diff --git a/core/archipelago/src/api/rpc/lnd/channels.rs b/core/archipelago/src/api/rpc/lnd/channels.rs
index 80648fd9..d1603850 100644
--- a/core/archipelago/src/api/rpc/lnd/channels.rs
+++ b/core/archipelago/src/api/rpc/lnd/channels.rs
@@ -198,11 +198,26 @@ impl RpcHandler {
             ));
         }
 
-        info!(peer = pubkey, amount = amount, "Opening Lightning channel");
+        let private = params
+            .get("private")
+            .and_then(|v| v.as_bool())
+            .unwrap_or(false);
+
+        info!(
+            peer = pubkey,
+            amount = amount,
+            private = private,
+            "Opening Lightning channel"
+        );
 
         let (client, macaroon_hex) = self.lnd_client().await?;
 
-        // First connect to the peer if an address is provided
+        // First connect to the peer if an address is provided.
+        // perm=false makes LND connect synchronously, so the peer is online
+        // (or we get a real error) before we attempt the channel open.
+        // perm=true queues the connection in the background and returns
+        // immediately, which makes the subsequent open race and fail with
+        // "peer is not online".
         if let Some(addr) = params.get("address").and_then(|v| v.as_str()) {
             // Validate peer address format (host:port)
             if addr.len() > 256 || addr.contains('\0') || addr.contains(' ') {
@@ -210,19 +225,35 @@ impl RpcHandler {
             }
             let connect_body = serde_json::json!({
                 "addr": { "pubkey": pubkey, "host": addr },
-                "perm": true
+                "perm": false,
+                "timeout": "30"
             });
-            let _ = client
+            let connect_resp = client
                 .post(format!("{LND_REST_BASE_URL}/v1/peers"))
                 .header("Grpc-Metadata-macaroon", &macaroon_hex)
                 .json(&connect_body)
+                .timeout(std::time::Duration::from_secs(35))
                 .send()
-                .await;
+                .await
+                .context("Failed to connect to peer")?;
+
+            if !connect_resp.status().is_success() {
+                let body: serde_json::Value = connect_resp.json().await.unwrap_or_default();
+                let msg = body
+                    .get("message")
+                    .and_then(|v| v.as_str())
+                    .unwrap_or("Unknown error");
+                // LND returns an error if we already have this peer — that is fine
+                if !msg.contains("already connected") {
+                    return Err(anyhow::anyhow!("Failed to connect to peer: {}", msg));
+                }
+            }
         }
 
         let open_body = serde_json::json!({
             "node_pubkey_string": pubkey,
             "local_funding_amount": amount.to_string(),
+            "private": private,
         });
 
         let resp = client
diff --git a/core/archipelago/src/api/rpc/middleware.rs b/core/archipelago/src/api/rpc/middleware.rs
index 8cef041e..33939af1 100644
--- a/core/archipelago/src/api/rpc/middleware.rs
+++ b/core/archipelago/src/api/rpc/middleware.rs
@@ -61,6 +61,9 @@ pub(super) fn sanitize_error_message(msg: &str) -> String {
         "Session",
         "Failed to pull",
         "Failed to start",
+        "Failed to open channel",
+        "Failed to close channel",
+        "Failed to connect to peer",
         "Container",
         "Image",
         "Bitcoin address",
diff --git a/neode-ui/src/views/apps/LightningChannels.vue b/neode-ui/src/views/apps/LightningChannels.vue
index 6129a276..307272e1 100644
--- a/neode-ui/src/views/apps/LightningChannels.vue
+++ b/neode-ui/src/views/apps/LightningChannels.vue
@@ -155,6 +155,13 @@
             />
             <p class="text-white/40 text-xs mt-1">Minimum 20,000 sats</p>
           </div>
+          <div>
+            <label class="flex items-center gap-2 cursor-pointer">
+              <input v-model="openForm.private" type="checkbox" class="accent-blue-500" />
+              <span class="text-white/60 text-sm">Private channel (unannounced)</span>
+            </label>
+            <p class="text-white/40 text-xs mt-1">Some nodes (e.g. LSPs like Olympus) only accept unannounced channels</p>
+          </div>
         </div>
 
         <div v-if="openError" class="mt-3 alert-error">
@@ -221,7 +228,7 @@ const channels = ref<Channel[]>([])
 const summary = ref({ total_inbound: 0, total_outbound: 0 })
 
 const showOpenModal = ref(false)
-const openForm = ref({ peerUri: '', amount: 100000 })
+const openForm = ref({ peerUri: '', amount: 100000, private: false })
 const openingChannel = ref(false)
 const openError = ref<string | null>(null)
 
@@ -279,11 +286,12 @@ async function openChannel() {
   try {
     await rpcClient.call({
       method: 'lnd.openchannel',
-      params: { pubkey, address, amount: openForm.value.amount },
-      timeout: 30000,
+      params: { pubkey, address, amount: openForm.value.amount, private: openForm.value.private },
+      // Server may wait up to 35s for a synchronous peer connect before opening
+      timeout: 60000,
     })
     showOpenModal.value = false
-    openForm.value = { peerUri: '', amount: 100000 }
+    openForm.value = { peerUri: '', amount: 100000, private: false }
     await loadChannels()
   } catch (err: unknown) {
     openError.value = err instanceof Error ? err.message : 'Failed to open channel'