diff --git a/electrum/lnonion.py b/electrum/lnonion.py
index b57c04792..7760fd445 100644
--- a/electrum/lnonion.py
+++ b/electrum/lnonion.py
@@ -577,7 +577,14 @@ class OnionRoutingFailure(Exception):
         return error_bytes
 
 
-class OnionParsingError(OnionRoutingFailure): pass
+class OnionParsingError(OnionRoutingFailure):
+    """
+    Onion parsing error will cause a htlc to get failed with update_fail_malformed_htlc.
+    Using INVALID_ONION_VERSION as there is no unspecific BADONION failure code defined in the spec
+    for the case we just cannot parse the onion.
+    """
+    def __init__(self, data: bytes):
+        OnionRoutingFailure.__init__(self, code=OnionFailureCode.INVALID_ONION_VERSION, data=data)
 
 
 def construct_onion_error(
diff --git a/electrum/lnpeer.py b/electrum/lnpeer.py
index e263da1ca..1e8da558b 100644
--- a/electrum/lnpeer.py
+++ b/electrum/lnpeer.py
@@ -3229,7 +3229,6 @@ class Peer(Logger, EventListener):
         except Exception as parsing_exc:
             self.logger.warning(f"unable to parse onion: {str(parsing_exc)}")
             onion_parsing_error = OnionParsingError(
-                code=OnionFailureCodeMetaFlag.BADONION,
                 data=sha256(onion_packet_bytes or b''),
             )
             raise onion_parsing_error
@@ -3259,9 +3258,9 @@ class Peer(Logger, EventListener):
             raise OnionRoutingFailure(code=OnionFailureCode.INVALID_ONION_HMAC, data=onion_hash)
         except Exception as e:
             self.logger.warning(f"error processing onion packet: {e!r}")
-            raise OnionParsingError(code=OnionFailureCodeMetaFlag.BADONION, data=onion_hash)
+            raise OnionParsingError(data=onion_hash)
         if self.network.config.TEST_FAIL_HTLCS_AS_MALFORMED:
-            raise OnionRoutingFailure(code=OnionFailureCode.INVALID_ONION_VERSION, data=onion_hash)
+            raise OnionParsingError(data=onion_hash)
         if self.network.config.TEST_FAIL_HTLCS_WITH_TEMP_NODE_FAILURE:
             raise OnionRoutingFailure(code=OnionFailureCode.TEMPORARY_NODE_FAILURE, data=b'')
         return processed_onion