diff --git a/dot/network/host_test.go b/dot/network/host_test.go
index ea71e724b1..ca58a37fa5 100644
--- a/dot/network/host_test.go
+++ b/dot/network/host_test.go
@@ -21,13 +21,14 @@ import (
 	"testing"
 	"time"
 
+	"github.com/libp2p/go-libp2p-core/peerstore"
+	"github.com/libp2p/go-libp2p-core/protocol"
+	ma "github.com/multiformats/go-multiaddr"
+
 	"github.com/ChainSafe/gossamer/dot/peerset"
 	"github.com/ChainSafe/gossamer/dot/state"
 	"github.com/ChainSafe/gossamer/lib/common"
 	"github.com/ChainSafe/gossamer/lib/utils"
-	"github.com/libp2p/go-libp2p-core/peerstore"
-	"github.com/libp2p/go-libp2p-core/protocol"
-	ma "github.com/multiformats/go-multiaddr"
 
 	"github.com/stretchr/testify/require"
 )
@@ -437,7 +438,7 @@ func Test_AddReservedPeers(t *testing.T) {
 	err := nodeA.host.addReservedPeers(nodeBPeerAddr)
 	require.NoError(t, err)
 	time.Sleep(200 * time.Millisecond)
-
+	require.Equal(t, 1, nodeA.host.peerCount())
 	isProtected := nodeA.host.h.ConnManager().IsProtected(nodeB.host.addrInfo().ID, "")
 	require.True(t, isProtected)
 }
@@ -470,12 +471,13 @@ func Test_RemoveReservedPeers(t *testing.T) {
 	require.NoError(t, err)
 
 	time.Sleep(200 * time.Millisecond)
+	require.Equal(t, 1, nodeA.host.peerCount())
 	pID := nodeB.host.addrInfo().ID.String()
 
 	err = nodeA.host.removeReservedPeers(pID)
 	require.NoError(t, err)
 	time.Sleep(200 * time.Millisecond)
-
+	require.Equal(t, 1, nodeA.host.peerCount())
 	isProtected := nodeA.host.h.ConnManager().IsProtected(nodeB.host.addrInfo().ID, "")
 	require.False(t, isProtected)
 
@@ -613,9 +615,12 @@ func TestPsmBannedPeer(t *testing.T) {
 	})
 
 	time.Sleep(200 * time.Millisecond)
-
 	require.Equal(t, 0, nodeA.host.peerCount())
 	require.Equal(t, 0, nodeB.host.peerCount())
+
+	time.Sleep(2000 * time.Millisecond)
+	require.Equal(t, 1, nodeA.host.peerCount())
+	require.Equal(t, 1, nodeB.host.peerCount())
 }
 
 // Test to check reputation updated by peer set manager
diff --git a/dot/network/service.go b/dot/network/service.go
index 30928da1fd..db1a02037d 100644
--- a/dot/network/service.go
+++ b/dot/network/service.go
@@ -383,13 +383,15 @@ func (s *Service) sentBlockIntervalTelemetry() {
 
 func (s *Service) handleConn(conn libp2pnetwork.Conn) {
 	// TODO: setID currently is 0 change when we have multiple set.
-	m, err := s.host.cm.peerSetHandler.Incoming(0, conn.RemotePeer(), 0)
-	if err != nil {
-		logger.Error("failed to handle incoming connection request from", "peerID", conn.RemotePeer())
-	}
+	if conn.Stat().Direction.String() == "Inbound" {
+		m, err := s.host.cm.peerSetHandler.Incoming(0, conn.RemotePeer(), 0)
+		if err != nil {
+			logger.Error("failed to handle incoming connection request from", "peerID", conn.RemotePeer())
+		}
 
-	if m.GetStatus() == peerset.Reject {
-		_ = conn.Close()
+		if m.GetStatus() == peerset.Reject {
+			_ = conn.Close()
+		}
 	}
 
 	// TODO: remove the old peer scoring.