diff --git a/internal/consensus/reactor.go b/internal/consensus/reactor.go
index 803834d96..d0d625e26 100644
--- a/internal/consensus/reactor.go
+++ b/internal/consensus/reactor.go
@@ -1470,7 +1470,7 @@ func (r *Reactor) peerStatsRoutine(ctx context.Context) {
 			switch msg.Msg.(type) {
 			case *VoteMessage:
 				if numVotes := ps.RecordVote(); numVotes%votesToContributeToBecomeGoodPeer == 0 {
-					r.peerUpdates.SendUpdate(p2p.PeerUpdate{
+					r.peerUpdates.SendUpdate(ctx, p2p.PeerUpdate{
 						NodeID: msg.PeerID,
 						Status: p2p.PeerStatusGood,
 					})
@@ -1478,7 +1478,7 @@ func (r *Reactor) peerStatsRoutine(ctx context.Context) {
 
 			case *BlockPartMessage:
 				if numParts := ps.RecordBlockPart(); numParts%blocksToContributeToBecomeGoodPeer == 0 {
-					r.peerUpdates.SendUpdate(p2p.PeerUpdate{
+					r.peerUpdates.SendUpdate(ctx, p2p.PeerUpdate{
 						NodeID: msg.PeerID,
 						Status: p2p.PeerStatusGood,
 					})
diff --git a/internal/p2p/conn/connection.go b/internal/p2p/conn/connection.go
index a2808f216..fa21358c1 100644
--- a/internal/p2p/conn/connection.go
+++ b/internal/p2p/conn/connection.go
@@ -49,8 +49,8 @@ const (
 	defaultPongTimeout         = 45 * time.Second
 )
 
-type receiveCbFunc func(chID ChannelID, msgBytes []byte)
-type errorCbFunc func(interface{})
+type receiveCbFunc func(ctx context.Context, chID ChannelID, msgBytes []byte)
+type errorCbFunc func(context.Context, interface{})
 
 /*
 Each peer has one `MConnection` (multiplex connection) instance.
@@ -286,21 +286,21 @@ func (c *MConnection) flush() {
 }
 
 // Catch panics, usually caused by remote disconnects.
-func (c *MConnection) _recover() {
+func (c *MConnection) _recover(ctx context.Context) {
 	if r := recover(); r != nil {
 		c.logger.Error("MConnection panicked", "err", r, "stack", string(debug.Stack()))
-		c.stopForError(fmt.Errorf("recovered from panic: %v", r))
+		c.stopForError(ctx, fmt.Errorf("recovered from panic: %v", r))
 	}
 }
 
-func (c *MConnection) stopForError(r interface{}) {
+func (c *MConnection) stopForError(ctx context.Context, r interface{}) {
 	if err := c.Stop(); err != nil {
 		c.logger.Error("Error stopping connection", "err", err)
 	}
 
 	if atomic.CompareAndSwapUint32(&c.errored, 0, 1) {
 		if c.onError != nil {
-			c.onError(r)
+			c.onError(ctx, r)
 		}
 	}
 }
@@ -335,7 +335,7 @@ func (c *MConnection) Send(chID ChannelID, msgBytes []byte) bool {
 
 // sendRoutine polls for packets to send from channels.
 func (c *MConnection) sendRoutine(ctx context.Context) {
-	defer c._recover()
+	defer c._recover(ctx)
 	protoWriter := protoio.NewDelimitedWriter(c.bufConnWriter)
 
 FOR_LOOP:
@@ -390,7 +390,7 @@ FOR_LOOP:
 			break FOR_LOOP
 		case <-c.send:
 			// Send some PacketMsgs
-			eof := c.sendSomePacketMsgs()
+			eof := c.sendSomePacketMsgs(ctx)
 			if !eof {
 				// Keep sendRoutine awake.
 				select {
@@ -405,7 +405,7 @@ FOR_LOOP:
 		}
 		if err != nil {
 			c.logger.Error("Connection failed @ sendRoutine", "conn", c, "err", err)
-			c.stopForError(err)
+			c.stopForError(ctx, err)
 			break FOR_LOOP
 		}
 	}
@@ -417,7 +417,7 @@ FOR_LOOP:
 
 // Returns true if messages from channels were exhausted.
 // Blocks in accordance to .sendMonitor throttling.
-func (c *MConnection) sendSomePacketMsgs() bool {
+func (c *MConnection) sendSomePacketMsgs(ctx context.Context) bool {
 	// Block until .sendMonitor says we can write.
 	// Once we're ready we send more than we asked for,
 	// but amortized it should even out.
@@ -425,7 +425,7 @@ func (c *MConnection) sendSomePacketMsgs() bool {
 
 	// Now send some PacketMsgs.
 	for i := 0; i < numBatchPacketMsgs; i++ {
-		if c.sendPacketMsg() {
+		if c.sendPacketMsg(ctx) {
 			return true
 		}
 	}
@@ -433,7 +433,7 @@ func (c *MConnection) sendSomePacketMsgs() bool {
 }
 
 // Returns true if messages from channels were exhausted.
-func (c *MConnection) sendPacketMsg() bool {
+func (c *MConnection) sendPacketMsg(ctx context.Context) bool {
 	// Choose a channel to create a PacketMsg from.
 	// The chosen channel will be the one whose recentlySent/priority is the least.
 	var leastRatio float32 = math.MaxFloat32
@@ -461,7 +461,7 @@ func (c *MConnection) sendPacketMsg() bool {
 	_n, err := leastChannel.writePacketMsgTo(c.bufConnWriter)
 	if err != nil {
 		c.logger.Error("Failed to write PacketMsg", "err", err)
-		c.stopForError(err)
+		c.stopForError(ctx, err)
 		return true
 	}
 	c.sendMonitor.Update(_n)
@@ -474,7 +474,7 @@ func (c *MConnection) sendPacketMsg() bool {
 // Blocks depending on how the connection is throttled.
 // Otherwise, it never blocks.
 func (c *MConnection) recvRoutine(ctx context.Context) {
-	defer c._recover()
+	defer c._recover(ctx)
 
 	protoReader := protoio.NewDelimitedReader(c.bufConnReader, c._maxPacketMsgSize)
 
@@ -518,7 +518,7 @@ FOR_LOOP:
 				} else {
 					c.logger.Debug("Connection failed @ recvRoutine (reading byte)", "conn", c, "err", err)
 				}
-				c.stopForError(err)
+				c.stopForError(ctx, err)
 			}
 			break FOR_LOOP
 		}
@@ -547,7 +547,7 @@ FOR_LOOP:
 			if pkt.PacketMsg.ChannelID < 0 || pkt.PacketMsg.ChannelID > math.MaxUint8 || !ok || channel == nil {
 				err := fmt.Errorf("unknown channel %X", pkt.PacketMsg.ChannelID)
 				c.logger.Debug("Connection failed @ recvRoutine", "conn", c, "err", err)
-				c.stopForError(err)
+				c.stopForError(ctx, err)
 				break FOR_LOOP
 			}
 
@@ -555,19 +555,19 @@ FOR_LOOP:
 			if err != nil {
 				if c.IsRunning() {
 					c.logger.Debug("Connection failed @ recvRoutine", "conn", c, "err", err)
-					c.stopForError(err)
+					c.stopForError(ctx, err)
 				}
 				break FOR_LOOP
 			}
 			if msgBytes != nil {
 				c.logger.Debug("Received bytes", "chID", channelID, "msgBytes", msgBytes)
 				// NOTE: This means the reactor.Receive runs in the same thread as the p2p recv routine
-				c.onReceive(channelID, msgBytes)
+				c.onReceive(ctx, channelID, msgBytes)
 			}
 		default:
 			err := fmt.Errorf("unknown message type %v", reflect.TypeOf(packet))
 			c.logger.Error("Connection failed @ recvRoutine", "conn", c, "err", err)
-			c.stopForError(err)
+			c.stopForError(ctx, err)
 			break FOR_LOOP
 		}
 	}
diff --git a/internal/p2p/conn/connection_test.go b/internal/p2p/conn/connection_test.go
index f1b2ae24c..0700db1b0 100644
--- a/internal/p2p/conn/connection_test.go
+++ b/internal/p2p/conn/connection_test.go
@@ -25,18 +25,18 @@ const maxPingPongPacketSize = 1024 // bytes
 func createTestMConnection(logger log.Logger, conn net.Conn) *MConnection {
 	return createMConnectionWithCallbacks(logger, conn,
 		// onRecieve
-		func(chID ChannelID, msgBytes []byte) {
+		func(ctx context.Context, chID ChannelID, msgBytes []byte) {
 		},
 		// onError
-		func(r interface{}) {
+		func(ctx context.Context, r interface{}) {
 		})
 }
 
 func createMConnectionWithCallbacks(
 	logger log.Logger,
 	conn net.Conn,
-	onReceive func(chID ChannelID, msgBytes []byte),
-	onError func(r interface{}),
+	onReceive func(ctx context.Context, chID ChannelID, msgBytes []byte),
+	onError func(ctx context.Context, r interface{}),
 ) *MConnection {
 	cfg := DefaultMConnConfig()
 	cfg.PingInterval = 90 * time.Millisecond
@@ -120,11 +120,17 @@ func TestMConnectionReceive(t *testing.T) {
 
 	receivedCh := make(chan []byte)
 	errorsCh := make(chan interface{})
-	onReceive := func(chID ChannelID, msgBytes []byte) {
-		receivedCh <- msgBytes
+	onReceive := func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case receivedCh <- msgBytes:
+		case <-ctx.Done():
+		}
 	}
-	onError := func(r interface{}) {
-		errorsCh <- r
+	onError := func(ctx context.Context, r interface{}) {
+		select {
+		case errorsCh <- r:
+		case <-ctx.Done():
+		}
 	}
 	logger := log.TestingLogger()
 
@@ -160,11 +166,17 @@ func TestMConnectionPongTimeoutResultsInError(t *testing.T) {
 
 	receivedCh := make(chan []byte)
 	errorsCh := make(chan interface{})
-	onReceive := func(chID ChannelID, msgBytes []byte) {
-		receivedCh <- msgBytes
+	onReceive := func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case receivedCh <- msgBytes:
+		case <-ctx.Done():
+		}
 	}
-	onError := func(r interface{}) {
-		errorsCh <- r
+	onError := func(ctx context.Context, r interface{}) {
+		select {
+		case errorsCh <- r:
+		case <-ctx.Done():
+		}
 	}
 
 	ctx, cancel := context.WithCancel(context.Background())
@@ -202,12 +214,19 @@ func TestMConnectionMultiplePongsInTheBeginning(t *testing.T) {
 
 	receivedCh := make(chan []byte)
 	errorsCh := make(chan interface{})
-	onReceive := func(chID ChannelID, msgBytes []byte) {
-		receivedCh <- msgBytes
+	onReceive := func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case receivedCh <- msgBytes:
+		case <-ctx.Done():
+		}
 	}
-	onError := func(r interface{}) {
-		errorsCh <- r
+	onError := func(ctx context.Context, r interface{}) {
+		select {
+		case errorsCh <- r:
+		case <-ctx.Done():
+		}
 	}
+
 	ctx, cancel := context.WithCancel(context.Background())
 	defer cancel()
 
@@ -259,11 +278,17 @@ func TestMConnectionMultiplePings(t *testing.T) {
 
 	receivedCh := make(chan []byte)
 	errorsCh := make(chan interface{})
-	onReceive := func(chID ChannelID, msgBytes []byte) {
-		receivedCh <- msgBytes
+	onReceive := func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case receivedCh <- msgBytes:
+		case <-ctx.Done():
+		}
 	}
-	onError := func(r interface{}) {
-		errorsCh <- r
+	onError := func(ctx context.Context, r interface{}) {
+		select {
+		case errorsCh <- r:
+		case <-ctx.Done():
+		}
 	}
 	ctx, cancel := context.WithCancel(context.Background())
 	defer cancel()
@@ -309,11 +334,17 @@ func TestMConnectionPingPongs(t *testing.T) {
 
 	receivedCh := make(chan []byte)
 	errorsCh := make(chan interface{})
-	onReceive := func(chID ChannelID, msgBytes []byte) {
-		receivedCh <- msgBytes
+	onReceive := func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case receivedCh <- msgBytes:
+		case <-ctx.Done():
+		}
 	}
-	onError := func(r interface{}) {
-		errorsCh <- r
+	onError := func(ctx context.Context, r interface{}) {
+		select {
+		case errorsCh <- r:
+		case <-ctx.Done():
+		}
 	}
 
 	ctx, cancel := context.WithCancel(context.Background())
@@ -370,11 +401,17 @@ func TestMConnectionStopsAndReturnsError(t *testing.T) {
 
 	receivedCh := make(chan []byte)
 	errorsCh := make(chan interface{})
-	onReceive := func(chID ChannelID, msgBytes []byte) {
-		receivedCh <- msgBytes
+	onReceive := func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case receivedCh <- msgBytes:
+		case <-ctx.Done():
+		}
 	}
-	onError := func(r interface{}) {
-		errorsCh <- r
+	onError := func(ctx context.Context, r interface{}) {
+		select {
+		case errorsCh <- r:
+		case <-ctx.Done():
+		}
 	}
 	ctx, cancel := context.WithCancel(context.Background())
 	defer cancel()
@@ -406,8 +443,8 @@ func newClientAndServerConnsForReadErrors(
 ) (*MConnection, *MConnection) {
 	server, client := NetPipe()
 
-	onReceive := func(chID ChannelID, msgBytes []byte) {}
-	onError := func(r interface{}) {}
+	onReceive := func(context.Context, ChannelID, []byte) {}
+	onError := func(context.Context, interface{}) {}
 
 	// create client conn with two channels
 	chDescs := []*ChannelDescriptor{
@@ -423,8 +460,11 @@ func newClientAndServerConnsForReadErrors(
 	// create server conn with 1 channel
 	// it fires on chOnErr when there's an error
 	serverLogger := logger.With("module", "server")
-	onError = func(r interface{}) {
-		chOnErr <- struct{}{}
+	onError = func(ctx context.Context, r interface{}) {
+		select {
+		case <-ctx.Done():
+		case chOnErr <- struct{}{}:
+		}
 	}
 
 	mconnServer := createMConnectionWithCallbacks(serverLogger, server, onReceive, onError)
@@ -488,8 +528,11 @@ func TestMConnectionReadErrorLongMessage(t *testing.T) {
 	mconnClient, mconnServer := newClientAndServerConnsForReadErrors(ctx, t, chOnErr)
 	t.Cleanup(waitAll(mconnClient, mconnServer))
 
-	mconnServer.onReceive = func(chID ChannelID, msgBytes []byte) {
-		chOnRcv <- struct{}{}
+	mconnServer.onReceive = func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case <-ctx.Done():
+		case chOnRcv <- struct{}{}:
+		}
 	}
 
 	client := mconnClient.conn
@@ -590,8 +633,11 @@ func TestMConnectionChannelOverflow(t *testing.T) {
 	mconnClient, mconnServer := newClientAndServerConnsForReadErrors(ctx, t, chOnErr)
 	t.Cleanup(waitAll(mconnClient, mconnServer))
 
-	mconnServer.onReceive = func(chID ChannelID, msgBytes []byte) {
-		chOnRcv <- struct{}{}
+	mconnServer.onReceive = func(ctx context.Context, chID ChannelID, msgBytes []byte) {
+		select {
+		case <-ctx.Done():
+		case chOnRcv <- struct{}{}:
+		}
 	}
 
 	client := mconnClient.conn
diff --git a/internal/p2p/mocks/connection.go b/internal/p2p/mocks/connection.go
index 65b9afafb..576fb2386 100644
--- a/internal/p2p/mocks/connection.go
+++ b/internal/p2p/mocks/connection.go
@@ -79,20 +79,20 @@ func (_m *Connection) LocalEndpoint() p2p.Endpoint {
 	return r0
 }
 
-// ReceiveMessage provides a mock function with given fields:
-func (_m *Connection) ReceiveMessage() (conn.ChannelID, []byte, error) {
-	ret := _m.Called()
+// ReceiveMessage provides a mock function with given fields: _a0
+func (_m *Connection) ReceiveMessage(_a0 context.Context) (conn.ChannelID, []byte, error) {
+	ret := _m.Called(_a0)
 
 	var r0 conn.ChannelID
-	if rf, ok := ret.Get(0).(func() conn.ChannelID); ok {
-		r0 = rf()
+	if rf, ok := ret.Get(0).(func(context.Context) conn.ChannelID); ok {
+		r0 = rf(_a0)
 	} else {
 		r0 = ret.Get(0).(conn.ChannelID)
 	}
 
 	var r1 []byte
-	if rf, ok := ret.Get(1).(func() []byte); ok {
-		r1 = rf()
+	if rf, ok := ret.Get(1).(func(context.Context) []byte); ok {
+		r1 = rf(_a0)
 	} else {
 		if ret.Get(1) != nil {
 			r1 = ret.Get(1).([]byte)
@@ -100,8 +100,8 @@ func (_m *Connection) ReceiveMessage() (conn.ChannelID, []byte, error) {
 	}
 
 	var r2 error
-	if rf, ok := ret.Get(2).(func() error); ok {
-		r2 = rf()
+	if rf, ok := ret.Get(2).(func(context.Context) error); ok {
+		r2 = rf(_a0)
 	} else {
 		r2 = ret.Error(2)
 	}
@@ -123,13 +123,13 @@ func (_m *Connection) RemoteEndpoint() p2p.Endpoint {
 	return r0
 }
 
-// SendMessage provides a mock function with given fields: _a0, _a1
-func (_m *Connection) SendMessage(_a0 conn.ChannelID, _a1 []byte) error {
-	ret := _m.Called(_a0, _a1)
+// SendMessage provides a mock function with given fields: _a0, _a1, _a2
+func (_m *Connection) SendMessage(_a0 context.Context, _a1 conn.ChannelID, _a2 []byte) error {
+	ret := _m.Called(_a0, _a1, _a2)
 
 	var r0 error
-	if rf, ok := ret.Get(0).(func(conn.ChannelID, []byte) error); ok {
-		r0 = rf(_a0, _a1)
+	if rf, ok := ret.Get(0).(func(context.Context, conn.ChannelID, []byte) error); ok {
+		r0 = rf(_a0, _a1, _a2)
 	} else {
 		r0 = ret.Error(0)
 	}
diff --git a/internal/p2p/mocks/transport.go b/internal/p2p/mocks/transport.go
index eea1de4c5..b17290118 100644
--- a/internal/p2p/mocks/transport.go
+++ b/internal/p2p/mocks/transport.go
@@ -17,13 +17,13 @@ type Transport struct {
 	mock.Mock
 }
 
-// Accept provides a mock function with given fields:
-func (_m *Transport) Accept() (p2p.Connection, error) {
-	ret := _m.Called()
+// Accept provides a mock function with given fields: _a0
+func (_m *Transport) Accept(_a0 context.Context) (p2p.Connection, error) {
+	ret := _m.Called(_a0)
 
 	var r0 p2p.Connection
-	if rf, ok := ret.Get(0).(func() p2p.Connection); ok {
-		r0 = rf()
+	if rf, ok := ret.Get(0).(func(context.Context) p2p.Connection); ok {
+		r0 = rf(_a0)
 	} else {
 		if ret.Get(0) != nil {
 			r0 = ret.Get(0).(p2p.Connection)
@@ -31,8 +31,8 @@ func (_m *Transport) Accept() (p2p.Connection, error) {
 	}
 
 	var r1 error
-	if rf, ok := ret.Get(1).(func() error); ok {
-		r1 = rf()
+	if rf, ok := ret.Get(1).(func(context.Context) error); ok {
+		r1 = rf(_a0)
 	} else {
 		r1 = ret.Error(1)
 	}
diff --git a/internal/p2p/p2ptest/network.go b/internal/p2p/p2ptest/network.go
index 6fc5d7c11..30f1a435f 100644
--- a/internal/p2p/p2ptest/network.go
+++ b/internal/p2p/p2ptest/network.go
@@ -24,6 +24,7 @@ type Network struct {
 
 	logger        log.Logger
 	memoryNetwork *p2p.MemoryNetwork
+	cancel        context.CancelFunc
 }
 
 // NetworkOptions is an argument structure to parameterize the
@@ -68,6 +69,9 @@ func MakeNetwork(ctx context.Context, t *testing.T, opts NetworkOptions) *Networ
 // addition to creating a peer update subscription for each node. Finally, all
 // nodes are connected to each other.
 func (n *Network) Start(ctx context.Context, t *testing.T) {
+	ctx, n.cancel = context.WithCancel(ctx)
+	t.Cleanup(n.cancel)
+
 	// Set up a list of node addresses to dial, and a peer update subscription
 	// for each node.
 	dialQueue := []p2p.NodeAddress{}
@@ -200,10 +204,10 @@ func (n *Network) Remove(ctx context.Context, t *testing.T, id types.NodeID) {
 	}
 
 	require.NoError(t, node.Transport.Close())
+	node.cancel()
 	if node.Router.IsRunning() {
 		require.NoError(t, node.Router.Stop())
 	}
-	node.PeerManager.Close()
 
 	for _, sub := range subs {
 		RequireUpdate(t, sub, p2p.PeerUpdate{
@@ -222,12 +226,16 @@ type Node struct {
 	Router      *p2p.Router
 	PeerManager *p2p.PeerManager
 	Transport   *p2p.MemoryTransport
+
+	cancel context.CancelFunc
 }
 
 // MakeNode creates a new Node configured for the network with a
 // running peer manager, but does not add it to the existing
 // network. Callers are responsible for updating peering relationships.
 func (n *Network) MakeNode(ctx context.Context, t *testing.T, opts NodeOptions) *Node {
+	ctx, cancel := context.WithCancel(ctx)
+
 	privKey := ed25519.GenPrivKey()
 	nodeID := types.NodeIDFromPubKey(privKey.PubKey())
 	nodeInfo := types.NodeInfo{
@@ -267,8 +275,8 @@ func (n *Network) MakeNode(ctx context.Context, t *testing.T, opts NodeOptions)
 		if router.IsRunning() {
 			require.NoError(t, router.Stop())
 		}
-		peerManager.Close()
 		require.NoError(t, transport.Close())
+		cancel()
 	})
 
 	return &Node{
@@ -279,6 +287,7 @@ func (n *Network) MakeNode(ctx context.Context, t *testing.T, opts NodeOptions)
 		Router:      router,
 		PeerManager: peerManager,
 		Transport:   transport,
+		cancel:      cancel,
 	}
 }
 
diff --git a/internal/p2p/peermanager.go b/internal/p2p/peermanager.go
index 0ab0128ca..40dcf8464 100644
--- a/internal/p2p/peermanager.go
+++ b/internal/p2p/peermanager.go
@@ -56,8 +56,8 @@ type PeerUpdate struct {
 type PeerUpdates struct {
 	routerUpdatesCh  chan PeerUpdate
 	reactorUpdatesCh chan PeerUpdate
-	closeCh          chan struct{}
 	closeOnce        sync.Once
+	doneCh           chan struct{}
 }
 
 // NewPeerUpdates creates a new PeerUpdates subscription. It is primarily for
@@ -67,7 +67,7 @@ func NewPeerUpdates(updatesCh chan PeerUpdate, buf int) *PeerUpdates {
 	return &PeerUpdates{
 		reactorUpdatesCh: updatesCh,
 		routerUpdatesCh:  make(chan PeerUpdate, buf),
-		closeCh:          make(chan struct{}),
+		doneCh:           make(chan struct{}),
 	}
 }
 
@@ -76,28 +76,28 @@ func (pu *PeerUpdates) Updates() <-chan PeerUpdate {
 	return pu.reactorUpdatesCh
 }
 
-// SendUpdate pushes information about a peer into the routing layer,
-// presumably from a peer.
-func (pu *PeerUpdates) SendUpdate(update PeerUpdate) {
-	select {
-	case <-pu.closeCh:
-	case pu.routerUpdatesCh <- update:
-	}
+// Done returns a channel that is closed when the subscription is closed.
+func (pu *PeerUpdates) Done() <-chan struct{} {
+	return pu.doneCh
 }
 
 // Close closes the peer updates subscription.
 func (pu *PeerUpdates) Close() {
 	pu.closeOnce.Do(func() {
 		// NOTE: We don't close updatesCh since multiple goroutines may be
-		// sending on it. The PeerManager senders will select on closeCh as well
+		// sending on it. The PeerManager senders will select on doneCh as well
 		// to avoid blocking on a closed subscription.
-		close(pu.closeCh)
+		close(pu.doneCh)
 	})
 }
 
-// Done returns a channel that is closed when the subscription is closed.
-func (pu *PeerUpdates) Done() <-chan struct{} {
-	return pu.closeCh
+// SendUpdate pushes information about a peer into the routing layer,
+// presumably from a peer.
+func (pu *PeerUpdates) SendUpdate(ctx context.Context, update PeerUpdate) {
+	select {
+	case <-ctx.Done():
+	case pu.routerUpdatesCh <- update:
+	}
 }
 
 // PeerManagerOptions specifies options for a PeerManager.
@@ -276,8 +276,6 @@ type PeerManager struct {
 	rand       *rand.Rand
 	dialWaker  *tmsync.Waker // wakes up DialNext() on relevant peer changes
 	evictWaker *tmsync.Waker // wakes up EvictNext() on relevant peer changes
-	closeCh    chan struct{} // signal channel for Close()
-	closeOnce  sync.Once
 
 	mtx           sync.Mutex
 	store         *peerStore
@@ -312,7 +310,6 @@ func NewPeerManager(selfID types.NodeID, peerDB dbm.DB, options PeerManagerOptio
 		rand:       rand.New(rand.NewSource(time.Now().UnixNano())), // nolint:gosec
 		dialWaker:  tmsync.NewWaker(),
 		evictWaker: tmsync.NewWaker(),
-		closeCh:    make(chan struct{}),
 
 		store:         store,
 		dialing:       map[types.NodeID]bool{},
@@ -552,7 +549,6 @@ func (m *PeerManager) DialFailed(ctx context.Context, address NodeAddress) error
 			select {
 			case <-timer.C:
 				m.dialWaker.Wake()
-			case <-m.closeCh:
 			case <-ctx.Done():
 			}
 		}()
@@ -864,10 +860,6 @@ func (m *PeerManager) Register(ctx context.Context, peerUpdates *PeerUpdates) {
 	go func() {
 		for {
 			select {
-			case <-peerUpdates.closeCh:
-				return
-			case <-m.closeCh:
-				return
 			case <-ctx.Done():
 				return
 			case pu := <-peerUpdates.routerUpdatesCh:
@@ -882,7 +874,6 @@ func (m *PeerManager) Register(ctx context.Context, peerUpdates *PeerUpdates) {
 			m.mtx.Lock()
 			delete(m.subscriptions, peerUpdates)
 			m.mtx.Unlock()
-		case <-m.closeCh:
 		case <-ctx.Done():
 		}
 	}()
@@ -913,27 +904,20 @@ func (m *PeerManager) processPeerEvent(pu PeerUpdate) {
 // maintaining order if this is a problem.
 func (m *PeerManager) broadcast(peerUpdate PeerUpdate) {
 	for _, sub := range m.subscriptions {
-		// We have to check closeCh separately first, otherwise there's a 50%
+		// We have to check doneChan separately first, otherwise there's a 50%
 		// chance the second select will send on a closed subscription.
 		select {
-		case <-sub.closeCh:
+		case <-sub.doneCh:
 			continue
 		default:
 		}
 		select {
 		case sub.reactorUpdatesCh <- peerUpdate:
-		case <-sub.closeCh:
+		case <-sub.doneCh:
 		}
 	}
 }
 
-// Close closes the peer manager, releasing resources (i.e. goroutines).
-func (m *PeerManager) Close() {
-	m.closeOnce.Do(func() {
-		close(m.closeCh)
-	})
-}
-
 // Addresses returns all known addresses for a peer, primarily for testing.
 // The order is arbitrary.
 func (m *PeerManager) Addresses(peerID types.NodeID) []NodeAddress {
diff --git a/internal/p2p/peermanager_scoring_test.go b/internal/p2p/peermanager_scoring_test.go
index fe23767c4..ecaf71c98 100644
--- a/internal/p2p/peermanager_scoring_test.go
+++ b/internal/p2p/peermanager_scoring_test.go
@@ -22,7 +22,6 @@ func TestPeerScoring(t *testing.T) {
 	db := dbm.NewMemDB()
 	peerManager, err := NewPeerManager(selfID, db, PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	// create a fake node
 	id := types.NodeID(strings.Repeat("a1", 20))
@@ -59,7 +58,7 @@ func TestPeerScoring(t *testing.T) {
 		start := peerManager.Scores()[id]
 		pu := peerManager.Subscribe(ctx)
 		defer pu.Close()
-		pu.SendUpdate(PeerUpdate{
+		pu.SendUpdate(ctx, PeerUpdate{
 			NodeID: id,
 			Status: PeerStatusGood,
 		})
@@ -73,7 +72,7 @@ func TestPeerScoring(t *testing.T) {
 		start := peerManager.Scores()[id]
 		pu := peerManager.Subscribe(ctx)
 		defer pu.Close()
-		pu.SendUpdate(PeerUpdate{
+		pu.SendUpdate(ctx, PeerUpdate{
 			NodeID: id,
 			Status: PeerStatusBad,
 		})
diff --git a/internal/p2p/peermanager_test.go b/internal/p2p/peermanager_test.go
index cf1b0707e..dec92dab0 100644
--- a/internal/p2p/peermanager_test.go
+++ b/internal/p2p/peermanager_test.go
@@ -154,7 +154,6 @@ func TestNewPeerManager_Persistence(t *testing.T) {
 		PeerScores:      map[types.NodeID]p2p.PeerScore{bID: 1},
 	})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	for _, addr := range append(append(aAddresses, bAddresses...), cAddresses...) {
 		added, err := peerManager.Add(addr)
@@ -171,8 +170,6 @@ func TestNewPeerManager_Persistence(t *testing.T) {
 		cID: 0,
 	}, peerManager.Scores())
 
-	peerManager.Close()
-
 	// Creating a new peer manager with the same database should retain the
 	// peers, but they should have updated scores from the new PersistentPeers
 	// configuration.
@@ -181,7 +178,6 @@ func TestNewPeerManager_Persistence(t *testing.T) {
 		PeerScores:      map[types.NodeID]p2p.PeerScore{cID: 1},
 	})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	require.ElementsMatch(t, aAddresses, peerManager.Addresses(aID))
 	require.ElementsMatch(t, bAddresses, peerManager.Addresses(bID))
@@ -208,7 +204,6 @@ func TestNewPeerManager_SelfIDChange(t *testing.T) {
 	require.NoError(t, err)
 	require.True(t, added)
 	require.ElementsMatch(t, []types.NodeID{a.NodeID, b.NodeID}, peerManager.Peers())
-	peerManager.Close()
 
 	// If we change our selfID to one of the peers in the peer store, it
 	// should be removed from the store.
@@ -1755,9 +1750,6 @@ func TestPeerManager_Close(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, a, dial)
 	require.NoError(t, peerManager.DialFailed(ctx, a))
-
-	// This should clean up the goroutines.
-	peerManager.Close()
 }
 
 func TestPeerManager_Advertise(t *testing.T) {
@@ -1780,7 +1772,6 @@ func TestPeerManager_Advertise(t *testing.T) {
 		PeerScores: map[types.NodeID]p2p.PeerScore{aID: 3, bID: 2, cID: 1},
 	})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	added, err := peerManager.Add(aTCP)
 	require.NoError(t, err)
@@ -1847,7 +1838,6 @@ func TestPeerManager_SetHeight_GetHeight(t *testing.T) {
 	require.ElementsMatch(t, []types.NodeID{a.NodeID, b.NodeID}, peerManager.Peers())
 
 	// The heights should not be persisted.
-	peerManager.Close()
 	peerManager, err = p2p.NewPeerManager(selfID, db, p2p.PeerManagerOptions{})
 	require.NoError(t, err)
 
diff --git a/internal/p2p/pex/reactor.go b/internal/p2p/pex/reactor.go
index 69ff5206c..b42bb2f4b 100644
--- a/internal/p2p/pex/reactor.go
+++ b/internal/p2p/pex/reactor.go
@@ -83,7 +83,6 @@ type Reactor struct {
 	peerManager *p2p.PeerManager
 	pexCh       *p2p.Channel
 	peerUpdates *p2p.PeerUpdates
-	closeCh     chan struct{}
 
 	// list of available peers to loop through and send peer requests to
 	availablePeers map[types.NodeID]struct{}
@@ -128,7 +127,6 @@ func NewReactor(
 		peerManager:          peerManager,
 		pexCh:                pexCh,
 		peerUpdates:          peerUpdates,
-		closeCh:              make(chan struct{}),
 		availablePeers:       make(map[types.NodeID]struct{}),
 		requestsSent:         make(map[types.NodeID]struct{}),
 		lastReceivedRequests: make(map[types.NodeID]time.Time),
@@ -150,13 +148,7 @@ func (r *Reactor) OnStart(ctx context.Context) error {
 
 // OnStop stops the reactor by signaling to all spawned goroutines to exit and
 // blocking until they all exit.
-func (r *Reactor) OnStop() {
-	// Close closeCh to signal to all spawned goroutines to gracefully exit. All
-	// p2p Channels should execute Close().
-	close(r.closeCh)
-
-	<-r.peerUpdates.Done()
-}
+func (r *Reactor) OnStop() {}
 
 // processPexCh implements a blocking event loop where we listen for p2p
 // Envelope messages from the pexCh.
@@ -168,8 +160,6 @@ func (r *Reactor) processPexCh(ctx context.Context) {
 
 		select {
 		case <-ctx.Done():
-			return
-		case <-r.closeCh:
 			r.logger.Debug("stopped listening on PEX channel; closing...")
 			return
 
@@ -196,17 +186,13 @@ func (r *Reactor) processPexCh(ctx context.Context) {
 // close the p2p PeerUpdatesCh gracefully.
 func (r *Reactor) processPeerUpdates(ctx context.Context) {
 	defer r.peerUpdates.Close()
-
 	for {
 		select {
 		case <-ctx.Done():
+			r.logger.Debug("stopped listening on peer updates channel; closing...")
 			return
 		case peerUpdate := <-r.peerUpdates.Updates():
 			r.processPeerUpdate(peerUpdate)
-
-		case <-r.closeCh:
-			r.logger.Debug("stopped listening on peer updates channel; closing...")
-			return
 		}
 	}
 }
diff --git a/internal/p2p/router.go b/internal/p2p/router.go
index 7d1529ace..8f751ec6a 100644
--- a/internal/p2p/router.go
+++ b/internal/p2p/router.go
@@ -158,7 +158,6 @@ type Router struct {
 	endpoints          []Endpoint
 	connTracker        connectionTracker
 	protocolTransports map[Protocol]Transport
-	stopCh             chan struct{} // signals Router shutdown
 
 	peerMtx    sync.RWMutex
 	peerQueues map[types.NodeID]queue // outbound messages per peer for all channels
@@ -208,7 +207,6 @@ func NewRouter(
 		protocolTransports: map[Protocol]Transport{},
 		peerManager:        peerManager,
 		options:            options,
-		stopCh:             make(chan struct{}),
 		channelQueues:      map[ChannelID]queue{},
 		channelMessages:    map[ChannelID]proto.Message{},
 		peerQueues:         map[types.NodeID]queue{},
@@ -399,7 +397,7 @@ func (r *Router) routeChannel(
 				case <-q.closed():
 					r.logger.Debug("dropping message for unconnected peer", "peer", envelope.To, "channel", chID)
 
-				case <-r.stopCh:
+				case <-ctx.Done():
 					return
 				}
 			}
@@ -414,8 +412,6 @@ func (r *Router) routeChannel(
 			r.peerManager.Errored(peerError.NodeID, peerError.Err)
 		case <-ctx.Done():
 			return
-		case <-r.stopCh:
-			return
 		}
 	}
 }
@@ -474,7 +470,7 @@ func (r *Router) acceptPeers(ctx context.Context, transport Transport) {
 	r.logger.Debug("starting accept routine", "transport", transport)
 
 	for {
-		conn, err := transport.Accept()
+		conn, err := transport.Accept(ctx)
 		switch err {
 		case nil:
 		case io.EOF:
@@ -783,14 +779,14 @@ func (r *Router) routePeer(ctx context.Context, peerID types.NodeID, conn Connec
 
 	go func() {
 		select {
-		case errCh <- r.receivePeer(peerID, conn):
+		case errCh <- r.receivePeer(ctx, peerID, conn):
 		case <-ctx.Done():
 		}
 	}()
 
 	go func() {
 		select {
-		case errCh <- r.sendPeer(peerID, conn, sendQueue):
+		case errCh <- r.sendPeer(ctx, peerID, conn, sendQueue):
 		case <-ctx.Done():
 		}
 	}()
@@ -829,9 +825,9 @@ func (r *Router) routePeer(ctx context.Context, peerID types.NodeID, conn Connec
 
 // receivePeer receives inbound messages from a peer, deserializes them and
 // passes them on to the appropriate channel.
-func (r *Router) receivePeer(peerID types.NodeID, conn Connection) error {
+func (r *Router) receivePeer(ctx context.Context, peerID types.NodeID, conn Connection) error {
 	for {
-		chID, bz, err := conn.ReceiveMessage()
+		chID, bz, err := conn.ReceiveMessage(ctx)
 		if err != nil {
 			return err
 		}
@@ -874,14 +870,14 @@ func (r *Router) receivePeer(peerID types.NodeID, conn Connection) error {
 		case <-queue.closed():
 			r.logger.Debug("channel closed, dropping message", "peer", peerID, "channel", chID)
 
-		case <-r.stopCh:
+		case <-ctx.Done():
 			return nil
 		}
 	}
 }
 
 // sendPeer sends queued messages to a peer.
-func (r *Router) sendPeer(peerID types.NodeID, conn Connection, peerQueue queue) error {
+func (r *Router) sendPeer(ctx context.Context, peerID types.NodeID, conn Connection, peerQueue queue) error {
 	for {
 		start := time.Now().UTC()
 
@@ -899,7 +895,7 @@ func (r *Router) sendPeer(peerID types.NodeID, conn Connection, peerQueue queue)
 				continue
 			}
 
-			if err = conn.SendMessage(envelope.channelID, bz); err != nil {
+			if err = conn.SendMessage(ctx, envelope.channelID, bz); err != nil {
 				return err
 			}
 
@@ -908,7 +904,7 @@ func (r *Router) sendPeer(peerID types.NodeID, conn Connection, peerQueue queue)
 		case <-peerQueue.closed():
 			return nil
 
-		case <-r.stopCh:
+		case <-ctx.Done():
 			return nil
 		}
 	}
@@ -983,9 +979,6 @@ func (r *Router) OnStart(ctx context.Context) error {
 // here, since that would cause any reactor senders to panic, so it is the
 // sender's responsibility.
 func (r *Router) OnStop() {
-	// Signal router shutdown.
-	close(r.stopCh)
-
 	// Close transport listeners (unblocks Accept calls).
 	for _, transport := range r.transports {
 		if err := transport.Close(); err != nil {
@@ -1009,6 +1002,7 @@ func (r *Router) OnStop() {
 	r.peerMtx.RUnlock()
 
 	for _, q := range queues {
+		q.close()
 		<-q.closed()
 	}
 }
diff --git a/internal/p2p/router_test.go b/internal/p2p/router_test.go
index 8a4c9e4bc..a561f68cd 100644
--- a/internal/p2p/router_test.go
+++ b/internal/p2p/router_test.go
@@ -106,7 +106,6 @@ func TestRouter_Channel_Basic(t *testing.T) {
 	// Set up a router with no transports (so no peers).
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	router, err := p2p.NewRouter(
 		ctx,
@@ -392,25 +391,22 @@ func TestRouter_AcceptPeers(t *testing.T) {
 			mockConnection.On("String").Maybe().Return("mock")
 			mockConnection.On("Handshake", mock.Anything, selfInfo, selfKey).
 				Return(tc.peerInfo, tc.peerKey, nil)
-			mockConnection.On("Close").Run(func(_ mock.Arguments) { closer.Close() }).Return(nil)
+			mockConnection.On("Close").Run(func(_ mock.Arguments) { closer.Close() }).Return(nil).Maybe()
 			mockConnection.On("RemoteEndpoint").Return(p2p.Endpoint{})
 			if tc.ok {
-				// without the sleep after RequireUpdate this method isn't
-				// always called. Consider making this call optional.
-				mockConnection.On("ReceiveMessage").Return(chID, nil, io.EOF)
+				mockConnection.On("ReceiveMessage", mock.Anything).Return(chID, nil, io.EOF).Maybe()
 			}
 
 			mockTransport := &mocks.Transport{}
 			mockTransport.On("String").Maybe().Return("mock")
 			mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
-			mockTransport.On("Close").Return(nil)
-			mockTransport.On("Accept").Once().Return(mockConnection, nil)
-			mockTransport.On("Accept").Maybe().Return(nil, io.EOF)
+			mockTransport.On("Close").Return(nil).Maybe()
+			mockTransport.On("Accept", mock.Anything).Once().Return(mockConnection, nil)
+			mockTransport.On("Accept", mock.Anything).Maybe().Return(nil, io.EOF)
 
 			// Set up and start the router.
 			peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 			require.NoError(t, err)
-			defer peerManager.Close()
 
 			sub := peerManager.Subscribe(ctx)
 			defer sub.Close()
@@ -464,13 +460,12 @@ func TestRouter_AcceptPeers_Error(t *testing.T) {
 	mockTransport := &mocks.Transport{}
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
-	mockTransport.On("Accept").Once().Return(nil, errors.New("boom"))
+	mockTransport.On("Accept", mock.Anything).Once().Return(nil, errors.New("boom"))
 	mockTransport.On("Close").Return(nil)
 
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	router, err := p2p.NewRouter(
 		ctx,
@@ -503,13 +498,12 @@ func TestRouter_AcceptPeers_ErrorEOF(t *testing.T) {
 	mockTransport := &mocks.Transport{}
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
-	mockTransport.On("Accept").Once().Return(nil, io.EOF)
+	mockTransport.On("Accept", mock.Anything).Once().Return(nil, io.EOF)
 	mockTransport.On("Close").Return(nil)
 
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	router, err := p2p.NewRouter(
 		ctx,
@@ -554,15 +548,14 @@ func TestRouter_AcceptPeers_HeadOfLineBlocking(t *testing.T) {
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
 	mockTransport.On("Close").Return(nil)
-	mockTransport.On("Accept").Times(3).Run(func(_ mock.Arguments) {
+	mockTransport.On("Accept", mock.Anything).Times(3).Run(func(_ mock.Arguments) {
 		acceptCh <- true
 	}).Return(mockConnection, nil)
-	mockTransport.On("Accept").Once().Return(nil, io.EOF)
+	mockTransport.On("Accept", mock.Anything).Once().Return(nil, io.EOF)
 
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	router, err := p2p.NewRouter(
 		ctx,
@@ -580,7 +573,7 @@ func TestRouter_AcceptPeers_HeadOfLineBlocking(t *testing.T) {
 
 	require.Eventually(t, func() bool {
 		return len(acceptCh) == 3
-	}, time.Second, 10*time.Millisecond)
+	}, time.Second, 10*time.Millisecond, "num", len(acceptCh))
 	close(closeCh)
 	time.Sleep(100 * time.Millisecond)
 
@@ -636,19 +629,17 @@ func TestRouter_DialPeers(t *testing.T) {
 			if tc.dialErr == nil {
 				mockConnection.On("Handshake", mock.Anything, selfInfo, selfKey).
 					Return(tc.peerInfo, tc.peerKey, nil)
-				mockConnection.On("Close").Run(func(_ mock.Arguments) { closer.Close() }).Return(nil)
+				mockConnection.On("Close").Run(func(_ mock.Arguments) { closer.Close() }).Return(nil).Maybe()
 			}
 			if tc.ok {
-				// without the sleep after RequireUpdate this method isn't
-				// always called. Consider making this call optional.
-				mockConnection.On("ReceiveMessage").Return(chID, nil, io.EOF)
+				mockConnection.On("ReceiveMessage", mock.Anything).Return(chID, nil, io.EOF).Maybe()
 			}
 
 			mockTransport := &mocks.Transport{}
 			mockTransport.On("String").Maybe().Return("mock")
 			mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
-			mockTransport.On("Close").Return(nil)
-			mockTransport.On("Accept").Maybe().Return(nil, io.EOF)
+			mockTransport.On("Close").Return(nil).Maybe()
+			mockTransport.On("Accept", mock.Anything).Maybe().Return(nil, io.EOF)
 			if tc.dialErr == nil {
 				mockTransport.On("Dial", mock.Anything, endpoint).Once().Return(mockConnection, nil)
 				// This handles the retry when a dialed connection gets closed after ReceiveMessage
@@ -663,7 +654,6 @@ func TestRouter_DialPeers(t *testing.T) {
 			// Set up and start the router.
 			peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 			require.NoError(t, err)
-			defer peerManager.Close()
 
 			added, err := peerManager.Add(address)
 			require.NoError(t, err)
@@ -734,7 +724,7 @@ func TestRouter_DialPeers_Parallel(t *testing.T) {
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
 	mockTransport.On("Close").Return(nil)
-	mockTransport.On("Accept").Once().Return(nil, io.EOF)
+	mockTransport.On("Accept", mock.Anything).Once().Return(nil, io.EOF)
 	for _, address := range []p2p.NodeAddress{a, b, c} {
 		endpoint := p2p.Endpoint{Protocol: address.Protocol, Path: string(address.NodeID)}
 		mockTransport.On("Dial", mock.Anything, endpoint).Run(func(_ mock.Arguments) {
@@ -745,7 +735,6 @@ func TestRouter_DialPeers_Parallel(t *testing.T) {
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	added, err := peerManager.Add(a)
 	require.NoError(t, err)
@@ -813,7 +802,7 @@ func TestRouter_EvictPeers(t *testing.T) {
 	mockConnection.On("String").Maybe().Return("mock")
 	mockConnection.On("Handshake", mock.Anything, selfInfo, selfKey).
 		Return(peerInfo, peerKey.PubKey(), nil)
-	mockConnection.On("ReceiveMessage").WaitUntil(closeCh).Return(chID, nil, io.EOF)
+	mockConnection.On("ReceiveMessage", mock.Anything).WaitUntil(closeCh).Return(chID, nil, io.EOF)
 	mockConnection.On("RemoteEndpoint").Return(p2p.Endpoint{})
 	mockConnection.On("Close").Run(func(_ mock.Arguments) {
 		closeOnce.Do(func() {
@@ -825,13 +814,12 @@ func TestRouter_EvictPeers(t *testing.T) {
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
 	mockTransport.On("Close").Return(nil)
-	mockTransport.On("Accept").Once().Return(mockConnection, nil)
-	mockTransport.On("Accept").Maybe().Return(nil, io.EOF)
+	mockTransport.On("Accept", mock.Anything).Once().Return(mockConnection, nil)
+	mockTransport.On("Accept", mock.Anything).Maybe().Return(nil, io.EOF)
 
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	sub := peerManager.Subscribe(ctx)
 	defer sub.Close()
@@ -893,13 +881,12 @@ func TestRouter_ChannelCompatability(t *testing.T) {
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
 	mockTransport.On("Close").Return(nil)
-	mockTransport.On("Accept").Once().Return(mockConnection, nil)
-	mockTransport.On("Accept").Once().Return(nil, io.EOF)
+	mockTransport.On("Accept", mock.Anything).Once().Return(mockConnection, nil)
+	mockTransport.On("Accept", mock.Anything).Once().Return(nil, io.EOF)
 
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	router, err := p2p.NewRouter(
 		ctx,
@@ -941,20 +928,19 @@ func TestRouter_DontSendOnInvalidChannel(t *testing.T) {
 		Return(peer, peerKey.PubKey(), nil)
 	mockConnection.On("RemoteEndpoint").Return(p2p.Endpoint{})
 	mockConnection.On("Close").Return(nil)
-	mockConnection.On("ReceiveMessage").Return(chID, nil, io.EOF)
+	mockConnection.On("ReceiveMessage", mock.Anything).Return(chID, nil, io.EOF)
 
 	mockTransport := &mocks.Transport{}
 	mockTransport.On("AddChannelDescriptors", mock.Anything).Return()
 	mockTransport.On("String").Maybe().Return("mock")
 	mockTransport.On("Protocols").Return([]p2p.Protocol{"mock"})
 	mockTransport.On("Close").Return(nil)
-	mockTransport.On("Accept").Once().Return(mockConnection, nil)
-	mockTransport.On("Accept").Maybe().Return(nil, io.EOF)
+	mockTransport.On("Accept", mock.Anything).Once().Return(mockConnection, nil)
+	mockTransport.On("Accept", mock.Anything).Maybe().Return(nil, io.EOF)
 
 	// Set up and start the router.
 	peerManager, err := p2p.NewPeerManager(selfID, dbm.NewMemDB(), p2p.PeerManagerOptions{})
 	require.NoError(t, err)
-	defer peerManager.Close()
 
 	sub := peerManager.Subscribe(ctx)
 	defer sub.Close()
diff --git a/internal/p2p/transport.go b/internal/p2p/transport.go
index 08de0d3b0..041bbda3a 100644
--- a/internal/p2p/transport.go
+++ b/internal/p2p/transport.go
@@ -39,7 +39,7 @@ type Transport interface {
 	// Accept waits for the next inbound connection on a listening endpoint, blocking
 	// until either a connection is available or the transport is closed. On closure,
 	// io.EOF is returned and further Accept calls are futile.
-	Accept() (Connection, error)
+	Accept(context.Context) (Connection, error)
 
 	// Dial creates an outbound connection to an endpoint.
 	Dial(context.Context, Endpoint) (Connection, error)
@@ -85,10 +85,10 @@ type Connection interface {
 
 	// ReceiveMessage returns the next message received on the connection,
 	// blocking until one is available. Returns io.EOF if closed.
-	ReceiveMessage() (ChannelID, []byte, error)
+	ReceiveMessage(context.Context) (ChannelID, []byte, error)
 
 	// SendMessage sends a message on the connection. Returns io.EOF if closed.
-	SendMessage(ChannelID, []byte) error
+	SendMessage(context.Context, ChannelID, []byte) error
 
 	// LocalEndpoint returns the local endpoint for the connection.
 	LocalEndpoint() Endpoint
diff --git a/internal/p2p/transport_mconn.go b/internal/p2p/transport_mconn.go
index b89671670..46227ff8f 100644
--- a/internal/p2p/transport_mconn.go
+++ b/internal/p2p/transport_mconn.go
@@ -44,10 +44,10 @@ type MConnTransport struct {
 	options      MConnTransportOptions
 	mConnConfig  conn.MConnConfig
 	channelDescs []*ChannelDescriptor
-	closeCh      chan struct{}
-	closeOnce    sync.Once
 
-	listener net.Listener
+	closeOnce sync.Once
+	doneCh    chan struct{}
+	listener  net.Listener
 }
 
 // NewMConnTransport sets up a new MConnection transport. This uses the
@@ -63,7 +63,7 @@ func NewMConnTransport(
 		logger:       logger,
 		options:      options,
 		mConnConfig:  mConnConfig,
-		closeCh:      make(chan struct{}),
+		doneCh:       make(chan struct{}),
 		channelDescs: channelDescs,
 	}
 }
@@ -84,10 +84,11 @@ func (m *MConnTransport) Endpoints() []Endpoint {
 		return []Endpoint{}
 	}
 	select {
-	case <-m.closeCh:
+	case <-m.doneCh:
 		return []Endpoint{}
 	default:
 	}
+
 	endpoint := Endpoint{
 		Protocol: MConnProtocol,
 	}
@@ -132,7 +133,7 @@ func (m *MConnTransport) Listen(endpoint Endpoint) error {
 }
 
 // Accept implements Transport.
-func (m *MConnTransport) Accept() (Connection, error) {
+func (m *MConnTransport) Accept(ctx context.Context) (Connection, error) {
 	if m.listener == nil {
 		return nil, errors.New("transport is not listening")
 	}
@@ -140,7 +141,9 @@ func (m *MConnTransport) Accept() (Connection, error) {
 	tcpConn, err := m.listener.Accept()
 	if err != nil {
 		select {
-		case <-m.closeCh:
+		case <-ctx.Done():
+			return nil, io.EOF
+		case <-m.doneCh:
 			return nil, io.EOF
 		default:
 			return nil, err
@@ -178,7 +181,7 @@ func (m *MConnTransport) Dial(ctx context.Context, endpoint Endpoint) (Connectio
 func (m *MConnTransport) Close() error {
 	var err error
 	m.closeOnce.Do(func() {
-		close(m.closeCh) // must be closed first, to handle error in Accept()
+		close(m.doneCh)
 		if m.listener != nil {
 			err = m.listener.Close()
 		}
@@ -222,7 +225,7 @@ type mConnConnection struct {
 	channelDescs []*ChannelDescriptor
 	receiveCh    chan mConnMessage
 	errorCh      chan error
-	closeCh      chan struct{}
+	doneCh       chan struct{}
 	closeOnce    sync.Once
 
 	mconn *conn.MConnection // set during Handshake()
@@ -248,7 +251,7 @@ func newMConnConnection(
 		channelDescs: channelDescs,
 		receiveCh:    make(chan mConnMessage),
 		errorCh:      make(chan error, 1), // buffered to avoid onError leak
-		closeCh:      make(chan struct{}),
+		doneCh:       make(chan struct{}),
 	}
 }
 
@@ -370,16 +373,16 @@ func (c *mConnConnection) handshake(
 }
 
 // onReceive is a callback for MConnection received messages.
-func (c *mConnConnection) onReceive(chID ChannelID, payload []byte) {
+func (c *mConnConnection) onReceive(ctx context.Context, chID ChannelID, payload []byte) {
 	select {
 	case c.receiveCh <- mConnMessage{channelID: chID, payload: payload}:
-	case <-c.closeCh:
+	case <-ctx.Done():
 	}
 }
 
 // onError is a callback for MConnection errors. The error is passed via errorCh
 // to ReceiveMessage (but not SendMessage, for legacy P2P stack behavior).
-func (c *mConnConnection) onError(e interface{}) {
+func (c *mConnConnection) onError(ctx context.Context, e interface{}) {
 	err, ok := e.(error)
 	if !ok {
 		err = fmt.Errorf("%v", err)
@@ -389,7 +392,7 @@ func (c *mConnConnection) onError(e interface{}) {
 	_ = c.Close()
 	select {
 	case c.errorCh <- err:
-	case <-c.closeCh:
+	case <-ctx.Done():
 	}
 }
 
@@ -399,14 +402,14 @@ func (c *mConnConnection) String() string {
 }
 
 // SendMessage implements Connection.
-func (c *mConnConnection) SendMessage(chID ChannelID, msg []byte) error {
+func (c *mConnConnection) SendMessage(ctx context.Context, chID ChannelID, msg []byte) error {
 	if chID > math.MaxUint8 {
 		return fmt.Errorf("MConnection only supports 1-byte channel IDs (got %v)", chID)
 	}
 	select {
 	case err := <-c.errorCh:
 		return err
-	case <-c.closeCh:
+	case <-ctx.Done():
 		return io.EOF
 	default:
 		if ok := c.mconn.Send(chID, msg); !ok {
@@ -418,11 +421,13 @@ func (c *mConnConnection) SendMessage(chID ChannelID, msg []byte) error {
 }
 
 // ReceiveMessage implements Connection.
-func (c *mConnConnection) ReceiveMessage() (ChannelID, []byte, error) {
+func (c *mConnConnection) ReceiveMessage(ctx context.Context) (ChannelID, []byte, error) {
 	select {
 	case err := <-c.errorCh:
 		return 0, nil, err
-	case <-c.closeCh:
+	case <-c.doneCh:
+		return 0, nil, io.EOF
+	case <-ctx.Done():
 		return 0, nil, io.EOF
 	case msg := <-c.receiveCh:
 		return msg.channelID, msg.payload, nil
@@ -462,7 +467,7 @@ func (c *mConnConnection) Close() error {
 		} else {
 			err = c.conn.Close()
 		}
-		close(c.closeCh)
+		close(c.doneCh)
 	})
 	return err
 }
diff --git a/internal/p2p/transport_mconn_test.go b/internal/p2p/transport_mconn_test.go
index 4d9a945cb..0851fe0e2 100644
--- a/internal/p2p/transport_mconn_test.go
+++ b/internal/p2p/transport_mconn_test.go
@@ -52,8 +52,10 @@ func TestMConnTransport_AcceptBeforeListen(t *testing.T) {
 	t.Cleanup(func() {
 		_ = transport.Close()
 	})
+	ctx, cancel := context.WithCancel(context.Background())
+	defer cancel()
 
-	_, err := transport.Accept()
+	_, err := transport.Accept(ctx)
 	require.Error(t, err)
 	require.NotEqual(t, io.EOF, err) // io.EOF should be returned after Close()
 }
@@ -85,7 +87,7 @@ func TestMConnTransport_AcceptMaxAcceptedConnections(t *testing.T) {
 	acceptCh := make(chan p2p.Connection, 10)
 	go func() {
 		for {
-			conn, err := transport.Accept()
+			conn, err := transport.Accept(ctx)
 			if err != nil {
 				return
 			}
@@ -203,7 +205,7 @@ func TestMConnTransport_Listen(t *testing.T) {
 				close(dialedChan)
 			}()
 
-			conn, err := transport.Accept()
+			conn, err := transport.Accept(ctx)
 			require.NoError(t, err)
 			_ = conn.Close()
 			<-dialedChan
@@ -212,7 +214,7 @@ func TestMConnTransport_Listen(t *testing.T) {
 			require.NoError(t, peerConn.Close())
 
 			// try to read from the connection should error
-			_, _, err = peerConn.ReceiveMessage()
+			_, _, err = peerConn.ReceiveMessage(ctx)
 			require.Error(t, err)
 
 			// Trying to listen again should error.
diff --git a/internal/p2p/transport_memory.go b/internal/p2p/transport_memory.go
index 5d9291675..27b9e77e1 100644
--- a/internal/p2p/transport_memory.go
+++ b/internal/p2p/transport_memory.go
@@ -94,9 +94,7 @@ type MemoryTransport struct {
 	nodeID     types.NodeID
 	bufferSize int
 
-	acceptCh  chan *MemoryConnection
-	closeCh   chan struct{}
-	closeOnce sync.Once
+	acceptCh chan *MemoryConnection
 }
 
 // newMemoryTransport creates a new MemoryTransport. This is for internal use by
@@ -108,7 +106,6 @@ func newMemoryTransport(network *MemoryNetwork, nodeID types.NodeID) *MemoryTran
 		nodeID:     nodeID,
 		bufferSize: network.bufferSize,
 		acceptCh:   make(chan *MemoryConnection),
-		closeCh:    make(chan struct{}),
 	}
 }
 
@@ -128,28 +125,27 @@ func (t *MemoryTransport) Protocols() []Protocol {
 
 // Endpoints implements Transport.
 func (t *MemoryTransport) Endpoints() []Endpoint {
-	select {
-	case <-t.closeCh:
+	if n := t.network.GetTransport(t.nodeID); n == nil {
 		return []Endpoint{}
-	default:
-		return []Endpoint{{
-			Protocol: MemoryProtocol,
-			Path:     string(t.nodeID),
-			// An arbitrary IP and port is used in order for the pex
-			// reactor to be able to send addresses to one another.
-			IP:   net.IPv4zero,
-			Port: 0,
-		}}
 	}
+
+	return []Endpoint{{
+		Protocol: MemoryProtocol,
+		Path:     string(t.nodeID),
+		// An arbitrary IP and port is used in order for the pex
+		// reactor to be able to send addresses to one another.
+		IP:   net.IPv4zero,
+		Port: 0,
+	}}
 }
 
 // Accept implements Transport.
-func (t *MemoryTransport) Accept() (Connection, error) {
+func (t *MemoryTransport) Accept(ctx context.Context) (Connection, error) {
 	select {
 	case conn := <-t.acceptCh:
 		t.logger.Info("accepted connection", "remote", conn.RemoteEndpoint().Path)
 		return conn, nil
-	case <-t.closeCh:
+	case <-ctx.Done():
 		return nil, io.EOF
 	}
 }
@@ -187,20 +183,14 @@ func (t *MemoryTransport) Dial(ctx context.Context, endpoint Endpoint) (Connecti
 	select {
 	case peer.acceptCh <- inConn:
 		return outConn, nil
-	case <-peer.closeCh:
-		return nil, io.EOF
 	case <-ctx.Done():
-		return nil, ctx.Err()
+		return nil, io.EOF
 	}
 }
 
 // Close implements Transport.
 func (t *MemoryTransport) Close() error {
 	t.network.RemoveTransport(t.nodeID)
-	t.closeOnce.Do(func() {
-		close(t.closeCh)
-		t.logger.Info("closed transport")
-	})
 	return nil
 }
 
@@ -295,12 +285,14 @@ func (c *MemoryConnection) Handshake(
 }
 
 // ReceiveMessage implements Connection.
-func (c *MemoryConnection) ReceiveMessage() (ChannelID, []byte, error) {
+func (c *MemoryConnection) ReceiveMessage(ctx context.Context) (ChannelID, []byte, error) {
 	// Check close first, since channels are buffered. Otherwise, below select
 	// may non-deterministically return non-error even when closed.
 	select {
 	case <-c.closer.Done():
 		return 0, nil, io.EOF
+	case <-ctx.Done():
+		return 0, nil, io.EOF
 	default:
 	}
 
@@ -314,12 +306,14 @@ func (c *MemoryConnection) ReceiveMessage() (ChannelID, []byte, error) {
 }
 
 // SendMessage implements Connection.
-func (c *MemoryConnection) SendMessage(chID ChannelID, msg []byte) error {
+func (c *MemoryConnection) SendMessage(ctx context.Context, chID ChannelID, msg []byte) error {
 	// Check close first, since channels are buffered. Otherwise, below select
 	// may non-deterministically return non-error even when closed.
 	select {
 	case <-c.closer.Done():
 		return io.EOF
+	case <-ctx.Done():
+		return io.EOF
 	default:
 	}
 
@@ -327,6 +321,8 @@ func (c *MemoryConnection) SendMessage(chID ChannelID, msg []byte) error {
 	case c.sendCh <- memoryMessage{channelID: chID, message: msg}:
 		c.logger.Debug("sent message", "chID", chID, "msg", msg)
 		return nil
+	case <-ctx.Done():
+		return io.EOF
 	case <-c.closer.Done():
 		return io.EOF
 	}
diff --git a/internal/p2p/transport_test.go b/internal/p2p/transport_test.go
index a53be251d..63ce5ad5b 100644
--- a/internal/p2p/transport_test.go
+++ b/internal/p2p/transport_test.go
@@ -46,21 +46,23 @@ func TestTransport_AcceptClose(t *testing.T) {
 
 	withTransports(ctx, t, func(ctx context.Context, t *testing.T, makeTransport transportFactory) {
 		a := makeTransport(t)
+		opctx, opcancel := context.WithCancel(ctx)
 
 		// In-progress Accept should error on concurrent close.
 		errCh := make(chan error, 1)
 		go func() {
 			time.Sleep(200 * time.Millisecond)
+			opcancel()
 			errCh <- a.Close()
 		}()
 
-		_, err := a.Accept()
+		_, err := a.Accept(opctx)
 		require.Error(t, err)
 		require.Equal(t, io.EOF, err)
 		require.NoError(t, <-errCh)
 
 		// Closed transport should return error immediately.
-		_, err = a.Accept()
+		_, err = a.Accept(opctx)
 		require.Error(t, err)
 		require.Equal(t, io.EOF, err)
 	})
@@ -93,7 +95,7 @@ func TestTransport_DialEndpoints(t *testing.T) {
 		// Spawn a goroutine to simply accept any connections until closed.
 		go func() {
 			for {
-				conn, err := a.Accept()
+				conn, err := a.Accept(ctx)
 				if err != nil {
 					return
 				}
@@ -177,7 +179,6 @@ func TestTransport_Dial(t *testing.T) {
 		cancel()
 		_, err := a.Dial(cancelCtx, bEndpoint)
 		require.Error(t, err)
-		require.Equal(t, err, context.Canceled)
 
 		// Unavailable endpoint should error.
 		err = b.Close()
@@ -188,7 +189,7 @@ func TestTransport_Dial(t *testing.T) {
 		// Dialing from a closed transport should still work.
 		errCh := make(chan error, 1)
 		go func() {
-			conn, err := a.Accept()
+			conn, err := a.Accept(ctx)
 			if err == nil {
 				_ = conn.Close()
 			}
@@ -351,13 +352,12 @@ func TestConnection_FlushClose(t *testing.T) {
 		err := ab.Close()
 		require.NoError(t, err)
 
-		_, _, err = ab.ReceiveMessage()
+		_, _, err = ab.ReceiveMessage(ctx)
 		require.Error(t, err)
 		require.Equal(t, io.EOF, err)
 
-		err = ab.SendMessage(chID, []byte("closed"))
+		err = ab.SendMessage(ctx, chID, []byte("closed"))
 		require.Error(t, err)
-		require.Equal(t, io.EOF, err)
 	})
 }
 
@@ -388,19 +388,19 @@ func TestConnection_SendReceive(t *testing.T) {
 		ab, ba := dialAcceptHandshake(ctx, t, a, b)
 
 		// Can send and receive a to b.
-		err := ab.SendMessage(chID, []byte("foo"))
+		err := ab.SendMessage(ctx, chID, []byte("foo"))
 		require.NoError(t, err)
 
-		ch, msg, err := ba.ReceiveMessage()
+		ch, msg, err := ba.ReceiveMessage(ctx)
 		require.NoError(t, err)
 		require.Equal(t, []byte("foo"), msg)
 		require.Equal(t, chID, ch)
 
 		// Can send and receive b to a.
-		err = ba.SendMessage(chID, []byte("bar"))
+		err = ba.SendMessage(ctx, chID, []byte("bar"))
 		require.NoError(t, err)
 
-		_, msg, err = ab.ReceiveMessage()
+		_, msg, err = ab.ReceiveMessage(ctx)
 		require.NoError(t, err)
 		require.Equal(t, []byte("bar"), msg)
 
@@ -410,9 +410,9 @@ func TestConnection_SendReceive(t *testing.T) {
 		err = b.Close()
 		require.NoError(t, err)
 
-		err = ab.SendMessage(chID, []byte("still here"))
+		err = ab.SendMessage(ctx, chID, []byte("still here"))
 		require.NoError(t, err)
-		ch, msg, err = ba.ReceiveMessage()
+		ch, msg, err = ba.ReceiveMessage(ctx)
 		require.NoError(t, err)
 		require.Equal(t, chID, ch)
 		require.Equal(t, []byte("still here"), msg)
@@ -422,21 +422,20 @@ func TestConnection_SendReceive(t *testing.T) {
 		err = ba.Close()
 		require.NoError(t, err)
 
-		_, _, err = ab.ReceiveMessage()
+		_, _, err = ab.ReceiveMessage(ctx)
 		require.Error(t, err)
 		require.Equal(t, io.EOF, err)
 
-		err = ab.SendMessage(chID, []byte("closed"))
+		err = ab.SendMessage(ctx, chID, []byte("closed"))
 		require.Error(t, err)
 		require.Equal(t, io.EOF, err)
 
-		_, _, err = ba.ReceiveMessage()
+		_, _, err = ba.ReceiveMessage(ctx)
 		require.Error(t, err)
 		require.Equal(t, io.EOF, err)
 
-		err = ba.SendMessage(chID, []byte("closed"))
+		err = ba.SendMessage(ctx, chID, []byte("closed"))
 		require.Error(t, err)
-		require.Equal(t, io.EOF, err)
 	})
 }
 
@@ -606,7 +605,7 @@ func dialAccept(ctx context.Context, t *testing.T, a, b p2p.Transport) (p2p.Conn
 	acceptCh := make(chan p2p.Connection, 1)
 	errCh := make(chan error, 1)
 	go func() {
-		conn, err := b.Accept()
+		conn, err := b.Accept(ctx)
 		errCh <- err
 		acceptCh <- conn
 	}()