diff --git a/cmd/lncli/walletrpc_active.go b/cmd/lncli/walletrpc_active.go
index 15c62755f5..36caf82279 100644
--- a/cmd/lncli/walletrpc_active.go
+++ b/cmd/lncli/walletrpc_active.go
@@ -1160,7 +1160,8 @@ var fundPsbtCommand = cli.Command{
 	Name:  "fund",
 	Usage: "Fund a Partially Signed Bitcoin Transaction (PSBT).",
 	ArgsUsage: "[--template_psbt=T | [--outputs=O [--inputs=I]]] " +
-		"[--conf_target=C | --sat_per_vbyte=S] [--change_type=A]",
+		"[--conf_target=C | --sat_per_vbyte=S | --sat_per_kw=K] " +
+		"[--change_type=A]",
 	Description: `
 	The fund command creates a fully populated PSBT that contains enough
 	inputs to fund the outputs specified in either the PSBT or the
@@ -1222,6 +1223,11 @@ var fundPsbtCommand = cli.Command{
 			Usage: "a manual fee expressed in sat/vbyte that " +
 				"should be used when creating the transaction",
 		},
+		cli.Uint64Flag{
+			Name: "sat_per_kw",
+			Usage: "a manual fee expressed in sat/kw that " +
+				"should be used when creating the transaction",
+		},
 		cli.StringFlag{
 			Name: "account",
 			Usage: "(optional) the name of the account to use to " +
@@ -1302,10 +1308,11 @@ func fundPsbt(ctx *cli.Context) error {
 		)
 
 		if len(ctx.String("outputs")) > 0 {
-			// Parse the address to amount map as JSON now. At least one
-			// entry must be present.
+			// Parse the address to amount map as JSON now. At least
+			// one entry must be present.
 			jsonMap := []byte(ctx.String("outputs"))
-			if err := json.Unmarshal(jsonMap, &amountToAddr); err != nil {
+			err := json.Unmarshal(jsonMap, &amountToAddr)
+			if err != nil {
 				return fmt.Errorf("error parsing outputs "+
 					"JSON: %w", err)
 			}
@@ -1317,7 +1324,8 @@ func fundPsbt(ctx *cli.Context) error {
 			var inputs []string
 
 			jsonList := []byte(ctx.String("inputs"))
-			if err := json.Unmarshal(jsonList, &inputs); err != nil {
+			err := json.Unmarshal(jsonList, &inputs)
+			if err != nil {
 				return fmt.Errorf("error parsing inputs JSON: "+
 					"%v", err)
 			}
@@ -1344,15 +1352,23 @@ func fundPsbt(ctx *cli.Context) error {
 
 	// Parse fee flags.
 	switch {
-	case ctx.IsSet("conf_target") && ctx.IsSet("sat_per_vbyte"):
-		return fmt.Errorf("cannot set conf_target and sat_per_vbyte " +
-			"at the same time")
+	case ctx.IsSet("conf_target") && ctx.IsSet("sat_per_vbyte") ||
+		ctx.IsSet("conf_target") && ctx.IsSet("sat_per_kw") ||
+		ctx.IsSet("sat_per_vbyte") && ctx.IsSet("sat_per_kw"):
+
+		return fmt.Errorf("only one of conf_target, sat_per_vbyte, " +
+			"or sat_per_kw can be set at the same time")
 
 	case ctx.Uint64("sat_per_vbyte") > 0:
 		req.Fees = &walletrpc.FundPsbtRequest_SatPerVbyte{
 			SatPerVbyte: ctx.Uint64("sat_per_vbyte"),
 		}
 
+	case ctx.Uint64("sat_per_kw") > 0:
+		req.Fees = &walletrpc.FundPsbtRequest_SatPerKw{
+			SatPerKw: ctx.Uint64("sat_per_kw"),
+		}
+
 	// Check conf_target last because it has a default value.
 	case ctx.Uint64("conf_target") > 0:
 		req.Fees = &walletrpc.FundPsbtRequest_TargetConf{
diff --git a/docs/release-notes/release-notes-0.19.0.md b/docs/release-notes/release-notes-0.19.0.md
index 869e235115..fdcd13c6c6 100644
--- a/docs/release-notes/release-notes-0.19.0.md
+++ b/docs/release-notes/release-notes-0.19.0.md
@@ -31,8 +31,16 @@
   `BumpForceCloseFee` which moves the functionality soley available in the
   `lncli` to LND hence making it more universal.
 
+* [The `walletrpc.FundPsbt` RPC method now has an option to specify the fee as
+  `sat_per_kw` which allows for more precise
+  fees](https://github.com/lightningnetwork/lnd/pull/9013).
+
 ## lncli Additions
 
+* [The `lncli wallet fundpsbt` sub command now has a `--sat_per_kw` flag to
+  specify more precise fee
+  rates](https://github.com/lightningnetwork/lnd/pull/9013).
+
 # Improvements
 ## Functional Updates
 
diff --git a/lnrpc/walletrpc/walletkit.pb.go b/lnrpc/walletrpc/walletkit.pb.go
index 4976f2186e..c2ac8a8a5b 100644
--- a/lnrpc/walletrpc/walletkit.pb.go
+++ b/lnrpc/walletrpc/walletkit.pb.go
@@ -3645,6 +3645,7 @@ type FundPsbtRequest struct {
 	//
 	//	*FundPsbtRequest_TargetConf
 	//	*FundPsbtRequest_SatPerVbyte
+	//	*FundPsbtRequest_SatPerKw
 	Fees isFundPsbtRequest_Fees `protobuf_oneof:"fees"`
 	// The name of the account to fund the PSBT with. If empty, the default wallet
 	// account is used.
@@ -3744,6 +3745,13 @@ func (x *FundPsbtRequest) GetSatPerVbyte() uint64 {
 	return 0
 }
 
+func (x *FundPsbtRequest) GetSatPerKw() uint64 {
+	if x, ok := x.GetFees().(*FundPsbtRequest_SatPerKw); ok {
+		return x.SatPerKw
+	}
+	return 0
+}
+
 func (x *FundPsbtRequest) GetAccount() string {
 	if x != nil {
 		return x.Account
@@ -3841,10 +3849,18 @@ type FundPsbtRequest_SatPerVbyte struct {
 	SatPerVbyte uint64 `protobuf:"varint,4,opt,name=sat_per_vbyte,json=satPerVbyte,proto3,oneof"`
 }
 
+type FundPsbtRequest_SatPerKw struct {
+	// The fee rate, expressed in sat/kWU, that should be used to spend the
+	// input with.
+	SatPerKw uint64 `protobuf:"varint,11,opt,name=sat_per_kw,json=satPerKw,proto3,oneof"`
+}
+
 func (*FundPsbtRequest_TargetConf) isFundPsbtRequest_Fees() {}
 
 func (*FundPsbtRequest_SatPerVbyte) isFundPsbtRequest_Fees() {}
 
+func (*FundPsbtRequest_SatPerKw) isFundPsbtRequest_Fees() {}
+
 type FundPsbtResponse struct {
 	state         protoimpl.MessageState
 	sizeCache     protoimpl.SizeCache
@@ -4905,7 +4921,7 @@ var file_walletrpc_walletkit_proto_rawDesc = []byte{
 	0x65, 0x6c, 0x12, 0x1c, 0x0a, 0x09, 0x6f, 0x76, 0x65, 0x72, 0x77, 0x72, 0x69, 0x74, 0x65, 0x18,
 	0x03, 0x20, 0x01, 0x28, 0x08, 0x52, 0x09, 0x6f, 0x76, 0x65, 0x72, 0x77, 0x72, 0x69, 0x74, 0x65,
 	0x22, 0x1a, 0x0a, 0x18, 0x4c, 0x61, 0x62, 0x65, 0x6c, 0x54, 0x72, 0x61, 0x6e, 0x73, 0x61, 0x63,
-	0x74, 0x69, 0x6f, 0x6e, 0x52, 0x65, 0x73, 0x70, 0x6f, 0x6e, 0x73, 0x65, 0x22, 0xe6, 0x03, 0x0a,
+	0x74, 0x69, 0x6f, 0x6e, 0x52, 0x65, 0x73, 0x70, 0x6f, 0x6e, 0x73, 0x65, 0x22, 0x86, 0x04, 0x0a,
 	0x0f, 0x46, 0x75, 0x6e, 0x64, 0x50, 0x73, 0x62, 0x74, 0x52, 0x65, 0x71, 0x75, 0x65, 0x73, 0x74,
 	0x12, 0x14, 0x0a, 0x04, 0x70, 0x73, 0x62, 0x74, 0x18, 0x01, 0x20, 0x01, 0x28, 0x0c, 0x48, 0x00,
 	0x52, 0x04, 0x70, 0x73, 0x62, 0x74, 0x12, 0x29, 0x0a, 0x03, 0x72, 0x61, 0x77, 0x18, 0x02, 0x20,
@@ -4919,7 +4935,9 @@ var file_walletrpc_walletkit_proto_rawDesc = []byte{
 	0x20, 0x01, 0x28, 0x0d, 0x48, 0x01, 0x52, 0x0a, 0x74, 0x61, 0x72, 0x67, 0x65, 0x74, 0x43, 0x6f,
 	0x6e, 0x66, 0x12, 0x24, 0x0a, 0x0d, 0x73, 0x61, 0x74, 0x5f, 0x70, 0x65, 0x72, 0x5f, 0x76, 0x62,
 	0x79, 0x74, 0x65, 0x18, 0x04, 0x20, 0x01, 0x28, 0x04, 0x48, 0x01, 0x52, 0x0b, 0x73, 0x61, 0x74,
-	0x50, 0x65, 0x72, 0x56, 0x62, 0x79, 0x74, 0x65, 0x12, 0x18, 0x0a, 0x07, 0x61, 0x63, 0x63, 0x6f,
+	0x50, 0x65, 0x72, 0x56, 0x62, 0x79, 0x74, 0x65, 0x12, 0x1e, 0x0a, 0x0a, 0x73, 0x61, 0x74, 0x5f,
+	0x70, 0x65, 0x72, 0x5f, 0x6b, 0x77, 0x18, 0x0b, 0x20, 0x01, 0x28, 0x04, 0x48, 0x01, 0x52, 0x08,
+	0x73, 0x61, 0x74, 0x50, 0x65, 0x72, 0x4b, 0x77, 0x12, 0x18, 0x0a, 0x07, 0x61, 0x63, 0x63, 0x6f,
 	0x75, 0x6e, 0x74, 0x18, 0x05, 0x20, 0x01, 0x28, 0x09, 0x52, 0x07, 0x61, 0x63, 0x63, 0x6f, 0x75,
 	0x6e, 0x74, 0x12, 0x1b, 0x0a, 0x09, 0x6d, 0x69, 0x6e, 0x5f, 0x63, 0x6f, 0x6e, 0x66, 0x73, 0x18,
 	0x06, 0x20, 0x01, 0x28, 0x05, 0x52, 0x08, 0x6d, 0x69, 0x6e, 0x43, 0x6f, 0x6e, 0x66, 0x73, 0x12,
@@ -6200,6 +6218,7 @@ func file_walletrpc_walletkit_proto_init() {
 		(*FundPsbtRequest_CoinSelect)(nil),
 		(*FundPsbtRequest_TargetConf)(nil),
 		(*FundPsbtRequest_SatPerVbyte)(nil),
+		(*FundPsbtRequest_SatPerKw)(nil),
 	}
 	file_walletrpc_walletkit_proto_msgTypes[53].OneofWrappers = []interface{}{
 		(*PsbtCoinSelect_ExistingOutputIndex)(nil),
diff --git a/lnrpc/walletrpc/walletkit.proto b/lnrpc/walletrpc/walletkit.proto
index eac7a733f6..c79dc7c06b 100644
--- a/lnrpc/walletrpc/walletkit.proto
+++ b/lnrpc/walletrpc/walletkit.proto
@@ -1388,6 +1388,12 @@ message FundPsbtRequest {
         input with.
         */
         uint64 sat_per_vbyte = 4;
+
+        /*
+        The fee rate, expressed in sat/kWU, that should be used to spend the
+        input with.
+        */
+        uint64 sat_per_kw = 11;
     }
 
     /*
diff --git a/lnrpc/walletrpc/walletkit.swagger.json b/lnrpc/walletrpc/walletkit.swagger.json
index dd117a4d9b..2d6194d154 100644
--- a/lnrpc/walletrpc/walletkit.swagger.json
+++ b/lnrpc/walletrpc/walletkit.swagger.json
@@ -1564,6 +1564,11 @@
           "format": "uint64",
           "description": "The fee rate, expressed in sat/vbyte, that should be used to spend the\ninput with."
         },
+        "sat_per_kw": {
+          "type": "string",
+          "format": "uint64",
+          "description": "The fee rate, expressed in sat/kWU, that should be used to spend the\ninput with."
+        },
         "account": {
           "type": "string",
           "description": "The name of the account to fund the PSBT with. If empty, the default wallet\naccount is used."
diff --git a/lnrpc/walletrpc/walletkit_server.go b/lnrpc/walletrpc/walletkit_server.go
index fc24ae13ed..9ce87cca21 100644
--- a/lnrpc/walletrpc/walletkit_server.go
+++ b/lnrpc/walletrpc/walletkit_server.go
@@ -1502,9 +1502,13 @@ func (w *WalletKit) FundPsbt(_ context.Context,
 			req.GetSatPerVbyte() * 1000,
 		).FeePerKWeight()
 
+	case req.GetSatPerKw() != 0:
+		feeSatPerKW = chainfee.SatPerKWeight(req.GetSatPerKw())
+
 	default:
 		return nil, fmt.Errorf("fee definition missing, need to " +
-			"specify either target_conf or sat_per_vbyte")
+			"specify either target_conf, sat_per_vbyte or " +
+			"sat_per_kw")
 	}
 
 	// Then, we'll extract the minimum number of confirmations that each