diff --git a/channeld/channel.c b/channeld/channel.c
index 37c481f4e5d9..9199b1812bd4 100644
--- a/channeld/channel.c
+++ b/channeld/channel.c
@@ -1590,7 +1590,9 @@ static void peer_in(struct peer *peer, const u8 *msg)
 
 	/* Must get funding_locked before almost anything. */
 	if (!peer->funding_locked[REMOTE]) {
-		if (type != WIRE_FUNDING_LOCKED && type != WIRE_PONG) {
+		if (type != WIRE_FUNDING_LOCKED
+		    && type != WIRE_PONG
+		    && type != WIRE_SHUTDOWN) {
 			peer_failed(&peer->cs,
 				    peer->gossip_index,
 				    &peer->channel_id,
diff --git a/lightningd/channel_control.c b/lightningd/channel_control.c
index c730704dacd1..93e6c92226bc 100644
--- a/lightningd/channel_control.c
+++ b/lightningd/channel_control.c
@@ -77,9 +77,9 @@ static void peer_got_shutdown(struct channel *channel, const u8 *msg)
 	}
 
 	/* If we weren't already shutting down, we are now */
-	if (channel->state == CHANNELD_NORMAL)
+	if (channel->state != CHANNELD_SHUTTING_DOWN)
 		channel_set_state(channel,
-				  CHANNELD_NORMAL, CHANNELD_SHUTTING_DOWN);
+				  channel->state, CHANNELD_SHUTTING_DOWN);
 
 	/* TODO(cdecker) Selectively save updated fields to DB */
 	wallet_channel_save(ld->wallet, channel);
diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index 0e6921913201..50c21b921cf0 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -853,9 +853,9 @@ static void json_close(struct command *cmd,
 	}
 
 	/* Normal case. */
-	if (channel->state == CHANNELD_NORMAL) {
+	if (channel->state == CHANNELD_NORMAL || channel->state == CHANNELD_AWAITING_LOCKIN) {
 		channel_set_state(channel,
-				  CHANNELD_NORMAL, CHANNELD_SHUTTING_DOWN);
+				  channel->state, CHANNELD_SHUTTING_DOWN);
 
 		if (channel->owner)
 			subd_send_msg(channel->owner,
diff --git a/tests/test_lightningd.py b/tests/test_lightningd.py
index 042e64711416..754c231c0619 100644
--- a/tests/test_lightningd.py
+++ b/tests/test_lightningd.py
@@ -3048,6 +3048,39 @@ def test_shutdown_reconnect(self):
         l2.daemon.wait_for_logs(['sendrawtx exit 0', ' to CLOSINGD_COMPLETE'])
         assert l1.bitcoin.rpc.getmempoolinfo()['size'] == 1
 
+    def test_shutdown_awaiting_lockin(self):
+        l1 = self.node_factory.get_node()
+        l2 = self.node_factory.get_node(options=['--anchor-confirms=3'])
+
+        l1.rpc.connect(l2.info['id'], 'localhost', l2.info['port'])
+        self.give_funds(l1, 10**6 + 1000000)
+        l1.rpc.fundchannel(l2.info['id'], 10**6)
+
+        # Technically, this is async to fundchannel.
+        l1.daemon.wait_for_log('sendrawtx exit 0')
+        bitcoind.generate_block(1)
+
+        l1.rpc.close(l2.info['id'])
+        l1.daemon.wait_for_log('CHANNELD_AWAITING_LOCKIN to CHANNELD_SHUTTING_DOWN')
+        l2.daemon.wait_for_log('CHANNELD_AWAITING_LOCKIN to CHANNELD_SHUTTING_DOWN')
+
+        l1.daemon.wait_for_log('CHANNELD_SHUTTING_DOWN to CLOSINGD_SIGEXCHANGE')
+        l2.daemon.wait_for_log('CHANNELD_SHUTTING_DOWN to CLOSINGD_SIGEXCHANGE')
+
+        # And should put closing into mempool (happens async, so
+        # CLOSINGD_COMPLETE may come first).
+        l1.daemon.wait_for_logs(['sendrawtx exit 0', ' to CLOSINGD_COMPLETE'])
+        l2.daemon.wait_for_logs(['sendrawtx exit 0', ' to CLOSINGD_COMPLETE'])
+        assert bitcoind.rpc.getmempoolinfo()['size'] == 1
+
+        bitcoind.generate_block(1)
+        l1.daemon.wait_for_log(' to ONCHAIN')
+        l2.daemon.wait_for_log(' to ONCHAIN')
+
+        bitcoind.generate_block(100)
+        wait_forget_channels(l1)
+        wait_forget_channels(l2)
+
     @unittest.skipIf(not DEVELOPER, "needs DEVELOPER=1")
     def test_closing_negotiation_reconnect(self):
         disconnects = ['-WIRE_CLOSING_SIGNED',