diff --git a/gui/src/app/mod.rs b/gui/src/app/mod.rs
index 91741e17..4d818e68 100644
--- a/gui/src/app/mod.rs
+++ b/gui/src/app/mod.rs
@@ -63,7 +63,12 @@ impl Panels {
     ) -> Panels {
         Self {
             current: Menu::Home,
-            home: Home::new(wallet.clone(), &cache.coins, cache.blockheight),
+            home: Home::new(
+                wallet.clone(),
+                &cache.coins,
+                cache.blockheight,
+                daemon_backend.clone(),
+            ),
             coins: CoinsPanel::new(&cache.coins, wallet.main_descriptor.first_timelock_value()),
             transactions: TransactionsPanel::new(wallet.clone()),
             psbts: PsbtsPanel::new(wallet.clone()),
diff --git a/gui/src/app/state/mod.rs b/gui/src/app/state/mod.rs
index 6a4c8f13..d9e13729 100644
--- a/gui/src/app/state/mod.rs
+++ b/gui/src/app/state/mod.rs
@@ -23,9 +23,12 @@ use super::{cache::Cache, error::Error, menu::Menu, message::Message, view, wall
 
 pub const HISTORY_EVENT_PAGE_SIZE: u64 = 20;
 
-use crate::daemon::{
-    model::{remaining_sequence, Coin, HistoryTransaction, Labelled},
-    Daemon,
+use crate::{
+    daemon::{
+        model::{remaining_sequence, Coin, HistoryTransaction, Labelled},
+        Daemon, DaemonBackend,
+    },
+    node::NodeType,
 };
 pub use coins::CoinsPanel;
 use label::LabelsEdited;
@@ -66,9 +69,24 @@ pub fn redirect(menu: Menu) -> Command<Message> {
     })
 }
 
+fn wallet_is_syncing(daemon_backend: DaemonBackend, blockheight: i32) -> bool {
+    match daemon_backend {
+        // If user imported descriptor and is using a local bitcoind, a rescan
+        // will need to be performed in order to see past transactions and so the
+        // syncing status could be misleading as it could suggest the rescan is
+        // being performed.
+        // For external daemon or if we otherwise don't know the node type,
+        // treat it the same as bitcoind to be sure we don't mislead the user.
+        DaemonBackend::EmbeddedLianad(Some(NodeType::Bitcoind))
+        | DaemonBackend::EmbeddedLianad(None)
+        | DaemonBackend::ExternalLianad => false,
+        _ => blockheight <= 0,
+    }
+}
+
 pub struct Home {
     wallet: Arc<Wallet>,
-    blockheight: i32,
+    wallet_is_syncing: bool,
     balance: Amount,
     unconfirmed_balance: Amount,
     remaining_sequence: Option<u32>,
@@ -83,7 +101,12 @@ pub struct Home {
 }
 
 impl Home {
-    pub fn new(wallet: Arc<Wallet>, coins: &[Coin], blockheight: i32) -> Self {
+    pub fn new(
+        wallet: Arc<Wallet>,
+        coins: &[Coin],
+        blockheight: i32,
+        daemon_backend: DaemonBackend,
+    ) -> Self {
         let (balance, unconfirmed_balance) = coins.iter().fold(
             (Amount::from_sat(0), Amount::from_sat(0)),
             |(balance, unconfirmed_balance), coin| {
@@ -97,9 +120,11 @@ impl Home {
             },
         );
 
+        let wallet_is_syncing = wallet_is_syncing(daemon_backend, blockheight);
+
         Self {
             wallet,
-            blockheight,
+            wallet_is_syncing,
             balance,
             unconfirmed_balance,
             remaining_sequence: None,
@@ -113,10 +138,6 @@ impl Home {
             processing: false,
         }
     }
-
-    fn wallet_is_syncing(&self) -> bool {
-        self.blockheight <= 0
-    }
 }
 
 impl State for Home {
@@ -148,7 +169,7 @@ impl State for Home {
                     &self.events,
                     self.is_last_page,
                     self.processing,
-                    self.wallet_is_syncing(),
+                    self.wallet_is_syncing,
                 ),
             )
         }
@@ -226,10 +247,10 @@ impl State for Home {
                 }
             },
             Message::UpdatePanelCache(is_current, Ok(cache)) => {
-                let wallet_was_syncing = self.wallet_is_syncing();
-                self.blockheight = cache.blockheight;
+                let wallet_was_syncing = self.wallet_is_syncing;
+                self.wallet_is_syncing = wallet_is_syncing(daemon.backend(), cache.blockheight);
                 // If this is the current panel, reload it if wallet is no longer syncing.
-                if is_current && wallet_was_syncing && !self.wallet_is_syncing() {
+                if is_current && wallet_was_syncing && !self.wallet_is_syncing {
                     return self.reload(daemon, self.wallet.clone());
                 }
             }
@@ -310,7 +331,7 @@ impl State for Home {
         wallet: Arc<Wallet>,
     ) -> Command<Message> {
         // Wait for wallet to finish syncing before reloading data.
-        if self.wallet_is_syncing() {
+        if self.wallet_is_syncing {
             return Command::none();
         }
         self.selected_event = None;