diff --git a/electrum/lnpeer.py b/electrum/lnpeer.py
index 5dcf4972e..1435389dc 100644
--- a/electrum/lnpeer.py
+++ b/electrum/lnpeer.py
@@ -112,6 +112,7 @@ class Peer(Logger):
         self._htlc_switch_iterstart_event = asyncio.Event()
         self._htlc_switch_iterdone_event = asyncio.Event()
         self._received_revack_event = asyncio.Event()
+        self.downstream_htlc_resolved_event = asyncio.Event()
 
     def send_message(self, message_name: str, **kwargs):
         assert type(message_name) is str
@@ -1198,16 +1199,17 @@ class Peer(Logger):
         chan.receive_fail_htlc(htlc_id, error_bytes=reason)  # TODO handle exc and maybe fail channel (e.g. bad htlc_id)
         self.maybe_send_commitment(chan)
 
-    def maybe_send_commitment(self, chan: Channel):
+    def maybe_send_commitment(self, chan: Channel) -> bool:
         # REMOTE should revoke first before we can sign a new ctx
         if chan.hm.is_revack_pending(REMOTE):
-            return
+            return False
         # if there are no changes, we will not (and must not) send a new commitment
         if not chan.has_pending_changes(REMOTE):
-            return
+            return False
         self.logger.info(f'send_commitment. chan {chan.short_channel_id}. ctn: {chan.get_next_ctn(REMOTE)}.')
         sig_64, htlc_sigs = chan.sign_next_commitment()
         self.send_message("commitment_signed", channel_id=chan.channel_id, signature=sig_64, num_htlcs=len(htlc_sigs), htlc_signature=b"".join(htlc_sigs))
+        return True
 
     def pay(self, *,
             route: 'LNPaymentRoute',
@@ -1424,6 +1426,7 @@ class Peer(Logger):
         except BaseException as e:
             self.logger.info(f"failed to forward htlc: error sending message. {e}")
             raise OnionRoutingFailure(code=OnionFailureCode.TEMPORARY_CHANNEL_FAILURE, data=outgoing_chan_upd_message)
+        next_peer.maybe_send_commitment(next_chan)
         return next_chan_scid, next_htlc.htlc_id
 
     def maybe_forward_trampoline(
@@ -1845,11 +1848,14 @@ class Peer(Logger):
             self._htlc_switch_iterdone_event.set()
             self._htlc_switch_iterdone_event.clear()
             # We poll every 0.1 sec to check if there is work to do,
-            # or we can be woken up when receiving a revack.
-            # TODO when forwarding, we should also be woken up when there are
-            #      certain events with the downstream peer
+            # or we can also be triggered via events.
+            # When forwarding an HTLC originating from this peer (the upstream),
+            # we can get triggered for events that happen on the downstream peer.
+            # TODO: trampoline forwarding relies on the polling
             async with ignore_after(0.1):
-                await self._received_revack_event.wait()
+                async with TaskGroup(wait=any) as group:
+                    await group.spawn(self._received_revack_event.wait())
+                    await group.spawn(self.downstream_htlc_resolved_event.wait())
             self._htlc_switch_iterstart_event.set()
             self._htlc_switch_iterstart_event.clear()
             self.ping_if_required()
@@ -1861,6 +1867,8 @@ class Peer(Logger):
                 done = set()
                 unfulfilled = chan.unfulfilled_htlcs
                 for htlc_id, (local_ctn, remote_ctn, onion_packet_hex, forwarding_info) in unfulfilled.items():
+                    if forwarding_info:
+                        self.lnworker.downstream_htlc_to_upstream_peer_map[forwarding_info] = self.pubkey
                     if not chan.hm.is_htlc_irrevocably_added_yet(htlc_proposer=REMOTE, htlc_id=htlc_id):
                         continue
                     htlc = chan.hm.get_htlc_by_id(REMOTE, htlc_id)
@@ -1886,6 +1894,7 @@ class Peer(Logger):
                             error_bytes = construct_onion_error(e, onion_packet, our_onion_private_key=self.privkey)
                     if fw_info:
                         unfulfilled[htlc_id] = local_ctn, remote_ctn, onion_packet_hex, fw_info
+                        self.lnworker.downstream_htlc_to_upstream_peer_map[fw_info] = self.pubkey
                     elif preimage or error_reason or error_bytes:
                         if preimage:
                             if not self.lnworker.enable_htlc_settle:
@@ -1904,7 +1913,10 @@ class Peer(Logger):
                         done.add(htlc_id)
                 # cleanup
                 for htlc_id in done:
-                    unfulfilled.pop(htlc_id)
+                    local_ctn, remote_ctn, onion_packet_hex, forwarding_info = unfulfilled.pop(htlc_id)
+                    if forwarding_info:
+                        self.lnworker.downstream_htlc_to_upstream_peer_map.pop(forwarding_info, None)
+                self.maybe_send_commitment(chan)
 
     def _maybe_cleanup_received_htlcs_pending_removal(self) -> None:
         done = set()
diff --git a/electrum/lnworker.py b/electrum/lnworker.py
index 6b1bde00d..efc0b4391 100644
--- a/electrum/lnworker.py
+++ b/electrum/lnworker.py
@@ -647,6 +647,8 @@ class LNWallet(LNWorker):
             self.set_invoice_status(payment_hash.hex(), PR_INFLIGHT)
 
         self.trampoline_forwarding_failures = {} # todo: should be persisted
+        # map forwarded htlcs (fw_info=(scid_hex, htlc_id)) to originating peer pubkeys
+        self.downstream_htlc_to_upstream_peer_map = {}  # type: Dict[Tuple[str, int], bytes]
 
     def has_deterministic_node_id(self):
         return bool(self.db.get('lightning_xprv'))
@@ -1847,8 +1849,23 @@ class LNWallet(LNWorker):
         info = info._replace(status=status)
         self.save_payment_info(info)
 
+    def _on_maybe_forwarded_htlc_resolved(self, chan: Channel, htlc_id: int) -> None:
+        """Called when an HTLC we offered on chan gets irrevocably fulfilled or failed.
+        If we find this was a forwarded HTLC, the upstream peer is notified.
+        """
+        fw_info = chan.short_channel_id.hex(), htlc_id
+        upstream_peer_pubkey = self.downstream_htlc_to_upstream_peer_map.get(fw_info)
+        if not upstream_peer_pubkey:
+            return
+        upstream_peer = self.peers.get(upstream_peer_pubkey)
+        if not upstream_peer:
+            return
+        upstream_peer.downstream_htlc_resolved_event.set()
+        upstream_peer.downstream_htlc_resolved_event.clear()
+
     def htlc_fulfilled(self, chan: Channel, payment_hash: bytes, htlc_id: int):
         util.trigger_callback('htlc_fulfilled', payment_hash, chan, htlc_id)
+        self._on_maybe_forwarded_htlc_resolved(chan=chan, htlc_id=htlc_id)
         q = self.sent_htlcs.get(payment_hash)
         if q:
             route, payment_secret, amount_msat, bucket_msat, amount_receiver_msat = self.sent_htlcs_routes[(payment_hash, chan.short_channel_id, htlc_id)]
@@ -1871,6 +1888,7 @@ class LNWallet(LNWorker):
             failure_message: Optional['OnionRoutingFailure']):
 
         util.trigger_callback('htlc_failed', payment_hash, chan, htlc_id)
+        self._on_maybe_forwarded_htlc_resolved(chan=chan, htlc_id=htlc_id)
         q = self.sent_htlcs.get(payment_hash)
         if q:
             # detect if it is part of a bucket
diff --git a/electrum/tests/test_lnpeer.py b/electrum/tests/test_lnpeer.py
index a3a766efb..772a3af72 100644
--- a/electrum/tests/test_lnpeer.py
+++ b/electrum/tests/test_lnpeer.py
@@ -153,6 +153,7 @@ class MockLNWallet(Logger, NetworkRetryManager[LNPeerAddr]):
         self.inflight_payments = set()
         self.preimages = {}
         self.stopping_soon = False
+        self.downstream_htlc_to_upstream_peer_map = {}
 
         self.logger.info(f"created LNWallet[{name}] with nodeID={local_keypair.pubkey.hex()}")
 
@@ -241,6 +242,7 @@ class MockLNWallet(Logger, NetworkRetryManager[LNPeerAddr]):
     on_proxy_changed = LNWallet.on_proxy_changed
     _decode_channel_update_msg = LNWallet._decode_channel_update_msg
     _handle_chanupd_from_failed_htlc = LNWallet._handle_chanupd_from_failed_htlc
+    _on_maybe_forwarded_htlc_resolved = LNWallet._on_maybe_forwarded_htlc_resolved
 
 
 class MockTransport: