diff --git a/cmd/peerswaplnd/peerswapd/main.go b/cmd/peerswaplnd/peerswapd/main.go
index c1bc4726..db7c5812 100644
--- a/cmd/peerswaplnd/peerswapd/main.go
+++ b/cmd/peerswaplnd/peerswapd/main.go
@@ -51,6 +51,10 @@ import (
 
 const (
 	minLndVersion = float64(14.1)
+	// maxMsgRecvSize is the largest message our gRPC server and REST gateway
+	// will receive. This is set to 500 MiB to be consistent with other
+	// gRPC clients in this repo (e.g. lnd/connect.go, testframework/proxy.go).
+	maxMsgRecvSize = 1 * 1024 * 1024 * 500
 )
 
 var GitCommit string
@@ -443,7 +447,10 @@ func run() error {
 	}
 	defer lis.Close()
 
-	grpcSrv := grpc.NewServer()
+	grpcSrv := grpc.NewServer(
+		grpc.MaxRecvMsgSize(maxMsgRecvSize),
+		grpc.MaxSendMsgSize(maxMsgRecvSize),
+	)
 
 	peerswaprpc.RegisterPeerSwapServer(grpcSrv, peerswaprpcServer)
 
@@ -467,7 +474,10 @@ func run() error {
 				},
 			}),
 		)
-		opts := []grpc.DialOption{grpc.WithTransportCredentials(insecure.NewCredentials())}
+		opts := []grpc.DialOption{
+			grpc.WithTransportCredentials(insecure.NewCredentials()),
+			grpc.WithDefaultCallOptions(grpc.MaxCallRecvMsgSize(maxMsgRecvSize)),
+		}
 		err := peerswaprpc.RegisterPeerSwapHandlerFromEndpoint(ctx, mux, cfg.Host, opts)
 		if err != nil {
 			return err
diff --git a/go.mod b/go.mod
index ec6b7c03..4084fda2 100644
--- a/go.mod
+++ b/go.mod
@@ -164,7 +164,6 @@ require (
 	github.com/docker/go-units v0.5.0 // indirect
 	github.com/golang-jwt/jwt/v4 v4.4.2 // indirect
 	github.com/golang-migrate/migrate/v4 v4.17.0 // indirect
-	github.com/golang/mock v1.6.0 // indirect
 	github.com/google/shlex v0.0.0-20191202100458-e7afc7fbc510 // indirect
 	github.com/google/uuid v1.6.0 // indirect
 	github.com/hashicorp/errwrap v1.1.0 // indirect
diff --git a/go.sum b/go.sum
index f61194c1..63018e0e 100644
--- a/go.sum
+++ b/go.sum
@@ -256,8 +256,6 @@ github.com/golang/mock v1.4.0/go.mod h1:UOMv5ysSaYNkG+OFQykRIcU/QvvxJf3p21QfJ2Bt
 github.com/golang/mock v1.4.1/go.mod h1:UOMv5ysSaYNkG+OFQykRIcU/QvvxJf3p21QfJ2Bt3cw=
 github.com/golang/mock v1.4.3/go.mod h1:UOMv5ysSaYNkG+OFQykRIcU/QvvxJf3p21QfJ2Bt3cw=
 github.com/golang/mock v1.4.4/go.mod h1:l3mdAwkq5BuhzHwde/uurv3sEJeZMXNpwsxVWU71h+4=
-github.com/golang/mock v1.6.0 h1:ErTB+efbowRARo13NNdxyJji2egdxLGQhRaY+DUumQc=
-github.com/golang/mock v1.6.0/go.mod h1:p6yTPP+5HYm5mzsMV8JkE6ZKdX+/wYM6Hr+LicevLPs=
 github.com/golang/protobuf v1.2.0/go.mod h1:6lQm79b+lXiMfvg/cZm0SGofjICqVBUtrP5yJMmIC1U=
 github.com/golang/protobuf v1.3.1/go.mod h1:6lQm79b+lXiMfvg/cZm0SGofjICqVBUtrP5yJMmIC1U=
 github.com/golang/protobuf v1.3.2/go.mod h1:6lQm79b+lXiMfvg/cZm0SGofjICqVBUtrP5yJMmIC1U=
@@ -951,7 +949,6 @@ golang.org/x/tools v0.0.0-20200729194436-6467de6f59a7/go.mod h1:njjCfa9FT2d7l9Bc
 golang.org/x/tools v0.0.0-20200804011535-6c149bb5ef0d/go.mod h1:njjCfa9FT2d7l9Bc6FUM5FLjQPp3cFF28FI3qnDFljA=
 golang.org/x/tools v0.0.0-20200825202427-b303f430e36d/go.mod h1:njjCfa9FT2d7l9Bc6FUM5FLjQPp3cFF28FI3qnDFljA=
 golang.org/x/tools v0.0.0-20210106214847-113979e3529a/go.mod h1:emZCQorbCU4vsT4fOWvOPXz4eW1wZW4PmDk9uLelYpA=
-golang.org/x/tools v0.1.1/go.mod h1:o0xws9oXOQQZyjljx8fwUC0k7L1pTE6eaCbjGeHmOkk=
 golang.org/x/tools v0.1.6-0.20210726203631-07bc1bf47fb2/go.mod h1:o0xws9oXOQQZyjljx8fwUC0k7L1pTE6eaCbjGeHmOkk=
 golang.org/x/tools v0.21.1-0.20240508182429-e35e4ccd0d2d h1:vU5i/LfpvrRCpgM/VPfJLg5KjxD3E+hfT1SH+d9zLwg=
 golang.org/x/tools v0.21.1-0.20240508182429-e35e4ccd0d2d/go.mod h1:aiJjzUbINMkxbQROHiO6hDPo2LHcIPhhQsa9DLh0yGk=