diff --git a/tests/test_chain.py b/tests/test_chain.py
index 6c7cba1d..f1fc9cda 100644
--- a/tests/test_chain.py
+++ b/tests/test_chain.py
@@ -1,5 +1,6 @@
 from fixtures import *
-from test_framework.utils import wait_for, get_txid, spend_coins
+from test_framework.utils import wait_for, get_txid, spend_coins, RpcError, COIN, sign_and_broadcast
+from test_framework.serializations import PSBT
 
 
 def get_coin(lianad, outpoint_or_txid):
@@ -303,3 +304,38 @@ def test_deposit_replacement(lianad, bitcoind):
     addr = lianad.rpc.getnewaddress()["address"]
     bitcoind.rpc.sendtoaddress(addr, 2)
     wait_for(lambda: len(lianad.rpc.listcoins()["coins"]) == 1)
+
+def test_rescan_and_recovery(lianad, bitcoind):
+    """Test user recovery flow"""
+    # Get initial_tip to use for rescan later
+    initial_tip = bitcoind.rpc.getblockheader(bitcoind.rpc.getbestblockhash())
+
+    # Start by getting a few coins
+    destination = lianad.rpc.getnewaddress()["address"]
+    txid = bitcoind.rpc.sendtoaddress(destination, 0.5)
+    bitcoind.generate_block(1, wait_for_mempool=txid)
+    wait_for(
+        lambda: lianad.rpc.getinfo()["block_height"] == bitcoind.rpc.getblockcount()
+    )
+    assert len(lianad.rpc.listcoins()["coins"]) == 1
+
+    # Advance the blocktime by >2h in median-time past for rescan
+    added_time = 60 * 60 * 3
+    bitcoind.rpc.setmocktime(initial_tip["time"] + added_time)
+    bitcoind.generate_block(12)
+
+    # Clear lianad state
+    lianad.restart_fresh(bitcoind)
+    assert len(lianad.rpc.listcoins()["coins"]) == 0
+
+    # Start rescan
+    lianad.rpc.startrescan(initial_tip["time"])
+    wait_for(lambda: lianad.rpc.getinfo()["rescan_progress"] is None)
+
+    # Create a recovery tx that sweeps the first coin.
+    res = lianad.rpc.createrecovery(bitcoind.rpc.getnewaddress(), 2)
+    reco_psbt = PSBT.from_base64(res["psbt"])
+    assert len(reco_psbt.tx.vin) == 1
+    assert len(reco_psbt.tx.vout) == 1
+    assert int(0.4999 * COIN) < int(reco_psbt.tx.vout[0].nValue) < int(0.5 * COIN)
+    sign_and_broadcast(lianad, bitcoind, reco_psbt, recovery=True)