diff --git a/lightning-transaction-sync/src/electrum.rs b/lightning-transaction-sync/src/electrum.rs
index 1162b9c00..c42da5d67 100644
--- a/lightning-transaction-sync/src/electrum.rs
+++ b/lightning-transaction-sync/src/electrum.rs
@@ -18,6 +18,8 @@ use lightning::util::logger::Logger;
 use lightning::{log_debug, log_error, log_trace};
 
 use bitcoin::block::Header;
+use bitcoin::opcodes::all::OP_RETURN;
+use bitcoin::opcodes::OP_FALSE;
 use bitcoin::{BlockHash, Script, Transaction, Txid};
 
 use std::collections::HashSet;
@@ -289,16 +291,55 @@ where
 						continue;
 					}
 
-					watched_txs.push((txid, tx.clone()));
-					if let Some(tx_out) = tx.output.first() {
-						// We watch an arbitrary output of the transaction of interest in order to
-						// retrieve the associated script history, before narrowing down our search
-						// through `filter`ing by `txid` below.
-						watched_script_pubkeys.push(tx_out.script_pubkey.clone());
-					} else {
-						debug_assert!(false, "Failed due to retrieving invalid tx data.");
-						log_error!(self.logger, "Failed due to retrieving invalid tx data.");
-						return Err(InternalError::Failed);
+					// We watch an arbitrary output of the transaction of interest in order to
+					// retrieve the associated script history, before narrowing down our search
+					// through `filter`ing by `txid` below. Electrum servers don't index
+					// provably-unspendable outputs, so picking one of those would always yield an
+					// empty history.
+					let mut spk = tx
+						.output
+						.iter()
+						.find(|txo| {
+							!txo.script_pubkey.is_op_return()
+								&& !txo
+									.script_pubkey
+									.as_bytes()
+									.starts_with(&[OP_FALSE.to_u8(), OP_RETURN.to_u8()])
+						})
+						.map(|txo| txo.script_pubkey.clone());
+
+					// Fall back to the script of an input's previous output: its history includes
+					// this transaction, as we spend from it.
+					if spk.is_none() && !tx.is_coinbase() {
+						for txin in &tx.input {
+							match self.client.transaction_get(&txin.previous_output.txid) {
+								Ok(parent) => {
+									if let Some(prev_out) =
+										parent.output.get(txin.previous_output.vout as usize)
+									{
+										spk = Some(prev_out.script_pubkey.clone());
+										break;
+									}
+								},
+								Err(electrum_client::Error::Protocol(_)) => continue,
+								Err(e) => {
+									log_error!(
+										self.logger,
+										"Failed to look up transaction {}: {}.",
+										txin.previous_output.txid,
+										e
+									);
+									return Err(InternalError::Failed);
+								},
+							}
+						}
+					}
+
+					// Nothing we could query a history for, e.g. a coinbase whose outputs are all
+					// unindexed. Skip it rather than failing the whole sync.
+					if let Some(spk) = spk {
+						watched_txs.push((txid, tx.clone()));
+						watched_script_pubkeys.push(spk);
 					}
 				},
 				Err(electrum_client::Error::Protocol(_)) => {