diff --git a/CHANGELOG_PENDING.md b/CHANGELOG_PENDING.md
index 219e65cb66e..b8517343666 100644
--- a/CHANGELOG_PENDING.md
+++ b/CHANGELOG_PENDING.md
@@ -32,6 +32,7 @@ Friendly reminder, we have a [bug bounty program](https://hackerone.com/tendermi
 
 ### FEATURES:
 
+- [pex] [\#4439](https://github.com/tendermint/tendermint/pull/4439) Use highwayhash for pex buckets (@tau3)
 - [statesync] Add state sync support, where a new node can be rapidly bootstrapped by fetching state snapshots from peers instead of replaying blocks. See the `[statesync]` config section.
 - [evidence] [\#4532](https://github.com/tendermint/tendermint/pull/4532) Handle evidence from light clients (@melekes)
 - [lite2] [\#4532](https://github.com/tendermint/tendermint/pull/4532) Submit conflicting headers, if any, to a full node & all witnesses (@melekes)
diff --git a/go.mod b/go.mod
index 6da36985ffb..aed239c0e77 100644
--- a/go.mod
+++ b/go.mod
@@ -16,6 +16,7 @@ require (
 	github.com/gtank/merlin v0.1.1
 	github.com/libp2p/go-buffer-pool v0.0.2
 	github.com/magiconair/properties v1.8.1
+	github.com/minio/highwayhash v1.0.0
 	github.com/pkg/errors v0.9.1
 	github.com/prometheus/client_golang v1.6.0
 	github.com/rcrowley/go-metrics v0.0.0-20200313005456-10cdbea86bc0
diff --git a/go.sum b/go.sum
index 620086cfe9d..94f461a970f 100644
--- a/go.sum
+++ b/go.sum
@@ -262,6 +262,8 @@ github.com/matttproud/golang_protobuf_extensions v1.0.1/go.mod h1:D8He9yQNgCq6Z5
 github.com/miekg/dns v1.0.14/go.mod h1:W1PPwlIAgtquWBMBEV9nkV9Cazfe8ScdGz/Lj7v3Nrg=
 github.com/mimoo/StrobeGo v0.0.0-20181016162300-f8f6d4d2b643 h1:hLDRPB66XQT/8+wG9WsDpiCvZf1yKO7sz7scAjSlBa0=
 github.com/mimoo/StrobeGo v0.0.0-20181016162300-f8f6d4d2b643/go.mod h1:43+3pMjjKimDBf5Kr4ZFNGbLql1zKkbImw+fZbw3geM=
+github.com/minio/highwayhash v1.0.0 h1:iMSDhgUILCr0TNm8LWlSjF8N0ZIj2qbO8WHp6Q/J2BA=
+github.com/minio/highwayhash v1.0.0/go.mod h1:xQboMTeM9nY9v/LlAOxFctujiv5+Aq2hR5dxBpaMbdc=
 github.com/mitchellh/cli v1.0.0/go.mod h1:hNIlj7HEI86fIcpObd7a0FcrxTWetlwJDGcceTlRvqc=
 github.com/mitchellh/go-homedir v1.0.0/go.mod h1:SfyaCUpYCn1Vlf4IUYiD9fPX4A5wJrkLzIz1N1q0pr0=
 github.com/mitchellh/go-homedir v1.1.0 h1:lukF9ziXFxDFPkA1vsr5zpc1XuPDn/wFntq5mG+4E0Y=
@@ -506,6 +508,7 @@ golang.org/x/sys v0.0.0-20181026203630-95b1ffbd15a5/go.mod h1:STP8DvDyc/dI5b8T5h
 golang.org/x/sys v0.0.0-20181107165924-66b7b1311ac8/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20181116152217-5ac8a444bdc5/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20181122145206-62eef0e2fa9b/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
+golang.org/x/sys v0.0.0-20190130150945-aca44879d564/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20190215142949-d0b11bdaac8a h1:1BGLXjeY4akVXGgbC9HugT3Jv3hCI0z56oJR5vAMgBU=
 golang.org/x/sys v0.0.0-20190215142949-d0b11bdaac8a/go.mod h1:STP8DvDyc/dI5b8T5hshtkjS+E42TnysNCUPdjciGhY=
 golang.org/x/sys v0.0.0-20190412213103-97732733099d/go.mod h1:h1NjWce9XRLGQEsW7wpKNCjG9DtNlClVuFLEZdDNbEs=
diff --git a/p2p/pex/addrbook.go b/p2p/pex/addrbook.go
index c9c372638e1..670de9167ea 100644
--- a/p2p/pex/addrbook.go
+++ b/p2p/pex/addrbook.go
@@ -5,7 +5,7 @@
 package pex
 
 import (
-	"crypto/sha256"
+	crand "crypto/rand"
 	"encoding/binary"
 	"fmt"
 	"math"
@@ -14,6 +14,7 @@ import (
 	"sync"
 	"time"
 
+	"github.com/minio/highwayhash"
 	"github.com/tendermint/tendermint/crypto"
 	tmmath "github.com/tendermint/tendermint/libs/math"
 	tmrand "github.com/tendermint/tendermint/libs/rand"
@@ -100,10 +101,17 @@ type addrBook struct {
 	filePath          string
 	key               string // random prefix for bucket placement
 	routabilityStrict bool
+	hashKey           []byte
 
 	wg sync.WaitGroup
 }
 
+func newHashKey() []byte {
+	result := make([]byte, highwayhash.Size)
+	crand.Read(result)
+	return result
+}
+
 // NewAddrBook creates a new address book.
 // Use Start to begin processing asynchronous address updates.
 func NewAddrBook(filePath string, routabilityStrict bool) AddrBook {
@@ -115,6 +123,7 @@ func NewAddrBook(filePath string, routabilityStrict bool) AddrBook {
 		badPeers:          make(map[p2p.ID]*knownAddress),
 		filePath:          filePath,
 		routabilityStrict: routabilityStrict,
+		hashKey:           newHashKey(),
 	}
 	am.init()
 	am.BaseService = *service.NewBaseService(nil, "AddrBook", am)
@@ -344,16 +353,28 @@ func (a *addrBook) MarkBad(addr *p2p.NetAddress, banTime time.Duration) {
 	}
 }
 
+// ReinstateBadPeers removes bad peers from ban list and places them into a new
+// bucket.
 func (a *addrBook) ReinstateBadPeers() {
 	a.mtx.Lock()
 	defer a.mtx.Unlock()
+
 	for _, ka := range a.badPeers {
-		if !ka.isBanned() {
-			bucket := a.calcNewBucket(ka.Addr, ka.Src)
-			a.addToNewBucket(ka, bucket)
-			delete(a.badPeers, ka.ID())
-			a.Logger.Info("Reinstated address", "addr", ka.Addr)
+		if ka.isBanned() {
+			continue
 		}
+
+		bucket, err := a.calcNewBucket(ka.Addr, ka.Src)
+		if err != nil {
+			a.Logger.Error("Failed to calculate new bucket (bad peer won't be reinstantiated)",
+				"addr", ka.Addr, "err", err)
+			continue
+		}
+
+		a.addToNewBucket(ka, bucket)
+		delete(a.badPeers, ka.ID())
+
+		a.Logger.Info("Reinstated address", "addr", ka.Addr)
 	}
 }
 
@@ -659,7 +680,10 @@ func (a *addrBook) addAddress(addr, src *p2p.NetAddress) error {
 		ka = newKnownAddress(addr, src)
 	}
 
-	bucket := a.calcNewBucket(addr, src)
+	bucket, err := a.calcNewBucket(addr, src)
+	if err != nil {
+		return err
+	}
 	a.addToNewBucket(ka, bucket)
 	return nil
 }
@@ -722,15 +746,15 @@ func (a *addrBook) expireNew(bucketIdx int) {
 // Promotes an address from new to old. If the destination bucket is full,
 // demote the oldest one to a "new" bucket.
 // TODO: Demote more probabilistically?
-func (a *addrBook) moveToOld(ka *knownAddress) {
+func (a *addrBook) moveToOld(ka *knownAddress) error {
 	// Sanity check
 	if ka.isOld() {
 		a.Logger.Error(fmt.Sprintf("Cannot promote address that is already old %v", ka))
-		return
+		return nil
 	}
 	if len(ka.Buckets) == 0 {
 		a.Logger.Error(fmt.Sprintf("Cannot promote address that isn't in any new buckets %v", ka))
-		return
+		return nil
 	}
 
 	// Remove from all (new) buckets.
@@ -739,13 +763,19 @@ func (a *addrBook) moveToOld(ka *knownAddress) {
 	ka.BucketType = bucketTypeOld
 
 	// Try to add it to its oldBucket destination.
-	oldBucketIdx := a.calcOldBucket(ka.Addr)
+	oldBucketIdx, err := a.calcOldBucket(ka.Addr)
+	if err != nil {
+		return err
+	}
 	added := a.addToOldBucket(ka, oldBucketIdx)
 	if !added {
 		// No room; move the oldest to a new bucket
 		oldest := a.pickOldest(bucketTypeOld, oldBucketIdx)
 		a.removeFromBucket(oldest, bucketTypeOld, oldBucketIdx)
-		newBucketIdx := a.calcNewBucket(oldest.Addr, oldest.Src)
+		newBucketIdx, err := a.calcNewBucket(oldest.Addr, oldest.Src)
+		if err != nil {
+			return err
+		}
 		a.addToNewBucket(oldest, newBucketIdx)
 
 		// Finally, add our ka to old bucket again.
@@ -754,6 +784,7 @@ func (a *addrBook) moveToOld(ka *knownAddress) {
 			a.Logger.Error(fmt.Sprintf("Could not re-add ka %v to oldBucketIdx %v", ka, oldBucketIdx))
 		}
 	}
+	return nil
 }
 
 func (a *addrBook) removeAddress(addr *p2p.NetAddress) {
@@ -785,14 +816,16 @@ func (a *addrBook) addBadPeer(addr *p2p.NetAddress, banTime time.Duration) bool
 //---------------------------------------------------------------------
 // calculate bucket placements
 
-// doublesha256(  key + sourcegroup +
-//                int64(doublesha256(key + group + sourcegroup))%bucket_per_group  ) % num_new_buckets
-func (a *addrBook) calcNewBucket(addr, src *p2p.NetAddress) int {
+// hash(key + sourcegroup + int64(hash(key + group + sourcegroup)) % bucket_per_group) % num_new_buckets
+func (a *addrBook) calcNewBucket(addr, src *p2p.NetAddress) (int, error) {
 	data1 := []byte{}
 	data1 = append(data1, []byte(a.key)...)
 	data1 = append(data1, []byte(a.groupKey(addr))...)
 	data1 = append(data1, []byte(a.groupKey(src))...)
-	hash1 := doubleSha256(data1)
+	hash1, err := a.hash(data1)
+	if err != nil {
+		return 0, err
+	}
 	hash64 := binary.BigEndian.Uint64(hash1)
 	hash64 %= newBucketsPerGroup
 	var hashbuf [8]byte
@@ -802,17 +835,23 @@ func (a *addrBook) calcNewBucket(addr, src *p2p.NetAddress) int {
 	data2 = append(data2, a.groupKey(src)...)
 	data2 = append(data2, hashbuf[:]...)
 
-	hash2 := doubleSha256(data2)
-	return int(binary.BigEndian.Uint64(hash2) % newBucketCount)
+	hash2, err := a.hash(data2)
+	if err != nil {
+		return 0, err
+	}
+	result := int(binary.BigEndian.Uint64(hash2) % newBucketCount)
+	return result, nil
 }
 
-// doublesha256(  key + group +
-//                int64(doublesha256(key + addr))%buckets_per_group  ) % num_old_buckets
-func (a *addrBook) calcOldBucket(addr *p2p.NetAddress) int {
+// hash(key + group + int64(hash(key + addr)) % buckets_per_group) % num_old_buckets
+func (a *addrBook) calcOldBucket(addr *p2p.NetAddress) (int, error) {
 	data1 := []byte{}
 	data1 = append(data1, []byte(a.key)...)
 	data1 = append(data1, []byte(addr.String())...)
-	hash1 := doubleSha256(data1)
+	hash1, err := a.hash(data1)
+	if err != nil {
+		return 0, err
+	}
 	hash64 := binary.BigEndian.Uint64(hash1)
 	hash64 %= oldBucketsPerGroup
 	var hashbuf [8]byte
@@ -822,8 +861,12 @@ func (a *addrBook) calcOldBucket(addr *p2p.NetAddress) int {
 	data2 = append(data2, a.groupKey(addr)...)
 	data2 = append(data2, hashbuf[:]...)
 
-	hash2 := doubleSha256(data2)
-	return int(binary.BigEndian.Uint64(hash2) % oldBucketCount)
+	hash2, err := a.hash(data2)
+	if err != nil {
+		return 0, err
+	}
+	result := int(binary.BigEndian.Uint64(hash2) % oldBucketCount)
+	return result, nil
 }
 
 // Return a string representing the network group of this address.
@@ -875,12 +918,11 @@ func (a *addrBook) groupKey(na *p2p.NetAddress) string {
 	return (&net.IPNet{IP: na.IP, Mask: net.CIDRMask(bits, 128)}).String()
 }
 
-// doubleSha256 calculates sha256(sha256(b)) and returns the resulting bytes.
-func doubleSha256(b []byte) []byte {
-	hasher := sha256.New()
-	hasher.Write(b) // nolint:errcheck
-	sum := hasher.Sum(nil)
-	hasher.Reset()
-	hasher.Write(sum) // nolint:errcheck
-	return hasher.Sum(nil)
+func (a *addrBook) hash(b []byte) ([]byte, error) {
+	hasher, err := highwayhash.New64(a.hashKey)
+	if err != nil {
+		return nil, err
+	}
+	hasher.Write(b)
+	return hasher.Sum(nil), nil
 }