diff --git a/config.go b/config.go
index 5b8452fa..7584a473 100644
--- a/config.go
+++ b/config.go
@@ -290,7 +290,6 @@ func loadConfig() (*config, error) {
 
 	// Initialize logging at the default logging level.
 	initLogRotator(filepath.Join(cfg.LogDir, defaultLogFilename))
-	setLogLevels(defaultLogLevel)
 
 	// Parse, validate, and set debug log level(s).
 	if err := parseAndSetDebugLevels(cfg.DebugLevel); err != nil {
diff --git a/lnd_test.go b/lnd_test.go
index aada3b6a..4cc5a9b0 100644
--- a/lnd_test.go
+++ b/lnd_test.go
@@ -19,6 +19,7 @@ import (
 
 	"math/rand"
 
+	"github.com/btcsuite/btclog"
 	"github.com/davecgh/go-spew/spew"
 	"github.com/go-errors/errors"
 	"github.com/lightningnetwork/lnd/lnrpc"
@@ -3015,6 +3016,12 @@ func TestLightningNetworkDaemon(t *testing.T) {
 		ht.Fatalf("unable to create mining node: %v", err)
 	}
 	defer btcdHarness.TearDown()
+
+	// Turn off the btcd rpc logging, otherwise it will lead to panic.
+	// TODO(andrew.shvv|roasbeef) Remove the hack after re-work the way the log
+	// rotator os work.
+	btcrpcclient.UseLogger(btclog.Disabled)
+
 	if err := btcdHarness.SetUp(true, 50); err != nil {
 		ht.Fatalf("unable to set up mining node: %v", err)
 	}