diff --git a/crates/net/eth-wire/src/lib.rs b/crates/net/eth-wire/src/lib.rs
index b770044fa..11ebc2d9e 100644
--- a/crates/net/eth-wire/src/lib.rs
+++ b/crates/net/eth-wire/src/lib.rs
@@ -23,5 +23,5 @@ pub use types::*;
 
 pub use crate::{
     ethstream::{EthStream, UnauthedEthStream},
-    p2pstream::{HelloMessage, P2PStream, UnauthedP2PStream},
+    p2pstream::{DisconnectReason, HelloMessage, P2PStream, UnauthedP2PStream},
 };
diff --git a/crates/net/network/src/peers.rs b/crates/net/network/src/peers.rs
index 9592f215e..607686fbe 100644
--- a/crates/net/network/src/peers.rs
+++ b/crates/net/network/src/peers.rs
@@ -1,4 +1,5 @@
 use futures::StreamExt;
+use reth_eth_wire::DisconnectReason;
 use reth_primitives::PeerId;
 use std::{
     collections::{hash_map::Entry, HashMap, VecDeque},
@@ -124,8 +125,9 @@ impl PeersManager {
     pub(crate) fn remove_discovered_node(&mut self, peer_id: PeerId) {
         if let Some(entry) = self.peers.remove(&peer_id) {
             if entry.state.is_connected() {
+                // TODO(mattsse): is this right to disconnect peers?
                 self.connection_info.decr_state(entry.state);
-                self.queued_actions.push_back(PeerAction::Disconnect { peer_id })
+                self.queued_actions.push_back(PeerAction::Disconnect { peer_id, reason: None })
             }
         }
     }
@@ -352,7 +354,7 @@ pub enum PeerAction {
         remote_addr: SocketAddr,
     },
     /// Disconnect an existing connection.
-    Disconnect { peer_id: PeerId },
+    Disconnect { peer_id: PeerId, reason: Option<DisconnectReason> },
     /// Disconnect an existing incoming connection, because the peers reputation is below the
     /// banned threshold.
     DisconnectBannedIncoming {
diff --git a/crates/net/network/src/session/handle.rs b/crates/net/network/src/session/handle.rs
index 6a9248e3d..177865dee 100644
--- a/crates/net/network/src/session/handle.rs
+++ b/crates/net/network/src/session/handle.rs
@@ -7,7 +7,7 @@ use reth_ecies::{stream::ECIESStream, ECIESError};
 use reth_eth_wire::{
     capability::{Capabilities, CapabilityMessage},
     error::EthStreamError,
-    EthStream, P2PStream, Status,
+    DisconnectReason, EthStream, P2PStream, Status,
 };
 use reth_primitives::PeerId;
 use std::{io, net::SocketAddr, sync::Arc, time::Instant};
@@ -48,9 +48,9 @@ pub(crate) struct ActiveSessionHandle {
 
 impl ActiveSessionHandle {
     /// Sends a disconnect command to the session.
-    pub(crate) fn disconnect(&self) {
+    pub(crate) fn disconnect(&self, reason: Option<DisconnectReason>) {
         // Note: we clone the sender which ensures the channel has capacity to send the message
-        let _ = self.commands_to_session.clone().try_send(SessionCommand::Disconnect);
+        let _ = self.commands_to_session.clone().try_send(SessionCommand::Disconnect { reason });
     }
 }
 
@@ -95,7 +95,10 @@ pub(crate) enum PendingSessionEvent {
 #[derive(Debug)]
 pub(crate) enum SessionCommand {
     /// Disconnect the connection
-    Disconnect,
+    Disconnect {
+        /// Why the disconnect was initiated
+        reason: Option<DisconnectReason>,
+    },
     /// Sends a message to the peer
     Message(PeerMessage),
 }
diff --git a/crates/net/network/src/session/mod.rs b/crates/net/network/src/session/mod.rs
index 5c6657422..69e6b285b 100644
--- a/crates/net/network/src/session/mod.rs
+++ b/crates/net/network/src/session/mod.rs
@@ -16,7 +16,8 @@ use reth_ecies::stream::ECIESStream;
 use reth_eth_wire::{
     capability::{Capabilities, CapabilityMessage},
     error::EthStreamError,
-    HelloBuilder, HelloMessage, Status, StatusBuilder, UnauthedEthStream, UnauthedP2PStream,
+    DisconnectReason, HelloBuilder, HelloMessage, Status, StatusBuilder, UnauthedEthStream,
+    UnauthedP2PStream,
 };
 use reth_primitives::{ForkFilter, Hardfork, PeerId};
 use secp256k1::{SecretKey, SECP256K1};
@@ -192,9 +193,9 @@ impl SessionManager {
     ///
     /// This will trigger the disconnect on the session task to gracefully terminate. The result
     /// will be picked up by the receiver.
-    pub(crate) fn disconnect(&self, node: PeerId) {
+    pub(crate) fn disconnect(&self, node: PeerId, reason: Option<DisconnectReason>) {
         if let Some(session) = self.active_sessions.get(&node) {
-            session.disconnect();
+            session.disconnect(reason);
         }
     }
 
diff --git a/crates/net/network/src/state.rs b/crates/net/network/src/state.rs
index a27ac007c..baf950341 100644
--- a/crates/net/network/src/state.rs
+++ b/crates/net/network/src/state.rs
@@ -10,7 +10,9 @@ use crate::{
     },
     peers::{PeerAction, PeersManager},
 };
-use reth_eth_wire::{capability::Capabilities, BlockHashNumber, NewBlockHashes, Status};
+use reth_eth_wire::{
+    capability::Capabilities, BlockHashNumber, DisconnectReason, NewBlockHashes, Status,
+};
 use reth_interfaces::provider::BlockProvider;
 use reth_primitives::{PeerId, H256};
 use std::{
@@ -224,14 +226,14 @@ where
                 self.queued_messages
                     .push_back(StateAction::Connect { node_id: peer_id, remote_addr });
             }
-            PeerAction::Disconnect { peer_id } => {
+            PeerAction::Disconnect { peer_id, reason } => {
                 self.state_fetcher.on_pending_disconnect(&peer_id);
-                self.queued_messages.push_back(StateAction::Disconnect { node_id: peer_id });
+                self.queued_messages.push_back(StateAction::Disconnect { peer_id, reason });
             }
             PeerAction::DisconnectBannedIncoming { peer_id } => {
                 // TODO: can IP ban
                 self.state_fetcher.on_pending_disconnect(&peer_id);
-                self.queued_messages.push_back(StateAction::Disconnect { node_id: peer_id });
+                self.queued_messages.push_back(StateAction::Disconnect { peer_id, reason: None });
             }
         }
     }
@@ -388,7 +390,11 @@ pub enum StateAction {
     /// Create a new connection to the given node.
     Connect { remote_addr: SocketAddr, node_id: PeerId },
     /// Disconnect an existing connection
-    Disconnect { node_id: PeerId },
+    Disconnect {
+        peer_id: PeerId,
+        /// Why the disconnect was initiated
+        reason: Option<DisconnectReason>,
+    },
 }
 
 #[derive(Debug, thiserror::Error)]
diff --git a/crates/net/network/src/swarm.rs b/crates/net/network/src/swarm.rs
index ceb40fa86..81f26036a 100644
--- a/crates/net/network/src/swarm.rs
+++ b/crates/net/network/src/swarm.rs
@@ -8,6 +8,7 @@ use futures::Stream;
 use reth_eth_wire::{
     capability::{Capabilities, CapabilityMessage},
     error::EthStreamError,
+    DisconnectReason,
 };
 use reth_interfaces::provider::BlockProvider;
 use reth_primitives::PeerId;
@@ -90,7 +91,9 @@ where
                 }),
                 Err(err) => {
                     match err {
-                        AddSessionError::AtCapacity { peer } => self.sessions.disconnect(peer),
+                        AddSessionError::AtCapacity { peer } => {
+                            self.sessions.disconnect(peer, Some(DisconnectReason::TooManyPeers))
+                        }
                     };
                     None
                 }
@@ -146,8 +149,8 @@ where
             StateAction::Connect { remote_addr, node_id } => {
                 self.sessions.dial_outbound(remote_addr, node_id);
             }
-            StateAction::Disconnect { node_id } => {
-                self.sessions.disconnect(node_id);
+            StateAction::Disconnect { peer_id: node_id, reason } => {
+                self.sessions.disconnect(node_id, reason);
             }
             StateAction::NewBlock { peer_id, block: msg } => {
                 let msg = PeerMessage::NewBlock(msg);