diff --git a/protofsm/state_machine.go b/protofsm/state_machine.go
index aa11767eff..c83659fe2f 100644
--- a/protofsm/state_machine.go
+++ b/protofsm/state_machine.go
@@ -131,6 +131,8 @@ type stateQuery[Event any, Env Environment] struct {
 type StateMachine[Event any, Env Environment] struct {
 	cfg StateMachineCfg[Event, Env]
 
+	log btclog.Logger
+
 	// events is the channel that will be used to send new events to the
 	// FSM.
 	events chan Event
@@ -198,7 +200,10 @@ func NewStateMachine[Event any, Env Environment](
 	cfg StateMachineCfg[Event, Env]) StateMachine[Event, Env] {
 
 	return StateMachine[Event, Env]{
-		cfg:            cfg,
+		cfg: cfg,
+		log: log.WithPrefix(
+			fmt.Sprintf("FSM(%v)", cfg.Env.Name()),
+		),
 		events:         make(chan Event, 1),
 		stateQuery:     make(chan stateQuery[Event, Env]),
 		wg:             *fn.NewGoroutineManager(),
@@ -212,7 +217,7 @@ func NewStateMachine[Event any, Env Environment](
 func (s *StateMachine[Event, Env]) Start(ctx context.Context) {
 	s.startOnce.Do(func() {
 		_ = s.wg.Go(ctx, func(ctx context.Context) {
-			s.driveMachine(s.decorateCtx(ctx))
+			s.driveMachine(ctx)
 		})
 	})
 }
@@ -230,12 +235,7 @@ func (s *StateMachine[Event, Env]) Stop() {
 //
 // TODO(roasbeef): bool if processed?
 func (s *StateMachine[Event, Env]) SendEvent(ctx context.Context, event Event) {
-	s.sendEvent(s.decorateCtx(ctx), event)
-}
-
-// sendEvent sends a new event to the state machine.
-func (s *StateMachine[Event, Env]) sendEvent(ctx context.Context, event Event) {
-	log.DebugS(ctx, "Sending event",
+	s.log.DebugS(ctx, "Sending event",
 		"event", lnutils.SpewLogClosure(event))
 
 	select {
@@ -268,24 +268,13 @@ func (s *StateMachine[Event, Env]) Name() string {
 func (s *StateMachine[Event, Env]) SendMessage(ctx context.Context,
 	msg lnwire.Message) bool {
 
-	return s.sendMessage(s.decorateCtx(ctx), msg)
-
-}
-
-// sendMessage attempts to send a wire message to the state machine. If the
-// message can be mapped using the default message mapper, then true is
-// returned indicating that the message was processed. Otherwise, false is
-// returned.
-func (s *StateMachine[Event, Env]) sendMessage(ctx context.Context,
-	msg lnwire.Message) bool {
-
 	// If we have no message mapper, then return false as we can't process
 	// this message.
 	if !s.cfg.MsgMapper.IsSome() {
 		return false
 	}
 
-	log.DebugS(ctx, "Sending msg", "msg", lnutils.SpewLogClosure(msg))
+	s.log.DebugS(ctx, "Sending msg", "msg", lnutils.SpewLogClosure(msg))
 
 	// Otherwise, try to map the message using the default message mapper.
 	// If we can't extract an event, then we'll return false to indicate
@@ -295,7 +284,7 @@ func (s *StateMachine[Event, Env]) sendMessage(ctx context.Context,
 		event := mapper.MapMsg(msg)
 
 		event.WhenSome(func(event Event) {
-			s.sendEvent(ctx, event)
+			s.SendEvent(ctx, event)
 
 			processed = true
 		})
@@ -354,7 +343,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 	// any preconditions as well as post-send events.
 	case *SendMsgEvent[Event]:
 		sendAndCleanUp := func() error {
-			log.DebugS(ctx, "Sending message",
+			s.log.DebugS(ctx, "Sending message",
 				btclog.Hex6("target", daemonEvent.TargetPeer.SerializeCompressed()),
 				"msgs", lnutils.SpewLogClosure(daemonEvent.Msgs))
 
@@ -371,10 +360,10 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 			return fn.MapOptionZ(daemonEvent.PostSendEvent, func(event Event) error { //nolint:ll
 				launched := s.wg.Go(
 					ctx, func(ctx context.Context) {
-						log.DebugS(ctx, "Sending post-send event",
+						s.log.DebugS(ctx, "Sending post-send event",
 							"event", lnutils.SpewLogClosure(event))
 
-						s.sendEvent(ctx, event)
+						s.SendEvent(ctx, event)
 					},
 				)
 
@@ -401,7 +390,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 			)
 			defer predicateTicker.Stop()
 
-			log.InfoS(ctx, "Waiting for send predicate to be true")
+			s.log.InfoS(ctx, "Waiting for send predicate to be true")
 
 			for {
 				select {
@@ -414,12 +403,12 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 					)
 
 					if canSend {
-						log.InfoS(ctx, "Send active "+
+						s.log.InfoS(ctx, "Send active "+
 							"predicate")
 
 						err := sendAndCleanUp()
 						if err != nil {
-							log.ErrorS(ctx, "Unable to send message", err)
+							s.log.ErrorS(ctx, "Unable to send message", err)
 						}
 
 						return
@@ -440,7 +429,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 	// If this is a broadcast transaction event, then we'll broadcast with
 	// the label attached.
 	case *BroadcastTxn:
-		log.DebugS(ctx, "Broadcasting txn",
+		s.log.DebugS(ctx, "Broadcasting txn",
 			"txid", daemonEvent.Tx.TxHash())
 
 		err := s.cfg.Daemon.BroadcastTransaction(
@@ -455,7 +444,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 	// The state machine has requested a new event to be sent once a
 	// transaction spending a specified outpoint has confirmed.
 	case *RegisterSpend[Event]:
-		log.DebugS(ctx, "Registering spend",
+		s.log.DebugS(ctx, "Registering spend",
 			"outpoint", daemonEvent.OutPoint)
 
 		spendEvent, err := s.cfg.Daemon.RegisterSpendNtfn(
@@ -480,7 +469,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 					postSpend := daemonEvent.PostSpendEvent
 					postSpend.WhenSome(func(f SpendMapper[Event]) { //nolint:ll
 						customEvent := f(spend)
-						s.sendEvent(ctx, customEvent)
+						s.SendEvent(ctx, customEvent)
 					})
 
 					return
@@ -500,7 +489,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 	// The state machine has requested a new event to be sent once a
 	// specified txid+pkScript pair has confirmed.
 	case *RegisterConf[Event]:
-		log.DebugS(ctx, "Registering conf",
+		s.log.DebugS(ctx, "Registering conf",
 			"txid", daemonEvent.Txid)
 
 		numConfs := daemonEvent.NumConfs.UnwrapOr(1)
@@ -524,7 +513,7 @@ func (s *StateMachine[Event, Env]) executeDaemonEvent(ctx context.Context,
 					// dispatchAfterRecv w/ above
 					postConf := daemonEvent.PostConfEvent
 					postConf.WhenSome(func(e Event) {
-						s.sendEvent(ctx, e)
+						s.SendEvent(ctx, e)
 					})
 
 					return
@@ -552,7 +541,7 @@ func (s *StateMachine[Event, Env]) applyEvents(ctx context.Context,
 	currentState State[Event, Env], newEvent Event) (State[Event, Env],
 	error) {
 
-	log.DebugS(ctx, "Applying new event",
+	s.log.DebugS(ctx, "Applying new event",
 		"event", lnutils.SpewLogClosure(newEvent),
 	)
 	eventQueue := fn.NewQueue(newEvent)
@@ -565,7 +554,7 @@ func (s *StateMachine[Event, Env]) applyEvents(ctx context.Context,
 	//nolint:ll
 	for nextEvent := eventQueue.Dequeue(); nextEvent.IsSome(); nextEvent = eventQueue.Dequeue() {
 		err := fn.MapOptionZ(nextEvent, func(event Event) error {
-			log.DebugS(ctx, "Processing event",
+			s.log.DebugS(ctx, "Processing event",
 				"event", lnutils.SpewLogClosure(event),
 			)
 
@@ -586,7 +575,7 @@ func (s *StateMachine[Event, Env]) applyEvents(ctx context.Context,
 				//
 				//nolint:ll
 				err := fn.MapOptionZ(events.ExternalEvents, func(dEvents DaemonEventSet) error {
-					log.DebugS(ctx, "Processing daemon events",
+					s.log.DebugS(ctx, "Processing daemon events",
 						"num_events", len(dEvents))
 
 					for _, dEvent := range dEvents {
@@ -610,7 +599,7 @@ func (s *StateMachine[Event, Env]) applyEvents(ctx context.Context,
 				//nolint:ll
 				events.InternalEvent.WhenSome(func(es []Event) {
 					for _, inEvent := range es {
-						log.DebugS(ctx, "Adding new internal "+
+						s.log.DebugS(ctx, "Adding new internal "+
 							"event to queue event",
 							lnutils.SpewLogClosure(inEvent))
 
@@ -624,7 +613,7 @@ func (s *StateMachine[Event, Env]) applyEvents(ctx context.Context,
 				return err
 			}
 
-			log.InfoS(ctx, "State transition",
+			s.log.InfoS(ctx, "State transition",
 				btclog.Fmt("from_state", "%T", currentState),
 				btclog.Fmt("to_state", "%T", transition.NextState))
 
@@ -652,7 +641,7 @@ func (s *StateMachine[Event, Env]) applyEvents(ctx context.Context,
 // incoming events, and then drives the state machine forward until it reaches
 // a terminal state.
 func (s *StateMachine[Event, Env]) driveMachine(ctx context.Context) {
-	log.DebugS(ctx, "Starting state machine")
+	s.log.DebugS(ctx, "Starting state machine")
 
 	currentState := s.cfg.InitialState
 
@@ -662,7 +651,7 @@ func (s *StateMachine[Event, Env]) driveMachine(ctx context.Context) {
 		return s.executeDaemonEvent(ctx, event)
 	})
 	if err != nil {
-		log.ErrorS(ctx, "Unable to execute init event", err)
+		s.log.ErrorS(ctx, "Unable to execute init event", err)
 		return
 	}
 
@@ -682,7 +671,7 @@ func (s *StateMachine[Event, Env]) driveMachine(ctx context.Context) {
 			if err != nil {
 				s.cfg.ErrorReporter.ReportError(err)
 
-				log.ErrorS(ctx, "Unable to apply event", err)
+				s.log.ErrorS(ctx, "Unable to apply event", err)
 
 				// An error occurred, so we'll tear down the
 				// entire state machine as we can't proceed.
@@ -705,11 +694,3 @@ func (s *StateMachine[Event, Env]) driveMachine(ctx context.Context) {
 		}
 	}
 }
-
-// decorateCtx adds the FSM name to the context as a logging attribute.
-func (s *StateMachine[Event, Env]) decorateCtx(
-	ctx context.Context) context.Context {
-
-	return btclog.WithCtx(ctx,
-		btclog.Fmt("fsm_name", s.cfg.Env.Name())) //nolint:govet
-}