
 	}
 
 	for _, tc := range testCases {
 		tc := tc
 
 		// Create a test paymentLifecycle.
-		p := createTestPaymentLifecycle()
+		p, _ := newTestPaymentLifecycle(t)
 
 		// Make a mock payment.
 		payment := &mockMPPayment{}
+		defer payment.AssertExpectations(t)
 
 		// Mock the method AllowMoreAttempts.
 		payment.On("AllowMoreAttempts").Return(
@@ -609,27 +593,188 @@ func TestDecideNextStep(t *testing.T) {
 			).Once()
 		}
 
-		// Send a nil error to the attemptResultChan if requested.
-		if tc.closeResultChan {
-			p.resultCollected = make(chan error, 1)
-			p.resultCollected <- nil
-		}
-
-		// Quit the router if requested.
-		if tc.routerQuit {
-			close(p.router.quit)
-		}
-
 		// Once the setup is finished, run the test cases.
 		t.Run(tc.name, func(t *testing.T) {
 			step, err := p.decideNextStep(payment)
 			require.Equal(t, tc.expectedStep, step)
 			require.ErrorIs(t, tc.expectedErr, err)
 		})
+	}
+}
+
+// TestDecideNextStepOnRouterQuit checks the method `decideNextStep` behaves as
+// expected when the router is quit.
+func TestDecideNextStepOnRouterQuit(t *testing.T) {
+	t.Parallel()
+
+	// Create a test paymentLifecycle.
+	p, _ := newTestPaymentLifecycle(t)
+
+	// Make a mock payment.
+	payment := &mockMPPayment{}
+	defer payment.AssertExpectations(t)
+
+	// Mock the method AllowMoreAttempts to return false.
+	payment.On("AllowMoreAttempts").Return(false, nil).Once()
+
+	// Mock the method NeedWaitAttempts to wait for results.
+	payment.On("NeedWaitAttempts").Return(true, nil).Once()
+
+	// Quit the router.
+	close(p.router.quit)
+
+	// Call the method under test.
+	step, err := p.decideNextStep(payment)
+
+	// We expect stepExit and an error to be returned.
+	require.Equal(t, stepExit, step)
+	require.ErrorIs(t, err, ErrRouterShuttingDown)
+}
+
+// TestDecideNextStepOnLifecycleQuit checks the method `decideNextStep` behaves
+// as expected when the lifecycle is quit.
+func TestDecideNextStepOnLifecycleQuit(t *testing.T) {
+	t.Parallel()
+
+	// Create a test paymentLifecycle.
+	p, _ := newTestPaymentLifecycle(t)
+
+	// Make a mock payment.
+	payment := &mockMPPayment{}
+	defer payment.AssertExpectations(t)
+
+	// Mock the method AllowMoreAttempts to return false.
+	payment.On("AllowMoreAttempts").Return(false, nil).Once()
+
+	// Mock the method NeedWaitAttempts to wait for results.
+	payment.On("NeedWaitAttempts").Return(true, nil).Once()
+
+	// Quit the paymentLifecycle.
+	close(p.quit)
 
-		// Check the payment's methods are called as expected.
-		payment.AssertExpectations(t)
+	// Call the method under test.
+	step, err := p.decideNextStep(payment)
+
+	// We expect stepExit and an error to be returned.
+	require.Equal(t, stepExit, step)
+	require.ErrorIs(t, err, ErrPaymentLifecycleExiting)
+}
+
+// TestDecideNextStepHandleAttemptResultSucceed checks the method
+// `decideNextStep` behaves as expected when successfully handled the attempt
+// result.
+func TestDecideNextStepHandleAttemptResultSucceed(t *testing.T) {
+	t.Parallel()
+
+	// Create a test paymentLifecycle.
+	p, m := newTestPaymentLifecycle(t)
+
+	// Mock the clock to return a current time.
+	m.clock.On("Now").Return(time.Now())
+
+	// Make a mock payment.
+	payment := &mockMPPayment{}
+	defer payment.AssertExpectations(t)
+
+	// Mock the method AllowMoreAttempts to return false.
+	payment.On("AllowMoreAttempts").Return(false, nil).Once()
+
+	// Mock the method NeedWaitAttempts to wait for results.
+	payment.On("NeedWaitAttempts").Return(true, nil).Once()
+
+	paymentAmt := 10_000
+	preimage := lntypes.Preimage{1}
+	attempt := makeSettledAttempt(t, paymentAmt, preimage)
+
+	// Create a result that contains a preimage.
+	result := &htlcswitch.PaymentResult{
+		Preimage: preimage,
 	}
+
+	// Create a switch result and send it to the `resultCollected`` chan.
+	r := &switchResult{
+		attempt: attempt,
+		result:  result,
+	}
+	p.resultCollected <- r
+
+	// We now mock the behavior of `handleAttemptResult` - we are not
+	// testing this method's behavior here, so we simply mock it to return
+	// no error.
+	//
+	// Since the result doesn't contain an error, `ReportPaymentSuccess`
+	// should be called.
+	m.missionControl.On("ReportPaymentSuccess", mock.Anything,
+		mock.Anything).Return(nil).Once()
+
+	// The settled htlc should be returned from `SettleAttempt`.
+	m.control.On("SettleAttempt", mock.Anything, mock.Anything,
+		mock.Anything).Return(attempt, nil).Once()
+
+	// Call the method under test.
+	step, err := p.decideNextStep(payment)
+
+	// We expect stepSkip and no error to be returned.
+	require.Equal(t, stepSkip, step)
+	require.NoError(t, err)
+}
+
+// TestDecideNextStepHandleAttemptResultFail checks the method `decideNextStep`
+// behaves as expected when it fails to handle the attempt result.
+func TestDecideNextStepHandleAttemptResultFail(t *testing.T) {
+	t.Parallel()
+
+	// Create a test paymentLifecycle.
+	p, m := newTestPaymentLifecycle(t)
+
+	// Mock the clock to return a current time.
+	m.clock.On("Now").Return(time.Now())
+
+	// Make a mock payment.
+	payment := &mockMPPayment{}
+	defer payment.AssertExpectations(t)
+
+	// Mock the method AllowMoreAttempts to return false.
+	payment.On("AllowMoreAttempts").Return(false, nil).Once()
+
+	// Mock the method NeedWaitAttempts to wait for results.
+	payment.On("NeedWaitAttempts").Return(true, nil).Once()
+
+	paymentAmt := 10_000
+	preimage := lntypes.Preimage{1}
+	attempt := makeSettledAttempt(t, paymentAmt, preimage)
+
+	// Create a result that contains a preimage.
+	result := &htlcswitch.PaymentResult{
+		Preimage: preimage,
+	}
+
+	// Create a switch result and send it to the `resultCollected`` chan.
+	r := &switchResult{
+		attempt: attempt,
+		result:  result,
+	}
+	p.resultCollected <- r
+
+	// We now mock the behavior of `handleAttemptResult` - we are not
+	// testing this method's behavior here, so we simply mock it to return
+	// an error.
+	//
+	// Since the result doesn't contain an error, `ReportPaymentSuccess`
+	// should be called.
+	m.missionControl.On("ReportPaymentSuccess",
+		mock.Anything, mock.Anything).Return(nil).Once()
+
+	// Mock SettleAttempt to return an error.
+	m.control.On("SettleAttempt", mock.Anything, mock.Anything,
+		mock.Anything).Return(attempt, errDummy).Once()
+
+	// Call the method under test.
+	step, err := p.decideNextStep(payment)
+
+	// We expect stepExit and the above error to be returned.
+	require.Equal(t, stepExit, step)
+	require.ErrorIs(t, err, errDummy)
 }
 
 // TestResumePaymentFailOnFetchPayment checks when we fail to fetch the
@@ -1303,11 +1448,6 @@ func TestCollectResultExitOnErr(t *testing.T) {
 	paymentAmt := 10_000
 	attempt := makeFailedAttempt(t, paymentAmt)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a dummy error.
 	m.payer.On("GetAttemptResult",
 		attempt.AttemptID, p.identifier, mock.Anything,
@@ -1332,7 +1472,7 @@ func TestCollectResultExitOnErr(t *testing.T) {
 	m.clock.On("Now").Return(time.Now())
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.ErrorIs(t, err, errDummy, "expected dummy error")
 	require.Nil(t, result, "expected nil attempt")
 }
@@ -1348,11 +1488,6 @@ func TestCollectResultExitOnResultErr(t *testing.T) {
 	paymentAmt := 10_000
 	attempt := makeFailedAttempt(t, paymentAmt)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
 	m.payer.On("GetAttemptResult",
@@ -1383,7 +1518,7 @@ func TestCollectResultExitOnResultErr(t *testing.T) {
 	m.clock.On("Now").Return(time.Now())
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.ErrorIs(t, err, errDummy, "expected dummy error")
 	require.Nil(t, result, "expected nil attempt")
 }
@@ -1399,11 +1534,6 @@ func TestCollectResultExitOnSwitchQuit(t *testing.T) {
 	paymentAmt := 10_000
 	attempt := makeFailedAttempt(t, paymentAmt)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
 	m.payer.On("GetAttemptResult",
@@ -1414,7 +1544,7 @@ func TestCollectResultExitOnSwitchQuit(t *testing.T) {
 	})
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.ErrorIs(t, err, htlcswitch.ErrSwitchExiting,
 		"expected switch exit")
 	require.Nil(t, result, "expected nil attempt")
@@ -1431,11 +1561,6 @@ func TestCollectResultExitOnRouterQuit(t *testing.T) {
 	paymentAmt := 10_000
 	attempt := makeFailedAttempt(t, paymentAmt)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
 	m.payer.On("GetAttemptResult",
@@ -1446,7 +1571,7 @@ func TestCollectResultExitOnRouterQuit(t *testing.T) {
 	})
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.ErrorIs(t, err, ErrRouterShuttingDown, "expected router exit")
 	require.Nil(t, result, "expected nil attempt")
 }
@@ -1462,11 +1587,6 @@ func TestCollectResultExitOnLifecycleQuit(t *testing.T) {
 	paymentAmt := 10_000
 	attempt := makeFailedAttempt(t, paymentAmt)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
 	m.payer.On("GetAttemptResult",
@@ -1477,7 +1597,7 @@ func TestCollectResultExitOnLifecycleQuit(t *testing.T) {
 	})
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.ErrorIs(t, err, ErrPaymentLifecycleExiting,
 		"expected lifecycle exit")
 	require.Nil(t, result, "expected nil attempt")
@@ -1495,11 +1615,6 @@ func TestCollectResultExitOnSettleErr(t *testing.T) {
 	preimage := lntypes.Preimage{1}
 	attempt := makeSettledAttempt(t, paymentAmt, preimage)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
 	m.payer.On("GetAttemptResult",
@@ -1526,7 +1641,7 @@ func TestCollectResultExitOnSettleErr(t *testing.T) {
 	m.clock.On("Now").Return(time.Now())
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.ErrorIs(t, err, errDummy, "expected settle error")
 	require.Nil(t, result, "expected nil attempt")
 }
@@ -1542,11 +1657,6 @@ func TestCollectResultSuccess(t *testing.T) {
 	preimage := lntypes.Preimage{1}
 	attempt := makeSettledAttempt(t, paymentAmt, preimage)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
-
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
 	m.payer.On("GetAttemptResult",
@@ -1573,7 +1683,7 @@ func TestCollectResultSuccess(t *testing.T) {
 	m.clock.On("Now").Return(time.Now())
 
 	// Now call the method under test.
-	result, err := p.collectResult(attempt)
+	result, err := p.collectAndHandleResult(attempt)
 	require.NoError(t, err, "expected no error")
 	require.Equal(t, preimage, result.attempt.Settle.Preimage,
 		"preimage mismatch")
@@ -1590,10 +1700,10 @@ func TestCollectResultAsyncSuccess(t *testing.T) {
 	preimage := lntypes.Preimage{1}
 	attempt := makeSettledAttempt(t, paymentAmt, preimage)
 
-	// Mock shardTracker to return the payment hash.
-	m.shardTracker.On("GetHash",
-		attempt.AttemptID,
-	).Return(p.identifier, nil).Once()
+	// Create a mock result returned from the switch.
+	result := &htlcswitch.PaymentResult{
+		Preimage: preimage,
+	}
 
 	// Mock the htlcswitch to return a the result chan.
 	resultChan := make(chan *htlcswitch.PaymentResult, 1)
@@ -1601,13 +1711,86 @@ func TestCollectResultAsyncSuccess(t *testing.T) {
 		attempt.AttemptID, p.identifier, mock.Anything,
 	).Return(resultChan, nil).Once().Run(func(args mock.Arguments) {
 		// Send the preimage to the result chan.
-		resultChan <- &htlcswitch.PaymentResult{
-			Preimage: preimage,
-		}
+		resultChan <- result
 	})
 
-	// Once the result is received, `ReportPaymentSuccess` should be
-	// called.
+	// Now call the method under test.
+	p.collectResultAsync(attempt)
+
+	var r *switchResult
+
+	// Assert the result is returned within 5 seconds.
+	waitErr := wait.NoError(func() error {
+		r = <-p.resultCollected
+		return nil
+	}, testTimeout)
+	require.NoError(t, waitErr, "timeout waiting for result")
+
+	// Assert the result is received as expected.
+	require.Equal(t, attempt, r.attempt)
+	require.Equal(t, result, r.result)
+}
+
+// TestHandleAttemptResultWithError checks that when the `Error` field in the
+// result is not nil, it's properly handled by `handleAttemptResult`.
+func TestHandleAttemptResultWithError(t *testing.T) {
+	t.Parallel()
+
+	// Create a test paymentLifecycle with the initial two calls mocked.
+	p, m := newTestPaymentLifecycle(t)
+
+	paymentAmt := 10_000
+	preimage := lntypes.Preimage{1}
+	attempt := makeSettledAttempt(t, paymentAmt, preimage)
+
+	// Create a result that contains an error.
+	//
+	// NOTE: The error is chosen so we can quickly exit `handleSwitchErr`
+	// since we are not testing its behavior here.
+	result := &htlcswitch.PaymentResult{
+		Error: htlcswitch.ErrPaymentIDNotFound,
+	}
+
+	// The above error will end up being handled by `handleSwitchErr`, in
+	// which we'd cancel the shard and fail the attempt.
+	//
+	// `CancelShard` should be called with the attemptID.
+	m.shardTracker.On("CancelShard", attempt.AttemptID).Return(nil).Once()
+
+	// Mock `FailAttempt` to return a dummy error.
+	m.control.On("FailAttempt",
+		p.identifier, attempt.AttemptID, mock.Anything,
+	).Return(nil, errDummy).Once()
+
+	// Mock the clock to return a current time.
+	m.clock.On("Now").Return(time.Now())
+
+	// Call the method under test and expect the dummy error to be
+	// returned.
+	attemptResult, err := p.handleAttemptResult(attempt, result)
+	require.ErrorIs(t, err, errDummy, "expected fail error")
+	require.Nil(t, attemptResult, "expected nil attempt result")
+}
+
+// TestHandleAttemptResultSuccess checks that when the result contains no error
+// but a preimage, it's handled correctly by `handleAttemptResult`.
+func TestHandleAttemptResultSuccess(t *testing.T) {
+	t.Parallel()
+
+	// Create a test paymentLifecycle with the initial two calls mocked.
+	p, m := newTestPaymentLifecycle(t)
+
+	paymentAmt := 10_000
+	preimage := lntypes.Preimage{1}
+	attempt := makeSettledAttempt(t, paymentAmt, preimage)
+
+	// Create a result that contains a preimage.
+	result := &htlcswitch.PaymentResult{
+		Preimage: preimage,
+	}
+
+	// Since the result doesn't contain an error, `ReportPaymentSuccess`
+	// should be called.
 	m.missionControl.On("ReportPaymentSuccess",
 		attempt.AttemptID, &attempt.Route,
 	).Return(nil).Once()
@@ -1620,17 +1803,9 @@ func TestCollectResultAsyncSuccess(t *testing.T) {
 	// Mock the clock to return a current time.
 	m.clock.On("Now").Return(time.Now())
 
-	// Now call the method under test.
-	p.collectResultAsync(attempt)
-
-	// Assert the result is returned within 5 seconds.
-	var err error
-	waitErr := wait.NoError(func() error {
-		err = <-p.resultCollected
-		return nil
-	}, testTimeout)
-	require.NoError(t, waitErr, "timeout waiting for result")
-
-	// Assert that a nil error is received.
+	// Call the method under test and expect the dummy error to be
+	// returned.
+	attemptResult, err := p.handleAttemptResult(attempt, result)
 	require.NoError(t, err, "expected no error")
+	require.Equal(t, attempt, attemptResult.attempt)
 }
diff --git a/routing/router.go b/routing/router.go
index 468510a6c7b..323fe761671 100644
--- a/routing/router.go
+++ b/routing/router.go
@@ -1,7 +1,6 @@
 package routing
 
 import (
-	"bytes"
 	"context"
 	"fmt"
 	"math"
@@ -15,7 +14,6 @@ import (
 	"github.com/btcsuite/btcd/btcutil"
 	"github.com/davecgh/go-spew/spew"
 	"github.com/go-errors/errors"
-	sphinx "github.com/lightningnetwork/lightning-onion"
 	"github.com/lightningnetwork/lnd/amp"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/clock"
@@ -722,71 +720,6 @@ func generateNewSessionKey() (*btcec.PrivateKey, error) {
 	return btcec.NewPrivateKey()
 }
 
-// generateSphinxPacket generates then encodes a sphinx packet which encodes
-// the onion route specified by the passed layer 3 route. The blob returned
-// from this function can immediately be included within an HTLC add packet to
-// be sent to the first hop within the route.
-func generateSphinxPacket(rt *route.Route, paymentHash []byte,
-	sessionKey *btcec.PrivateKey) ([]byte, *sphinx.Circuit, error) {
-
-	// Now that we know we have an actual route, we'll map the route into a
-	// sphinx payment path which includes per-hop payloads for each hop
-	// that give each node within the route the necessary information
-	// (fees, CLTV value, etc.) to properly forward the payment.
-	sphinxPath, err := rt.ToSphinxPath()
-	if err != nil {
-		return nil, nil, err
-	}
-
-	log.Tracef("Constructed per-hop payloads for payment_hash=%x: %v",
-		paymentHash, lnutils.NewLogClosure(func() string {
-			path := make(
-				[]sphinx.OnionHop, sphinxPath.TrueRouteLength(),
-			)
-			for i := range path {
-				hopCopy := sphinxPath[i]
-				path[i] = hopCopy
-			}
-
-			return spew.Sdump(path)
-		}),
-	)
-
-	// Next generate the onion routing packet which allows us to perform
-	// privacy preserving source routing across the network.
-	sphinxPacket, err := sphinx.NewOnionPacket(
-		sphinxPath, sessionKey, paymentHash,
-		sphinx.DeterministicPacketFiller,
-	)
-	if err != nil {
-		return nil, nil, err
-	}
-
-	// Finally, encode Sphinx packet using its wire representation to be
-	// included within the HTLC add packet.
-	var onionBlob bytes.Buffer
-	if err := sphinxPacket.Encode(&onionBlob); err != nil {
-		return nil, nil, err
-	}
-
-	log.Tracef("Generated sphinx packet: %v",
-		lnutils.NewLogClosure(func() string {
-			// We make a copy of the ephemeral key and unset the
-			// internal curve here in order to keep the logs from
-			// getting noisy.
-			key := *sphinxPacket.EphemeralKey
-			packetCopy := *sphinxPacket
-			packetCopy.EphemeralKey = &key
-			return spew.Sdump(packetCopy)
-		}),
-	)
-
-	return onionBlob.Bytes(), &sphinx.Circuit{
-		SessionKey:  sessionKey,
-		PaymentPath: sphinxPath.NodeKeys(),
-	}, nil
-}
-
 // LightningPayment describes a payment to be sent through the network to the
 // final destination.
 type LightningPayment struct {
@@ -1253,7 +1186,7 @@ func (r *ChannelRouter) sendToRoute(htlcHash lntypes.Hash, rt *route.Route,
 
 	// The attempt was successfully sent, wait for the result to be
 	// available.
-	result, err = p.collectResult(attempt)
+	result, err = p.collectAndHandleResult(attempt)
 	if err != nil {
 		return nil, err
 	}
diff --git a/routing/router_test.go b/routing/router_test.go
index 22c9d14e507..543f3b00056 100644
--- a/routing/router_test.go
+++ b/routing/router_test.go
@@ -48,13 +48,6 @@ var (
 
 	testFeatures = lnwire.NewFeatureVector(nil, lnwire.Features)
 
-	testHash = [32]byte{
-		0xb7, 0x94, 0x38, 0x5f, 0x2d, 0x1e, 0xf7, 0xab,
-		0x4d, 0x92, 0x73, 0xd1, 0x90, 0x63, 0x81, 0xb4,
-		0x4f, 0x2f, 0x6f, 0x25, 0x88, 0xa3, 0xef, 0xb9,
-		0x6a, 0x49, 0x18, 0x83, 0x31, 0x98, 0x47, 0x53,
-	}
-
 	testTime = time.Date(2018, time.January, 9, 14, 00, 00, 0, time.UTC)
 
 	priv1, _    = btcec.NewPrivateKey()
@@ -1235,18 +1228,6 @@ func TestFindPathFeeWeighting(t *testing.T) {
 	require.Equal(t, ctx.aliases["luoji"], path[0].policy.ToNodePubKey())
 }
 
-// TestEmptyRoutesGenerateSphinxPacket tests that the generateSphinxPacket
-// function is able to gracefully handle being passed a nil set of hops for the
-// route by the caller.
-func TestEmptyRoutesGenerateSphinxPacket(t *testing.T) {
-	t.Parallel()
-
-	sessionKey, _ := btcec.NewPrivateKey()
-	emptyRoute := &route.Route{}
-	_, _, err := generateSphinxPacket(emptyRoute, testHash[:], sessionKey)
-	require.ErrorIs(t, err, route.ErrNoRouteHopsProvided)
-}
-
 // TestUnknownErrorSource tests that if the source of an error is unknown, all
 // edges along the route will be pruned.
 func TestUnknownErrorSource(t *testing.T) {