diff --git a/aries_cloudagent/connections/models/conn_record.py b/aries_cloudagent/connections/models/conn_record.py
index da556ed4ab..116a91568f 100644
--- a/aries_cloudagent/connections/models/conn_record.py
+++ b/aries_cloudagent/connections/models/conn_record.py
@@ -345,10 +345,7 @@ async def find_existing_connection(
             session: The active profile session
             their_public_did: Inviter public DID (or did:peer)
         """
-        if their_public_did.startswith("did:peer"):
-            tag_filter = {"their_did": their_public_did}
-        else:
-            tag_filter = {"their_public_did": their_public_did}
+        tag_filter = {"their_public_did": their_public_did}
         conn_records = await cls.query(
             session,
             tag_filter=tag_filter,
diff --git a/aries_cloudagent/protocols/out_of_band/v1_0/manager.py b/aries_cloudagent/protocols/out_of_band/v1_0/manager.py
index b55e492615..b5e011dcab 100644
--- a/aries_cloudagent/protocols/out_of_band/v1_0/manager.py
+++ b/aries_cloudagent/protocols/out_of_band/v1_0/manager.py
@@ -705,14 +705,16 @@ async def receive_invitation(
         if (
             public_did is not None and use_existing_connection
         ):  # invite has public DID: seek existing connection
-            LOGGER.debug(
-                "Trying to find existing connection for oob invitation with "
-                f"did {public_did}"
-            )
             if public_did.startswith("did:peer:4"):
                 search_public_did = self.long_did_peer_to_short(public_did)
             else:
                 search_public_did = public_did
+
+            LOGGER.debug(
+                "Trying to find existing connection for oob invitation with "
+                f"did {search_public_did}"
+            )
+
             async with self._profile.session() as session:
                 conn_rec = await ConnRecord.find_existing_connection(
                     session=session, their_public_did=search_public_did
@@ -1046,7 +1048,11 @@ async def _perform_handshake(
             # in an out-of-band message (RFC 0434).
             # OR did:peer:2 or did:peer:4.
 
-            if not service.startswith("did:peer"):
+            if service.startswith("did:peer"):
+                public_did = service
+                if public_did.startswith("did:peer:4"):
+                    public_did = self.long_did_peer_to_short(public_did)
+            else:
                 public_did = service.split(":")[-1]
 
             # TODO: resolve_invitation should resolve key_info objects