diff --git a/CHANGELOG.md b/CHANGELOG.md
index 27f6a29df..ad017112a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -41,6 +41,7 @@ changes.
 - lightning-cli: arguments containing `"` now succeed, rather than causing JSON errors.
 - protocol: handle lnd sending more messages before `reestablish`; don't fail channel, and handle older lnd's spurious empty commitments.
 - Fixed `fundchannel` crash when we have many UTXOs and we skip unconfirmed ones.
+- lightningd: fixed occasional hang on `connect` when peer had sent error.
 
 ### Security
 
diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index 4649ef0ac..84534085f 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -388,8 +388,6 @@ void channel_errmsg(struct channel *channel,
 					     err_for_them,
 					     tal_count(err_for_them), 0);
 
-	/* Make sure channel_fail_permanent doesn't tell connectd we died! */
-	channel->connected = false;
 	notify_disconnect(channel->peer->ld, &channel->peer->id);
 
 	/* BOLT #1: