diff --git a/docs/release-notes/release-notes-0.20.1.md b/docs/release-notes/release-notes-0.20.1.md
index 59370eaae7e..32ae26b3103 100644
--- a/docs/release-notes/release-notes-0.20.1.md
+++ b/docs/release-notes/release-notes-0.20.1.md
@@ -32,6 +32,10 @@
   addresses](https://github.com/lightningnetwork/lnd/pull/10341) were added to
   the node announcement and `getinfo` output.
 
+* [Fix potential sql tx exhaustion 
+  issue](https://github.com/lightningnetwork/lnd/pull/10428) in LND which might
+  happen when running postgres with a limited number of connections configured.
+
 # New Features
 
 ## Functional Enhancements
diff --git a/graph/db/kv_store.go b/graph/db/kv_store.go
index cc9a14889d3..ec55ee3be52 100644
--- a/graph/db/kv_store.go
+++ b/graph/db/kv_store.go
@@ -2116,6 +2116,13 @@ func (c *KVStore) fetchNextChanUpdateBatch(
 		batch   []ChannelEdge
 		hasMore bool
 	)
+
+	// Acquire read lock before starting transaction to ensure
+	// consistent lock ordering (cacheMu -> DB) and prevent
+	// deadlock with write operations.
+	c.cacheMu.RLock()
+	defer c.cacheMu.RUnlock()
+
 	err := kvdb.View(c.db, func(tx kvdb.RTx) error {
 		edges := tx.ReadBucket(edgeBucket)
 		if edges == nil {
@@ -2195,9 +2202,7 @@ func (c *KVStore) fetchNextChanUpdateBatch(
 				continue
 			}
 
-			// Before we read the edge info, we'll see if this
-			// element is already in the cache or not.
-			c.cacheMu.RLock()
+			// Check cache (we already hold shared read lock).
 			if channel, ok := c.chanCache.get(chanIDInt); ok {
 				state.edgesSeen[chanIDInt] = struct{}{}
 
@@ -2208,11 +2213,8 @@ func (c *KVStore) fetchNextChanUpdateBatch(
 
 				indexKey, _ = updateCursor.Next()
 
-				c.cacheMu.RUnlock()
-
 				continue
 			}
-			c.cacheMu.RUnlock()
 
 			// The edge wasn't in the cache, so we'll fetch it along
 			// w/ the edge policies and nodes.
diff --git a/graph/db/sql_store.go b/graph/db/sql_store.go
index f67894e4ce0..2d85971acf5 100644
--- a/graph/db/sql_store.go
+++ b/graph/db/sql_store.go
@@ -1126,6 +1126,11 @@ func (s *SQLStore) ChanUpdatesInHorizon(startTime, endTime time.Time,
 		for hasMore {
 			var batch []ChannelEdge
 
+			// Acquire read lock before starting transaction to
+			// ensure consistent lock ordering (cacheMu -> DB) and
+			// prevent deadlock with write operations.
+			s.cacheMu.RLock()
+
 			err := s.db.ExecTx(ctx, sqldb.ReadTxOpt(),
 				func(db SQLQueries) error {
 					//nolint:ll
@@ -1178,11 +1183,11 @@ func (s *SQLStore) ChanUpdatesInHorizon(startTime, endTime time.Time,
 							continue
 						}
 
-						s.cacheMu.RLock()
+						// Check cache (we already hold
+						// shared read lock).
 						channel, ok := s.chanCache.get(
 							chanIDInt,
 						)
-						s.cacheMu.RUnlock()
 						if ok {
 							hits++
 							total++
@@ -1216,6 +1221,9 @@ func (s *SQLStore) ChanUpdatesInHorizon(startTime, endTime time.Time,
 					)
 				})
 
+			// Release read lock after transaction completes.
+			s.cacheMu.RUnlock()
+
 			if err != nil {
 				log.Errorf("ChanUpdatesInHorizon "+
 					"batch error: %v", err)