diff --git a/electrum/lnchannel.py b/electrum/lnchannel.py
index 0b69e93c1..9596ce684 100644
--- a/electrum/lnchannel.py
+++ b/electrum/lnchannel.py
@@ -572,8 +572,6 @@ class Channel(Logger):
         assert htlc.payment_hash == sha256(preimage)
         assert htlc_id not in log['settles']
         self.hm.send_settle(htlc_id)
-        if self.lnworker:
-            self.lnworker.set_invoice_status(htlc.payment_hash, PR_PAID)
 
     def receive_htlc_settle(self, preimage, htlc_id):
         self.logger.info("receive_htlc_settle")
diff --git a/electrum/lnpeer.py b/electrum/lnpeer.py
index fb4f6161a..3db7b80b6 100644
--- a/electrum/lnpeer.py
+++ b/electrum/lnpeer.py
@@ -1442,6 +1442,8 @@ class Peer(Logger):
     async def _fulfill_htlc(self, chan: Channel, htlc_id: int, preimage: bytes):
         self.logger.info(f"_fulfill_htlc. chan {chan.short_channel_id}. htlc_id {htlc_id}")
         chan.settle_htlc(preimage, htlc_id)
+        payment_hash = sha256(preimage)
+        self.lnworker.set_invoice_status(payment_hash, PR_PAID)
         remote_ctn = chan.get_latest_ctn(REMOTE)
         self.send_message("update_fulfill_htlc",
                           channel_id=chan.channel_id,