diff --git a/consensus/reactor.go b/consensus/reactor.go
index 8318f2bb0..b57d85573 100644
--- a/consensus/reactor.go
+++ b/consensus/reactor.go
@@ -64,6 +64,11 @@ func (conR *ConsensusReactor) OnStart() error {
 		return err
 	}
 
+	err = conR.startPeerErrorsRoutine()
+	if err != nil {
+		return err
+	}
+
 	if !conR.FastSync() {
 		err := conR.conS.Start()
 		if err != nil {
@@ -334,6 +339,39 @@ func (conR *ConsensusReactor) FastSync() bool {
 
 //--------------------------------------
 
+// startPeerErrorsRoutine spawns a new gororoutine listening for errors from
+// consensus/state or other consensus modules.
+func (conR *ConsensusReactor) startPeerErrorsRoutine() error {
+	const subscriber = "consensus-reactor"
+	ctx := context.Background()
+
+	errorsCh := make(chan interface{})
+	err := conR.eventBus.Subscribe(ctx, subscriber, types.QueryForEvent(peerErrorEvent), errorsCh)
+	if err != nil {
+		return errors.Wrapf(err, "failed to subscribe %s to %s", subscriber, peerErrorEvent)
+	}
+
+	go func() {
+		for {
+			select {
+			case data, ok := <-errorsCh:
+				if ok {
+					pErr := data.(types.TMEventData).Unwrap().(peerError)
+					peer := conR.Switch.Peers().Get(pErr.peerID)
+					if peer != nil {
+						conR.Switch.StopPeerForError(peer, pErr.err)
+					}
+				}
+			case <-conR.Quit():
+				conR.eventBus.UnsubscribeAll(ctx, subscriber)
+				return
+			}
+		}
+	}()
+
+	return nil
+}
+
 // startBroadcastRoutine subscribes for new round steps, votes and proposal
 // heartbeats using the event bus and starts a go routine to broadcasts events
 // to peers upon receiving them.
diff --git a/consensus/state.go b/consensus/state.go
index 30bd56f10..958574dd0 100644
--- a/consensus/state.go
+++ b/consensus/state.go
@@ -63,6 +63,19 @@ func (ti *timeoutInfo) String() string {
 	return fmt.Sprintf("%v ; %d/%d %v", ti.Duration, ti.Height, ti.Round, ti.Step)
 }
 
+type peerError struct {
+	err    error
+	peerID p2p.ID
+}
+
+func (e peerError) Error() string {
+	return fmt.Sprintf("error with peer %v: %s", e.peerID, e.err.Error())
+}
+
+const (
+	peerErrorEvent = "cs.PeerError"
+)
+
 // ConsensusState handles execution of the consensus algorithm.
 // It processes votes and proposals, and upon reaching agreement,
 // commits blocks to the chain and executes them against the application.
@@ -582,7 +595,8 @@ func (cs *ConsensusState) handleMsg(mi msgInfo) {
 		// if the vote gives us a 2/3-any or 2/3-one, we transition
 		err := cs.tryAddVote(msg.Vote, peerID)
 		if err == ErrAddingVote {
-			// TODO: punish peer
+			// punish peer
+			cs.eventBus.Publish(peerErrorEvent, types.TMEventData{peerError{err, peerID}})
 		}
 
 		// NOTE: the vote is broadcast to peers by the reactor listening