diff --git a/chia/server/node_discovery.py b/chia/server/node_discovery.py
index 59068f3003c1..2b535a9558a8 100644
--- a/chia/server/node_discovery.py
+++ b/chia/server/node_discovery.py
@@ -40,6 +40,7 @@
 
 class FullNodeDiscovery:
     resolver: Optional[dns.asyncresolver.Resolver]
+    enable_private_networks: bool
 
     def __init__(
         self,
@@ -64,6 +65,9 @@ def __init__(
         self.introducer_info: Optional[UnresolvedPeerInfo] = None
         if introducer_info is not None:
             self.introducer_info = UnresolvedPeerInfo(introducer_info["host"], introducer_info["port"])
+            self.enable_private_networks = introducer_info.get("enable_private_networks", False)
+        else:
+            self.enable_private_networks = False
         self.peer_connect_interval = peer_connect_interval
         self.log = log
         self.relay_queue: Optional[asyncio.Queue[Tuple[TimestampedPeerInfo, int]]] = None
@@ -112,6 +116,8 @@ async def migrate_address_manager_if_necessary(self) -> None:
 
     async def initialize_address_manager(self) -> None:
         self.address_manager = await AddressManagerStore.create_address_manager(self.peers_file_path)
+        if self.enable_private_networks:
+            self.address_manager.make_private_subnets_valid()
         self.server.set_received_message_callback(self.update_peer_timestamp_on_message)
 
     async def start_tasks(self) -> None:
diff --git a/chia/util/initial-config.yaml b/chia/util/initial-config.yaml
index 0197f87f93ea..efc0cbf1cd31 100644
--- a/chia/util/initial-config.yaml
+++ b/chia/util/initial-config.yaml
@@ -439,6 +439,7 @@ full_node:
   introducer_peer:
     host: introducer.chia.net # Chia AWS introducer IPv4/IPv6
     port: 8444
+    enable_private_networks: False
   wallet_peer:
     host: *self_hostname
     port: 8449
@@ -551,6 +552,7 @@ wallet:
   introducer_peer:
     host: introducer.chia.net # Chia AWS introducer IPv4/IPv6
     port: 8444
+    enable_private_networks: False
 
   ssl:
     private_crt: "config/ssl/wallet/private_wallet.crt"
diff --git a/tests/core/server/test_node_discovery.py b/tests/core/server/test_node_discovery.py
new file mode 100644
index 000000000000..f8afa40cb01e
--- /dev/null
+++ b/tests/core/server/test_node_discovery.py
@@ -0,0 +1,95 @@
+from __future__ import annotations
+
+from logging import Logger
+from typing import Tuple
+
+import pytest
+
+from chia.full_node.full_node_api import FullNodeAPI
+from chia.server.node_discovery import FullNodeDiscovery
+from chia.server.peer_store_resolver import PeerStoreResolver
+from chia.server.server import ChiaServer
+from chia.simulator.block_tools import BlockTools
+from chia.util.default_root import SIMULATOR_ROOT_PATH
+
+
+@pytest.mark.asyncio
+async def test_enable_private_networks(
+    two_nodes: Tuple[FullNodeAPI, FullNodeAPI, ChiaServer, ChiaServer, BlockTools],
+) -> None:
+    chia_server = two_nodes[2]
+
+    # Missing `enable_private_networks` config entry in introducer_peer should default to False for back compat
+    discovery0 = FullNodeDiscovery(
+        chia_server,
+        0,
+        PeerStoreResolver(
+            SIMULATOR_ROOT_PATH,
+            chia_server.config,
+            selected_network=chia_server.config["selected_network"],
+            peers_file_path_key="peers_file_path",
+            legacy_peer_db_path_key="db/peer_table_node.sqlite",
+            default_peers_file_path="db/peers.dat",
+        ),
+        {"host": "introducer.chia.net", "port": 8444},
+        [],
+        0,
+        chia_server.config["selected_network"],
+        None,
+        Logger("node_discovery_tests"),
+    )
+    assert discovery0 is not None
+    assert discovery0.enable_private_networks is False
+    await discovery0.initialize_address_manager()
+    assert discovery0.address_manager is not None
+    assert discovery0.address_manager.allow_private_subnets is False
+
+    # Test with enable_private_networks set to False in Config
+    discovery1 = FullNodeDiscovery(
+        chia_server,
+        0,
+        PeerStoreResolver(
+            SIMULATOR_ROOT_PATH,
+            chia_server.config,
+            selected_network=chia_server.config["selected_network"],
+            peers_file_path_key="peers_file_path",
+            legacy_peer_db_path_key="db/peer_table_node.sqlite",
+            default_peers_file_path="db/peers.dat",
+        ),
+        {"host": "introducer.chia.net", "port": 8444, "enable_private_networks": False},
+        [],
+        0,
+        chia_server.config["selected_network"],
+        None,
+        Logger("node_discovery_tests"),
+    )
+    assert discovery1 is not None
+    assert discovery1.enable_private_networks is False
+    await discovery1.initialize_address_manager()
+    assert discovery1.address_manager is not None
+    assert discovery1.address_manager.allow_private_subnets is False
+
+    # Test with enable_private_networks set to True in Config
+    discovery2 = FullNodeDiscovery(
+        chia_server,
+        0,
+        PeerStoreResolver(
+            SIMULATOR_ROOT_PATH,
+            chia_server.config,
+            selected_network=chia_server.config["selected_network"],
+            peers_file_path_key="peers_file_path",
+            legacy_peer_db_path_key="db/peer_table_node.sqlite",
+            default_peers_file_path="db/peers.dat",
+        ),
+        {"host": "introducer.chia.net", "port": 8444, "enable_private_networks": True},
+        [],
+        0,
+        chia_server.config["selected_network"],
+        None,
+        Logger("node_discovery_tests"),
+    )
+    assert discovery2 is not None
+    assert discovery2.enable_private_networks is True
+    await discovery2.initialize_address_manager()
+    assert discovery2.address_manager is not None
+    assert discovery2.address_manager.allow_private_subnets is True