diff --git a/Cargo.toml b/Cargo.toml
index 120fc6a6..b16dcc63 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -77,3 +77,6 @@ name = "esplora_blocking"
 
 [[example]]
 name = "bitcoind_rpc"
+
+[[example]]
+name = "cpfp"
diff --git a/examples/cpfp.rs b/examples/cpfp.rs
new file mode 100644
index 00000000..cc5a4131
--- /dev/null
+++ b/examples/cpfp.rs
@@ -0,0 +1,136 @@
+use bdk_wallet::{
+    bitcoin::{
+        consensus::encode::serialize_hex, Amount, FeeRate, OutPoint, Sequence, Transaction, Weight,
+    },
+    test_utils::get_funded_wallet,
+    KeychainKind, SignOptions, Wallet,
+};
+
+const EXTERNAL_DESC: &str = "wpkh(tprv8ZgxMBicQKsPdy6LMhUtFHAgpocR8GC6QmwMSFpZs7h6Eziw3SpThFfczTDh5rW2krkqffa11UpX3XkeTTB2FvzZKWXqPY54Y6Rq4AQ5R8L/84'/1'/0'/0/*)";
+const INTERNAL_DESC: &str = "wpkh(tprv8ZgxMBicQKsPdy6LMhUtFHAgpocR8GC6QmwMSFpZs7h6Eziw3SpThFfczTDh5rW2krkqffa11UpX3XkeTTB2FvzZKWXqPY54Y6Rq4AQ5R8L/84'/1'/0'/1/*)";
+
+const PARENT_FEE: Amount = Amount::from_sat(200);
+
+/// Demonstrates child-pays-for-parent (CPFP) via `TxBuilder`.
+///
+/// The example estimates the child weight, then sets the child's absolute fee so the
+/// parent+child package meets the target rate.
+fn main() -> anyhow::Result<()> {
+    let target_package_feerate = FeeRate::from_sat_per_vb_u32(10);
+    let (mut wallet, funding_txid) = get_funded_wallet(EXTERNAL_DESC, INTERNAL_DESC);
+    let funding_outpoint = OutPoint::new(funding_txid, 0);
+
+    let (parent_tx, parent_outpoint) = create_parent(&mut wallet, funding_outpoint)?;
+    let child_drain_script = wallet
+        .reveal_next_address(KeychainKind::External)
+        .script_pubkey();
+
+    // Build unsigned child PSBT used to estimate the weight.
+    let mut probe_builder = wallet.build_tx();
+    probe_builder
+        .add_utxo(parent_outpoint)?
+        .manually_selected_only()
+        .drain_to(child_drain_script.clone())
+        .fee_rate(FeeRate::BROADCAST_MIN);
+    let weight_probe_child_psbt = probe_builder.finish()?;
+
+    let estimated_child_weight = weight_probe_child_psbt.unsigned_tx.weight()
+        // segwit overhead (empty-witness tx serializes as legacy). marker + flag + input witness count varint.
+        + Weight::from_wu(3)
+        + wallet
+            .public_descriptor(KeychainKind::External)
+            .max_weight_to_satisfy()?;
+
+    let parent_fee = wallet.calculate_fee(&parent_tx)?;
+    let parent_weight = parent_tx.weight();
+    let required_child_fee = required_child_fee_to_meet_target(
+        parent_fee,
+        parent_weight,
+        estimated_child_weight,
+        target_package_feerate,
+    );
+
+    // Build the child sweep.
+    let mut child_builder = wallet.build_tx();
+    child_builder
+        .add_utxo(parent_outpoint)?
+        .manually_selected_only()
+        .drain_to(child_drain_script)
+        .fee_absolute(required_child_fee);
+    let mut child_psbt = child_builder.finish()?;
+    wallet.sign(&mut child_psbt, SignOptions::default())?;
+
+    let child_tx = child_psbt.extract_tx()?;
+    let child_fee = wallet.calculate_fee(&child_tx)?;
+    let child_weight = child_tx.weight();
+    let package_fee = parent_fee + child_fee;
+    let package_weight = parent_weight + child_weight;
+    let package_feerate = package_fee / package_weight;
+
+    println!(
+        "Parent:  txid={}, fee={} sat, weight={} wu",
+        parent_tx.compute_txid(),
+        parent_fee.to_sat(),
+        parent_weight.to_wu(),
+    );
+    println!(
+        "Child:   txid={}, fee={} sat, weight={} wu",
+        child_tx.compute_txid(),
+        child_fee.to_sat(),
+        child_weight.to_wu(),
+    );
+    println!(
+        "Package: target={} sat/vB, actual={} sat/vB (fee={} sat, weight={} wu)",
+        target_package_feerate.to_sat_per_vb_floor(),
+        package_feerate.to_sat_per_vb_floor(),
+        package_fee.to_sat(),
+        package_weight.to_wu(),
+    );
+    println!("Child transaction hex: {}", serialize_hex(&child_tx));
+
+    Ok(())
+}
+
+/// Builds the low-fee parent.
+fn create_parent(
+    wallet: &mut Wallet,
+    funding_outpoint: OutPoint,
+) -> anyhow::Result<(Transaction, OutPoint)> {
+    let parent_script = wallet
+        .reveal_next_address(KeychainKind::External)
+        .script_pubkey();
+
+    let mut builder = wallet.build_tx();
+    builder
+        .add_utxo(funding_outpoint)?
+        .manually_selected_only()
+        .drain_to(parent_script)
+        .fee_absolute(PARENT_FEE)
+        .set_exact_sequence(Sequence::MAX);
+
+    let mut parent_psbt = builder.finish()?;
+    wallet.sign(&mut parent_psbt, SignOptions::default())?;
+    let parent_tx = parent_psbt.extract_tx()?;
+    let parent_outpoint = OutPoint::new(parent_tx.compute_txid(), 0);
+
+    wallet.apply_unconfirmed_txs([(parent_tx.clone(), 42)]);
+
+    Ok((parent_tx, parent_outpoint))
+}
+
+/// Calculates the child fee for the parent+child package to meet the target fee rate.
+fn required_child_fee_to_meet_target(
+    parent_fee: Amount,
+    parent_weight: Weight,
+    child_weight: Weight,
+    target_package_feerate: FeeRate,
+) -> Amount {
+    let package_weight = parent_weight + child_weight;
+    let target_package_fee = target_package_feerate * package_weight;
+    let required_child_fee = target_package_fee
+        .checked_sub(parent_fee)
+        .unwrap_or(Amount::ZERO);
+    let min_child_fee = FeeRate::BROADCAST_MIN * child_weight;
+
+    required_child_fee.max(min_child_fee)
+}