diff --git a/lightning/src/util/sweep.rs b/lightning/src/util/sweep.rs
index e66cb9c63bd..8d539b0a5e6 100644
--- a/lightning/src/util/sweep.rs
+++ b/lightning/src/util/sweep.rs
@@ -488,12 +488,18 @@ where
 			return Ok(());
 		}
 
-		let result = self.regenerate_and_broadcast_spend_if_necessary_internal().await;
-
-		// Release the pending sweep flag again, regardless of result.
-		self.pending_sweep.store(false, Ordering::Release);
+		// Use an RAII guard so the flag is released even if this future is dropped mid-await
+		// (e.g. cancelled by `tokio::time::timeout` or `select!`). A bare `store(false)` after
+		// the await would never run on cancellation, leaving the sweeper permanently disabled.
+		struct PendingSweepGuard<'a>(&'a AtomicBool);
+		impl<'a> Drop for PendingSweepGuard<'a> {
+			fn drop(&mut self) {
+				self.0.store(false, Ordering::Release);
+			}
+		}
+		let _guard = PendingSweepGuard(&self.pending_sweep);
 
-		result
+		self.regenerate_and_broadcast_spend_if_necessary_internal().await
 	}
 
 	/// Regenerates and broadcasts the spending transaction for any outputs that are pending
@@ -1176,3 +1182,151 @@ where
 		Ok((best_block, OutputSweeperSync { sweeper }))
 	}
 }
+
+#[cfg(all(test, feature = "std"))]
+mod tests {
+	use super::*;
+	use crate::chain::transaction::OutPoint;
+	use crate::sign::{ChangeDestinationSource, OutputSpender};
+	use crate::util::async_poll::dummy_waker;
+	use crate::util::logger::Record;
+	use crate::util::native_async::MaybeSend;
+
+	use bitcoin::hashes::Hash as _;
+	use bitcoin::secp256k1::All;
+	use bitcoin::transaction::Version;
+	use bitcoin::{Amount, BlockHash, ScriptBuf, Transaction, TxOut, Txid};
+
+	use core::future as core_future;
+	use core::pin::pin;
+	use core::sync::atomic::Ordering;
+	use core::task::Poll;
+
+	struct DummyBroadcaster;
+	impl BroadcasterInterface for DummyBroadcaster {
+		fn broadcast_transactions(&self, _: &[(&Transaction, TransactionType)]) {}
+	}
+
+	struct DummyFeeEstimator;
+	impl FeeEstimator for DummyFeeEstimator {
+		fn get_est_sat_per_1000_weight(&self, _: ConfirmationTarget) -> u32 {
+			1000
+		}
+	}
+
+	struct DummyFilter;
+	impl Filter for DummyFilter {
+		fn register_tx(&self, _: &Txid, _: &bitcoin::Script) {}
+		fn register_output(&self, _: WatchedOutput) {}
+	}
+
+	struct DummyLogger;
+	impl Logger for DummyLogger {
+		fn log(&self, _: Record) {}
+	}
+
+	struct DummyOutputSpender;
+	impl OutputSpender for DummyOutputSpender {
+		fn spend_spendable_outputs(
+			&self, _: &[&SpendableOutputDescriptor], _: Vec<TxOut>, _: ScriptBuf, _: u32,
+			_: Option<LockTime>, _: &Secp256k1<All>,
+		) -> Result<Transaction, ()> {
+			Ok(Transaction {
+				version: Version::TWO,
+				lock_time: LockTime::ZERO,
+				input: Vec::new(),
+				output: Vec::new(),
+			})
+		}
+	}
+
+	struct DummyChangeDestSource;
+	impl ChangeDestinationSource for DummyChangeDestSource {
+		fn get_change_destination_script<'a>(
+			&'a self,
+		) -> impl Future<Output = Result<ScriptBuf, ()>> + MaybeSend + 'a {
+			core_future::ready(Ok(ScriptBuf::new()))
+		}
+	}
+
+	struct PendingKVStore;
+	impl KVStore for PendingKVStore {
+		fn read(
+			&self, _: &str, _: &str, _: &str,
+		) -> impl Future<Output = Result<Vec<u8>, io::Error>> + 'static + MaybeSend {
+			core_future::ready(Err(io::Error::new(io::ErrorKind::NotFound, "")))
+		}
+		fn write(
+			&self, _: &str, _: &str, _: &str, _: Vec<u8>,
+		) -> impl Future<Output = Result<(), io::Error>> + 'static + MaybeSend {
+			core_future::pending()
+		}
+		fn remove(
+			&self, _: &str, _: &str, _: &str, _: bool,
+		) -> impl Future<Output = Result<(), io::Error>> + 'static + MaybeSend {
+			core_future::ready(Ok(()))
+		}
+		fn list(
+			&self, _: &str, _: &str,
+		) -> impl Future<Output = Result<Vec<String>, io::Error>> + 'static + MaybeSend {
+			core_future::ready(Ok(Vec::new()))
+		}
+	}
+
+	#[test]
+	fn pending_sweep_flag_resets_after_future_drop() {
+		let best_block = BlockLocator::new(BlockHash::all_zeros(), 1_000);
+
+		let sweeper: OutputSweeper<
+			DummyBroadcaster,
+			Box<DummyChangeDestSource>,
+			DummyFeeEstimator,
+			DummyFilter,
+			PendingKVStore,
+			DummyLogger,
+			DummyOutputSpender,
+		> = OutputSweeper::new(
+			best_block,
+			DummyBroadcaster,
+			DummyFeeEstimator,
+			None,
+			DummyOutputSpender,
+			Box::new(DummyChangeDestSource),
+			PendingKVStore,
+			DummyLogger,
+		);
+
+		// Inject a tracked output directly so the sweep loop has work to do.
+		let descriptor = SpendableOutputDescriptor::StaticOutput {
+			outpoint: OutPoint { txid: Txid::all_zeros(), index: 0 },
+			output: TxOut { value: Amount::from_sat(100_000), script_pubkey: ScriptBuf::new() },
+			channel_keys_id: None,
+		};
+		sweeper.sweeper_state.lock().unwrap().outputs.push(TrackedSpendableOutput {
+			descriptor,
+			channel_id: None,
+			counterparty_node_id: None,
+			status: OutputSpendStatus::PendingInitialBroadcast { delayed_until_height: None },
+		});
+
+		// Start a sweep, poll once (the persist step stays Pending because our KVStore's
+		// `write` future is `future::pending()`), then drop the future to mimic
+		// cancellation - the sort of thing a `tokio::time::timeout` wrapper produces.
+		{
+			let mut fut = pin!(sweeper.regenerate_and_broadcast_spend_if_necessary());
+			let waker = dummy_waker();
+			let mut ctx = task::Context::from_waker(&waker);
+			assert!(matches!(fut.as_mut().poll(&mut ctx), Poll::Pending));
+		}
+
+		// Once the future has been dropped, `pending_sweep` must be cleared. The bug
+		// is that the flag is only ever cleared after the inner future returns, so a
+		// dropped future leaves it stuck `true` and every subsequent call to
+		// `regenerate_and_broadcast_spend_if_necessary` short-circuits with `Ok(())`,
+		// permanently disabling the sweeper.
+		assert!(
+			!sweeper.pending_sweep.load(Ordering::Acquire),
+			"pending_sweep flag was not reset when the future was dropped",
+		);
+	}
+}