diff --git a/base_layer/wallet/src/connectivity_service/service.rs b/base_layer/wallet/src/connectivity_service/service.rs
index df57075270..4122f9acea 100644
--- a/base_layer/wallet/src/connectivity_service/service.rs
+++ b/base_layer/wallet/src/connectivity_service/service.rs
@@ -24,7 +24,7 @@ use std::{mem, time::Duration};
 
 use log::*;
 use tari_comms::{
-    connectivity::ConnectivityRequester,
+    connectivity::{ConnectivityError, ConnectivityRequester},
     peer_manager::{NodeId, Peer},
     protocol::rpc::{RpcClientLease, RpcClientPool},
     PeerConnection,
@@ -116,12 +116,21 @@ impl WalletConnectivityService {
     }
 
     async fn check_connection(&mut self) {
-        if let Some(pool) = self.pools.as_ref() {
-            if !pool.base_node_wallet_rpc_client.is_connected().await {
-                debug!(target: LOG_TARGET, "Peer connection lost. Attempting to reconnect...");
+        debug!(target: LOG_TARGET, "HERE1");
+        match self.pools.as_ref() {
+            Some(pool) => {
+                debug!(target: LOG_TARGET, "HERE2");
+                if !pool.base_node_wallet_rpc_client.is_connected().await {
+                    debug!(target: LOG_TARGET, "Peer connection lost. Attempting to reconnect...");
+                    self.set_online_status(OnlineStatus::Offline);
+                    self.setup_base_node_connection().await;
+                }
+            },
+            None => {
+                debug!(target: LOG_TARGET, "No connection. Attempting to connect...");
                 self.set_online_status(OnlineStatus::Offline);
                 self.setup_base_node_connection().await;
-            }
+            },
         }
     }
 
@@ -216,10 +225,12 @@ impl WalletConnectivityService {
     }
 
     async fn disconnect_base_node(&mut self, node_id: NodeId) {
-        if let Ok(Some(connection)) = self.connectivity.get_connection(node_id.clone()).await {
-            if connection.clone().disconnect().await.is_ok() {
-                debug!(target: LOG_TARGET, "Disconnected base node peer {}", node_id);
+        if let Ok(Some(mut connection)) = self.connectivity.get_connection(node_id.clone()).await {
+            match connection.disconnect().await {
+                Ok(_) => debug!(target: LOG_TARGET, "Disconnected base node peer {}", node_id),
+                Err(e) => error!(target: LOG_TARGET, "Failed to disconnect base node: {}", e),
             }
+            self.pools = None;
         };
     }
 
@@ -248,20 +259,29 @@ impl WalletConnectivityService {
                     break;
                 },
                 Ok(false) => {
-                    // Retry with updated peer
-                    self.disconnect_base_node(node_id).await;
+                    debug!(
+                        target: LOG_TARGET,
+                        "The peer has changed while connecting. Attempting to connect to new base node."
+                    );
+                    continue;
+                },
+                Err(WalletConnectivityError::ConnectivityError(ConnectivityError::DialCancelled)) => {
+                    debug!(
+                        target: LOG_TARGET,
+                        "Dial was cancelled. Retrying after {}s ...",
+                        self.config.base_node_monitor_refresh_interval.as_secs()
+                    );
+                    self.set_online_status(OnlineStatus::Offline);
                     time::sleep(self.config.base_node_monitor_refresh_interval).await;
                     continue;
                 },
                 Err(e) => {
-                    if self.current_base_node() != Some(node_id.clone()) {
-                        self.set_online_status(OnlineStatus::Connecting);
-                    } else {
+                    warn!(target: LOG_TARGET, "{}", e);
+                    if self.current_base_node().as_ref() == Some(&node_id) {
+                        self.disconnect_base_node(node_id).await;
                         self.set_online_status(OnlineStatus::Offline);
+                        time::sleep(self.config.base_node_monitor_refresh_interval).await;
                     }
-                    warn!(target: LOG_TARGET, "{}", e);
-                    self.disconnect_base_node(node_id).await;
-                    time::sleep(self.config.base_node_monitor_refresh_interval).await;
                     continue;
                 },
             }
diff --git a/comms/src/connectivity/manager.rs b/comms/src/connectivity/manager.rs
index b0ae56ea5b..2872ff58cd 100644
--- a/comms/src/connectivity/manager.rs
+++ b/comms/src/connectivity/manager.rs
@@ -228,6 +228,21 @@ impl ConnectivityManagerActor {
                 let span = span!(Level::TRACE, "handle_request");
                 span.follows_from(tracing_id);
                 async move {
+                    match self.peer_manager.is_peer_banned(&node_id).await {
+                        Ok(true) => {
+                            if let Some(reply) = reply_tx {
+                                let _ = reply.send(Err(ConnectionManagerError::PeerBanned));
+                            }
+                            return;
+                        },
+                        Ok(false) => {},
+                        Err(err) => {
+                            if let Some(reply) = reply_tx {
+                                let _ = reply.send(Err(err.into()));
+                            }
+                            return;
+                        },
+                    }
                     match self.pool.get(&node_id) {
                         Some(state) if state.is_connected() => {
                             debug!(
diff --git a/comms/src/peer_manager/manager.rs b/comms/src/peer_manager/manager.rs
index e10b0be988..6dc1a3d5c5 100644
--- a/comms/src/peer_manager/manager.rs
+++ b/comms/src/peer_manager/manager.rs
@@ -264,6 +264,10 @@ impl PeerManager {
             .ban_peer_by_node_id(node_id, duration, reason)
     }
 
+    pub async fn is_peer_banned(&self, node_id: &NodeId) -> Result<bool, PeerManagerError> {
+        self.peer_storage.read().await.is_peer_banned(node_id)
+    }
+
     /// Changes the offline flag bit of the peer. Return the previous offline state.
     pub async fn set_offline(&self, node_id: &NodeId, is_offline: bool) -> Result<bool, PeerManagerError> {
         self.peer_storage.write().await.set_offline(node_id, is_offline)
diff --git a/comms/src/peer_manager/peer_storage.rs b/comms/src/peer_manager/peer_storage.rs
index 0f9ca71ac3..75e6413705 100644
--- a/comms/src/peer_manager/peer_storage.rs
+++ b/comms/src/peer_manager/peer_storage.rs
@@ -498,6 +498,13 @@ where DS: KeyValueStore<PeerId, Peer>
         Ok(node_id)
     }
 
+    pub fn is_peer_banned(&self, node_id: &NodeId) -> Result<bool, PeerManagerError> {
+        let peer = self
+            .find_by_node_id(node_id)?
+            .ok_or(PeerManagerError::PeerNotFoundError)?;
+        Ok(peer.is_banned())
+    }
+
     /// Changes the OFFLINE flag bit of the peer.
     pub fn set_offline(&mut self, node_id: &NodeId, offline: bool) -> Result<bool, PeerManagerError> {
         let peer_key = *self