diff --git a/itest/list_on_test.go b/itest/list_on_test.go
index 320f69f9ea..e0854166eb 100644
--- a/itest/list_on_test.go
+++ b/itest/list_on_test.go
@@ -37,6 +37,10 @@ var allTestCases = []*lntest.TestCase{
 		Name:     "send all coins",
 		TestFunc: testSendAllCoins,
 	},
+	{
+		Name: "bump fee until max reached", 
+		Test: testBumpFeeUntilMaxReached,
+	},
 	{
 		Name:     "send selected coins",
 		TestFunc: testSendSelectedCoins,
diff --git a/itest/lnd_fee_bump_max.go b/itest/lnd_fee_bump_max.go
new file mode 100644
index 0000000000..71b505df76
--- /dev/null
+++ b/itest/lnd_fee_bump_max.go
@@ -0,0 +1,152 @@
+package itest
+
+import (
+	"fmt"
+	"strings"
+	"time"
+
+	"github.com/btcsuite/btcd/btcutil"
+	"github.com/btcsuite/btcd/chaincfg/chainhash"
+	"github.com/lightningnetwork/lnd/lnrpc"
+	"github.com/lightningnetwork/lnd/lnrpc/walletrpc"
+	"github.com/lightningnetwork/lnd/lntest"
+	"github.com/stretchr/testify/require"
+)
+
+// testBumpFeeUntilMaxReached tests fee-bumping a wallet transaction until the
+// maximum fee rate of 100 sat/vbyte is reached.
+func testBumpFeeUntilMaxReached(ht *lntest.HarnessTest) {
+	const (
+		maxFeeRate    = 100 // sat/vbyte
+		defaultTimeout = 30 * time.Second
+	)
+
+	// Set up Alice with a max fee rate of 100 sat/vbyte.
+	args := []string{fmt.Sprintf("--sweeper.maxfeerate=%d", maxFeeRate)}
+	alice := ht.NewNode("Alice", args)
+
+	// Fund Alice's wallet with 1 BTC.
+	ht.FundCoins(btcutil.SatoshiPerBitcoin, alice)
+
+	// Create a new address for a transaction.
+	addrResp := alice.RPC.NewAddress(&lnrpc.NewAddressRequest{
+		Type: lnrpc.AddressType_WITNESS_PUBKEY_HASH,
+	})
+
+	// Send 0.001 BTC with a low fee rate (1 sat/vbyte) to keep it unconfirmed.
+	sendReq := &lnrpc.SendCoinsRequest{
+		Addr:       addrResp.Address,
+		Amount:     100_000, // 0.001 BTC
+		SatPerByte: 1,       // Low fee rate
+	}
+	txid := alice.RPC.SendCoins(sendReq).Txid
+
+	// Wait for the transaction to appear in the mempool.
+	waitForTxInMempool(ht, txid, defaultTimeout)
+
+	// Get the raw transaction to find an input outpoint for fee-bumping.
+	txHash, err := chainhash.NewHashFromStr(txid)
+	require.NoError(ht, err, "invalid txid")
+	txRaw, err := ht.Miner.Client.GetRawTransactionVerbose(txid)
+	require.NoError(ht, err, "failed to get raw tx")
+
+	// Select the first input outpoint (assumes at least one input).
+	require.Greater(ht, len(txRaw.Vin), 0, "no inputs in transaction")
+	input := txRaw.Vin[0]
+	op := &lnrpc.OutPoint{
+		TxidBytes:   txHash[:],
+		OutputIndex: uint32(input.Vout),
+	}
+
+	// Calculate initial fee rate from the mempool transaction.
+	initialFeeRate := getTxFeeRate(ht, txHash)
+	ht.Logf("Initial fee rate: %d sat/vbyte", initialFeeRate)
+
+	// Bump fee repeatedly until max fee rate is reached or budget is exhausted.
+	bumpReq := &walletrpc.BumpFeeRequest{
+		Outpoint:      op,
+		Immediate:     true,
+		DeadlineDelta: 5,
+		Budget:        50_000, // Half of 0.001 BTC in satoshis
+	}
+	var currentFeeRate uint64
+	for i := 0; i < 20; i++ {
+		_, err := alice.RPC.WalletKit.BumpFee(ht.MainContext, bumpReq)
+		if err != nil {
+			if strings.Contains(err.Error(), "max fee rate exceeded") ||
+				strings.Contains(err.Error(), "position already at max") {
+				ht.Logf("Stopped bumping at max fee rate")
+				break
+			}
+			require.NoError(ht, err, "failed to bump fee")
+		}
+
+		// Wait for the new transaction in the mempool.
+		waitForTxInMempool(ht, txid, defaultTimeout)
+
+		// Get the latest transaction spending the input outpoint.
+		currentFeeRate = getTxFeeRate(ht, txHash)
+		ht.Logf("Attempt #%d: fee rate = %d sat/vbyte", i+1, currentFeeRate)
+
+		// Stop if fee rate reaches or exceeds max or doesn't increase.
+		if currentFeeRate >= maxFeeRate || currentFeeRate <= initialFeeRate {
+			break
+		}
+		initialFeeRate = currentFeeRate
+	}
+
+	// Verify the final fee rate is at least the max fee rate.
+	require.GreaterOrEqual(ht, currentFeeRate, uint64(maxFeeRate),
+		"final fee rate %d sat/vbyte below max %d sat/vbyte",
+		currentFeeRate, maxFeeRate)
+
+	// Mine a block to confirm the transaction.
+	ht.MineBlocks(1)
+}
+
+// waitForTxInMempool waits until the specified txid appears in the mempool.
+func waitForTxInMempool(ht *lntest.HarnessTest, txid string, timeout time.Duration) {
+	txHash, err := chainhash.NewHashFromStr(txid)
+	require.NoError(ht, err, "invalid txid")
+
+	err = wait.Predicate(func() bool {
+		mempool, err := ht.Miner.Client.GetRawMempool()
+		require.NoError(ht, err, "failed to get mempool")
+		for _, memTx := range mempool {
+			if memTx.IsEqual(txHash) {
+				return true
+			}
+		}
+		return false
+	}, timeout)
+	require.NoError(ht, err, "timeout waiting for tx %s in mempool", txid)
+}
+
+// getTxFeeRate retrieves the fee rate of the latest transaction spending the
+// given outpoint from the mempool.
+func getTxFeeRate(ht *lntest.HarnessTest, txHash *chainhash.Hash) uint64 {
+	// Get all mempool transactions.
+	mempool, err := ht.Miner.Client.GetRawMempoolVerbose()
+	require.NoError(ht, err, "failed to get mempool")
+
+	// Find the transaction spending the given outpoint.
+	for txid, entry := range mempool {
+		txRaw, err := ht.Miner.Client.GetRawTransactionVerbose(txid)
+		require.NoError(ht, err, "failed to get raw tx %s", txid)
+
+		for _, vin := range txRaw.Vin {
+			if vin.Txid == txHash.String() {
+				// Calculate fee rate: FeeSat / VSize.
+				feeSat := uint64(entry.Fee * btcutil.SatoshiPerBitcoin)
+				vsize := uint64(entry.Vsize)
+				if vsize == 0 {
+					ht.Fatalf("zero vsize for tx %s", txid)
+				}
+				return feeSat / vsize
+			}
+		}
+	}
+
+	ht.Fatalf("no transaction found spending outpoint %s", txHash)
+	return 0
+}