diff --git a/dot/network/block_announce.go b/dot/network/block_announce.go
index 63d02e4479..bf8e655195 100644
--- a/dot/network/block_announce.go
+++ b/dot/network/block_announce.go
@@ -251,14 +251,14 @@ func (s *Service) validateBlockAnnounceHandshake(peer peer.ID, hs Handshake) err
 // handleBlockAnnounceMessage handles BlockAnnounce messages
 // if some more blocks are required to sync the announced block, the node will open a sync stream
 // with its peer and send a BlockRequest message
-func (s *Service) handleBlockAnnounceMessage(peer peer.ID, msg NotificationsMessage) error {
+func (s *Service) handleBlockAnnounceMessage(peer peer.ID, msg NotificationsMessage) (propagate bool, err error) {
 	if an, ok := msg.(*BlockAnnounceMessage); ok {
 		s.syncQueue.handleBlockAnnounce(an, peer)
-		err := s.syncer.HandleBlockAnnounce(an)
+		err = s.syncer.HandleBlockAnnounce(an)
 		if err != nil {
-			return err
+			return false, err
 		}
 	}
 
-	return nil
+	return true, nil
 }
diff --git a/dot/network/block_announce_test.go b/dot/network/block_announce_test.go
index 0eac5903cf..4010e002b3 100644
--- a/dot/network/block_announce_test.go
+++ b/dot/network/block_announce_test.go
@@ -101,8 +101,9 @@ func TestHandleBlockAnnounceMessage(t *testing.T) {
 		Number: big.NewInt(10),
 	}
 
-	err := s.handleBlockAnnounceMessage(peerID, msg)
+	propagate, err := s.handleBlockAnnounceMessage(peerID, msg)
 	require.NoError(t, err)
+	require.True(t, propagate)
 }
 
 func TestValidateBlockAnnounceHandshake(t *testing.T) {
diff --git a/dot/network/notifications.go b/dot/network/notifications.go
index a6c2fcd2b7..47792d22a7 100644
--- a/dot/network/notifications.go
+++ b/dot/network/notifications.go
@@ -50,7 +50,7 @@ type (
 	MessageDecoder = func([]byte) (NotificationsMessage, error)
 
 	// NotificationsMessageHandler is called when a (non-handshake) message is received over a notifications stream.
-	NotificationsMessageHandler = func(peer peer.ID, msg NotificationsMessage) error
+	NotificationsMessageHandler = func(peer peer.ID, msg NotificationsMessage) (propagate bool, err error)
 )
 
 type notificationsProtocol struct {
@@ -180,17 +180,12 @@ func (s *Service) createNotificationsMessageHandler(info *notificationsProtocol,
 			"peer", stream.Conn().RemotePeer(),
 		)
 
-		err := messageHandler(peer, msg)
+		propagate, err := messageHandler(peer, msg)
 		if err != nil {
 			return err
 		}
 
-		if s.noGossip {
-			return nil
-		}
-
-		// TODO: we don't want to rebroadcast neighbour messages, so ignore all consensus messages for now
-		if _, isConsensus := msg.(*ConsensusMessage); isConsensus {
+		if !propagate || s.noGossip {
 			return nil
 		}
 
diff --git a/dot/network/transaction.go b/dot/network/transaction.go
index 5131bc23ef..2a2c13f9a2 100644
--- a/dot/network/transaction.go
+++ b/dot/network/transaction.go
@@ -156,11 +156,11 @@ func decodeTransactionMessage(in []byte) (NotificationsMessage, error) {
 	return msg, err
 }
 
-func (s *Service) handleTransactionMessage(_ peer.ID, msg NotificationsMessage) error {
+func (s *Service) handleTransactionMessage(_ peer.ID, msg NotificationsMessage) (bool, error) {
 	txMsg, ok := msg.(*TransactionMessage)
 	if !ok {
-		return errors.New("invalid transaction type")
+		return false, errors.New("invalid transaction type")
 	}
 
-	return s.transactionHandler.HandleTransactionMessage(txMsg)
+	return true, s.transactionHandler.HandleTransactionMessage(txMsg)
 }
diff --git a/lib/grandpa/message_handler.go b/lib/grandpa/message_handler.go
index 95d0778b68..31654edc27 100644
--- a/lib/grandpa/message_handler.go
+++ b/lib/grandpa/message_handler.go
@@ -48,17 +48,7 @@ func NewMessageHandler(grandpa *Service, blockState BlockState) *MessageHandler
 // HandleMessage handles a GRANDPA consensus message
 // if it is a CommitMessage, it updates the BlockState
 // if it is a VoteMessage, it sends it to the GRANDPA service
-func (h *MessageHandler) handleMessage(from peer.ID, msg *ConsensusMessage) (network.NotificationsMessage, error) {
-	if msg == nil || len(msg.Data) == 0 {
-		logger.Trace("received nil message or message with nil data")
-		return nil, nil
-	}
-
-	m, err := decodeMessage(msg)
-	if err != nil {
-		return nil, err
-	}
-
+func (h *MessageHandler) handleMessage(from peer.ID, m GrandpaMessage) (network.NotificationsMessage, error) {
 	logger.Trace("handling grandpa message", "msg", m)
 
 	switch m.Type() {
diff --git a/lib/grandpa/message_handler_test.go b/lib/grandpa/message_handler_test.go
index 05a60547d1..04e7f30dca 100644
--- a/lib/grandpa/message_handler_test.go
+++ b/lib/grandpa/message_handler_test.go
@@ -167,11 +167,8 @@ func TestMessageHandler_VoteMessage(t *testing.T) {
 	vm, err := gs.createVoteMessage(v, precommit, gs.keypair)
 	require.NoError(t, err)
 
-	cm, err := vm.ToConsensusMessage()
-	require.NoError(t, err)
-
 	h := NewMessageHandler(gs, st.Block)
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", vm)
 	require.NoError(t, err)
 	require.Nil(t, out)
 
@@ -194,10 +191,7 @@ func TestMessageHandler_NeighbourMessage(t *testing.T) {
 		Number:  1,
 	}
 
-	cm, err := msg.ToConsensusMessage()
-	require.NoError(t, err)
-
-	_, err = h.handleMessage("", cm)
+	_, err := h.handleMessage("", msg)
 	require.NoError(t, err)
 
 	block := &types.Block{
@@ -211,7 +205,7 @@ func TestMessageHandler_NeighbourMessage(t *testing.T) {
 	err = st.Block.AddBlock(block)
 	require.NoError(t, err)
 
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", msg)
 	require.NoError(t, err)
 	require.Nil(t, out)
 
@@ -244,11 +238,9 @@ func TestMessageHandler_CommitMessage_NoCatchUpRequest_ValidSig(t *testing.T) {
 
 	fm := gs.newCommitMessage(gs.head, round)
 	fm.Vote = NewVote(testHash, uint32(round))
-	cm, err := fm.ToConsensusMessage()
-	require.NoError(t, err)
 
 	h := NewMessageHandler(gs, st.Block)
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", fm)
 	require.NoError(t, err)
 	require.Nil(t, out)
 
@@ -270,11 +262,9 @@ func TestMessageHandler_CommitMessage_NoCatchUpRequest_MinVoteError(t *testing.T
 	gs.justification[round] = buildTestJustification(t, int(gs.state.threshold()), round, gs.state.setID, kr, precommit)
 
 	fm := gs.newCommitMessage(gs.head, round)
-	cm, err := fm.ToConsensusMessage()
-	require.NoError(t, err)
 
 	h := NewMessageHandler(gs, st.Block)
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", fm)
 	require.EqualError(t, err, ErrMinVotesNotMet.Error())
 	require.Nil(t, out)
 }
@@ -291,12 +281,10 @@ func TestMessageHandler_CommitMessage_WithCatchUpRequest(t *testing.T) {
 	}
 
 	fm := gs.newCommitMessage(gs.head, 77)
-	cm, err := fm.ToConsensusMessage()
-	require.NoError(t, err)
 	gs.state.voters = gs.state.voters[:1]
 
 	h := NewMessageHandler(gs, st.Block)
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", fm)
 	require.NoError(t, err)
 	require.NotNil(t, out)
 
@@ -308,25 +296,19 @@ func TestMessageHandler_CommitMessage_WithCatchUpRequest(t *testing.T) {
 
 func TestMessageHandler_CatchUpRequest_InvalidRound(t *testing.T) {
 	gs, st := newTestService(t)
-
 	req := newCatchUpRequest(77, 0)
-	cm, err := req.ToConsensusMessage()
-	require.NoError(t, err)
 
 	h := NewMessageHandler(gs, st.Block)
-	_, err = h.handleMessage("", cm)
+	_, err := h.handleMessage("", req)
 	require.Equal(t, ErrInvalidCatchUpRound, err)
 }
 
 func TestMessageHandler_CatchUpRequest_InvalidSetID(t *testing.T) {
 	gs, st := newTestService(t)
-
 	req := newCatchUpRequest(1, 77)
-	cm, err := req.ToConsensusMessage()
-	require.NoError(t, err)
 
 	h := NewMessageHandler(gs, st.Block)
-	_, err = h.handleMessage("", cm)
+	_, err := h.handleMessage("", req)
 	require.Equal(t, ErrSetIDMismatch, err)
 }
 
@@ -381,11 +363,9 @@ func TestMessageHandler_CatchUpRequest_WithResponse(t *testing.T) {
 
 	// create and handle request
 	req := newCatchUpRequest(round, setID)
-	cm, err := req.ToConsensusMessage()
-	require.NoError(t, err)
 
 	h := NewMessageHandler(gs, st.Block)
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", req)
 	require.NoError(t, err)
 	require.Equal(t, expected, out)
 }
@@ -495,10 +475,7 @@ func TestMessageHandler_HandleCatchUpResponse(t *testing.T) {
 		Number:                 uint32(round),
 	}
 
-	cm, err := msg.ToConsensusMessage()
-	require.NoError(t, err)
-
-	out, err := h.handleMessage("", cm)
+	out, err := h.handleMessage("", msg)
 	require.NoError(t, err)
 	require.Nil(t, out)
 	require.Equal(t, round+1, gs.state.round)
diff --git a/lib/grandpa/network.go b/lib/grandpa/network.go
index 5fd7e31b1c..d52677db77 100644
--- a/lib/grandpa/network.go
+++ b/lib/grandpa/network.go
@@ -124,20 +124,39 @@ func (s *Service) decodeMessage(in []byte) (NotificationsMessage, error) {
 	return msg, err
 }
 
-func (s *Service) handleNetworkMessage(from peer.ID, msg NotificationsMessage) error {
+func (s *Service) handleNetworkMessage(from peer.ID, msg NotificationsMessage) (bool, error) {
+	if msg == nil {
+		logger.Trace("received nil message, ignoring")
+		return false, nil
+	}
+
 	cm, ok := msg.(*network.ConsensusMessage)
 	if !ok {
-		return ErrInvalidMessageType
+		return false, ErrInvalidMessageType
+	}
+
+	if len(cm.Data) == 0 {
+		logger.Trace("received message with nil data, ignoring")
+		return false, nil
 	}
 
-	resp, err := s.messageHandler.handleMessage(from, cm)
+	m, err := decodeMessage(cm)
 	if err != nil {
-		return err
+		return false, err
+	}
+
+	resp, err := s.messageHandler.handleMessage(from, m)
+	if err != nil {
+		return false, err
 	}
 
 	if resp != nil {
 		s.network.SendMessage(resp)
 	}
 
-	return nil
+	if m.Type() == neighbourType || m.Type() == catchUpResponseType {
+		return false, nil
+	}
+
+	return true, nil
 }
diff --git a/lib/grandpa/network_test.go b/lib/grandpa/network_test.go
index 1bcd81ed43..466e92f953 100644
--- a/lib/grandpa/network_test.go
+++ b/lib/grandpa/network_test.go
@@ -62,12 +62,21 @@ func TestHandleNetworkMessage(t *testing.T) {
 	h := NewMessageHandler(gs, st.Block)
 	gs.messageHandler = h
 
-	err = gs.handleNetworkMessage(peer.ID(""), cm)
+	propagate, err := gs.handleNetworkMessage(peer.ID(""), cm)
 	require.NoError(t, err)
+	require.True(t, propagate)
 
 	select {
 	case <-gs.network.(*testNetwork).out:
 	case <-time.After(testTimeout):
 		t.Fatal("expected to send message")
 	}
+
+	neighbourMsg := &NeighbourMessage{}
+	cm, err = neighbourMsg.ToConsensusMessage()
+	require.NoError(t, err)
+
+	propagate, err = gs.handleNetworkMessage(peer.ID(""), cm)
+	require.NoError(t, err)
+	require.False(t, propagate)
 }