diff --git a/src/services/main/init.ts b/src/services/main/init.ts
index 776e989a..dd3051e8 100644
--- a/src/services/main/init.ts
+++ b/src/services/main/init.ts
@@ -72,7 +72,8 @@ export const initMainHandler = async (log: PubLogger, settingsManager: SettingsM
     if (stop) {
         return
     }
-    await mainHandler.paymentManager.checkPendingPayments()
+    await mainHandler.paymentManager.checkPaymentStatus()
+    await mainHandler.paymentManager.checkMissedChainTxs()
     await mainHandler.paymentManager.CleanupOldUnpaidInvoices()
     await mainHandler.appUserManager.CleanupInactiveUsers()
     await mainHandler.appUserManager.CleanupNeverActiveUsers()
diff --git a/src/services/main/paymentManager.ts b/src/services/main/paymentManager.ts
index e5cb9bdf..1c67afe8 100644
--- a/src/services/main/paymentManager.ts
+++ b/src/services/main/paymentManager.ts
@@ -75,11 +75,11 @@ export default class {
         this.swaps.Stop()
     }
 
-    checkPendingPayments = async () => {
-        const log = getLogger({ component: 'pendingPaymentsOnStart' })
+    checkPaymentStatus = async () => {
+        const log = getLogger({ component: 'checkPaymentStatus' })
         const pendingPayments = await this.storage.paymentStorage.GetPendingPayments()
         for (const p of pendingPayments) {
-            log("checking state of payment: ", p.invoice)
+            log("checking status of payment: ", p.invoice)
             if (p.internal) {
                 log("found pending internal payment", p.serial_id)
             } else if (p.liquidityProvider) {
@@ -170,6 +170,171 @@ export default class {
         }
     }
 
+    checkMissedChainTxs = async () => {
+        const log = getLogger({ component: 'checkMissedChainTxs' })
+        
+        // Skip chain tx check when bypass is enabled
+        if (this.liquidityManager.settings.getSettings().liquiditySettings.useOnlyLiquidityProvider) {
+            log("USE_ONLY_LIQUIDITY_PROVIDER enabled, skipping chain tx check")
+            return
+        }
+
+        log("checking for missed confirmed chain transactions...")
+
+        // Get transactions from LND (only includes transactions relevant to the wallet)
+        // Use startHeight 0 to check all transactions
+        const startHeight = 0
+
+        try {
+            const { transactions } = await this.lnd.GetTransactions(startHeight)
+            log(`retrieved ${transactions.length} transactions from LND`)
+
+            let recoveredCount = 0
+
+            for (const tx of transactions) {
+                // Only process confirmed transactions (at least 1 confirmation)
+                // Pending transactions (0 confirmations) are handled by SubscribeAddressPaid() 
+                // and can be dropped from mempool, so we don't process them here
+                if (tx.numConfirmations === 0) {
+                    continue
+                }
+
+                // Check each output detail for addresses we care about
+                if (!tx.outputDetails || tx.outputDetails.length === 0) {
+                    continue
+                }
+
+                for (const output of tx.outputDetails) {
+                    // Only process outputs that are our addresses and have an address
+                    if (!output.address || !output.isOurAddress) {
+                        continue
+                    }
+
+                    // Check if this address belongs to a user (lazy lookup - only for addresses in transactions)
+                    const userAddress = await this.storage.paymentStorage.GetAddressOwner(output.address)
+                    if (!userAddress) {
+                        // Not a user address, skip
+                        continue
+                    }
+
+                    // Check if we already have this transaction in the database
+                    const existingTx = await this.storage.paymentStorage.GetAddressReceivingTransactionOwner(
+                        output.address,
+                        tx.txHash
+                    )
+
+                    if (existingTx) {
+                        // Transaction already recorded, skip
+                        continue
+                    }
+
+                    // This is a missed transaction - process it
+                    const amount = Number(output.amount)
+                    const outputIndex = Number(output.outputIndex)
+                    log(`processing missed chain tx: address=${output.address}, txHash=${tx.txHash}, amount=${amount}, outputIndex=${outputIndex}`)
+
+                    try {
+                        await this.storage.StartTransaction(async dbTx => {
+                            if (!userAddress.linkedApplication) {
+                                log(ERROR, "found address with no linked application during recovery:", output.address)
+                                return
+                            }
+
+                            const isManagedUser = userAddress.user.user_id !== userAddress.linkedApplication.owner.user_id
+                            const fee = this.getReceiveServiceFee(Types.UserOperationType.INCOMING_TX, amount, isManagedUser)
+                            const blockHeight = tx.blockHeight || 0
+
+                            // Add the transaction record
+                            const addedTx = await this.storage.paymentStorage.AddAddressReceivingTransaction(
+                                userAddress,
+                                tx.txHash,
+                                outputIndex,
+                                amount,
+                                fee,
+                                false, // not internal
+                                blockHeight,
+                                dbTx
+                            )
+
+                            // Update balance
+                            const addressData = `${output.address}:${tx.txHash}`
+                            this.storage.eventsLog.LogEvent({
+                                type: 'address_paid',
+                                userId: userAddress.user.user_id,
+                                appId: userAddress.linkedApplication.app_id,
+                                appUserId: "",
+                                balance: userAddress.user.balance_sats,
+                                data: addressData,
+                                amount
+                            })
+                            
+                            await this.storage.userStorage.IncrementUserBalance(
+                                userAddress.user.user_id,
+                                amount - fee,
+                                addressData,
+                                dbTx
+                            )
+
+                            if (fee > 0) {
+                                await this.storage.userStorage.IncrementUserBalance(
+                                    userAddress.linkedApplication.owner.user_id,
+                                    fee,
+                                    'fees',
+                                    dbTx
+                                )
+                            }
+
+                            // Send operation to Nostr
+                            const operationId = `${Types.UserOperationType.INCOMING_TX}-${addedTx.serial_id}`
+                            const op = {
+                                amount,
+                                paidAtUnix: tx.timeStamp ? Number(tx.timeStamp) : Math.floor(Date.now() / 1000),
+                                inbound: true,
+                                type: Types.UserOperationType.INCOMING_TX,
+                                identifier: userAddress.address,
+                                operationId,
+                                network_fee: 0,
+                                service_fee: fee,
+                                confirmed: tx.numConfirmations > 0,
+                                tx_hash: tx.txHash,
+                                internal: false
+                            }
+                            
+                            // Note: sendOperationToNostr is not available here, but the operation will be synced
+                            // when the user next syncs their operations
+                            
+                            this.utils.stateBundler.AddTxPoint(
+                                'addressWasPaid',
+                                amount,
+                                { used: 'lnd', from: 'system', timeDiscount: true },
+                                userAddress.linkedApplication.app_id
+                            )
+
+                            recoveredCount++
+                            log(`successfully processed missed chain tx: address=${output.address}, txHash=${tx.txHash}, amount=${amount}`)
+                        }, "process missed chain tx")
+                    } catch (err: any) {
+                        log(ERROR, `failed to process missed chain tx for address=${output.address}, txHash=${tx.txHash}:`, err.message || err)
+                        this.utils.stateBundler.AddTxPointFailed(
+                            'addressWasPaid',
+                            amount,
+                            { used: 'lnd', from: 'system' },
+                            userAddress.linkedApplication?.app_id
+                        )
+                    }
+                }
+            }
+
+            if (recoveredCount > 0) {
+                log(`processed ${recoveredCount} missed chain tx(s)`)
+            } else {
+                log("no missed chain transactions found")
+            }
+        } catch (err: any) {
+            log(ERROR, "failed to check for missed chain transactions:", err.message || err)
+        }
+    }
+
     getReceiveServiceFee = (action: Types.UserOperationType, amount: number, managedUser: boolean): number => {
         switch (action) {
             case Types.UserOperationType.INCOMING_TX: