diff --git a/connectd/connectd.c b/connectd/connectd.c
index a1bbbaf39a44..35f81ebb2a92 100644
--- a/connectd/connectd.c
+++ b/connectd/connectd.c
@@ -1428,7 +1428,7 @@ static void try_connect_peer(struct daemon *daemon,
 	* to retry; an address may get gossiped or appear on the DNS seed. */
 	if (tal_count(addrs) == 0) {
 		connect_failed(daemon, id, seconds_waited, addrhint,
-			       "No address known");
+			       "Unable to connect, no address known for peer");
 		return;
 	}
 
diff --git a/plugins/fundchannel.c b/plugins/fundchannel.c
index 2de8948cd437..23f9340fb633 100644
--- a/plugins/fundchannel.c
+++ b/plugins/fundchannel.c
@@ -306,7 +306,7 @@ static struct command_result *fundchannel_start_done(struct command *cmd,
 }
 
 static struct command_result *fundchannel_start(struct command *cmd,
-						struct funding_req *fr)
+                                                struct funding_req *fr)
 {
 	struct json_out *ret = json_out_new(NULL);
 
@@ -326,18 +326,15 @@ static struct command_result *fundchannel_start(struct command *cmd,
 	json_out_end(ret, '}');
 	json_out_finished(ret);
 
-	/* FIXME: as a nice feature, we should check that the peer
-	 * you want to connect to is connected first. if not, we should
-	 * connect and then call fundchannel start!  */
 	return send_outreq(cmd, "fundchannel_start",
 			   fundchannel_start_done, tx_abort,
 			   fr, take(ret));
 }
 
-static struct command_result *tx_prepare_dryrun(struct command *cmd,
-					        const char *buf,
-						const jsmntok_t *result,
-						struct funding_req *fr)
+static struct command_result *post_dryrun(struct command *cmd,
+					  const char *buf,
+					  const jsmntok_t *result,
+					  struct funding_req *fr)
 {
 	struct bitcoin_tx *tx;
 	const char *hex;
@@ -385,6 +382,38 @@ static struct command_result *tx_prepare_dryrun(struct command *cmd,
 	return fundchannel_start(cmd, fr);
 }
 
+static struct command_result *exec_dryrun(struct command *cmd,
+					  const char *buf,
+					  const jsmntok_t *result,
+					  struct funding_req *fr)
+{
+	struct json_out *ret;
+
+	/* Now that we've tried connecting, we do a 'dry-run' of txprepare,
+	 * so we can get an accurate idea of the funding amount */
+	ret = txprepare(cmd, fr, placeholder_funding_addr);
+
+	return send_outreq(cmd, "txprepare",
+			   post_dryrun, forward_error,
+			   fr, take(ret));
+
+}
+
+static struct command_result *connect_to_peer(struct command *cmd,
+                                              struct funding_req *fr)
+{
+	struct json_out *ret = json_out_new(NULL);
+
+	json_out_start(ret, NULL, '{');
+	json_out_addstr(ret, "id", node_id_to_hexstr(tmpctx, fr->id));
+	json_out_end(ret, '}');
+	json_out_finished(ret);
+
+	return send_outreq(cmd, "connect",
+			   exec_dryrun, forward_error,
+			   fr, take(ret));
+}
+
 /* We will use 'id' and 'amount' to build a output: {id: amount}.
  * For array type, if we miss 'amount', next parameter will be
  * mistaken for 'amount'.
@@ -411,7 +440,6 @@ static struct command_result *json_fundchannel(struct command *cmd,
 					       const jsmntok_t *params)
 {
 	struct funding_req *fr = tal(cmd, struct funding_req);
-	struct json_out *ret;
 
 	/* For generating help, give new-style. */
 	if (!params || !deprecated_apis || params->type == JSMN_ARRAY) {
@@ -448,14 +476,7 @@ static struct command_result *json_fundchannel(struct command *cmd,
 
 	fr->funding_all = streq(fr->funding_str, "all");
 
-	/* First we do a 'dry-run' of txprepare, so we can get
-	 * an accurate idea of the funding amount */
-	ret = txprepare(cmd, fr, placeholder_funding_addr);
-
-	return send_outreq(cmd, "txprepare",
-			   tx_prepare_dryrun, forward_error,
-			   fr, take(ret));
-
+	return connect_to_peer(cmd, fr);
 }
 
 static void init(struct plugin_conn *rpc,
diff --git a/tests/test_connection.py b/tests/test_connection.py
index c5af38e5a2e5..277e49cdeddb 100644
--- a/tests/test_connection.py
+++ b/tests/test_connection.py
@@ -38,7 +38,7 @@ def test_connect(node_factory):
     assert len(l2.rpc.listpeers()) == 1
 
     # Should get reasonable error if unknown addr for peer.
-    with pytest.raises(RpcError, match=r'No address known'):
+    with pytest.raises(RpcError, match=r'Unable to connect, no address known'):
         l1.rpc.connect('032cf15d1ad9c4a08d26eab1918f732d8ef8fdc6abb9640bf3db174372c491304e')
 
     # Should get reasonable error if connection refuse.