diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index ebc8cfa74..1e9dfa0d9 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -203,7 +203,12 @@ u8 *p2wpkh_for_keyidx(const tal_t *ctx, struct lightningd *ld, u64 keyidx)
 {
 	struct pubkey shutdownkey;
 
-	bip32_pubkey(ld, &shutdownkey, keyidx);
+	/* Use BIP86 derivation if wallet has BIP86 base, otherwise use BIP32 */
+	if (ld->bip86_base) {
+		bip86_pubkey(ld, &shutdownkey, keyidx);
+	} else {
+		bip32_pubkey(ld, &shutdownkey, keyidx);
+	}
 	return scriptpubkey_p2wpkh(ctx, &shutdownkey);
 }