diff --git a/zebra-network/src/constants.rs b/zebra-network/src/constants.rs
index 4bc3a4fb7ec..8ff7ba9c9f1 100644
--- a/zebra-network/src/constants.rs
+++ b/zebra-network/src/constants.rs
@@ -245,6 +245,20 @@ pub const ADDR_RESPONSE_LIMIT_DENOMINATOR: usize = 3;
 pub const MAX_ADDRS_IN_ADDRESS_BOOK: usize =
     MAX_ADDRS_IN_MESSAGE * (ADDR_RESPONSE_LIMIT_DENOMINATOR + 1);
 
+/// The maximum number of self-connection nonces Zebra will track.
+///
+/// This is a tradeoff between:
+/// - avoiding peer attacks that maliciously remove nonces by:
+///   - providing a fake nonce observed in our outgoing network traffic
+///   - making large numbers of connections to clear the nonce set:
+///     - 3000 inbound connections takes just under an hour;
+///     - 3000 outbound connections take just over 2 minutes,
+///       but outbound connection peer selection and reconnections are controlled by Zebra
+/// - memory usage: 16 bytes per `Nonce`, 48 kB for 3000 nonces
+/// - collision probability: 2^32 has ~50% collision probability, so we use a much lower limit
+///   <https://en.wikipedia.org/wiki/Birthday_problem#Probability_of_a_shared_birthday_(collision)>
+pub const MAX_SELF_CONNECTION_NONCES: usize = 3000;
+
 /// Truncate timestamps in outbound address messages to this time interval.
 ///
 /// ## SECURITY
diff --git a/zebra-network/src/peer/handshake.rs b/zebra-network/src/peer/handshake.rs
index 80b73c8daee..1833ac81cde 100644
--- a/zebra-network/src/peer/handshake.rs
+++ b/zebra-network/src/peer/handshake.rs
@@ -2,7 +2,6 @@
 
 use std::{
     cmp::min,
-    collections::HashSet,
     fmt,
     future::Future,
     net::{IpAddr, Ipv4Addr, SocketAddr},
@@ -14,6 +13,7 @@ use std::{
 
 use chrono::{TimeZone, Utc};
 use futures::{channel::oneshot, future, pin_mut, FutureExt, SinkExt, StreamExt};
+use indexmap::IndexSet;
 use tokio::{
     io::{AsyncRead, AsyncWrite},
     sync::broadcast,
@@ -71,7 +71,7 @@ where
     address_book_updater: tokio::sync::mpsc::Sender<MetaAddrChange>,
     inv_collector: broadcast::Sender<InventoryChange>,
     minimum_peer_version: MinimumPeerVersion<C>,
-    nonces: Arc<futures::lock::Mutex<HashSet<Nonce>>>,
+    nonces: Arc<futures::lock::Mutex<IndexSet<Nonce>>>,
 
     parent_span: Span,
 }
@@ -515,7 +515,7 @@ where
             let (tx, _rx) = tokio::sync::mpsc::channel(1);
             tx
         });
-        let nonces = Arc::new(futures::lock::Mutex::new(HashSet::new()));
+        let nonces = Arc::new(futures::lock::Mutex::new(IndexSet::new()));
         let user_agent = self.user_agent.unwrap_or_default();
         let our_services = self.our_services.unwrap_or_else(PeerServices::empty);
         let relay = self.relay.unwrap_or(false);
@@ -572,7 +572,7 @@ pub async fn negotiate_version<PeerTransport>(
     peer_conn: &mut Framed<PeerTransport, Codec>,
     connected_addr: &ConnectedAddr,
     config: Config,
-    nonces: Arc<futures::lock::Mutex<HashSet<Nonce>>>,
+    nonces: Arc<futures::lock::Mutex<IndexSet<Nonce>>>,
     user_agent: String,
     our_services: PeerServices,
     relay: bool,
@@ -588,7 +588,24 @@ where
     // It is ok to wait for the lock here, because handshakes have a short
     // timeout, and the async mutex will be released when the task times
     // out.
-    let is_unique_nonce = nonces.lock().await.insert(local_nonce);
+    //
+    // Do the insert and remove in the same critical section, so we only need
+    // to remove one nonce at a time. (If they were in separate critical sections,
+    // the future could be dropped after adding the nonce, but before removing excess nonces.)
+    let is_unique_nonce = {
+        let mut locked_nonces = nonces.lock().await;
+        let is_unique_nonce = locked_nonces.insert(local_nonce);
+
+        // # Security
+        //
+        // Limit the amount of memory used for nonces.
+        // Avoid attacks that replay nonces in order to clear them from the nonce set.
+        if locked_nonces.len() > constants::MAX_SELF_CONNECTION_NONCES {
+            locked_nonces.shift_remove_index(0);
+        }
+
+        is_unique_nonce
+    };
     if !is_unique_nonce {
         return Err(HandshakeError::LocalDuplicateNonce);
     }
@@ -687,13 +704,12 @@ where
     // We must wait for the lock before we continue with the connection, to avoid
     // self-connection. If the connection times out, the async lock will be
     // released.
-    let nonce_reuse = {
-        let mut locked_nonces = nonces.lock().await;
-        let nonce_reuse = locked_nonces.contains(&remote.nonce);
-        // Regardless of whether we observed nonce reuse, clean up the nonce set.
-        locked_nonces.remove(&local_nonce);
-        nonce_reuse
-    };
+    //
+    // # Security
+    //
+    // We don't remove the nonce here, because peers that observe our network traffic could
+    // maliciously remove nonces, enabling self-connections.
+    let nonce_reuse = nonces.lock().await.contains(&remote.nonce);
     if nonce_reuse {
         Err(HandshakeError::RemoteNonceReuse)?;
     }