From 09736b3cecebb5febe10b42fce86b1cff96531e5 Mon Sep 17 00:00:00 2001
From: Oliver Gugger <gugger@gmail.com>
Date: Mon, 14 Feb 2022 14:26:02 +0100
Subject: [PATCH] multi: support P2TR addresses

---
 cmd/lncli/commands.go                    |   5 +-
 config_builder.go                        |   9 +-
 contractcourt/breacharbiter.go           |  32 ++-
 input/input.go                           |  31 ++-
 input/script_utils.go                    |  22 ++
 input/signdescriptor.go                  |   5 +
 input/size.go                            |   6 +
 input/witnessgen.go                      |  21 ++
 lnrpc/lightning.pb.go                    |  28 ++-
 lnrpc/lightning.proto                    |   3 +
 lnrpc/lightning.swagger.json             |  10 +-
 lnrpc/marshall_utils.go                  |   3 +
 lnrpc/walletrpc/walletkit.pb.go          | 268 ++++++++++++-----------
 lnrpc/walletrpc/walletkit.proto          |   1 +
 lnrpc/walletrpc/walletkit.swagger.json   |  12 +-
 lnrpc/walletrpc/walletkit_server.go      |  11 +
 lntest/itest/lnd_taproot_test.go         |  81 +++++++
 lntest/itest/lnd_test_list_on_test.go    |   4 +
 lntest/itest/utils.go                    |  30 +++
 lntest/mock/walletcontroller.go          |  10 +
 lnwallet/btcwallet/btcwallet.go          |  26 ++-
 lnwallet/btcwallet/psbt.go               |   4 +-
 lnwallet/btcwallet/signer.go             |  60 ++++-
 lnwallet/btcwallet/signer_test.go        |  25 +++
 lnwallet/chanfunding/assembler.go        |   5 +
 lnwallet/chanfunding/wallet_assembler.go |   7 +-
 lnwallet/interface.go                    |   8 +
 lnwallet/rpcwallet/rpcwallet.go          |   7 +-
 lnwallet/wallet.go                       |  15 ++
 rpcserver.go                             |  16 ++
 sweep/sweeper_test.go                    |   2 +-
 sweep/txgenerator.go                     |  22 +-
 sweep/txgenerator_test.go                |   2 +-
 sweep/walletsweep.go                     |   3 +
 watchtower/lookout/justice_descriptor.go |  44 +++-
 watchtower/wtclient/backup_task.go       |  10 +-
 36 files changed, 648 insertions(+), 200 deletions(-)
 create mode 100644 lntest/itest/lnd_taproot_test.go

diff --git a/cmd/lncli/commands.go b/cmd/lncli/commands.go
index bf54c7650ebd..80601d4c64cb 100644
--- a/cmd/lncli/commands.go
+++ b/cmd/lncli/commands.go
@@ -139,7 +139,8 @@ var newAddressCommand = cli.Command{
 	Description: `
 	Generate a wallet new address. Address-types has to be one of:
 	    - p2wkh:  Pay to witness key hash
-	    - np2wkh: Pay to nested witness key hash`,
+	    - np2wkh: Pay to nested witness key hash
+	    - p2tr:   Pay to taproot pubkey`,
 	Action: actionDecorator(newAddress),
 }
 
@@ -161,6 +162,8 @@ func newAddress(ctx *cli.Context) error {
 		addrType = lnrpc.AddressType_WITNESS_PUBKEY_HASH
 	case "np2wkh":
 		addrType = lnrpc.AddressType_NESTED_PUBKEY_HASH
+	case "p2tr":
+		addrType = lnrpc.AddressType_TAPROOT_PUBKEY
 	default:
 		return fmt.Errorf("invalid address type %v, support address type "+
 			"are: p2wkh and np2wkh", stringAddrType)
diff --git a/config_builder.go b/config_builder.go
index 0e8ddfa8d832..b7bfeec00914 100644
--- a/config_builder.go
+++ b/config_builder.go
@@ -1112,7 +1112,14 @@ func importWatchOnlyAccounts(wallet *wallet.Wallet,
 
 	for _, scope := range scopes {
 		addrSchema := waddrmgr.ScopeAddrMap[waddrmgr.KeyScopeBIP0084]
-		if scope.Scope.Purpose == waddrmgr.KeyScopeBIP0049Plus.Purpose {
+
+		// We want witness pubkey hash by default, except for BIP49
+		// where we want mixed and BIP86 where we want taproot address
+		// formats.
+		switch scope.Scope.Purpose {
+		case waddrmgr.KeyScopeBIP0049Plus.Purpose,
+			waddrmgr.KeyScopeBIP0086.Purpose:
+
 			addrSchema = waddrmgr.ScopeAddrMap[scope.Scope]
 		}
 
diff --git a/contractcourt/breacharbiter.go b/contractcourt/breacharbiter.go
index 8ebb36c4ad13..126726242dbb 100644
--- a/contractcourt/breacharbiter.go
+++ b/contractcourt/breacharbiter.go
@@ -1097,11 +1097,15 @@ func (bo *breachedOutput) SignDesc() *input.SignDescriptor {
 // sign descriptor. The method then returns the witness computed by invoking
 // this function on the first and subsequent calls.
 func (bo *breachedOutput) CraftInputScript(signer input.Signer, txn *wire.MsgTx,
-	hashCache *txscript.TxSigHashes, txinIdx int) (*input.Script, error) {
+	hashCache *txscript.TxSigHashes,
+	prevOutputFetcher txscript.PrevOutputFetcher,
+	txinIdx int) (*input.Script, error) {
 
 	// First, we ensure that the witness generation function has been
 	// initialized for this breached output.
-	bo.witnessFunc = bo.witnessType.WitnessGenerator(signer, bo.SignDesc())
+	signDesc := bo.SignDesc()
+	signDesc.PrevOutputFetcher = prevOutputFetcher
+	bo.witnessFunc = bo.witnessType.WitnessGenerator(signer, signDesc)
 
 	// Now that we have ensured that the witness generation function has
 	// been initialized, we can proceed to execute it and generate the
@@ -1398,8 +1402,8 @@ func (b *BreachArbiter) sweepSpendableOutputsTxn(txWeight int64,
 
 	// Compute the total amount contained in the inputs.
 	var totalAmt btcutil.Amount
-	for _, input := range inputs {
-		totalAmt += btcutil.Amount(input.SignDesc().Output.Value)
+	for _, inp := range inputs {
+		totalAmt += btcutil.Amount(inp.SignDesc().Output.Value)
 	}
 
 	// We'll actually attempt to target inclusion within the next two
@@ -1425,11 +1429,15 @@ func (b *BreachArbiter) sweepSpendableOutputsTxn(txWeight int64,
 
 	// Next, we add all of the spendable outputs as inputs to the
 	// transaction.
-	for _, input := range inputs {
+	prevOutputFetcher := txscript.NewMultiPrevOutFetcher(nil)
+	for _, inp := range inputs {
 		txn.AddTxIn(&wire.TxIn{
-			PreviousOutPoint: *input.OutPoint(),
-			Sequence:         input.BlocksToMaturity(),
+			PreviousOutPoint: *inp.OutPoint(),
+			Sequence:         inp.BlocksToMaturity(),
 		})
+		prevOutputFetcher.AddPrevOut(
+			*inp.OutPoint(), inp.RequiredTxOut(),
+		)
 	}
 
 	// Before signing the transaction, check to ensure that it meets some
@@ -1441,7 +1449,7 @@ func (b *BreachArbiter) sweepSpendableOutputsTxn(txWeight int64,
 
 	// Create a sighash cache to improve the performance of hashing and
 	// signing SigHashAll inputs.
-	hashCache := txscript.NewTxSigHashesV0Only(txn)
+	hashCache := txscript.NewTxSigHashes(txn, prevOutputFetcher)
 
 	// Create a closure that encapsulates the process of initializing a
 	// particular output's witness generation function, computing the
@@ -1453,7 +1461,7 @@ func (b *BreachArbiter) sweepSpendableOutputsTxn(txWeight int64,
 		// transaction using the SpendableOutput's witness generation
 		// function.
 		inputScript, err := so.CraftInputScript(
-			b.cfg.Signer, txn, hashCache, idx,
+			b.cfg.Signer, txn, hashCache, prevOutputFetcher, idx,
 		)
 		if err != nil {
 			return err
@@ -1468,8 +1476,8 @@ func (b *BreachArbiter) sweepSpendableOutputsTxn(txWeight int64,
 
 	// Finally, generate a witness for each output and attach it to the
 	// transaction.
-	for i, input := range inputs {
-		if err := addWitness(i, input); err != nil {
+	for i, inp := range inputs {
+		if err := addWitness(i, inp); err != nil {
 			return nil, err
 		}
 	}
@@ -1649,7 +1657,7 @@ func (ret *retributionInfo) Encode(w io.Writer) error {
 	return nil
 }
 
-// Dencode deserializes a retribution from the passed byte stream.
+// Decode deserializes a retribution from the passed byte stream.
 func (ret *retributionInfo) Decode(r io.Reader) error {
 	var scratch [32]byte
 
diff --git a/input/input.go b/input/input.go
index e72b9739bd75..98ae2c056c38 100644
--- a/input/input.go
+++ b/input/input.go
@@ -42,6 +42,7 @@ type Input interface {
 	// also nested p2sh outputs.
 	CraftInputScript(signer Signer, txn *wire.MsgTx,
 		hashCache *txscript.TxSigHashes,
+		prevOutputFetcher txscript.PrevOutputFetcher,
 		txinIdx int) (*Script, error)
 
 	// BlocksToMaturity returns the relative timelock, as a number of
@@ -221,9 +222,13 @@ func NewCsvInputWithCltv(outpoint *wire.OutPoint, witnessType WitnessType,
 // txIndex within the passed transaction. The input scripts generated by this
 // method support spending p2wkh, p2wsh, and also nested p2sh outputs.
 func (bi *BaseInput) CraftInputScript(signer Signer, txn *wire.MsgTx,
-	hashCache *txscript.TxSigHashes, txinIdx int) (*Script, error) {
+	hashCache *txscript.TxSigHashes,
+	prevOutputFetcher txscript.PrevOutputFetcher, txinIdx int) (*Script,
+	error) {
 
-	witnessFunc := bi.witnessType.WitnessGenerator(signer, bi.SignDesc())
+	signDesc := bi.SignDesc()
+	signDesc.PrevOutputFetcher = prevOutputFetcher
+	witnessFunc := bi.witnessType.WitnessGenerator(signer, signDesc)
 
 	return witnessFunc(txn, hashCache, txinIdx)
 }
@@ -260,11 +265,14 @@ func MakeHtlcSucceedInput(outpoint *wire.OutPoint,
 // txIndex within the passed transaction. The input scripts generated by this
 // method support spending p2wkh, p2wsh, and also nested p2sh outputs.
 func (h *HtlcSucceedInput) CraftInputScript(signer Signer, txn *wire.MsgTx,
-	hashCache *txscript.TxSigHashes, txinIdx int) (*Script, error) {
+	hashCache *txscript.TxSigHashes,
+	prevOutputFetcher txscript.PrevOutputFetcher, txinIdx int) (*Script,
+	error) {
 
 	desc := h.signDesc
 	desc.SigHashes = hashCache
 	desc.InputIndex = txinIdx
+	desc.PrevOutputFetcher = prevOutputFetcher
 
 	witness, err := SenderHtlcSpendRedeem(
 		signer, &desc, txn, h.preimage,
@@ -291,7 +299,9 @@ type HtlcSecondLevelAnchorInput struct {
 	// createWitness creates a witness allowing the passed transaction to
 	// spend the input.
 	createWitness func(signer Signer, txn *wire.MsgTx,
-		hashCache *txscript.TxSigHashes, txinIdx int) (wire.TxWitness, error)
+		hashCache *txscript.TxSigHashes,
+		prevOutputFetcher txscript.PrevOutputFetcher,
+		txinIdx int) (wire.TxWitness, error)
 }
 
 // RequiredTxOut returns the tx out needed to be present on the sweep tx for
@@ -313,9 +323,12 @@ func (i *HtlcSecondLevelAnchorInput) RequiredLockTime() (uint32, bool) {
 // method support spending p2wkh, p2wsh, and also nested p2sh outputs.
 func (i *HtlcSecondLevelAnchorInput) CraftInputScript(signer Signer,
 	txn *wire.MsgTx, hashCache *txscript.TxSigHashes,
-	txinIdx int) (*Script, error) {
+	prevOutputFetcher txscript.PrevOutputFetcher, txinIdx int) (*Script,
+	error) {
 
-	witness, err := i.createWitness(signer, txn, hashCache, txinIdx)
+	witness, err := i.createWitness(
+		signer, txn, hashCache, prevOutputFetcher, txinIdx,
+	)
 	if err != nil {
 		return nil, err
 	}
@@ -335,11 +348,13 @@ func MakeHtlcSecondLevelTimeoutAnchorInput(signedTx *wire.MsgTx,
 	// 2nd timeout transaction.
 	createWitness := func(signer Signer, txn *wire.MsgTx,
 		hashCache *txscript.TxSigHashes,
+		prevOutputFetcher txscript.PrevOutputFetcher,
 		txinIdx int) (wire.TxWitness, error) {
 
 		desc := signDetails.SignDesc
-		desc.SigHashes = txscript.NewTxSigHashesV0Only(txn)
+		desc.SigHashes = txscript.NewTxSigHashes(txn, prevOutputFetcher)
 		desc.InputIndex = txinIdx
+		desc.PrevOutputFetcher = prevOutputFetcher
 
 		return SenderHtlcSpendTimeout(
 			signDetails.PeerSig, signDetails.SigHashType, signer,
@@ -373,11 +388,13 @@ func MakeHtlcSecondLevelSuccessAnchorInput(signedTx *wire.MsgTx,
 	// success transaction.
 	createWitness := func(signer Signer, txn *wire.MsgTx,
 		hashCache *txscript.TxSigHashes,
+		prevOutputFetcher txscript.PrevOutputFetcher,
 		txinIdx int) (wire.TxWitness, error) {
 
 		desc := signDetails.SignDesc
 		desc.SigHashes = hashCache
 		desc.InputIndex = txinIdx
+		desc.PrevOutputFetcher = prevOutputFetcher
 
 		return ReceiverHtlcSpendRedeem(
 			signDetails.PeerSig, signDetails.SigHashType,
diff --git a/input/script_utils.go b/input/script_utils.go
index c748588c9aaf..1dd4121e6c4e 100644
--- a/input/script_utils.go
+++ b/input/script_utils.go
@@ -1558,3 +1558,25 @@ func ComputeCommitmentPoint(commitSecret []byte) *btcec.PublicKey {
 		&commitPointJacobian.X, &commitPointJacobian.Y,
 	)
 }
+
+// MultiPrevOutFetcher returns a txscript.MultiPrevOutFetcher for the given set
+// of inputs.
+func MultiPrevOutFetcher(inputs []Input) (*txscript.MultiPrevOutFetcher, error) {
+	fetcher := txscript.NewMultiPrevOutFetcher(nil)
+	for _, inp := range inputs {
+		op := inp.OutPoint()
+		desc := inp.SignDesc()
+
+		if op == nil {
+			return nil, fmt.Errorf("missing input outpoint")
+		}
+
+		if desc == nil || desc.Output == nil {
+			return nil, fmt.Errorf("missing input utxo information")
+		}
+
+		fetcher.AddPrevOut(*op, desc.Output)
+	}
+
+	return fetcher, nil
+}
diff --git a/input/signdescriptor.go b/input/signdescriptor.go
index bfcd50fe25ef..b97fbb5de068 100644
--- a/input/signdescriptor.go
+++ b/input/signdescriptor.go
@@ -74,6 +74,11 @@ type SignDescriptor struct {
 	// generating the final sighash for signing.
 	SigHashes *txscript.TxSigHashes
 
+	// PrevOutputFetcher is an interface that can return the output
+	// information on all UTXOs that are being spent in this transaction.
+	// This MUST be set when spending Taproot outputs.
+	PrevOutputFetcher txscript.PrevOutputFetcher
+
 	// InputIndex is the target input within the transaction that should be
 	// signed.
 	InputIndex int
diff --git a/input/size.go b/input/size.go
index ed6d4cb719a1..b6108f865336 100644
--- a/input/size.go
+++ b/input/size.go
@@ -519,6 +519,12 @@ const (
 	//      - witness_script_length: 1 byte
 	//      - witness_script (anchor_script)
 	AnchorWitnessSize = 1 + 1 + 73 + 1 + AnchorScriptSize
+
+	// TaprootKeyPathWitnessSize 66 bytes
+	//	- NumberOfWitnessElements: 1 byte
+	//	- sigLength: 1 byte
+	//	- sig: 64 bytes
+	TaprootKeyPathWitnessSize = 1 + 1 + 64
 )
 
 // EstimateCommitTxWeight estimate commitment transaction weight depending on
diff --git a/input/witnessgen.go b/input/witnessgen.go
index 9fea9179934e..f982e0213e5e 100644
--- a/input/witnessgen.go
+++ b/input/witnessgen.go
@@ -175,6 +175,10 @@ const (
 	// and CLTV locktime as part of the script enforced lease commitment
 	// type.
 	LeaseHtlcAcceptedSuccessSecondLevel StandardWitnessType = 20
+
+	TaprootPubkeySpend StandardWitnessType = 21
+
+	TaprootScriptSpend StandardWitnessType = 22
 )
 
 // String returns a human readable version of the target WitnessType.
@@ -245,6 +249,12 @@ func (wt StandardWitnessType) String() string {
 	case LeaseHtlcAcceptedSuccessSecondLevel:
 		return "LeaseHtlcAcceptedSuccessSecondLevel"
 
+	case TaprootPubkeySpend:
+		return "TaprootPubkeySpend"
+
+	case TaprootScriptSpend:
+		return "TaprootScriptSpend"
+
 	default:
 		return fmt.Sprintf("Unknown WitnessType: %v", uint32(wt))
 	}
@@ -388,6 +398,10 @@ func (wt StandardWitnessType) WitnessGenerator(signer Signer,
 
 		case WitnessKeyHash:
 			fallthrough
+		case TaprootPubkeySpend:
+			fallthrough
+		case TaprootScriptSpend:
+			fallthrough
 		case NestedWitnessKeyHash:
 			return signer.ComputeInputScript(tx, desc)
 
@@ -494,6 +508,13 @@ func (wt StandardWitnessType) SizeUpperBound() (int, bool, error) {
 	// The revocation output of a second level output of an HTLC.
 	case HtlcSecondLevelRevoke:
 		return ToLocalPenaltyWitnessSize, false, nil
+
+	case TaprootPubkeySpend:
+		return TaprootKeyPathWitnessSize, false, nil
+
+	case TaprootScriptSpend:
+		return 0, false, fmt.Errorf("taproot script send not " +
+			"implemented yet")
 	}
 
 	return 0, false, fmt.Errorf("unexpected witness type: %v", wt)
diff --git a/lnrpc/lightning.pb.go b/lnrpc/lightning.pb.go
index 962dd9dd825a..e853ccc99b17 100644
--- a/lnrpc/lightning.pb.go
+++ b/lnrpc/lightning.pb.go
@@ -25,6 +25,7 @@ const (
 //
 //- `p2wkh`: Pay to witness key hash (`WITNESS_PUBKEY_HASH` = 0)
 //- `np2wkh`: Pay to nested witness key hash (`NESTED_PUBKEY_HASH` = 1)
+//- `p2tr`: Pay to taproot pubkey (`TAPROOT_PUBKEY` = 4)
 type AddressType int32
 
 const (
@@ -32,6 +33,8 @@ const (
 	AddressType_NESTED_PUBKEY_HASH         AddressType = 1
 	AddressType_UNUSED_WITNESS_PUBKEY_HASH AddressType = 2
 	AddressType_UNUSED_NESTED_PUBKEY_HASH  AddressType = 3
+	AddressType_TAPROOT_PUBKEY             AddressType = 4
+	AddressType_UNUSED_TAPROOT_PUBKEY      AddressType = 5
 )
 
 // Enum value maps for AddressType.
@@ -41,12 +44,16 @@ var (
 		1: "NESTED_PUBKEY_HASH",
 		2: "UNUSED_WITNESS_PUBKEY_HASH",
 		3: "UNUSED_NESTED_PUBKEY_HASH",
+		4: "TAPROOT_PUBKEY",
+		5: "UNUSED_TAPROOT_PUBKEY",
 	}
 	AddressType_value = map[string]int32{
 		"WITNESS_PUBKEY_HASH":        0,
 		"NESTED_PUBKEY_HASH":         1,
 		"UNUSED_WITNESS_PUBKEY_HASH": 2,
 		"UNUSED_NESTED_PUBKEY_HASH":  3,
+		"TAPROOT_PUBKEY":             4,
+		"UNUSED_TAPROOT_PUBKEY":      5,
 	}
 )
 
@@ -18742,15 +18749,18 @@ var file_lightning_proto_rawDesc = []byte{
 	0x12, 0x35, 0x0a, 0x16, 0x72, 0x65, 0x70, 0x6c, 0x61, 0x63, 0x65, 0x6d, 0x65, 0x6e, 0x74, 0x5f,
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diff --git a/lnrpc/lightning.proto b/lnrpc/lightning.proto
index c2c670e75471..ef5f6fedce45 100644
--- a/lnrpc/lightning.proto
+++ b/lnrpc/lightning.proto
@@ -1102,12 +1102,15 @@ message ListUnspentResponse {
 
 - `p2wkh`: Pay to witness key hash (`WITNESS_PUBKEY_HASH` = 0)
 - `np2wkh`: Pay to nested witness key hash (`NESTED_PUBKEY_HASH` = 1)
+- `p2tr`: Pay to taproot pubkey (`TAPROOT_PUBKEY` = 4)
 */
 enum AddressType {
     WITNESS_PUBKEY_HASH = 0;
     NESTED_PUBKEY_HASH = 1;
     UNUSED_WITNESS_PUBKEY_HASH = 2;
     UNUSED_NESTED_PUBKEY_HASH = 3;
+    TAPROOT_PUBKEY = 4;
+    UNUSED_TAPROOT_PUBKEY = 5;
 }
 
 message NewAddressRequest {
diff --git a/lnrpc/lightning.swagger.json b/lnrpc/lightning.swagger.json
index 10220e66127a..f228ae722996 100644
--- a/lnrpc/lightning.swagger.json
+++ b/lnrpc/lightning.swagger.json
@@ -1801,7 +1801,9 @@
               "WITNESS_PUBKEY_HASH",
               "NESTED_PUBKEY_HASH",
               "UNUSED_WITNESS_PUBKEY_HASH",
-              "UNUSED_NESTED_PUBKEY_HASH"
+              "UNUSED_NESTED_PUBKEY_HASH",
+              "TAPROOT_PUBKEY",
+              "UNUSED_TAPROOT_PUBKEY"
             ],
             "default": "WITNESS_PUBKEY_HASH"
           },
@@ -2923,10 +2925,12 @@
         "WITNESS_PUBKEY_HASH",
         "NESTED_PUBKEY_HASH",
         "UNUSED_WITNESS_PUBKEY_HASH",
-        "UNUSED_NESTED_PUBKEY_HASH"
+        "UNUSED_NESTED_PUBKEY_HASH",
+        "TAPROOT_PUBKEY",
+        "UNUSED_TAPROOT_PUBKEY"
       ],
       "default": "WITNESS_PUBKEY_HASH",
-      "description": "- `p2wkh`: Pay to witness key hash (`WITNESS_PUBKEY_HASH` = 0)\n- `np2wkh`: Pay to nested witness key hash (`NESTED_PUBKEY_HASH` = 1)",
+      "description": "- `p2wkh`: Pay to witness key hash (`WITNESS_PUBKEY_HASH` = 0)\n- `np2wkh`: Pay to nested witness key hash (`NESTED_PUBKEY_HASH` = 1)\n- `p2tr`: Pay to taproot pubkey (`TAPROOT_PUBKEY` = 4)",
       "title": "`AddressType` has to be one of:"
     },
     "lnrpcAmount": {
diff --git a/lnrpc/marshall_utils.go b/lnrpc/marshall_utils.go
index 0af5b43f0282..2d7171552647 100644
--- a/lnrpc/marshall_utils.go
+++ b/lnrpc/marshall_utils.go
@@ -94,6 +94,9 @@ func MarshalUtxos(utxos []*lnwallet.Utxo, activeNetParams *chaincfg.Params) (
 		case lnwallet.NestedWitnessPubKey:
 			addrType = AddressType_NESTED_PUBKEY_HASH
 
+		case lnwallet.TaprootPubkey:
+			addrType = AddressType_TAPROOT_PUBKEY
+
 		case lnwallet.UnknownAddressType:
 			continue
 
diff --git a/lnrpc/walletrpc/walletkit.pb.go b/lnrpc/walletrpc/walletkit.pb.go
index 4a1686da275a..26c7f8a88a0d 100644
--- a/lnrpc/walletrpc/walletkit.pb.go
+++ b/lnrpc/walletrpc/walletkit.pb.go
@@ -29,6 +29,7 @@ const (
 	AddressType_WITNESS_PUBKEY_HASH               AddressType = 1
 	AddressType_NESTED_WITNESS_PUBKEY_HASH        AddressType = 2
 	AddressType_HYBRID_NESTED_WITNESS_PUBKEY_HASH AddressType = 3
+	AddressType_TAPROOT_PUBKEY                    AddressType = 4
 )
 
 // Enum value maps for AddressType.
@@ -38,12 +39,14 @@ var (
 		1: "WITNESS_PUBKEY_HASH",
 		2: "NESTED_WITNESS_PUBKEY_HASH",
 		3: "HYBRID_NESTED_WITNESS_PUBKEY_HASH",
+		4: "TAPROOT_PUBKEY",
 	}
 	AddressType_value = map[string]int32{
 		"UNKNOWN":                           0,
 		"WITNESS_PUBKEY_HASH":               1,
 		"NESTED_WITNESS_PUBKEY_HASH":        2,
 		"HYBRID_NESTED_WITNESS_PUBKEY_HASH": 3,
+		"TAPROOT_PUBKEY":                    4,
 	}
 )
 
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+	0x06, 0x70, 0x72, 0x6f, 0x74, 0x6f, 0x33,
 }
 
 var (
diff --git a/lnrpc/walletrpc/walletkit.proto b/lnrpc/walletrpc/walletkit.proto
index 84ff7a688854..40f7f840a37c 100644
--- a/lnrpc/walletrpc/walletkit.proto
+++ b/lnrpc/walletrpc/walletkit.proto
@@ -324,6 +324,7 @@ enum AddressType {
     WITNESS_PUBKEY_HASH = 1;
     NESTED_WITNESS_PUBKEY_HASH = 2;
     HYBRID_NESTED_WITNESS_PUBKEY_HASH = 3;
+    TAPROOT_PUBKEY = 4;
 }
 message Account {
     // The name used to identify the account.
diff --git a/lnrpc/walletrpc/walletkit.swagger.json b/lnrpc/walletrpc/walletkit.swagger.json
index c40c6669123c..00a528f216ab 100644
--- a/lnrpc/walletrpc/walletkit.swagger.json
+++ b/lnrpc/walletrpc/walletkit.swagger.json
@@ -52,7 +52,8 @@
               "UNKNOWN",
               "WITNESS_PUBKEY_HASH",
               "NESTED_WITNESS_PUBKEY_HASH",
-              "HYBRID_NESTED_WITNESS_PUBKEY_HASH"
+              "HYBRID_NESTED_WITNESS_PUBKEY_HASH",
+              "TAPROOT_PUBKEY"
             ],
             "default": "UNKNOWN"
           }
@@ -695,10 +696,12 @@
         "WITNESS_PUBKEY_HASH",
         "NESTED_PUBKEY_HASH",
         "UNUSED_WITNESS_PUBKEY_HASH",
-        "UNUSED_NESTED_PUBKEY_HASH"
+        "UNUSED_NESTED_PUBKEY_HASH",
+        "TAPROOT_PUBKEY",
+        "UNUSED_TAPROOT_PUBKEY"
       ],
       "default": "WITNESS_PUBKEY_HASH",
-      "description": "- `p2wkh`: Pay to witness key hash (`WITNESS_PUBKEY_HASH` = 0)\n- `np2wkh`: Pay to nested witness key hash (`NESTED_PUBKEY_HASH` = 1)",
+      "description": "- `p2wkh`: Pay to witness key hash (`WITNESS_PUBKEY_HASH` = 0)\n- `np2wkh`: Pay to nested witness key hash (`NESTED_PUBKEY_HASH` = 1)\n- `p2tr`: Pay to taproot pubkey (`TAPROOT_PUBKEY` = 4)",
       "title": "`AddressType` has to be one of:"
     },
     "lnrpcOutPoint": {
@@ -962,7 +965,8 @@
         "UNKNOWN",
         "WITNESS_PUBKEY_HASH",
         "NESTED_WITNESS_PUBKEY_HASH",
-        "HYBRID_NESTED_WITNESS_PUBKEY_HASH"
+        "HYBRID_NESTED_WITNESS_PUBKEY_HASH",
+        "TAPROOT_PUBKEY"
       ],
       "default": "UNKNOWN"
     },
diff --git a/lnrpc/walletrpc/walletkit_server.go b/lnrpc/walletrpc/walletkit_server.go
index da952a743d2e..1be863edd552 100644
--- a/lnrpc/walletrpc/walletkit_server.go
+++ b/lnrpc/walletrpc/walletkit_server.go
@@ -1326,6 +1326,9 @@ func marshalWalletAccount(internalScope waddrmgr.KeyScope,
 	case waddrmgr.KeyScopeBIP0084:
 		addrType = AddressType_WITNESS_PUBKEY_HASH
 
+	case waddrmgr.KeyScopeBIP0086:
+		addrType = AddressType_TAPROOT_PUBKEY
+
 	case internalScope:
 		addrType = AddressType_WITNESS_PUBKEY_HASH
 
@@ -1384,6 +1387,10 @@ func (w *WalletKit) ListAccounts(ctx context.Context,
 		keyScope := waddrmgr.KeyScopeBIP0049Plus
 		keyScopeFilter = &keyScope
 
+	case AddressType_TAPROOT_PUBKEY:
+		keyScope := waddrmgr.KeyScopeBIP0086
+		keyScopeFilter = &keyScope
+
 	default:
 		return nil, fmt.Errorf("unhandled address type %v", req.AddressType)
 	}
@@ -1439,6 +1446,10 @@ func parseAddrType(addrType AddressType,
 		addrTyp := waddrmgr.WitnessPubKey
 		return &addrTyp, nil
 
+	case AddressType_TAPROOT_PUBKEY:
+		addrTyp := waddrmgr.TaprootPubKey
+		return &addrTyp, nil
+
 	default:
 		return nil, fmt.Errorf("unhandled address type %v", addrType)
 	}
diff --git a/lntest/itest/lnd_taproot_test.go b/lntest/itest/lnd_taproot_test.go
new file mode 100644
index 000000000000..a821f2bcfb0c
--- /dev/null
+++ b/lntest/itest/lnd_taproot_test.go
@@ -0,0 +1,81 @@
+package itest
+
+import (
+	"context"
+	"time"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/lightningnetwork/lnd/lnrpc"
+	"github.com/lightningnetwork/lnd/lntest"
+	"github.com/stretchr/testify/require"
+)
+
+// testTaproot ensures that the daemon can send to and spend from taproot (p2tr)
+// outputs.
+func testTaproot(net *lntest.NetworkHarness, t *harnessTest) {
+	ctxb := context.Background()
+	ctxt, cancel := context.WithTimeout(ctxb, defaultTimeout)
+	defer cancel()
+
+	// We'll start the test by sending Alice some coins, which she'll use to
+	// send to herself on a p2tr output.
+	net.SendCoins(t.t, btcutil.SatoshiPerBitcoin, net.Alice)
+
+	// Let's create a p2tr address now.
+	p2trResp, err := net.Alice.NewAddress(ctxt, &lnrpc.NewAddressRequest{
+		Type: lnrpc.AddressType_TAPROOT_PUBKEY,
+	})
+	require.NoError(t.t, err)
+
+	// Assert this is a segwit v1 address that starts with bcrt1p.
+	require.Contains(
+		t.t, p2trResp.Address, net.Miner.ActiveNet.Bech32HRPSegwit+"1p",
+	)
+
+	// Send the coins from Alice's wallet to her own, but to the new p2tr
+	// address.
+	_, err = net.Alice.SendCoins(ctxt, &lnrpc.SendCoinsRequest{
+		Addr:   p2trResp.Address,
+		Amount: 0.5 * btcutil.SatoshiPerBitcoin,
+	})
+	require.NoError(t.t, err)
+
+	txid, err := waitForTxInMempool(net.Miner.Client, 5*time.Second)
+	require.NoError(t.t, err)
+
+	// Wait until bob has seen the tx and considers it as owned.
+	p2trOutputIndex := getOutputIndex(t, net, txid, p2trResp.Address)
+	op := &lnrpc.OutPoint{
+		TxidBytes:   txid[:],
+		OutputIndex: uint32(p2trOutputIndex),
+	}
+	assertWalletUnspent(t, net.Alice, op)
+
+	// Mine a block to clean up the mempool.
+	mineBlocks(t, net, 1, 1)
+
+	// Let's sweep the whole wallet to a new p2tr address, making sure we
+	// can sign transactions with v0 and v1 inputs.
+	p2trResp, err = net.Alice.NewAddress(ctxt, &lnrpc.NewAddressRequest{
+		Type: lnrpc.AddressType_TAPROOT_PUBKEY,
+	})
+	require.NoError(t.t, err)
+
+	_, err = net.Alice.SendCoins(ctxt, &lnrpc.SendCoinsRequest{
+		Addr:    p2trResp.Address,
+		SendAll: true,
+	})
+	require.NoError(t.t, err)
+
+	// Wait until the wallet cleaning sweep tx is found.
+	txid, err = waitForTxInMempool(net.Miner.Client, minerMempoolTimeout)
+	require.NoError(t.t, err)
+
+	// Wait until bob has seen the tx and considers it as owned.
+	p2trOutputIndex = getOutputIndex(t, net, txid, p2trResp.Address)
+	op = &lnrpc.OutPoint{
+		TxidBytes:   txid[:],
+		OutputIndex: uint32(p2trOutputIndex),
+	}
+	assertWalletUnspent(t, net.Alice, op)
+}
diff --git a/lntest/itest/lnd_test_list_on_test.go b/lntest/itest/lnd_test_list_on_test.go
index b53e751e8a53..064d212513bf 100644
--- a/lntest/itest/lnd_test_list_on_test.go
+++ b/lntest/itest/lnd_test_list_on_test.go
@@ -379,4 +379,8 @@ var allTestCases = []*testCase{
 		name: "remote signer",
 		test: testRemoteSigner,
 	},
+	{
+		name: "taproot",
+		test: testTaproot,
+	},
 }
diff --git a/lntest/itest/utils.go b/lntest/itest/utils.go
index 5c11f9b9bcd9..503cfd4309d6 100644
--- a/lntest/itest/utils.go
+++ b/lntest/itest/utils.go
@@ -8,7 +8,9 @@ import (
 	"time"
 
 	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
 	"github.com/btcsuite/btcd/rpcclient"
+	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcd/wire"
 	"github.com/go-errors/errors"
 	"github.com/lightningnetwork/lnd/input"
@@ -463,3 +465,31 @@ func findTxAtHeight(t *harnessTest, height int32,
 
 	return nil
 }
+
+// getOutputIndex returns the output index of the given address in the given
+// transaction.
+func getOutputIndex(t *harnessTest, net *lntest.NetworkHarness,
+	txid *chainhash.Hash, addr string) int {
+
+	t.t.Helper()
+
+	// We'll then extract the raw transaction from the mempool in order to
+	// determine the index of the p2tr output.
+	tx, err := net.Miner.Client.GetRawTransaction(txid)
+	require.NoError(t.t, err)
+
+	p2trOutputIndex := -1
+	for i, txOut := range tx.MsgTx().TxOut {
+		_, addrs, _, err := txscript.ExtractPkScriptAddrs(
+			txOut.PkScript, net.Miner.ActiveNet,
+		)
+		require.NoError(t.t, err)
+
+		if addrs[0].String() == addr {
+			p2trOutputIndex = i
+		}
+	}
+	require.Greater(t.t, p2trOutputIndex, -1)
+
+	return p2trOutputIndex
+}
diff --git a/lntest/mock/walletcontroller.go b/lntest/mock/walletcontroller.go
index 81abefbdf75a..3831cc27a62d 100644
--- a/lntest/mock/walletcontroller.go
+++ b/lntest/mock/walletcontroller.go
@@ -52,6 +52,16 @@ func (w *WalletController) FetchInputInfo(
 	return utxo, nil
 }
 
+// FetchPrevOutput attempts to fetch the previous output referenced by
+// the passed outpoint. A nil value will be returned if the passed
+// outpoint doesn't exist.
+func (w *WalletController) FetchPrevOutput(wire.OutPoint) *wire.TxOut {
+	return &wire.TxOut{
+		Value:    10 * btcutil.SatoshiPerBitcoin,
+		PkScript: []byte("dummy"),
+	}
+}
+
 // ScriptForOutput returns the address, witness program and redeem script for a
 // given UTXO. An error is returned if the UTXO does not belong to our wallet or
 // it is not a managed pubKey address.
diff --git a/lnwallet/btcwallet/btcwallet.go b/lnwallet/btcwallet/btcwallet.go
index c71693ff8d9c..decf73027915 100644
--- a/lnwallet/btcwallet/btcwallet.go
+++ b/lnwallet/btcwallet/btcwallet.go
@@ -457,6 +457,8 @@ func (b *BtcWallet) keyScopeForAccountAddr(accountName string,
 		addrKeyScope = waddrmgr.KeyScopeBIP0084
 	case lnwallet.NestedWitnessPubKey:
 		addrKeyScope = waddrmgr.KeyScopeBIP0049Plus
+	case lnwallet.TaprootPubkey:
+		addrKeyScope = waddrmgr.KeyScopeBIP0086
 	default:
 		return waddrmgr.KeyScope{}, 0,
 			fmt.Errorf("unknown address type")
@@ -561,7 +563,7 @@ func (b *BtcWallet) ListAccounts(name string,
 	// Only the name filter was provided.
 	case name != "" && keyScope == nil:
 		// If the name corresponds to the default or imported accounts,
-		// we'll return them for both of our supported key scopes.
+		// we'll return them for all our supported key scopes.
 		if name == lnwallet.DefaultAccountName ||
 			name == waddrmgr.ImportedAddrAccountName {
 
@@ -580,6 +582,14 @@ func (b *BtcWallet) ListAccounts(name string,
 				return nil, err
 			}
 			res = append(res, a2)
+
+			a3, err := b.wallet.AccountPropertiesByName(
+				waddrmgr.KeyScopeBIP0086, name,
+			)
+			if err != nil {
+				return nil, err
+			}
+			res = append(res, a3)
 			break
 		}
 
@@ -628,6 +638,15 @@ func (b *BtcWallet) ListAccounts(name string,
 			res = append(res, &account.AccountProperties)
 		}
 
+		accounts, err = b.wallet.Accounts(waddrmgr.KeyScopeBIP0086)
+		if err != nil {
+			return nil, err
+		}
+		for _, account := range accounts.Accounts {
+			account := account
+			res = append(res, &account.AccountProperties)
+		}
+
 		accounts, err = b.wallet.Accounts(waddrmgr.KeyScope{
 			Purpose: keychain.BIP0043Purpose,
 			Coin:    b.cfg.CoinType,
@@ -898,10 +917,13 @@ func (b *BtcWallet) ListUnspentWitness(minConfs, maxConfs int32,
 			// wallet are nested p2pkh. We can't check the redeem script because
 			// the btcwallet service does not include it.
 			addressType = lnwallet.NestedWitnessPubKey
+		} else if txscript.IsPayToTaproot(pkScript) {
+			addressType = lnwallet.TaprootPubkey
 		}
 
 		if addressType == lnwallet.WitnessPubKey ||
-			addressType == lnwallet.NestedWitnessPubKey {
+			addressType == lnwallet.NestedWitnessPubKey ||
+			addressType == lnwallet.TaprootPubkey {
 
 			txid, err := chainhash.NewHashFromStr(output.TxID)
 			if err != nil {
diff --git a/lnwallet/btcwallet/psbt.go b/lnwallet/btcwallet/psbt.go
index 0878fe71787d..ca19e1325097 100644
--- a/lnwallet/btcwallet/psbt.go
+++ b/lnwallet/btcwallet/psbt.go
@@ -9,6 +9,7 @@ import (
 	"github.com/btcsuite/btcd/btcutil/psbt"
 	"github.com/btcsuite/btcd/txscript"
 	"github.com/btcsuite/btcwallet/waddrmgr"
+	"github.com/btcsuite/btcwallet/wallet"
 	"github.com/lightningnetwork/lnd/input"
 	"github.com/lightningnetwork/lnd/lnwallet"
 	"github.com/lightningnetwork/lnd/lnwallet/chainfee"
@@ -107,7 +108,8 @@ func (b *BtcWallet) SignPsbt(packet *psbt.Packet) error {
 	// there are inputs that we don't know how to sign, we won't return any
 	// error. So it's possible we're not the final signer.
 	tx := packet.UnsignedTx
-	sigHashes := txscript.NewTxSigHashesV0Only(tx)
+	prevOutputFetcher := wallet.PsbtPrevOutputFetcher(packet)
+	sigHashes := txscript.NewTxSigHashes(tx, prevOutputFetcher)
 	for idx := range tx.TxIn {
 		in := packet.Inputs[idx]
 
diff --git a/lnwallet/btcwallet/signer.go b/lnwallet/btcwallet/signer.go
index c9c3c6c44f61..4a92efb179df 100644
--- a/lnwallet/btcwallet/signer.go
+++ b/lnwallet/btcwallet/signer.go
@@ -5,6 +5,7 @@ import (
 
 	"github.com/btcsuite/btcd/btcec/v2"
 	"github.com/btcsuite/btcd/btcec/v2/ecdsa"
+	"github.com/btcsuite/btcd/btcec/v2/schnorr"
 	"github.com/btcsuite/btcd/btcutil"
 	"github.com/btcsuite/btcd/btcutil/hdkeychain"
 	"github.com/btcsuite/btcd/chaincfg/chainhash"
@@ -51,6 +52,18 @@ func (b *BtcWallet) FetchInputInfo(prevOut *wire.OutPoint) (*lnwallet.Utxo, erro
 	}, nil
 }
 
+// FetchPrevOutput attempts to fetch the previous output referenced by
+// the passed outpoint. A nil value will be returned if the passed
+// outpoint doesn't exist.
+func (b *BtcWallet) FetchPrevOutput(op wire.OutPoint) *wire.TxOut {
+	_, txOut, _, _, err := b.wallet.FetchInputInfo(&op)
+	if err != nil {
+		return nil
+	}
+
+	return txOut
+}
+
 // ScriptForOutput returns the address, witness program and redeem script for a
 // given UTXO. An error is returned if the UTXO does not belong to our wallet or
 // it is not a managed pubKey address.
@@ -129,7 +142,8 @@ func (b *BtcWallet) deriveKeyByBIP32Path(path []uint32) (*btcec.PrivateKey,
 	// Is it a standard, BIP defined purpose that the wallet understands?
 	case waddrmgr.KeyScopeBIP0044.Purpose,
 		waddrmgr.KeyScopeBIP0049Plus.Purpose,
-		waddrmgr.KeyScopeBIP0084.Purpose:
+		waddrmgr.KeyScopeBIP0084.Purpose,
+		waddrmgr.KeyScopeBIP0086.Purpose:
 
 		// We're going to continue below the switch statement to avoid
 		// unnecessary indentation for this default case.
@@ -379,6 +393,50 @@ func (b *BtcWallet) SignOutputRaw(tx *wire.MsgTx,
 func (b *BtcWallet) ComputeInputScript(tx *wire.MsgTx,
 	signDesc *input.SignDescriptor) (*input.Script, error) {
 
+	if txscript.IsPayToTaproot(signDesc.Output.PkScript) {
+		_, addrs, _, err := txscript.ExtractPkScriptAddrs(
+			signDesc.Output.PkScript, b.netParams,
+		)
+		if err != nil {
+			return nil, fmt.Errorf("error parsing addr: %v", err)
+		}
+		privKey, err := b.wallet.PrivKeyForAddress(addrs[0])
+		if err != nil {
+			return nil, fmt.Errorf("error fetching priv key: %v",
+				err)
+		}
+		pubKey := privKey.PubKey()
+
+		tapKey := txscript.ComputeTaprootKeyNoScript(pubKey)
+		p2trAddr, err := btcutil.NewAddressTaproot(
+			schnorr.SerializePubKey(tapKey), b.netParams,
+		)
+		if err != nil {
+			return nil, err
+		}
+
+		// With the concrete address type, we can now generate the
+		// corresponding witness program to be used to generate a valid
+		// witness which will allow us to spend this output.
+		witnessProgram, err := txscript.PayToAddrScript(p2trAddr)
+		if err != nil {
+			return nil, err
+		}
+		witnessScript, err := txscript.TaprootWitnessSignature(
+			tx, signDesc.SigHashes, signDesc.InputIndex,
+			signDesc.Output.Value, witnessProgram,
+			txscript.SigHashDefault, privKey,
+		)
+		if err != nil {
+			return nil, err
+		}
+
+		return &input.Script{
+			Witness:   witnessScript,
+			SigScript: nil,
+		}, nil
+	}
+
 	// If a tweak (single or double) is specified, then we'll need to use
 	// this tweak to derive the final private key to be used for signing
 	// this output.
diff --git a/lnwallet/btcwallet/signer_test.go b/lnwallet/btcwallet/signer_test.go
index b946f3acfa73..030c576a4706 100644
--- a/lnwallet/btcwallet/signer_test.go
+++ b/lnwallet/btcwallet/signer_test.go
@@ -12,6 +12,7 @@ import (
 	"github.com/btcsuite/btcd/chaincfg"
 	"github.com/btcsuite/btcd/integration/rpctest"
 	"github.com/btcsuite/btcwallet/chain"
+	"github.com/btcsuite/btcwallet/waddrmgr"
 	"github.com/lightningnetwork/lnd/blockcache"
 	"github.com/lightningnetwork/lnd/lnwallet"
 	"github.com/stretchr/testify/require"
@@ -32,6 +33,11 @@ var (
 	// which is a special case for the BIP49/84 addresses in btcwallet).
 	firstAddress = "bcrt1qgdlgjc5ede7fjv350wcjqat80m0zsmfaswsj9p"
 
+	// firstAddressTaproot is the first address that we should get from the
+	// wallet when deriving a taproot address.
+	firstAddressTaproot = "bcrt1ps8c222fgysvnsj2m8hxk8khy6wthcrhv9va9z3t4" +
+		"h3qeyz65sh4qqwvdgc"
+
 	testCases = []struct {
 		name string
 		path []uint32
@@ -167,6 +173,25 @@ func TestBip32KeyDerivation(t *testing.T) {
 	}
 }
 
+func TestScriptImport(t *testing.T) {
+	netParams := &chaincfg.RegressionNetParams
+	w, cleanup := newTestWallet(t, netParams, seedBytes)
+	defer cleanup()
+
+	firstDerivedAddr, err := w.NewAddress(
+		lnwallet.TaprootPubkey, false, lnwallet.DefaultAccountName,
+	)
+	require.NoError(t, err)
+	require.Equal(t, firstAddressTaproot, firstDerivedAddr.String())
+
+	_, err = w.InternalWallet().Manager.FetchScopedKeyManager(
+		waddrmgr.KeyScopeBIP0086,
+	)
+	require.NoError(t, err)
+
+	// mgr.ImportWitnessScript()
+}
+
 func newTestWallet(t *testing.T, netParams *chaincfg.Params,
 	seedBytes []byte) (*BtcWallet, func()) {
 
diff --git a/lnwallet/chanfunding/assembler.go b/lnwallet/chanfunding/assembler.go
index 4e6e62d259fc..0806f08f1d0b 100644
--- a/lnwallet/chanfunding/assembler.go
+++ b/lnwallet/chanfunding/assembler.go
@@ -17,6 +17,11 @@ type CoinSource interface {
 	// based on its outpoint. If the coin isn't under the control of the
 	// backing CoinSource, then an error should be returned.
 	CoinFromOutPoint(wire.OutPoint) (*Coin, error)
+
+	// FetchPrevOutput attempts to fetch the previous output referenced by
+	// the passed outpoint. A nil value will be returned if the passed
+	// outpoint doesn't exist.
+	FetchPrevOutput(wire.OutPoint) *wire.TxOut
 }
 
 // CoinSelectionLocker is an interface that allows the caller to perform an
diff --git a/lnwallet/chanfunding/wallet_assembler.go b/lnwallet/chanfunding/wallet_assembler.go
index c3e0be8609c1..fa204e12f5c4 100644
--- a/lnwallet/chanfunding/wallet_assembler.go
+++ b/lnwallet/chanfunding/wallet_assembler.go
@@ -108,8 +108,11 @@ func (f *FullIntent) CompileFundingTx(extraInputs []*wire.TxIn,
 	// Next, sign all inputs that are ours, collecting the signatures in
 	// order of the inputs.
 	signDesc := input.SignDescriptor{
-		HashType:  txscript.SigHashAll,
-		SigHashes: txscript.NewTxSigHashesV0Only(fundingTx),
+		HashType: txscript.SigHashAll,
+		SigHashes: txscript.NewTxSigHashes(
+			fundingTx, f.coinSource,
+		),
+		PrevOutputFetcher: f.coinSource,
 	}
 	for i, txIn := range fundingTx.TxIn {
 		// We can only sign this input if it's ours, so we'll ask the
diff --git a/lnwallet/interface.go b/lnwallet/interface.go
index b19066583822..1cf2b56a6025 100644
--- a/lnwallet/interface.go
+++ b/lnwallet/interface.go
@@ -41,6 +41,9 @@ const (
 	// NestedWitnessPubKey represents a p2sh output which is itself a
 	// nested p2wkh output.
 	NestedWitnessPubKey
+
+	// TaprootPubkey represents a p2tr key path spending address.
+	TaprootPubkey
 )
 
 var (
@@ -161,6 +164,11 @@ type WalletController interface {
 	// a non-nil error value of ErrNotMine should be returned instead.
 	FetchInputInfo(prevOut *wire.OutPoint) (*Utxo, error)
 
+	// FetchPrevOutput attempts to fetch the previous output referenced by
+	// the passed outpoint. A nil value will be returned if the passed
+	// outpoint doesn't exist.
+	FetchPrevOutput(wire.OutPoint) *wire.TxOut
+
 	// ScriptForOutput returns the address, witness program and redeem
 	// script for a given UTXO. An error is returned if the UTXO does not
 	// belong to our wallet or it is not a managed pubKey address.
diff --git a/lnwallet/rpcwallet/rpcwallet.go b/lnwallet/rpcwallet/rpcwallet.go
index 280f6067db4e..0366a0bfd335 100644
--- a/lnwallet/rpcwallet/rpcwallet.go
+++ b/lnwallet/rpcwallet/rpcwallet.go
@@ -131,8 +131,11 @@ func (r *RPCKeyRing) SendOutputs(outputs []*wire.TxOut,
 	// We know at this point that we only have inputs from our own wallet.
 	// So we can just compute the input script using the remote signer.
 	signDesc := input.SignDescriptor{
-		HashType:  txscript.SigHashAll,
-		SigHashes: txscript.NewTxSigHashesV0Only(tx),
+		HashType: txscript.SigHashAll,
+		SigHashes: txscript.NewTxSigHashes(
+			tx, r.WalletController,
+		),
+		PrevOutputFetcher: r.WalletController,
 	}
 	for i, txIn := range tx.TxIn {
 		// We can only sign this input if it's ours, so we'll ask the
diff --git a/lnwallet/wallet.go b/lnwallet/wallet.go
index 9f8cc5a9e0e5..d5da9378cba6 100644
--- a/lnwallet/wallet.go
+++ b/lnwallet/wallet.go
@@ -2219,6 +2219,21 @@ func (c *CoinSource) CoinFromOutPoint(op wire.OutPoint) (*chanfunding.Coin, erro
 	}, nil
 }
 
+// FetchPrevOutput attempts to fetch the previous output referenced by
+// the passed outpoint. A nil value will be returned if the passed
+// outpoint doesn't exist.
+func (c *CoinSource) FetchPrevOutput(op wire.OutPoint) *wire.TxOut {
+	inputInfo, err := c.wallet.FetchInputInfo(&op)
+	if err != nil {
+		return nil
+	}
+
+	return &wire.TxOut{
+		Value:    int64(inputInfo.Value),
+		PkScript: inputInfo.PkScript,
+	}
+}
+
 // shimKeyRing is a wrapper struct that's used to provide the proper multi-sig
 // key for an initiated external funding flow.
 type shimKeyRing struct {
diff --git a/rpcserver.go b/rpcserver.go
index b367172a09ac..74c0446257ec 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -1496,6 +1496,14 @@ func (r *rpcServer) NewAddress(ctx context.Context,
 			return nil, err
 		}
 
+	case lnrpc.AddressType_TAPROOT_PUBKEY:
+		addr, err = r.server.cc.Wallet.NewAddress(
+			lnwallet.TaprootPubkey, false, account,
+		)
+		if err != nil {
+			return nil, err
+		}
+
 	case lnrpc.AddressType_UNUSED_WITNESS_PUBKEY_HASH:
 		addr, err = r.server.cc.Wallet.LastUnusedAddress(
 			lnwallet.WitnessPubKey, account,
@@ -1511,6 +1519,14 @@ func (r *rpcServer) NewAddress(ctx context.Context,
 		if err != nil {
 			return nil, err
 		}
+
+	case lnrpc.AddressType_UNUSED_TAPROOT_PUBKEY:
+		addr, err = r.server.cc.Wallet.LastUnusedAddress(
+			lnwallet.TaprootPubkey, account,
+		)
+		if err != nil {
+			return nil, err
+		}
 	}
 
 	rpcsLog.Debugf("[newaddress] account=%v type=%v addr=%v", account,
diff --git a/sweep/sweeper_test.go b/sweep/sweeper_test.go
index 5ae22748d38d..351641fd4a92 100644
--- a/sweep/sweeper_test.go
+++ b/sweep/sweeper_test.go
@@ -355,7 +355,7 @@ func assertTxFeeRate(t *testing.T, tx *wire.MsgTx,
 	outputAmt := tx.TxOut[0].Value
 
 	fee := btcutil.Amount(inputAmt - outputAmt)
-	_, estimator := getWeightEstimate(inputs, nil, 0)
+	_, estimator := getWeightEstimate(inputs, nil, 0, nil)
 	txWeight := estimator.weight()
 
 	expectedFee := expectedFeeRate.FeeForWeight(int64(txWeight))
diff --git a/sweep/txgenerator.go b/sweep/txgenerator.go
index 02d958c48130..2efcf83a07f9 100644
--- a/sweep/txgenerator.go
+++ b/sweep/txgenerator.go
@@ -139,7 +139,9 @@ func createSweepTx(inputs []input.Input, outputs []*wire.TxOut,
 	feePerKw chainfee.SatPerKWeight, signer input.Signer) (*wire.MsgTx,
 	error) {
 
-	inputs, estimator := getWeightEstimate(inputs, outputs, feePerKw)
+	inputs, estimator := getWeightEstimate(
+		inputs, outputs, feePerKw, changePkScript,
+	)
 	txFee := estimator.fee()
 
 	var (
@@ -262,13 +264,18 @@ func createSweepTx(inputs []input.Input, outputs []*wire.TxOut,
 		return nil, err
 	}
 
-	hashCache := txscript.NewTxSigHashesV0Only(sweepTx)
+	prevInputFetcher, err := input.MultiPrevOutFetcher(inputs)
+	if err != nil {
+		return nil, fmt.Errorf("error creating prev input fetcher "+
+			"for hash cache: %v", err)
+	}
+	hashCache := txscript.NewTxSigHashes(sweepTx, prevInputFetcher)
 
 	// With all the inputs in place, use each output's unique input script
 	// function to generate the final witness required for spending.
 	addInputScript := func(idx int, tso input.Input) error {
 		inputScript, err := tso.CraftInputScript(
-			signer, sweepTx, hashCache, idx,
+			signer, sweepTx, hashCache, prevInputFetcher, idx,
 		)
 		if err != nil {
 			return err
@@ -305,7 +312,8 @@ func createSweepTx(inputs []input.Input, outputs []*wire.TxOut,
 // getWeightEstimate returns a weight estimate for the given inputs.
 // Additionally, it returns counts for the number of csv and cltv inputs.
 func getWeightEstimate(inputs []input.Input, outputs []*wire.TxOut,
-	feeRate chainfee.SatPerKWeight) ([]input.Input, *weightEstimator) {
+	feeRate chainfee.SatPerKWeight, outputPkScript []byte) ([]input.Input,
+	*weightEstimator) {
 
 	// We initialize a weight estimator so we can accurately asses the
 	// amount of fees we need to pay for this sweep transaction.
@@ -327,7 +335,11 @@ func getWeightEstimate(inputs []input.Input, outputs []*wire.TxOut,
 	// change output to the weight estimate regardless, since the estimated
 	// fee will just be subtracted from this already dust output, and
 	// trimmed.
-	weightEstimate.addP2WKHOutput()
+	if txscript.IsPayToTaproot(outputPkScript) {
+		weightEstimate.addOutput(&wire.TxOut{PkScript: outputPkScript})
+	} else {
+		weightEstimate.addP2WKHOutput()
+	}
 
 	// For each output, use its witness type to determine the estimate
 	// weight of its witness, and add it to the proper set of spendable
diff --git a/sweep/txgenerator_test.go b/sweep/txgenerator_test.go
index f8a6b8ac4f0c..960da63d31e8 100644
--- a/sweep/txgenerator_test.go
+++ b/sweep/txgenerator_test.go
@@ -39,7 +39,7 @@ func TestWeightEstimate(t *testing.T) {
 		))
 	}
 
-	_, estimator := getWeightEstimate(inputs, nil, 0)
+	_, estimator := getWeightEstimate(inputs, nil, 0, nil)
 	weight := int64(estimator.weight())
 	if weight != expectedWeight {
 		t.Fatalf("unexpected weight. expected %d but got %d.",
diff --git a/sweep/walletsweep.go b/sweep/walletsweep.go
index e541c190e4e5..795e163eb880 100644
--- a/sweep/walletsweep.go
+++ b/sweep/walletsweep.go
@@ -255,6 +255,9 @@ func CraftSweepAllTx(feeRate chainfee.SatPerKWeight, blockHeight uint32,
 		case lnwallet.NestedWitnessPubKey:
 			witnessType = input.NestedWitnessKeyHash
 
+		case lnwallet.TaprootPubkey:
+			witnessType = input.TaprootPubkeySpend
+
 		// All other output types we count as unknown and will fail to
 		// sweep.
 		default:
diff --git a/watchtower/lookout/justice_descriptor.go b/watchtower/lookout/justice_descriptor.go
index 5e21cda6bb0d..dac18b048d1b 100644
--- a/watchtower/lookout/justice_descriptor.go
+++ b/watchtower/lookout/justice_descriptor.go
@@ -2,6 +2,7 @@ package lookout
 
 import (
 	"errors"
+	"fmt"
 
 	"github.com/btcsuite/btcd/blockchain"
 	"github.com/btcsuite/btcd/btcec/v2"
@@ -177,11 +178,11 @@ func (p *JusticeDescriptor) assembleJusticeTxn(txWeight int64,
 	// First, construct add the breached inputs to our justice transaction
 	// and compute the total amount that will be swept.
 	var totalAmt btcutil.Amount
-	for _, input := range inputs {
-		totalAmt += btcutil.Amount(input.txOut.Value)
+	for _, inp := range inputs {
+		totalAmt += btcutil.Amount(inp.txOut.Value)
 		justiceTxn.AddTxIn(&wire.TxIn{
-			PreviousOutPoint: input.outPoint,
-			Sequence:         input.sequence,
+			PreviousOutPoint: inp.outPoint,
+			Sequence:         inp.sequence,
 		})
 	}
 
@@ -217,20 +218,22 @@ func (p *JusticeDescriptor) assembleJusticeTxn(txWeight int64,
 	}
 
 	// Attach each of the provided witnesses to the transaction.
-	for _, input := range inputs {
+	prevOutFetcher, err := prevOutFetcher(inputs)
+	if err != nil {
+		return nil, fmt.Errorf("error creating previous output "+
+			"fetcher: %v", err)
+	}
+	for _, inp := range inputs {
 		// Lookup the input's new post-sort position.
-		i := inputIndex[input.outPoint]
-		justiceTxn.TxIn[i].Witness = input.witness
+		i := inputIndex[inp.outPoint]
+		justiceTxn.TxIn[i].Witness = inp.witness
 
 		// Validate the reconstructed witnesses to ensure they are valid
 		// for the breached inputs.
 		vm, err := txscript.NewEngine(
-			input.txOut.PkScript, justiceTxn, i,
+			inp.txOut.PkScript, justiceTxn, i,
 			txscript.StandardVerifyFlags,
-			nil, nil, input.txOut.Value,
-			txscript.NewCannedPrevOutputFetcher(
-				input.txOut.PkScript, input.txOut.Value,
-			),
+			nil, nil, inp.txOut.Value, prevOutFetcher,
 		)
 		if err != nil {
 			return nil, err
@@ -345,3 +348,20 @@ func buildWitness(witnessStack [][]byte, witnessScript []byte) [][]byte {
 
 	return witness
 }
+
+// prevOutFetcher returns a txscript.MultiPrevOutFetcher for the given set
+// of inputs.
+func prevOutFetcher(inputs []*breachedInput) (*txscript.MultiPrevOutFetcher,
+	error) {
+
+	fetcher := txscript.NewMultiPrevOutFetcher(nil)
+	for _, inp := range inputs {
+		if inp.txOut == nil {
+			return nil, fmt.Errorf("missing input utxo information")
+		}
+
+		fetcher.AddPrevOut(inp.outPoint, inp.txOut)
+	}
+
+	return fetcher, nil
+}
diff --git a/watchtower/wtclient/backup_task.go b/watchtower/wtclient/backup_task.go
index 8dbdcf09dc28..5c291d4c3745 100644
--- a/watchtower/wtclient/backup_task.go
+++ b/watchtower/wtclient/backup_task.go
@@ -263,10 +263,12 @@ func (t *backupTask) craftSessionPayload(
 	// information. This will either be contain both the to-local and
 	// to-remote outputs, or only be the to-local output.
 	inputs := t.inputs()
-	for prevOutPoint, input := range inputs {
+	prevOutputFetcher := txscript.NewMultiPrevOutFetcher(nil)
+	for prevOutPoint, inp := range inputs {
+		prevOutputFetcher.AddPrevOut(prevOutPoint, inp.RequiredTxOut())
 		justiceTxn.AddTxIn(&wire.TxIn{
 			PreviousOutPoint: prevOutPoint,
-			Sequence:         input.BlocksToMaturity(),
+			Sequence:         inp.BlocksToMaturity(),
 		})
 	}
 
@@ -285,7 +287,7 @@ func (t *backupTask) craftSessionPayload(
 	}
 
 	// Construct a sighash cache to improve signing performance.
-	hashCache := txscript.NewTxSigHashesV0Only(justiceTxn)
+	hashCache := txscript.NewTxSigHashes(justiceTxn, prevOutputFetcher)
 
 	// Since the transaction inputs could have been reordered as a result of
 	// the BIP69 sort, create an index mapping each prevout to it's new
@@ -304,7 +306,7 @@ func (t *backupTask) craftSessionPayload(
 
 		// Construct the full witness required to spend this input.
 		inputScript, err := inp.CraftInputScript(
-			signer, justiceTxn, hashCache, i,
+			signer, justiceTxn, hashCache, prevOutputFetcher, i,
 		)
 		if err != nil {
 			return hint, nil, err