diff --git a/src/testutils/blockchain_tests.rs b/src/testutils/blockchain_tests.rs
index d0893610..4229f5df 100644
--- a/src/testutils/blockchain_tests.rs
+++ b/src/testutils/blockchain_tests.rs
@@ -843,7 +843,7 @@ macro_rules! bdk_blockchain_tests {
                 assert_eq!(wallet.get_balance().unwrap(), details.received, "incorrect received after send");
 
                 let mut builder = wallet.build_fee_bump(details.txid).unwrap();
-                builder.fee_rate(FeeRate::from_sat_per_vb(5.0));
+                builder.fee_rate(FeeRate::from_sat_per_vb(5.1));
                 let (mut new_psbt, new_details) = builder.finish().unwrap();
                 let finalized = wallet.sign(&mut new_psbt, Default::default()).unwrap();
                 assert!(finalized, "Cannot finalize transaction");
diff --git a/src/wallet/mod.rs b/src/wallet/mod.rs
index 8062ea9d..bf7993d4 100644
--- a/src/wallet/mod.rs
+++ b/src/wallet/mod.rs
@@ -53,7 +53,7 @@ use address_validator::AddressValidator;
 use coin_selection::DefaultCoinSelectionAlgorithm;
 use signer::{SignOptions, Signer, SignerOrdering, SignersContainer};
 use tx_builder::{BumpFee, CreateTx, FeePolicy, TxBuilder, TxParams};
-use utils::{check_nlocktime, check_nsequence_rbf, After, Older, SecpCtx, DUST_LIMIT_SATOSHI};
+use utils::{check_nlocktime, check_nsequence_rbf, After, Older, SecpCtx};
 
 use crate::blockchain::{Blockchain, Progress};
 use crate::database::memory::MemoryDatabase;
@@ -601,7 +601,7 @@ where
         let recipients = params.recipients.iter().map(|(r, v)| (r, *v));
 
         for (index, (script_pubkey, value)) in recipients.enumerate() {
-            if value.is_dust() && !script_pubkey.is_provably_unspendable() {
+            if value.is_dust(script_pubkey) && !script_pubkey.is_provably_unspendable() {
                 return Err(Error::OutputBelowDustLimit(index));
             }
 
@@ -677,9 +677,9 @@ where
 
         if tx.output.is_empty() {
             if params.drain_to.is_some() {
-                if drain_val.is_dust() {
+                if drain_val.is_dust(&drain_output.script_pubkey) {
                     return Err(Error::InsufficientFunds {
-                        needed: DUST_LIMIT_SATOSHI,
+                        needed: drain_output.script_pubkey.dust_value().as_sat(),
                         available: drain_val,
                     });
                 }
@@ -688,7 +688,7 @@ where
             }
         }
 
-        if drain_val.is_dust() {
+        if drain_val.is_dust(&drain_output.script_pubkey) {
             fee_amount += drain_val;
         } else {
             drain_output.value = drain_val;
@@ -3424,7 +3424,7 @@ pub(crate) mod test {
             .unwrap();
 
         let mut builder = wallet.build_fee_bump(txid).unwrap();
-        builder.fee_rate(FeeRate::from_sat_per_vb(140.0));
+        builder.fee_rate(FeeRate::from_sat_per_vb(141.0));
         let (psbt, details) = builder.finish().unwrap();
 
         assert_eq!(
diff --git a/src/wallet/utils.rs b/src/wallet/utils.rs
index 2b19eb80..cee72e40 100644
--- a/src/wallet/utils.rs
+++ b/src/wallet/utils.rs
@@ -9,13 +9,11 @@
 // You may not use this file except in accordance with one or both of these
 // licenses.
 
+use bitcoin::blockdata::script::Script;
 use bitcoin::secp256k1::{All, Secp256k1};
 
 use miniscript::{MiniscriptKey, Satisfier, ToPublicKey};
 
-// De-facto standard "dust limit" (even though it should change based on the output type)
-pub const DUST_LIMIT_SATOSHI: u64 = 546;
-
 // MSB of the nSequence. If set there's no consensus-constraint, so it must be disabled when
 // spending using CSV in order to enforce CSV rules
 pub(crate) const SEQUENCE_LOCKTIME_DISABLE_FLAG: u32 = 1 << 31;
@@ -28,18 +26,19 @@ pub(crate) const SEQUENCE_LOCKTIME_MASK: u32 = 0x0000FFFF;
 // Threshold for nLockTime to be considered a block-height-based timelock rather than time-based
 pub(crate) const BLOCKS_TIMELOCK_THRESHOLD: u32 = 500000000;
 
-/// Trait to check if a value is below the dust limit
+/// Trait to check if a value is below the dust limit.
+/// We are performing dust value calculation for a given script public key using rust-bitcoin to
+/// keep it compatible with network dust rate
 // we implement this trait to make sure we don't mess up the comparison with off-by-one like a <
-// instead of a <= etc. The constant value for the dust limit is not public on purpose, to
-// encourage the usage of this trait.
+// instead of a <= etc.
 pub trait IsDust {
     /// Check whether or not a value is below dust limit
-    fn is_dust(&self) -> bool;
+    fn is_dust(&self, script: &Script) -> bool;
 }
 
 impl IsDust for u64 {
-    fn is_dust(&self) -> bool {
-        *self <= DUST_LIMIT_SATOSHI
+    fn is_dust(&self, script: &Script) -> bool {
+        *self < script.dust_value().as_sat()
     }
 }
 
@@ -141,10 +140,29 @@ pub(crate) type SecpCtx = Secp256k1<All>;
 #[cfg(test)]
 mod test {
     use super::{
-        check_nlocktime, check_nsequence_rbf, BLOCKS_TIMELOCK_THRESHOLD,
+        check_nlocktime, check_nsequence_rbf, IsDust, BLOCKS_TIMELOCK_THRESHOLD,
         SEQUENCE_LOCKTIME_TYPE_FLAG,
     };
+    use crate::bitcoin::Address;
     use crate::types::FeeRate;
+    use std::str::FromStr;
+
+    #[test]
+    fn test_is_dust() {
+        let script_p2pkh = Address::from_str("1GNgwA8JfG7Kc8akJ8opdNWJUihqUztfPe")
+            .unwrap()
+            .script_pubkey();
+        assert!(script_p2pkh.is_p2pkh());
+        assert!(545.is_dust(&script_p2pkh));
+        assert!(!546.is_dust(&script_p2pkh));
+
+        let script_p2wpkh = Address::from_str("bc1qxlh2mnc0yqwas76gqq665qkggee5m98t8yskd8")
+            .unwrap()
+            .script_pubkey();
+        assert!(script_p2wpkh.is_v0_p2wpkh());
+        assert!(293.is_dust(&script_p2wpkh));
+        assert!(!294.is_dust(&script_p2wpkh));
+    }
 
     #[test]
     fn test_fee_from_btc_per_kb() {