diff --git a/docs/release-notes/release-notes-0.17.3.md b/docs/release-notes/release-notes-0.17.3.md
index 8041603b48..94ca97daaf 100644
--- a/docs/release-notes/release-notes-0.17.3.md
+++ b/docs/release-notes/release-notes-0.17.3.md
@@ -41,6 +41,10 @@
 ## Breaking Changes
 ## Performance Improvements
 
+* [Optimized](https://github.com/lightningnetwork/lnd/pull/8232) the memoray
+  usage of `btcwallet`'s mempool. Users would need to use `bitcoind v25.0.0`
+  and above to take the advantage of this optimization. 
+
 # Technical and Architectural Updates
 ## BOLT Spec Updates
 ## Testing
diff --git a/go.mod b/go.mod
index c42106e328..fcdab1c860 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,7 @@ require (
 	github.com/btcsuite/btcd/btcutil/psbt v1.1.8
 	github.com/btcsuite/btcd/chaincfg/chainhash v1.0.2
 	github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f
-	github.com/btcsuite/btcwallet v0.16.10-0.20231017144732-e3ff37491e9c
+	github.com/btcsuite/btcwallet v0.16.10-0.20231129183218-5df09dd43358
 	github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2
 	github.com/btcsuite/btcwallet/wallet/txrules v1.2.0
 	github.com/btcsuite/btcwallet/walletdb v1.4.0
diff --git a/go.sum b/go.sum
index e6a7530926..5d07264dcc 100644
--- a/go.sum
+++ b/go.sum
@@ -95,8 +95,8 @@ github.com/btcsuite/btcd/chaincfg/chainhash v1.0.2/go.mod h1:7SFka0XMvUgj3hfZtyd
 github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f h1:bAs4lUbRJpnnkd9VhRV3jjAVU7DJVjMaK+IsvSeZvFo=
 github.com/btcsuite/btclog v0.0.0-20170628155309-84c8d2346e9f/go.mod h1:TdznJufoqS23FtqVCzL0ZqgP5MqXbb4fg/WgDys70nA=
 github.com/btcsuite/btcutil v0.0.0-20190425235716-9e5f4b9a998d/go.mod h1:+5NJ2+qvTyV9exUAL/rxXi3DcLg2Ts+ymUAY5y4NvMg=
-github.com/btcsuite/btcwallet v0.16.10-0.20231017144732-e3ff37491e9c h1:+7tbYEUj0TYYIvuvE9YP+x5dU3FT/8J6Qh8d5YvQwrE=
-github.com/btcsuite/btcwallet v0.16.10-0.20231017144732-e3ff37491e9c/go.mod h1:WSKhOJWUmUOHKCKEzdt+jWAHFAE/t4RqVbCwL2pEdiU=
+github.com/btcsuite/btcwallet v0.16.10-0.20231129183218-5df09dd43358 h1:lZUSo6TISHUJQxpn/AniW5gqaN1iRNS87SDWvV3AHfg=
+github.com/btcsuite/btcwallet v0.16.10-0.20231129183218-5df09dd43358/go.mod h1:WSKhOJWUmUOHKCKEzdt+jWAHFAE/t4RqVbCwL2pEdiU=
 github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2 h1:etuLgGEojecsDOYTII8rYiGHjGyV5xTqsXi+ZQ715UU=
 github.com/btcsuite/btcwallet/wallet/txauthor v1.3.2/go.mod h1:Zpk/LOb2sKqwP2lmHjaZT9AdaKsHPSbNLm2Uql5IQ/0=
 github.com/btcsuite/btcwallet/wallet/txrules v1.2.0 h1:BtEN5Empw62/RVnZ0VcJaVtVlBijnLlJY+dwjAye2Bg=