diff --git a/src/dialer/queue.js b/src/dialer/queue.js
index a2d79c3..6df9557 100644
--- a/src/dialer/queue.js
+++ b/src/dialer/queue.js
@@ -241,6 +241,10 @@ class Queue {
     // depending on the error.
     connectionFSM.once('error', (err) => {
       queuedDial.callback(err)
+      // Dont blacklist peers we have identified and that we are connected to
+      if (peerInfo.protocols.size > 0 && peerInfo.isConnected()) {
+        return
+      }
       this.blacklist()
     })
 
diff --git a/test/dial-fsm.node.js b/test/dial-fsm.node.js
index fae69c5..7e71b29 100644
--- a/test/dial-fsm.node.js
+++ b/test/dial-fsm.node.js
@@ -1,4 +1,5 @@
 /* eslint-env mocha */
+/* eslint max-nested-callbacks: ["error", 5] */
 'use strict'
 
 const chai = require('chai')
@@ -132,6 +133,27 @@ describe('dialFSM', () => {
     })
   })
 
+  it('should not blacklist a peer that was successfully connected', (done) => {
+    protocol = '/noblacklist/1.0.0'
+    switchB.handle(protocol, () => { })
+
+    switchA.dialer.clearBlacklist(switchB._peerInfo)
+    switchA.dialFSM(switchB._peerInfo, protocol, (err, connFSM) => {
+      expect(err).to.not.exist()
+      connFSM.once('connection', () => {
+        connFSM.once('close', () => {
+          // peer should not be blacklisted
+          switchA.dialFSM(switchB._peerInfo, protocol, (err, conn) => {
+            expect(err).to.not.exist()
+            conn.once('close', done)
+            conn.close()
+          })
+        })
+        connFSM.close(new Error('bad things'))
+      })
+    })
+  })
+
   it('should emit a `closed` event when closed', (done) => {
     protocol = '/closed/1.0.0'
     switchB.handle(protocol, () => { })