diff --git a/src/p2p/net_node.h b/src/p2p/net_node.h
index 9b9ffbe2a..614790f30 100644
--- a/src/p2p/net_node.h
+++ b/src/p2p/net_node.h
@@ -393,7 +393,7 @@ namespace nodetool
     bool try_ping(basic_node_data& node_data, p2p_connection_context& context, const t_callback &cb);
     bool try_get_support_flags(const p2p_connection_context& context, std::function<void(p2p_connection_context&, const uint32_t&)> f);
     bool make_expected_connections_count(network_zone& zone, PeerType peer_type, size_t expected_connections);
-    void cache_connect_fail_info(const epee::net_utils::network_address& addr);
+    void record_addr_failed(const epee::net_utils::network_address& addr);
     bool is_addr_recently_failed(const epee::net_utils::network_address& addr);
     bool is_priority_node(const epee::net_utils::network_address& na);
     std::set<std::string> get_seed_nodes(cryptonote::network_type nettype) const;
diff --git a/src/p2p/net_node.inl b/src/p2p/net_node.inl
index 6a02d31b5..c261b622b 100644
--- a/src/p2p/net_node.inl
+++ b/src/p2p/net_node.inl
@@ -1262,7 +1262,7 @@ namespace nodetool
       bool is_priority = is_priority_node(na);
       LOG_PRINT_CC_PRIORITY_NODE(is_priority, bool(con), "Connect failed to " << na.str()
         /*<< ", try " << try_count*/);
-      //m_peerlist.set_peer_unreachable(pe);
+      record_addr_failed(na);
       return false;
     }
 
@@ -1277,6 +1277,7 @@ namespace nodetool
         << na.str()
         /*<< ", try " << try_count*/);
       zone.m_net_server.get_config_object().close(con->m_connection_id);
+      record_addr_failed(na);
       return false;
     }
 
@@ -1327,6 +1328,7 @@ namespace nodetool
       bool is_priority = is_priority_node(na);
 
       LOG_PRINT_CC_PRIORITY_NODE(is_priority, p2p_connection_context{}, "Connect failed to " << na.str());
+      record_addr_failed(na);
 
       return false;
     }
@@ -1339,6 +1341,7 @@ namespace nodetool
 
       LOG_PRINT_CC_PRIORITY_NODE(is_priority, *con, "Failed to HANDSHAKE with peer " << na.str());
       zone.m_net_server.get_config_object().close(con->m_connection_id);
+      record_addr_failed(na);
       return false;
     }
 
@@ -1351,6 +1354,13 @@ namespace nodetool
 
 #undef LOG_PRINT_CC_PRIORITY_NODE
 
+  //-----------------------------------------------------------------------------------
+  template<class t_payload_net_handler>
+  void node_server<t_payload_net_handler>::record_addr_failed(const epee::net_utils::network_address& addr)
+  {
+    CRITICAL_REGION_LOCAL(m_conn_fails_cache_lock);
+    m_conn_fails_cache[addr.host_str()] = time(NULL);
+  }
   //-----------------------------------------------------------------------------------
   template<class t_payload_net_handler>
   bool node_server<t_payload_net_handler>::is_addr_recently_failed(const epee::net_utils::network_address& addr)
@@ -1912,7 +1922,7 @@ namespace nodetool
 
     LOG_DEBUG_CC(context, "REMOTE PEERLIST: remote peerlist size=" << peerlist_.size());
     LOG_TRACE_CC(context, "REMOTE PEERLIST: " << ENDL << print_peerlist_to_string(peerlist_));
-    return m_network_zones.at(context.m_remote_address.get_zone()).m_peerlist.merge_peerlist(peerlist_);
+    return m_network_zones.at(context.m_remote_address.get_zone()).m_peerlist.merge_peerlist(peerlist_, [this](const peerlist_entry &pe) { return !is_addr_recently_failed(pe.adr); });
   }
   //-----------------------------------------------------------------------------------
   template<class t_payload_net_handler>
diff --git a/src/p2p/net_peerlist.h b/src/p2p/net_peerlist.h
index 8225ad2fa..83b20e5b9 100644
--- a/src/p2p/net_peerlist.h
+++ b/src/p2p/net_peerlist.h
@@ -101,7 +101,7 @@ namespace nodetool
     bool init(peerlist_types&& peers, bool allow_local_ip);
     size_t get_white_peers_count(){CRITICAL_REGION_LOCAL(m_peerlist_lock); return m_peers_white.size();}
     size_t get_gray_peers_count(){CRITICAL_REGION_LOCAL(m_peerlist_lock); return m_peers_gray.size();}
-    bool merge_peerlist(const std::vector<peerlist_entry>& outer_bs);
+    bool merge_peerlist(const std::vector<peerlist_entry>& outer_bs, const std::function<bool(const peerlist_entry&)> &f = NULL);
     bool get_peerlist_head(std::vector<peerlist_entry>& bs_head, bool anonymize, uint32_t depth = P2P_DEFAULT_PEERS_IN_HANDSHAKE);
     void get_peerlist(std::vector<peerlist_entry>& pl_gray, std::vector<peerlist_entry>& pl_white);
     void get_peerlist(peerlist_types& peers);
@@ -112,7 +112,6 @@ namespace nodetool
     bool append_with_peer_gray(const peerlist_entry& pr);
     bool append_with_peer_anchor(const anchor_peerlist_entry& ple);
     bool set_peer_just_seen(peerid_type peer, const epee::net_utils::network_address& addr, uint32_t pruning_seed, uint16_t rpc_port, uint32_t rpc_credits_per_hash);
-    bool set_peer_unreachable(const peerlist_entry& pr);
     bool is_host_allowed(const epee::net_utils::network_address &address);
     bool get_random_gray_peer(peerlist_entry& pe);
     bool remove_from_peer_gray(const peerlist_entry& pe);
@@ -213,12 +212,13 @@ namespace nodetool
   }
   //--------------------------------------------------------------------------------------------------
   inline 
-  bool peerlist_manager::merge_peerlist(const std::vector<peerlist_entry>& outer_bs)
+  bool peerlist_manager::merge_peerlist(const std::vector<peerlist_entry>& outer_bs, const std::function<bool(const peerlist_entry&)> &f)
   {
     CRITICAL_REGION_LOCAL(m_peerlist_lock);
     for(const peerlist_entry& be:  outer_bs)
     {
-      append_with_peer_gray(be);
+      if (!f || f(be))
+        append_with_peer_gray(be);
     }
     // delete extra elements
     trim_gray_peerlist();