diff --git a/tests/plugins/htlc_accepted-failonion.py b/tests/plugins/htlc_accepted-failonion.py
new file mode 100755
index 000000000..c6c1ec5fe
--- /dev/null
+++ b/tests/plugins/htlc_accepted-failonion.py
@@ -0,0 +1,29 @@
+#!/usr/bin/env python3
+"""A simply plugin that fails HTLCs with a meaningless onion.
+
+"""
+from pyln.client import Plugin
+
+
+plugin = Plugin()
+
+
+@plugin.hook("htlc_accepted")
+def on_htlc_accepted(htlc, onion, plugin, **kwargs):
+    print('returning failonion', plugin.failonion)
+    return {"result": "fail", "failure_onion": plugin.failonion}
+
+
+@plugin.method("setfailonion")
+def setfailonion(plugin, onion):
+    """Sets the failure_onion to return when receiving an incoming HTLC.
+    """
+    plugin.failonion = onion
+
+
+@plugin.init()
+def on_init(**kwargs):
+    plugin.failonion = None
+
+
+plugin.run()
diff --git a/tests/test_plugin.py b/tests/test_plugin.py
index f8fc18711..2a74f954a 100644
--- a/tests/test_plugin.py
+++ b/tests/test_plugin.py
@@ -2135,3 +2135,14 @@ def test_hook_dep_stable(node_factory):
     l2.daemon.wait_for_log(r"dep_d.py: htlc_accepted called")
     l2.daemon.wait_for_log(r"dep_e.py: htlc_accepted called")
     l2.daemon.wait_for_log(r"dep_b.py: htlc_accepted called")
+
+
+def test_htlc_accepted_hook_failonion(node_factory):
+    plugin = os.path.join(os.path.dirname(__file__), 'plugins/htlc_accepted-failonion.py')
+    l1, l2 = node_factory.line_graph(2, opts=[{}, {'plugin': plugin}])
+
+    # an invalid onion
+    l2.rpc.setfailonion('0' * (292 * 2))
+    inv = l2.rpc.invoice(42, 'failonion000', '')['bolt11']
+    with pytest.raises(RpcError):
+        l1.rpc.pay(inv)