diff --git a/config_builder.go b/config_builder.go
index 6f9cb1f3e98..d3ca5e2b275 100644
--- a/config_builder.go
+++ b/config_builder.go
@@ -213,6 +213,11 @@ type AuxComponents struct {
 	// AuxContractResolver is an optional interface that can be used to
 	// modify the way contracts are resolved.
 	AuxContractResolver fn.Option[lnwallet.AuxContractResolver]
+
+	// AuxChannelNegotiator is an optional interface that allows aux channel
+	// implementations to inject and process custom records over channel
+	// related wire messages.
+	AuxChannelNegotiator fn.Option[lnwallet.AuxChannelNegotiator]
 }
 
 // DefaultWalletImpl is the default implementation of our normal, btcwallet
diff --git a/docs/release-notes/release-notes-0.20.0.md b/docs/release-notes/release-notes-0.20.0.md
index 50653dcffdf..f237d3bb914 100644
--- a/docs/release-notes/release-notes-0.20.0.md
+++ b/docs/release-notes/release-notes-0.20.0.md
@@ -76,6 +76,11 @@ a certain amount of msats.
    [allow](https://github.com/lightningnetwork/lnd/pull/10087)
   `conf_target=1`. Previously they required `conf_target >= 2`.
 
+* A new AuxComponent was added named AuxChannelNegotiator. This component aids
+  with custom data communication for aux channels, by injecting and handling
+  data in channel related wire messages. See
+  [PR](https://github.com/lightningnetwork/lnd/pull/10182) for more info.
+
 ## RPC Additions
 * When querying [`ForwardingEvents`](https://github.com/lightningnetwork/lnd/pull/9813)
 logs, the response now include the incoming and outgoing htlc indices of the payment 
diff --git a/funding/manager.go b/funding/manager.go
index 33d57328ea3..4bfb7f9d094 100644
--- a/funding/manager.go
+++ b/funding/manager.go
@@ -568,6 +568,11 @@ type Config struct {
 	// AuxResolver is an optional interface that can be used to modify the
 	// way contracts are resolved.
 	AuxResolver fn.Option[lnwallet.AuxContractResolver]
+
+	// AuxChannelNegotiator is an optional interface that allows aux channel
+	// implementations to inject and process custom records over channel
+	// related wire messages.
+	AuxChannelNegotiator fn.Option[lnwallet.AuxChannelNegotiator]
 }
 
 // Manager acts as an orchestrator/bridge between the wallet's
@@ -4019,6 +4024,14 @@ func (f *Manager) handleChannelReady(peer lnpeer.Peer, //nolint:funlen
 
 	defer f.wg.Done()
 
+	// Notify the aux hook that the specified peer just established a
+	// channel with us, identified by the given channel ID.
+	f.cfg.AuxChannelNegotiator.WhenSome(
+		func(acn lnwallet.AuxChannelNegotiator) {
+			acn.ProcessChannelReady(msg.ChanID, peer.PubKey())
+		},
+	)
+
 	// If we are in development mode, we'll wait for specified duration
 	// before processing the channel ready message.
 	if f.cfg.Dev != nil {
diff --git a/htlcswitch/link.go b/htlcswitch/link.go
index 2d1dd7de010..4c81964cc24 100644
--- a/htlcswitch/link.go
+++ b/htlcswitch/link.go
@@ -298,6 +298,11 @@ type ChannelLinkConfig struct {
 	// used to manage the bandwidth of the link.
 	AuxTrafficShaper fn.Option[AuxTrafficShaper]
 
+	// AuxChannelNegotiator is an optional interface that allows aux channel
+	// implementations to inject and process custom records over channel
+	// related wire messages.
+	AuxChannelNegotiator fn.Option[lnwallet.AuxChannelNegotiator]
+
 	// QuiescenceTimeout is the max duration that the channel can be
 	// quiesced. Any dependent protocols (dynamic commitments, splicing,
 	// etc.) must finish their operations under this timeout value,
@@ -987,6 +992,22 @@ func (l *channelLink) syncChanStates(ctx context.Context) error {
 		// In any case, we'll then process their ChanSync message.
 		l.log.Info("received re-establishment message from remote side")
 
+		// If we have an AuxChannelNegotiator we notify any external
+		// component for this message. This serves as a notification
+		// that the reestablish message was received.
+		l.cfg.AuxChannelNegotiator.WhenSome(
+			func(acn lnwallet.AuxChannelNegotiator) {
+				fundingPoint := l.channel.ChannelPoint()
+				cid := lnwire.NewChanIDFromOutPoint(
+					fundingPoint,
+				)
+
+				acn.ProcessReestablish(
+					cid, l.cfg.Peer.PubKey(),
+				)
+			},
+		)
+
 		var (
 			openedCircuits []CircuitKey
 			closedCircuits []CircuitKey
diff --git a/lnwallet/aux_leaf_store.go b/lnwallet/aux_leaf_store.go
index aa2cc3b3e95..0a850503780 100644
--- a/lnwallet/aux_leaf_store.go
+++ b/lnwallet/aux_leaf_store.go
@@ -9,6 +9,7 @@ import (
 	"github.com/lightningnetwork/lnd/input"
 	"github.com/lightningnetwork/lnd/lntypes"
 	"github.com/lightningnetwork/lnd/lnwire"
+	"github.com/lightningnetwork/lnd/routing/route"
 	"github.com/lightningnetwork/lnd/tlv"
 )
 
@@ -97,6 +98,10 @@ type AuxChanState struct {
 	// funding output.
 	TapscriptRoot fn.Option[chainhash.Hash]
 
+	// PeerPubKey is the peer pub key of the peer we've established this
+	// channel with.
+	PeerPubKey route.Vertex
+
 	// CustomBlob is an optional blob that can be used to store information
 	// specific to a custom channel type. This information is only created
 	// at channel funding time, and after wards is to be considered
@@ -106,6 +111,8 @@ type AuxChanState struct {
 
 // NewAuxChanState creates a new AuxChanState from the given channel state.
 func NewAuxChanState(chanState *channeldb.OpenChannel) AuxChanState {
+	peerPub := chanState.IdentityPub.SerializeCompressed()
+
 	return AuxChanState{
 		ChanType:        chanState.ChanType,
 		FundingOutpoint: chanState.FundingOutpoint,
@@ -116,6 +123,7 @@ func NewAuxChanState(chanState *channeldb.OpenChannel) AuxChanState {
 		RemoteChanCfg:   chanState.RemoteChanCfg,
 		ThawHeight:      chanState.ThawHeight,
 		TapscriptRoot:   chanState.TapscriptRoot,
+		PeerPubKey:      route.Vertex(peerPub),
 		CustomBlob:      chanState.CustomBlob,
 	}
 }
diff --git a/lnwallet/aux_negotiator.go b/lnwallet/aux_negotiator.go
new file mode 100644
index 00000000000..73096a7d0cf
--- /dev/null
+++ b/lnwallet/aux_negotiator.go
@@ -0,0 +1,34 @@
+package lnwallet
+
+import (
+	"github.com/lightningnetwork/lnd/lnwire"
+	"github.com/lightningnetwork/lnd/routing/route"
+)
+
+// AuxChannelNegotiator is an interface that allows aux channel implementations
+// to inject or handle custom records in the init message that is used when
+// establishing a connection with a peer. It may also notify the aux channel
+// implementation for the channel ready or channel reestablish events, which
+// mark the channel as ready to use.
+type AuxChannelNegotiator interface {
+	// GetInitRecords is called when sending an init message to a peer.
+	// It returns custom records to include in the init message TLVs. The
+	// implementation can decide which records to include based on the peer
+	// identity.
+	GetInitRecords(peer route.Vertex) (lnwire.CustomRecords, error)
+
+	// ProcessInitRecords handles received init records from a peer. The
+	// implementation can store state internally to affect future
+	// channel operations with this peer.
+	ProcessInitRecords(peer route.Vertex,
+		customRecords lnwire.CustomRecords) error
+
+	// ProcessChannelReady handles the event of marking a channel identified
+	// by its channel ID as ready to use. We also provide the peer the
+	// channel was established with.
+	ProcessChannelReady(cid lnwire.ChannelID, peer route.Vertex)
+
+	// ProcessReestablish handles the received channel_reestablish message
+	// which marks a channel identified by its cid as ready to use again.
+	ProcessReestablish(cid lnwire.ChannelID, peer route.Vertex)
+}
diff --git a/lnwire/init_message.go b/lnwire/init_message.go
index b88891b0870..dd3b4714226 100644
--- a/lnwire/init_message.go
+++ b/lnwire/init_message.go
@@ -24,6 +24,10 @@ type Init struct {
 	// Features field.
 	Features *RawFeatureVector
 
+	// CustomRecords maps TLV types to byte slices, storing arbitrary data
+	// intended for inclusion in the ExtraData field of the init message.
+	CustomRecords CustomRecords
+
 	// ExtraData is the set of data that was appended to this message to
 	// fill out the full maximum transport message size. These fields can
 	// be used to specify optional data such as custom TLV fields.
@@ -35,7 +39,6 @@ func NewInitMessage(gf *RawFeatureVector, f *RawFeatureVector) *Init {
 	return &Init{
 		GlobalFeatures: gf,
 		Features:       f,
-		ExtraData:      make([]byte, 0),
 	}
 }
 
@@ -52,11 +55,28 @@ var _ SizeableMessage = (*Init)(nil)
 //
 // This is part of the lnwire.Message interface.
 func (msg *Init) Decode(r io.Reader, pver uint32) error {
-	return ReadElements(r,
+	var msgExtraData ExtraOpaqueData
+
+	err := ReadElements(r,
 		&msg.GlobalFeatures,
 		&msg.Features,
-		&msg.ExtraData,
+		&msgExtraData,
 	)
+	if err != nil {
+		return err
+	}
+
+	customRecords, _, extraDData, err := ParseAndExtractCustomRecords(
+		msgExtraData,
+	)
+	if err != nil {
+		return err
+	}
+
+	msg.CustomRecords = customRecords
+	msg.ExtraData = extraDData
+
+	return nil
 }
 
 // Encode serializes the target Init into the passed io.Writer observing
@@ -72,7 +92,12 @@ func (msg *Init) Encode(w *bytes.Buffer, pver uint32) error {
 		return err
 	}
 
-	return WriteBytes(w, msg.ExtraData)
+	extraData, err := MergeAndEncode(nil, msg.ExtraData, msg.CustomRecords)
+	if err != nil {
+		return err
+	}
+
+	return WriteBytes(w, extraData)
 }
 
 // MsgType returns the integer uniquely identifying this message type on the
diff --git a/lnwire/init_message_test.go b/lnwire/init_message_test.go
new file mode 100644
index 00000000000..d0a3acaffb0
--- /dev/null
+++ b/lnwire/init_message_test.go
@@ -0,0 +1,61 @@
+package lnwire
+
+import (
+	"bytes"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+// TestInitEncodeDecode checks that we can encode and decode an Init message
+// to and from a byte stream.
+func TestInitEncodeDecode(t *testing.T) {
+	t.Parallel()
+
+	// These are the raw bytes that we expect to be generated from the
+	// sample Init message.
+	rawBytes := []byte{
+		// GlobalFeatures
+		0x00, 0x01, 0xc0,
+
+		// Features
+		0x00, 0x01, 0xc0,
+
+		// ExtraData - unknown odd-type TLV record.
+		0x6f,       // type (111)
+		0x02,       // length
+		0x79, 0x79, // value
+
+		// ExtraData - custom TLV record.
+		// TLV record for type 67676
+		0xfe, 0x00, 0x01, 0x08, 0x6c, // type (67676)
+		0x05,                         // length
+		0x01, 0x02, 0x03, 0x04, 0x05, // value
+
+		// ExtraData - custom TLV record.
+		// TLV record for type 67777
+		0xfe, 0x00, 0x01, 0x08, 0xc1, // type (67777)
+		0x03,             // length
+		0x01, 0x02, 0x03, // value
+	}
+
+	// Create a new empty message and decode the raw bytes into it.
+	msg := &Init{}
+	r := bytes.NewReader(rawBytes)
+	err := msg.Decode(r, 0)
+	require.NoError(t, err)
+
+	require.NotNil(t, msg.GlobalFeatures)
+	require.NotNil(t, msg.Features)
+	require.NotNil(t, msg.CustomRecords)
+	require.NotNil(t, msg.ExtraData)
+
+	// Next, encode the message back into a new byte buffer.
+	var b bytes.Buffer
+	err = msg.Encode(&b, 0)
+	require.NoError(t, err)
+
+	// The re-encoded bytes should be exactly the same as the original raw
+	// bytes.
+	require.Equal(t, rawBytes, b.Bytes())
+}
diff --git a/lnwire/test_message.go b/lnwire/test_message.go
index 8f946f190e9..0c2fe5e55d2 100644
--- a/lnwire/test_message.go
+++ b/lnwire/test_message.go
@@ -1188,6 +1188,10 @@ func (msg *Init) RandTestMessage(t *rapid.T) Message {
 		local.Set(bit)
 	}
 
+	ignoreRecords := fn.NewSet[uint64]()
+
+	msg.ExtraData = RandExtraOpaqueData(t, ignoreRecords)
+
 	return NewInitMessage(global, local)
 }
 
diff --git a/peer/brontide.go b/peer/brontide.go
index 57e340fb0e8..1ea16d1e811 100644
--- a/peer/brontide.go
+++ b/peer/brontide.go
@@ -456,6 +456,11 @@ type Config struct {
 	// used to modify the way the co-op close transaction is constructed.
 	AuxChanCloser fn.Option[chancloser.AuxChanCloser]
 
+	// AuxChannelNegotiator is an optional interface that allows aux channel
+	// implementations to inject and process custom records over channel
+	// related wire messages.
+	AuxChannelNegotiator fn.Option[lnwallet.AuxChannelNegotiator]
+
 	// ShouldFwdExpEndorsement is a closure that indicates whether
 	// experimental endorsement signals should be set.
 	ShouldFwdExpEndorsement func() bool
@@ -1454,8 +1459,9 @@ func (p *Brontide) addLink(chanPoint *wire.OutPoint,
 		ShouldFwdExpEndorsement: p.cfg.ShouldFwdExpEndorsement,
 		DisallowQuiescence: p.cfg.DisallowQuiescence ||
 			!p.remoteFeatures.HasFeature(lnwire.QuiescenceOptional),
-		AuxTrafficShaper:  p.cfg.AuxTrafficShaper,
-		QuiescenceTimeout: p.cfg.QuiescenceTimeout,
+		AuxTrafficShaper:     p.cfg.AuxTrafficShaper,
+		AuxChannelNegotiator: p.cfg.AuxChannelNegotiator,
+		QuiescenceTimeout:    p.cfg.QuiescenceTimeout,
 	}
 
 	// Before adding our new link, purge the switch of any pending or live
@@ -4537,6 +4543,19 @@ func (p *Brontide) handleInitMsg(msg *lnwire.Init) error {
 		return fmt.Errorf("data loss protection required")
 	}
 
+	// If we have an AuxChannelNegotiator and the peer sent aux features,
+	// process them.
+	p.cfg.AuxChannelNegotiator.WhenSome(
+		func(acn lnwallet.AuxChannelNegotiator) {
+			err = acn.ProcessInitRecords(
+				p.cfg.PubKeyBytes, msg.CustomRecords.Copy(),
+			)
+		},
+	)
+	if err != nil {
+		return fmt.Errorf("could not process init records: %w", err)
+	}
+
 	return nil
 }
 
@@ -4597,6 +4616,30 @@ func (p *Brontide) sendInitMsg(legacyChan bool) error {
 		features.RawFeatureVector,
 	)
 
+	var err error
+
+	// If we have an AuxChannelNegotiator, get custom feature bits to
+	// include in the init message.
+	p.cfg.AuxChannelNegotiator.WhenSome(
+		func(negotiator lnwallet.AuxChannelNegotiator) {
+			var auxRecords lnwire.CustomRecords
+			auxRecords, err = negotiator.GetInitRecords(
+				p.cfg.PubKeyBytes,
+			)
+			if err != nil {
+				p.log.Warnf("Failed to get aux init features: "+
+					"%v", err)
+				return
+			}
+
+			mergedRecs := msg.CustomRecords.MergedCopy(auxRecords)
+			msg.CustomRecords = mergedRecs
+		},
+	)
+	if err != nil {
+		return err
+	}
+
 	return p.writeMessage(msg)
 }
 
diff --git a/server.go b/server.go
index 44be180ea9b..ac3894012bc 100644
--- a/server.go
+++ b/server.go
@@ -1628,6 +1628,7 @@ func newServer(ctx context.Context, cfg *Config, listenAddrs []net.Addr,
 		AuxFundingController: implCfg.AuxFundingController,
 		AuxSigner:            implCfg.AuxSigner,
 		AuxResolver:          implCfg.AuxContractResolver,
+		AuxChannelNegotiator: implCfg.AuxChannelNegotiator,
 	})
 	if err != nil {
 		return nil, err
@@ -4431,6 +4432,7 @@ func (s *server) peerConnected(conn net.Conn, connReq *connmgr.ConnReq,
 		AuxChanCloser:          s.implCfg.AuxChanCloser,
 		AuxResolver:            s.implCfg.AuxContractResolver,
 		AuxTrafficShaper:       s.implCfg.TrafficShaper,
+		AuxChannelNegotiator:   s.implCfg.AuxChannelNegotiator,
 		ShouldFwdExpEndorsement: func() bool {
 			if s.cfg.ProtocolOptions.NoExperimentalEndorsement() {
 				return false