diff --git a/beacon_node/eth2_libp2p/src/discovery/mod.rs b/beacon_node/eth2_libp2p/src/discovery/mod.rs
index 0664ec6d8..5f043d877 100644
--- a/beacon_node/eth2_libp2p/src/discovery/mod.rs
+++ b/beacon_node/eth2_libp2p/src/discovery/mod.rs
@@ -514,6 +514,13 @@ impl<TSpec: EthSpec> Discovery<TSpec> {
         }
     }
 
+    // mark node as disconnected in DHT, freeing up space for other nodes
+    pub fn disconnect_peer(&mut self, peer_id: &PeerId) {
+        if let Ok(node_id) = peer_id_to_node_id(peer_id) {
+            self.discv5.disconnect_node(&node_id);
+        }
+    }
+
     /* Internal Functions */
 
     /// Adds a subnet query if one doesn't exist. If a subnet query already exists, this
diff --git a/beacon_node/eth2_libp2p/src/peer_manager/mod.rs b/beacon_node/eth2_libp2p/src/peer_manager/mod.rs
index eeef06d07..3269fbf26 100644
--- a/beacon_node/eth2_libp2p/src/peer_manager/mod.rs
+++ b/beacon_node/eth2_libp2p/src/peer_manager/mod.rs
@@ -327,6 +327,9 @@ impl<TSpec: EthSpec> PeerManager<TSpec> {
     pub fn notify_dial_failure(&mut self, peer_id: &PeerId) {
         if !self.network_globals.peers.read().is_connected(peer_id) {
             self.notify_disconnect(peer_id);
+            // set peer as disconnected in discovery DHT
+            debug!(self.log, "Marking peer disconnected in DHT"; "peer_id" => %peer_id);
+            self.discovery.disconnect_peer(peer_id);
         }
     }