diff --git a/electrum/lnonion.py b/electrum/lnonion.py
index 67edaf506..4867a8ac8 100644
--- a/electrum/lnonion.py
+++ b/electrum/lnonion.py
@@ -359,6 +359,7 @@ def process_onion_packet(
         *,
         associated_data: bytes = b'',
         is_trampoline=False,
+        is_onion_message=False,
         tlv_stream_name='payload') -> ProcessedOnionPacket:
     # TODO: check Onion features ( PERM|NODE|3 (required_node_feature_missing )
     if onion_packet.version != 0:
@@ -376,6 +377,8 @@ def process_onion_packet(
     # peel an onion layer off
     rho_key = get_bolt04_onion_key(b'rho', shared_secret)
     data_size = TRAMPOLINE_HOPS_DATA_SIZE if is_trampoline else HOPS_DATA_SIZE
+    if is_onion_message and len(onion_packet.hops_data) > HOPS_DATA_SIZE:
+        data_size = ONION_MESSAGE_LARGE_SIZE
     stream_bytes = generate_cipher_stream(rho_key, 2 * data_size)
     padded_header = onion_packet.hops_data + bytes(data_size)
     next_hops_data = xor_bytes(padded_header, stream_bytes)
diff --git a/electrum/onion_message.py b/electrum/onion_message.py
index 574fcbf95..6c8a2fd1a 100644
--- a/electrum/onion_message.py
+++ b/electrum/onion_message.py
@@ -320,7 +320,7 @@ def send_onion_message_to(
             payment_path_pubkeys = blinded_node_ids + blinded_path_blinded_ids
             hop_shared_secrets, _ = get_shared_secrets_along_route(payment_path_pubkeys, session_key)
             encrypt_onionmsg_tlv_hops_data(hops_data, hop_shared_secrets)
-            packet = new_onion_packet(payment_path_pubkeys, session_key, hops_data)
+            packet = new_onion_packet(payment_path_pubkeys, session_key, hops_data, onion_message=True)
             packet_b = packet.to_bytes()
 
     else:  # node pubkey
@@ -699,6 +699,11 @@ class OnionMessageManager(Logger):
             self.logger.debug('dummy hop')
             is_dummy_hop = True
         else:
+            # not a dummy hop, check if we are configured to forward
+            if not self.network.config.EXPERIMENTAL_LN_FORWARD_PAYMENTS:
+                self.logger.info(
+                    'onion_message dropped (not forwarding due to lightning_forward_payments config option disabled')
+                return
             # is next_node one of our peers?
             next_peer = self.lnwallet.peers.get(next_node_id)
             if not next_peer:
@@ -740,7 +745,7 @@ class OnionMessageManager(Logger):
 
     def process_onion_message_packet(self, blinding: bytes, onion_packet: OnionPacket) -> None:
         our_privkey = blinding_privkey(self.lnwallet.node_keypair.privkey, blinding)
-        processed_onion_packet = process_onion_packet(onion_packet, our_privkey, tlv_stream_name='onionmsg_tlv')
+        processed_onion_packet = process_onion_packet(onion_packet, our_privkey, is_onion_message=True, tlv_stream_name='onionmsg_tlv')
         payload = processed_onion_packet.hop_data.payload
 
         self.logger.debug(f'onion peeled: {processed_onion_packet!r}')
@@ -761,7 +766,5 @@ class OnionMessageManager(Logger):
 
         if processed_onion_packet.are_we_final:
             self.on_onion_message_received(recipient_data, payload)
-        elif self.network.config.EXPERIMENTAL_LN_FORWARD_PAYMENTS:
-            self.on_onion_message_forward(recipient_data, processed_onion_packet.next_packet, blinding, shared_secret)
         else:
-            self.logger.info('onion_message dropped')
+            self.on_onion_message_forward(recipient_data, processed_onion_packet.next_packet, blinding, shared_secret)
diff --git a/tests/test_onion_message.py b/tests/test_onion_message.py
index d8e65b9ff..55a54d2f6 100644
--- a/tests/test_onion_message.py
+++ b/tests/test_onion_message.py
@@ -168,7 +168,7 @@ class TestOnionMessage(ElectrumTestCase):
         our_privkey_int = our_privkey_int * b_hmac_int % ecc.CURVE_ORDER
         our_privkey = our_privkey_int.to_bytes(32, byteorder="big")
 
-        p = process_onion_packet(o, our_privkey, tlv_stream_name='onionmsg_tlv')
+        p = process_onion_packet(o, our_privkey, is_onion_message=True, tlv_stream_name='onionmsg_tlv')
 
         self.assertEqual(p.hop_data.blind_fields, {})
         self.assertEqual(p.hop_data.hmac, bfh('a5296325ba478ba1e1a9d1f30a2d5052b2e2889bbd64f72c72bc71d8817288a2'))