diff --git a/Cargo.lock b/Cargo.lock
index bbd0d4c9acf..da63c3ce255 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2576,7 +2576,7 @@ checksum = "b294d6fa9ee409a054354afc4352b0b9ef7ca222c69b8812cbea9e7d2bf3783f"
 
 [[package]]
 name = "lcli"
-version = "0.2.0"
+version = "0.2.1"
 dependencies = [
  "bls",
  "clap",
@@ -2978,7 +2978,7 @@ dependencies = [
 
 [[package]]
 name = "lighthouse"
-version = "0.2.0"
+version = "0.2.1"
 dependencies = [
  "account_manager",
  "account_utils",
diff --git a/beacon_node/eth2_libp2p/src/behaviour/handler/delegate.rs b/beacon_node/eth2_libp2p/src/behaviour/handler/delegate.rs
index 03a2a08a733..ae1bcd05c36 100644
--- a/beacon_node/eth2_libp2p/src/behaviour/handler/delegate.rs
+++ b/beacon_node/eth2_libp2p/src/behaviour/handler/delegate.rs
@@ -49,7 +49,7 @@ impl<TSpec: EthSpec> DelegatingHandler<TSpec> {
     }
 
     /// Gives access to identify's handler.
-    pub fn identify(&self) -> &IdentifyHandler {
+    pub fn _identify(&self) -> &IdentifyHandler {
         &self.identify_handler
     }
 }
diff --git a/beacon_node/eth2_libp2p/src/behaviour/handler/mod.rs b/beacon_node/eth2_libp2p/src/behaviour/handler/mod.rs
index f74040d91a5..76169504157 100644
--- a/beacon_node/eth2_libp2p/src/behaviour/handler/mod.rs
+++ b/beacon_node/eth2_libp2p/src/behaviour/handler/mod.rs
@@ -77,7 +77,7 @@ impl<TSpec: EthSpec> ProtocolsHandler for BehaviourHandler<TSpec> {
     fn inject_event(&mut self, event: Self::InEvent) {
         match event {
             BehaviourHandlerIn::Delegate(delegated_ev) => self.delegate.inject_event(delegated_ev),
-            /* Events comming from the behaviour */
+            /* Events coming from the behaviour */
             BehaviourHandlerIn::Shutdown(last_message) => {
                 self.shutting_down = true;
                 self.delegate.rpc_mut().shutdown(last_message);
@@ -113,12 +113,9 @@ impl<TSpec: EthSpec> ProtocolsHandler for BehaviourHandler<TSpec> {
         >,
     > {
         // Disconnect if the sub-handlers are ready.
-        if self.shutting_down {
-            let rpc_keep_alive = self.delegate.rpc().connection_keep_alive();
-            let identify_keep_alive = self.delegate.identify().connection_keep_alive();
-            if KeepAlive::No == rpc_keep_alive.max(identify_keep_alive) {
-                return Poll::Ready(ProtocolsHandlerEvent::Close(DelegateError::Disconnected));
-            }
+        // Currently we only respect the RPC handler.
+        if self.shutting_down && KeepAlive::No == self.delegate.rpc().connection_keep_alive() {
+            return Poll::Ready(ProtocolsHandlerEvent::Close(DelegateError::Disconnected));
         }
 
         match self.delegate.poll(cx) {
diff --git a/beacon_node/eth2_libp2p/src/behaviour/mod.rs b/beacon_node/eth2_libp2p/src/behaviour/mod.rs
index adf391e0c80..8d8df58f922 100644
--- a/beacon_node/eth2_libp2p/src/behaviour/mod.rs
+++ b/beacon_node/eth2_libp2p/src/behaviour/mod.rs
@@ -694,15 +694,28 @@ impl<TSpec: EthSpec> NetworkBehaviour for Behaviour<TSpec> {
         conn_id: &ConnectionId,
         endpoint: &ConnectedPoint,
     ) {
+        // If the peer manager (and therefore the behaviour's) believe this peer connected, inform
+        // about the disconnection.
+        if self.network_globals.peers.read().is_connected(&peer_id) {
+            return;
+        }
         delegate_to_behaviours!(self, inject_connection_closed, peer_id, conn_id, endpoint);
     }
 
     // This gets called once there are no more active connections.
     fn inject_disconnected(&mut self, peer_id: &PeerId) {
+        // If the application/behaviour layers thinks this peer has connected inform it of the disconnect.
+        if self.network_globals.peers.read().is_connected(&peer_id) {
+            // Inform the application.
+            self.add_event(BehaviourEvent::PeerDisconnected(peer_id.clone()));
+            // Inform the behaviour.
+            delegate_to_behaviours!(self, inject_disconnected, peer_id);
+        }
         // Inform the peer manager.
+        // NOTE: It may be the case that a rejected node, due to too many peers is disconnected
+        // here and the peer manager has no knowledge of its connection. We insert it here for
+        // reference so that peer manager can track this peer.
         self.peer_manager.notify_disconnect(&peer_id);
-        // Inform the application.
-        self.add_event(BehaviourEvent::PeerDisconnected(peer_id.clone()));
 
         // Update the prometheus metrics
         metrics::inc_counter(&metrics::PEER_DISCONNECT_EVENT_COUNT);
@@ -710,9 +723,6 @@ impl<TSpec: EthSpec> NetworkBehaviour for Behaviour<TSpec> {
             &metrics::PEERS_CONNECTED,
             self.network_globals.connected_peers() as i64,
         );
-
-        // Inform the behaviour.
-        delegate_to_behaviours!(self, inject_disconnected, peer_id);
     }
 
     // This gets called every time a connection is established.
@@ -741,6 +751,7 @@ impl<TSpec: EthSpec> NetworkBehaviour for Behaviour<TSpec> {
         };
 
         if goodbye_reason.is_some() {
+            debug!(self.log, "Disconnecting newly connected peer"; "peer_id" => peer_id.to_string(), "reason" => goodbye_reason.as_ref().expect("Is some").to_string());
             self.peers_to_dc
                 .push_back((peer_id.clone(), goodbye_reason));
             return;
@@ -771,18 +782,8 @@ impl<TSpec: EthSpec> NetworkBehaviour for Behaviour<TSpec> {
 
     // This gets called on the initial connection establishment.
     fn inject_connected(&mut self, peer_id: &PeerId) {
-        // Drop any connection from a banned peer. The goodbye and disconnects are handled in
-        // `inject_connection_established()`, which gets called first.
-        // The same holds if we reached the peer limit and the connected peer has no future duty.
-        if self.peer_manager.is_banned(peer_id)
-            || (self.peer_manager.peer_limit_reached()
-                && self
-                    .network_globals
-                    .peers
-                    .read()
-                    .peer_info(peer_id)
-                    .map_or(true, |i| !i.has_future_duty()))
-        {
+        // If the PeerManager has connected this peer, inform the behaviours
+        if !self.network_globals.peers.read().is_connected(&peer_id) {
             return;
         }
 
diff --git a/beacon_node/eth2_libp2p/src/rpc/handler.rs b/beacon_node/eth2_libp2p/src/rpc/handler.rs
index 4ea412a5021..9492942d7f5 100644
--- a/beacon_node/eth2_libp2p/src/rpc/handler.rs
+++ b/beacon_node/eth2_libp2p/src/rpc/handler.rs
@@ -348,15 +348,20 @@ where
         // Check that we don't have outbound items pending for dialing, nor dialing, nor
         // established. Also check that there are no established inbound substreams.
         // Errors and events need to be reported back, so check those too.
-        let should_shutdown = if let HandlerState::ShuttingDown(_) = self.state {
-            self.dial_queue.is_empty()
-                && self.outbound_substreams.is_empty()
-                && self.inbound_substreams.is_empty()
-                && self.pending_errors.is_empty()
-                && self.events_out.is_empty()
-                && self.dial_negotiated == 0
-        } else {
-            false
+        let should_shutdown = match self.state {
+            HandlerState::ShuttingDown(_) => {
+                self.dial_queue.is_empty()
+                    && self.outbound_substreams.is_empty()
+                    && self.inbound_substreams.is_empty()
+                    && self.pending_errors.is_empty()
+                    && self.events_out.is_empty()
+                    && self.dial_negotiated == 0
+            }
+            HandlerState::Deactivated => {
+                // Regardless of events, the timeout has expired. Force the disconnect.
+                true
+            }
+            _ => false,
         };
 
         match self.keep_alive {