diff --git a/libp2p/Host.cpp b/libp2p/Host.cpp
index 5377d80b8..e8e206233 100644
--- a/libp2p/Host.cpp
+++ b/libp2p/Host.cpp
@@ -121,6 +121,23 @@ void Host::doneWorking()
 	for (auto const& h: m_capabilities)
 		h.second->onStopping();
 
+	// disconnect pending handshake, before peers, as a handshake may create a peer
+	for (unsigned n = 0;; n = 0)
+	{
+		{
+			Guard l(x_connecting);
+			for (auto i: m_connecting)
+				if (auto h = i.lock())
+				{
+					h->cancel();
+					n++;
+				}
+		}
+		if (!n)
+			break;
+		m_ioService.poll();
+	}
+	
 	// disconnect peers
 	for (unsigned n = 0;; n = 0)
 	{
@@ -157,7 +174,7 @@ unsigned Host::protocolVersion() const
 	return 3;
 }
 
-bool Host::startPeerSession(Public const& _id, RLP const& _rlp, RLPXFrameIO* _io, bi::tcp::endpoint _endpoint)
+void Host::startPeerSession(Public const& _id, RLP const& _rlp, RLPXFrameIO* _io, bi::tcp::endpoint _endpoint)
 {
 	/// Get or create Peer
 	shared_ptr<Peer> p;
@@ -171,7 +188,6 @@ bool Host::startPeerSession(Public const& _id, RLP const& _rlp, RLPXFrameIO* _io
 	if (p->isOffline())
 		p->m_lastConnected = std::chrono::system_clock::now();
 	p->m_failedAttempts = 0;
-	// TODO: update pendingconns w/session-weak-ptr for graceful shutdown (otherwise this line isn't safe)
 	p->endpoint.tcp.address(_endpoint.address());
 
 	auto protocolVersion = _rlp[0].toInt<unsigned>();
@@ -191,18 +207,20 @@ bool Host::startPeerSession(Public const& _id, RLP const& _rlp, RLPXFrameIO* _io
 	if (protocolVersion != this->protocolVersion())
 	{
 		ps->disconnect(IncompatibleProtocol);
-		return false;
+		return;
 	}
 	
 	{
 		RecursiveGuard l(x_sessions);
 		if (m_sessions.count(_id) && !!m_sessions[_id].lock())
-		{
-			// Already connected.
-			clog(NetWarn) << "Session already exists for peer with id" << _id.abridged();
-			ps->disconnect(DuplicatePeer);
-			return false;
-		}
+			if (auto s = m_sessions[_id].lock())
+				if(s->isConnected())
+				{
+					// Already connected.
+					clog(NetWarn) << "Session already exists for peer with id" << _id.abridged();
+					ps->disconnect(DuplicatePeer);
+					return;
+				}
 		m_sessions[_id] = ps;
 	}
 	ps->start();
@@ -215,7 +233,6 @@ bool Host::startPeerSession(Public const& _id, RLP const& _rlp, RLPXFrameIO* _io
 		}
 	clog(NetNote) << "p2p.host.peer.register" << _id.abridged();
 	StructuredLogger::p2pConnected(_id.abridged(), ps->m_peer->peerEndpoint(), ps->m_peer->m_lastConnected, clientVersion, peerCount());
-	return true;
 }
 
 void Host::onNodeTableEvent(NodeId const& _n, NodeTableEventType const& _e)
@@ -340,22 +357,6 @@ void Host::runAcceptor()
 		clog(NetConnect) << "Listening on local port " << m_listenPort << " (public: " << m_tcpPublic << ")";
 		m_accepting = true;
 
-		// socket is created outside of acceptor-callback
-		// An allocated socket is necessary as asio can use the socket
-		// until the callback succeeds or fails.
-		//
-		// Until callback succeeds or fails, we can't dealloc it.
-		//
-		// Callback is guaranteed to be called via asio or when
-		// m_tcp4Acceptor->stop() is called by Host.
-		//
-		// All exceptions are caught so they don't halt asio and so the
-		// socket is deleted.
-		//
-		// It's possible for an accepted connection to return an error in which
-		// case the socket may be open and must be closed to prevent asio from
-		// processing socket events after socket is deallocated.
-
 		auto socket = make_shared<RLPXSocket>(new bi::tcp::socket(m_ioService));
 		m_tcp4Acceptor.async_accept(socket->ref(), [=](boost::system::error_code ec)
 		{
@@ -367,6 +368,7 @@ void Host::runAcceptor()
 				{
 					// incoming connection; we don't yet know nodeid
 					auto handshake = make_shared<RLPXHandshake>(this, socket);
+					m_connecting.push_back(handshake);
 					handshake->start();
 					success = true;
 				}
@@ -435,15 +437,14 @@ void Host::addNode(NodeId const& _node, std::string const& _addr, unsigned short
 
 void Host::connect(std::shared_ptr<Peer> const& _p)
 {
-	for (unsigned i = 0; i < 200; i++)
-		if (isWorking() && !m_run)
-			this_thread::sleep_for(chrono::milliseconds(50));
 	if (!m_run)
 		return;
 
+	_p->m_lastAttempted = std::chrono::system_clock::now();
+	
 	if (havePeerSession(_p->id))
 	{
-		clog(NetWarn) << "Aborted connect. Node already connected.";
+		clog(NetConnect) << "Aborted connect. Node already connected.";
 		return;
 	}
 
@@ -475,10 +476,15 @@ void Host::connect(std::shared_ptr<Peer> const& _p)
 		}
 		else
 		{
-			clog(NetConnect) << "Connected to" << _p->id.abridged() << "@" << _p->peerEndpoint();
+			clog(NetConnect) << "Connecting to" << _p->id.abridged() << "@" << _p->peerEndpoint();
 			auto handshake = make_shared<RLPXHandshake>(this, socket, _p->id);
+			{
+				Guard l(x_connecting);
+				m_connecting.push_back(handshake);
+			}
 			handshake->start();
 		}
+		
 		Guard l(x_pendingNodeConns);
 		m_pendingPeerConns.erase(nptr);
 	});
@@ -527,26 +533,30 @@ void Host::run(boost::system::error_code const&)
 
 	m_nodeTable->processEvents();
 
+	// cleanup zombies
+	{
+		Guard l(x_connecting);
+		m_connecting.remove_if([](std::weak_ptr<RLPXHandshake> h){ return h.lock(); });
+	}
+	
 	for (auto p: m_sessions)
 		if (auto pp = p.second.lock())
 			pp->serviceNodesRequest();
 
-//	keepAlivePeers();
+	keepAlivePeers();
 //	disconnectLatePeers();
 
-	auto c = peerCount();
-	if (m_idealPeerCount && !c)
+	if (peerCount() < m_idealPeerCount)
+	{
 		for (auto p: m_peers)
 			if (p.second->shouldReconnect())
 			{
-				// TODO p2p: fixme
-				p.second->m_lastAttempted = std::chrono::system_clock::now();
 				connect(p.second);
 				break;
 			}
-
-	if (c < m_idealPeerCount)
+		
 		m_nodeTable->discover();
+	}
 
 	auto runcb = [this](boost::system::error_code const& error) { run(error); };
 	m_timer->expires_from_now(boost::posix_time::milliseconds(c_timerInterval));
diff --git a/libp2p/Host.h b/libp2p/Host.h
index 00fcc0943..ccb34b064 100644
--- a/libp2p/Host.h
+++ b/libp2p/Host.h
@@ -151,7 +151,7 @@ public:
 	NodeId id() const { return m_alias.pub(); }
 
 	/// Validates and starts peer session, taking ownership of _io. Disconnects and returns false upon error.
-	bool startPeerSession(Public const& _id, RLP const& _hello, RLPXFrameIO* _io, bi::tcp::endpoint _endpoint);
+	void startPeerSession(Public const& _id, RLP const& _hello, RLPXFrameIO* _io, bi::tcp::endpoint _endpoint);
 
 protected:
 	void onNodeTableEvent(NodeId const& _n, NodeTableEventType const& _e);
@@ -224,6 +224,9 @@ private:
 	/// Mutable because we flush zombie entries (null-weakptrs) as regular maintenance from a const method.
 	mutable std::map<NodeId, std::weak_ptr<Session>> m_sessions;
 	mutable RecursiveMutex x_sessions;
+	
+	std::list<std::weak_ptr<RLPXHandshake>> m_connecting;					///< Pending connections.
+	Mutex x_connecting;
 
 	unsigned m_idealPeerCount = 5;										///< Ideal number of peers to be connected to.
 
diff --git a/libp2p/RLPxHandshake.cpp b/libp2p/RLPxHandshake.cpp
index fa346ec09..4f5c70802 100644
--- a/libp2p/RLPxHandshake.cpp
+++ b/libp2p/RLPxHandshake.cpp
@@ -168,6 +168,8 @@ void RLPXHandshake::transition(boost::system::error_code _ech)
 		else
 			clog(NetConnect) << "p2p.connect.ingress sending capabilities handshake";
 
+		/// This pointer will be freed if there is an error otherwise
+		/// it will be passed to Host which will take ownership.
 		m_io = new RLPXFrameIO(*this);
 
 		// old packet format
diff --git a/libp2p/RLPxHandshake.h b/libp2p/RLPxHandshake.h
index 8459de053..aac8f4b5a 100644
--- a/libp2p/RLPxHandshake.h
+++ b/libp2p/RLPxHandshake.h
@@ -72,6 +72,8 @@ public:
 	/// Start handshake.
 	void start() { transition(); }
 
+	void cancel() { m_nextState = Error; }
+	
 protected:
 	/// Write Auth message to socket and transitions to AckAuth.
 	void writeAuth();