diff --git a/docs/release-notes/release-notes-0.14.0.md b/docs/release-notes/release-notes-0.14.0.md
index 4fb1a96c6e..46613c13fc 100644
--- a/docs/release-notes/release-notes-0.14.0.md
+++ b/docs/release-notes/release-notes-0.14.0.md
@@ -405,6 +405,9 @@ you.
   [Lnd is updated to use the version of Neutrino containing this 
   fix](https://github.com/lightningnetwork/lnd/pull/5807).
 
+* [Use the change output index when validating the reserved wallet balance for
+  SendCoins/SendMany calls](https://github.com/lightningnetwork/lnd/pull/5665)
+
 ## Documentation 
 
 The [code contribution guidelines have been updated to mention the new
diff --git a/lnwallet/wallet.go b/lnwallet/wallet.go
index a99fd1b1e5..b0ba460f42 100644
--- a/lnwallet/wallet.go
+++ b/lnwallet/wallet.go
@@ -272,6 +272,20 @@ type addSingleFunderSigsMsg struct {
 	err chan error
 }
 
+// CheckReservedValueTxReq is the request struct used to call
+// CheckReservedValueTx with. It contains the transaction to check as well as
+// an optional explicitly defined index to denote a change output that is not
+// watched by the wallet.
+type CheckReservedValueTxReq struct {
+	// Tx is the transaction to check the outputs for.
+	Tx *wire.MsgTx
+
+	// ChangeIndex denotes an optional output index that can be explicitly
+	// set for a change that is not being watched by the wallet and would
+	// otherwise not be recognized as a change output.
+	ChangeIndex *int
+}
+
 // LightningWallet is a domain specific, yet general Bitcoin wallet capable of
 // executing workflow required to interact with the Lightning Network. It is
 // domain specific in the sense that it understands all the fancy scripts used
@@ -1036,8 +1050,8 @@ func (l *LightningWallet) CheckReservedValue(in []wire.OutPoint,
 // database.
 //
 // NOTE: This method should only be run with the CoinSelectLock held.
-func (l *LightningWallet) CheckReservedValueTx(tx *wire.MsgTx) (btcutil.Amount,
-	error) {
+func (l *LightningWallet) CheckReservedValueTx(req CheckReservedValueTxReq) (
+	btcutil.Amount, error) {
 
 	numAnchors, err := l.currentNumAnchorChans()
 	if err != nil {
@@ -1045,11 +1059,44 @@ func (l *LightningWallet) CheckReservedValueTx(tx *wire.MsgTx) (btcutil.Amount,
 	}
 
 	var inputs []wire.OutPoint
-	for _, txIn := range tx.TxIn {
+	for _, txIn := range req.Tx.TxIn {
 		inputs = append(inputs, txIn.PreviousOutPoint)
 	}
 
-	return l.CheckReservedValue(inputs, tx.TxOut, numAnchors)
+	reservedVal, err := l.CheckReservedValue(
+		inputs, req.Tx.TxOut, numAnchors,
+	)
+	switch {
+
+	// If the error returned from CheckReservedValue is
+	// ErrReservedValueInvalidated, then it did nonetheless return
+	// the required reserved value and we check for the optional
+	// change index.
+	case errors.Is(err, ErrReservedValueInvalidated):
+		// Without a change index provided there is nothing more to
+		// check and the error is returned.
+		if req.ChangeIndex == nil {
+			return reservedVal, err
+		}
+
+		// If a change index was provided we make only sure that it
+		// would leave sufficient funds for the reserved balance value.
+		//
+		// Note: This is used if a change output index is explicitly set
+		// but that may not be watched by the wallet and therefore is
+		// not picked up by the call to CheckReservedValue above.
+		chIdx := *req.ChangeIndex
+		if chIdx < 0 || chIdx >= len(req.Tx.TxOut) ||
+			req.Tx.TxOut[chIdx].Value < int64(reservedVal) {
+
+			return reservedVal, err
+		}
+
+	case err != nil:
+		return reservedVal, err
+	}
+
+	return reservedVal, nil
 }
 
 // initOurContribution initializes the given ChannelReservation with our coins
diff --git a/rpcserver.go b/rpcserver.go
index 528412ba35..54d62c07be 100644
--- a/rpcserver.go
+++ b/rpcserver.go
@@ -1009,7 +1009,14 @@ func (r *rpcServer) sendCoinsOnChain(paymentMap map[string]int64,
 		return nil, err
 	}
 
-	_, err = r.server.cc.Wallet.CheckReservedValueTx(authoredTx.Tx)
+	// Check the authored transaction and use the explicitly set change index
+	// to make sure that the wallet reserved balance is not invalidated.
+	_, err = r.server.cc.Wallet.CheckReservedValueTx(
+		lnwallet.CheckReservedValueTxReq{
+			Tx:          authoredTx.Tx,
+			ChangeIndex: &authoredTx.ChangeIndex,
+		},
+	)
 	if err != nil {
 		return nil, err
 	}
@@ -1242,7 +1249,9 @@ func (r *rpcServer) SendCoins(ctx context.Context,
 		err = wallet.WithCoinSelectLock(func() error {
 			var err error
 			reservedVal, err = wallet.CheckReservedValueTx(
-				sweepTxPkg.SweepTx,
+				lnwallet.CheckReservedValueTxReq{
+					Tx: sweepTxPkg.SweepTx,
+				},
 			)
 			return err
 		})
@@ -1292,7 +1301,9 @@ func (r *rpcServer) SendCoins(ctx context.Context,
 			// Sanity check the new tx by re-doing the check.
 			err = wallet.WithCoinSelectLock(func() error {
 				_, err := wallet.CheckReservedValueTx(
-					sweepTxPkg.SweepTx,
+					lnwallet.CheckReservedValueTxReq{
+						Tx: sweepTxPkg.SweepTx,
+					},
 				)
 				return err
 			})