diff --git a/p2p/pex/addrbook.go b/p2p/pex/addrbook.go
index 3bf331172..15019f5cd 100644
--- a/p2p/pex/addrbook.go
+++ b/p2p/pex/addrbook.go
@@ -60,7 +60,9 @@ type AddrBook interface {
 	// Mark address
 	MarkGood(p2p.ID)
 	MarkAttempt(*p2p.NetAddress)
-	MarkBad(*p2p.NetAddress)
+	MarkBad(*p2p.NetAddress) // Move peer to bad peers list
+	// Add bad peers back to addrBook
+	ReinstateBadPeers()
 
 	IsGood(*p2p.NetAddress) bool
 
@@ -236,7 +238,6 @@ func (a *addrBook) HasAddress(addr *p2p.NetAddress) bool {
 
 // NeedMoreAddrs implements AddrBook - returns true if there are not have enough addresses in the book.
 func (a *addrBook) NeedMoreAddrs() bool {
-	a.ReinstateBadPeers()
 	return a.Size() < needAddressThreshold
 }
 
diff --git a/p2p/pex/pex_reactor.go b/p2p/pex/pex_reactor.go
index 3a3d2d7de..66ec77503 100644
--- a/p2p/pex/pex_reactor.go
+++ b/p2p/pex/pex_reactor.go
@@ -8,7 +8,7 @@ import (
 
 	"github.com/pkg/errors"
 
-	amino "github.com/tendermint/go-amino"
+	"github.com/tendermint/go-amino"
 	"github.com/tendermint/tendermint/libs/cmap"
 	tmmath "github.com/tendermint/tendermint/libs/math"
 	"github.com/tendermint/tendermint/libs/rand"
@@ -494,6 +494,8 @@ func (r *Reactor) ensurePeers() {
 	}
 
 	if r.book.NeedMoreAddrs() {
+		// 0) Check if banned nodes can be reinstated
+		r.book.ReinstateBadPeers()
 		// 1) Pick a random peer and ask for more.
 		peers := r.Switch.Peers().List()
 		peersCount := len(peers)