diff --git a/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.spec.ts b/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.spec.ts
index 12193db13e2..2fbf1355bd2 100644
--- a/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.spec.ts
+++ b/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.spec.ts
@@ -1,7 +1,8 @@
 import { BTC_P2WPKH_DUST_AMOUNT } from '@leather.io/constants';
 import { createMoney, createNullArrayOfLength, sumNumbers } from '@leather.io/utils';
 
-import { determineUtxosForSpend } from './local-coin-selection';
+import { filterUneconomicalUtxos, getSizeInfo } from '../utils';
+import { determineUtxosForSpend, determineUtxosForSpendAll } from './local-coin-selection';
 
 const demoUtxos = [
   { value: 8200 },
@@ -168,4 +169,64 @@ describe(determineUtxosForSpend.name, () => {
         .toString()
     );
   });
+
+  test('that spending all economical spendable utxos does not result in dust utxos', () => {
+    const feeRate = 3;
+    const recipients = [
+      {
+        address: 'tb1qt28eagxcl9gvhq2rpj5slg7dwgxae2dn2hk93m',
+        amount: createMoney(Number(1), 'BTC'),
+      },
+    ];
+    const filteredUtxos = filterUneconomicalUtxos({
+      utxos: demoUtxos.sort((a, b) => b.value - a.value) as any,
+      feeRate,
+      recipients,
+    });
+    const amount = filteredUtxos.reduce((total, utxo) => total + utxo.value, 0) - 2251;
+    recipients[0].amount = createMoney(Number(amount), 'BTC');
+
+    const result = determineUtxosForSpend({
+      utxos: filteredUtxos as any,
+      recipients: [
+        {
+          address: 'tb1qt28eagxcl9gvhq2rpj5slg7dwgxae2dn2hk93m',
+          amount: createMoney(Number(amount), 'BTC'),
+        },
+      ],
+      feeRate,
+    });
+    expect(result.inputs.length).toEqual(10);
+    expect(result.outputs.length).toEqual(1);
+    expect(result.fee).toEqual(2251);
+  });
+
+  test('that spending all utxos with sendMax does not result in dust utxos', () => {
+    const utxos = [{ value: 1000 }, { value: 2000 }, { value: 3000 }];
+    const recipients = [
+      {
+        address: 'tb1qt28eagxcl9gvhq2rpj5slg7dwgxae2dn2hk93m',
+        amount: createMoney(Number(1), 'BTC'),
+      },
+    ];
+    const sizeInfo = getSizeInfo({
+      inputLength: utxos.length,
+      isSendMax: true,
+      recipients,
+    });
+    const feeRate = 3;
+    const fee = Math.floor(sizeInfo.txVBytes * feeRate);
+    const amount = utxos.reduce((total, utxo) => total + utxo.value, 0) - fee;
+    recipients[0].amount = createMoney(Number(amount), 'BTC');
+
+    const result = determineUtxosForSpendAll({
+      utxos: utxos as any,
+      recipients,
+      feeRate,
+    });
+    expect(result.inputs.length).toEqual(utxos.length);
+    expect(result.outputs.length).toEqual(1);
+    expect(result.fee).toEqual(735);
+    expect(fee).toEqual(735);
+  });
 });
diff --git a/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.ts b/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.ts
index 089ed0c7836..306e0279531 100644
--- a/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.ts
+++ b/src/app/common/transactions/bitcoin/coinselect/local-coin-selection.ts
@@ -1,6 +1,7 @@
 import BigNumber from 'bignumber.js';
 import { validate } from 'bitcoin-address-validation';
 
+import { BTC_P2WPKH_DUST_AMOUNT } from '@leather.io/constants';
 import type { UtxoResponseItem } from '@leather.io/query';
 import { sumMoney, sumNumbers } from '@leather.io/utils';
 
@@ -14,6 +15,11 @@ export class InsufficientFundsError extends Error {
   }
 }
 
+interface Output {
+  value: bigint;
+  address?: string;
+}
+
 export interface DetermineUtxosForSpendArgs {
   feeRate: number;
   recipients: TransferRecipient[];
@@ -101,20 +107,24 @@ export function determineUtxosForSpend({ feeRate, recipients, utxos }: Determine
     new BigNumber(estimateTransactionSize().txVBytes).multipliedBy(feeRate).toNumber()
   );
 
-  const outputs: {
-    value: bigint;
-    address?: string;
-  }[] = [
+  const changeAmount =
+    BigInt(getUtxoTotal(neededUtxos).toString()) - BigInt(amount.amount.toNumber()) - BigInt(fee);
+
+  const changeUtxos: Output[] =
+    changeAmount > BTC_P2WPKH_DUST_AMOUNT
+      ? [
+          {
+            value: changeAmount,
+          },
+        ]
+      : [];
+
+  const outputs: Output[] = [
     ...recipients.map(({ address, amount }) => ({
       value: BigInt(amount.amount.toNumber()),
       address,
     })),
-    {
-      value:
-        BigInt(getUtxoTotal(neededUtxos).toString()) -
-        BigInt(amount.amount.toNumber()) -
-        BigInt(fee),
-    },
+    ...changeUtxos,
   ];
 
   return {
diff --git a/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee-input.tsx b/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee-input.tsx
index aa900dd2345..af2b1fd0304 100644
--- a/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee-input.tsx
+++ b/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee-input.tsx
@@ -4,7 +4,7 @@ import { useField } from 'formik';
 import { Stack } from 'leather-styles/jsx';
 
 import { Input } from '@leather.io/ui';
-import { createMoney, satToBtc } from '@leather.io/utils';
+import { satToBtc } from '@leather.io/utils';
 
 import type { TransferRecipient } from '@shared/models/form.model';
 
@@ -19,7 +19,6 @@ const feeInputLabel = 'sats/vB';
 
 interface Props {
   onClick?(): void;
-  amount: number;
   isSendingMax: boolean;
   recipients: TransferRecipient[];
   hasInsufficientBalanceError: boolean;
@@ -30,7 +29,6 @@ interface Props {
 
 export function BitcoinCustomFeeInput({
   onClick,
-  amount,
   isSendingMax,
   recipients,
   hasInsufficientBalanceError,
@@ -45,7 +43,6 @@ export function BitcoinCustomFeeInput({
   }>(null);
 
   const getCustomFeeValues = useBitcoinCustomFee({
-    amount: createMoney(amount, 'BTC'),
     isSendingMax,
     recipients,
   });
diff --git a/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee.tsx b/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee.tsx
index dc92f9ee90f..ff271b81d25 100644
--- a/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee.tsx
+++ b/src/app/components/bitcoin-custom-fee/bitcoin-custom-fee.tsx
@@ -7,7 +7,6 @@ import * as yup from 'yup';
 
 import type { BtcFeeType } from '@leather.io/models';
 import { Button, Link } from '@leather.io/ui';
-import { createMoney } from '@leather.io/utils';
 
 import type { TransferRecipient } from '@shared/models/form.model';
 
@@ -31,7 +30,6 @@ interface BitcoinCustomFeeProps {
 }
 
 export function BitcoinCustomFee({
-  amount,
   customFeeInitialValue,
   hasInsufficientBalanceError,
   isSendingMax,
@@ -44,7 +42,6 @@ export function BitcoinCustomFee({
 }: BitcoinCustomFeeProps) {
   const feeInputRef = useRef<HTMLInputElement | null>(null);
   const getCustomFeeValues = useBitcoinCustomFee({
-    amount: createMoney(amount, 'BTC'),
     isSendingMax,
     recipients,
   });
@@ -97,7 +94,6 @@ export function BitcoinCustomFee({
                 </Link>
               </styled.span>
               <BitcoinCustomFeeInput
-                amount={amount}
                 isSendingMax={isSendingMax}
                 onClick={async () => {
                   feeInputRef.current?.focus();
diff --git a/src/app/components/bitcoin-custom-fee/hooks/use-bitcoin-custom-fee.tsx b/src/app/components/bitcoin-custom-fee/hooks/use-bitcoin-custom-fee.tsx
index c422ac113fd..cb72151d4b0 100644
--- a/src/app/components/bitcoin-custom-fee/hooks/use-bitcoin-custom-fee.tsx
+++ b/src/app/components/bitcoin-custom-fee/hooks/use-bitcoin-custom-fee.tsx
@@ -1,28 +1,25 @@
 import { useCallback } from 'react';
 
-import type { Money } from '@leather.io/models';
 import { useCryptoCurrencyMarketDataMeanAverage } from '@leather.io/query';
 import { baseCurrencyAmountInQuote, createMoney, i18nFormatCurrency } from '@leather.io/utils';
 
 import type { TransferRecipient } from '@shared/models/form.model';
 
 import {
+  type DetermineUtxosForSpendArgs,
   determineUtxosForSpend,
   determineUtxosForSpendAll,
 } from '@app/common/transactions/bitcoin/coinselect/local-coin-selection';
 import { useCurrentNativeSegwitUtxos } from '@app/query/bitcoin/address/utxos-by-address.hooks';
-import { useCurrentBtcCryptoAssetBalanceNativeSegwit } from '@app/query/bitcoin/balance/btc-balance-native-segwit.hooks';
 
 export const MAX_FEE_RATE_MULTIPLIER = 50;
 
 interface UseBitcoinCustomFeeArgs {
-  amount: Money;
   isSendingMax: boolean;
   recipients: TransferRecipient[];
 }
 
-export function useBitcoinCustomFee({ amount, isSendingMax, recipients }: UseBitcoinCustomFeeArgs) {
-  const { balance } = useCurrentBtcCryptoAssetBalanceNativeSegwit();
+export function useBitcoinCustomFee({ isSendingMax, recipients }: UseBitcoinCustomFeeArgs) {
   const { data: utxos = [] } = useCurrentNativeSegwitUtxos();
   const btcMarketData = useCryptoCurrencyMarketDataMeanAverage('BTC');
 
@@ -30,12 +27,7 @@ export function useBitcoinCustomFee({ amount, isSendingMax, recipients }: UseBit
     (feeRate: number) => {
       if (!feeRate || !utxos.length) return { fee: 0, fiatFeeValue: '' };
 
-      const satAmount = isSendingMax
-        ? balance.availableBalance.amount.toNumber()
-        : amount.amount.toNumber();
-
-      const determineUtxosArgs = {
-        amount: satAmount,
+      const determineUtxosArgs: DetermineUtxosForSpendArgs = {
         recipients,
         utxos,
         feeRate,
@@ -51,6 +43,6 @@ export function useBitcoinCustomFee({ amount, isSendingMax, recipients }: UseBit
         )}`,
       };
     },
-    [utxos, isSendingMax, balance.availableBalance.amount, amount.amount, recipients, btcMarketData]
+    [utxos, isSendingMax, recipients, btcMarketData]
   );
 }
diff --git a/src/app/features/dialogs/increase-fee-dialog/increase-btc-fee-dialog.tsx b/src/app/features/dialogs/increase-fee-dialog/increase-btc-fee-dialog.tsx
index 52a92904a6a..8a382bca309 100644
--- a/src/app/features/dialogs/increase-fee-dialog/increase-btc-fee-dialog.tsx
+++ b/src/app/features/dialogs/increase-fee-dialog/increase-btc-fee-dialog.tsx
@@ -93,9 +93,6 @@ export function IncreaseBtcFeeDialog() {
                   <Stack gap="space.04">
                     <Stack gap="space.01">
                       <BitcoinCustomFeeInput
-                        amount={Math.abs(
-                          btcToSat(getBitcoinTxValue(currentBitcoinAddress, btcTx)).toNumber()
-                        )}
                         isSendingMax={false}
                         recipients={recipients}
                         hasInsufficientBalanceError={false}