diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index 966f32296..8a29b7040 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -632,7 +632,23 @@ static struct peer_connected_hook_response *
 peer_connected_deserialize(const tal_t *ctx, const char *buffer,
 			   const jsmntok_t *toks)
 {
-	return NULL;
+	const jsmntok_t *resulttok;
+	struct peer_connected_hook_response *resp;
+	resulttok = json_get_member(buffer, toks, "result");
+	if (!resulttok) {
+		return NULL;
+	}
+
+	resp = tal(ctx, struct peer_connected_hook_response);
+	if (json_tok_streq(buffer, resulttok, "continue"))
+		resp->result = PEER_CONNECTED_CONTINUE;
+	else if (json_tok_streq(buffer, resulttok, "disconnect"))
+		resp->result = PEER_CONNECTED_DISCONNECT;
+	else
+		fatal("Plugin returned an invalid response to the connected "
+		      "hook: %s", buffer);
+
+	return resp;
 }
 
 static void
@@ -648,6 +664,12 @@ peer_connected_hook_cb(struct peer_connected_hook_payload *payload,
 	int peer_fd = payload->peer_fd;
 	u8 *error;
 
+	if (response && response->result == PEER_CONNECTED_DISCONNECT) {
+		close(peer_fd);
+		tal_free(payload);
+		return;
+	}
+
 	if (channel) {
 		log_debug(channel->log, "Peer has reconnected, state %s",
 			  channel_state_name(channel));
diff --git a/wallet/test/run-wallet.c b/wallet/test/run-wallet.c
index 596dedb73..d9cf39a90 100644
--- a/wallet/test/run-wallet.c
+++ b/wallet/test/run-wallet.c
@@ -257,6 +257,10 @@ void json_array_start(struct json_stream *js UNNEEDED, const char *fieldname UNN
 struct json_escaped *json_escaped_string_(const tal_t *ctx UNNEEDED,
 					  const void *bytes UNNEEDED, size_t len UNNEEDED)
 { fprintf(stderr, "json_escaped_string_ called!\n"); abort(); }
+/* Generated stub for json_get_member */
+const jsmntok_t *json_get_member(const char *buffer UNNEEDED, const jsmntok_t tok[] UNNEEDED,
+				 const char *label UNNEEDED)
+{ fprintf(stderr, "json_get_member called!\n"); abort(); }
 /* Generated stub for json_object_end */
 void json_object_end(struct json_stream *js UNNEEDED)
 { fprintf(stderr, "json_object_end called!\n"); abort(); }
@@ -276,6 +280,9 @@ const char *json_tok_full(const char *buffer UNNEEDED, const jsmntok_t *t UNNEED
 /* Generated stub for json_tok_full_len */
 int json_tok_full_len(const jsmntok_t *t UNNEEDED)
 { fprintf(stderr, "json_tok_full_len called!\n"); abort(); }
+/* Generated stub for json_tok_streq */
+bool json_tok_streq(const char *buffer UNNEEDED, const jsmntok_t *tok UNNEEDED, const char *str UNNEEDED)
+{ fprintf(stderr, "json_tok_streq called!\n"); abort(); }
 /* Generated stub for json_to_pubkey */
 bool json_to_pubkey(const char *buffer UNNEEDED, const jsmntok_t *tok UNNEEDED,
 		    struct pubkey *pubkey UNNEEDED)