diff --git a/bin/reth/src/block_ingest.rs b/bin/reth/src/block_ingest.rs
index 03e67ea0e..e5ce0f033 100644
--- a/bin/reth/src/block_ingest.rs
+++ b/bin/reth/src/block_ingest.rs
@@ -29,6 +29,7 @@ use tokio::sync::Mutex;
 use tracing::{debug, info};
 
 use crate::serialized::{BlockAndReceipts, EvmBlock};
+use crate::share_blocks::ShareBlocks;
 use crate::spot_meta::erc20_contract_to_spot_token;
 
 /// Poll interval when tailing an *open* hourly file.
@@ -41,6 +42,7 @@ pub(crate) struct BlockIngest {
     pub local_ingest_dir: Option<PathBuf>,
     pub local_blocks_cache: Arc<Mutex<BTreeMap<u64, BlockAndReceipts>>>, // height → block
     pub precompiles_cache: PrecompilesCache,
+    pub hlfs: Option<ShareBlocks>,
 }
 
 #[derive(Deserialize)]
@@ -155,9 +157,20 @@ impl BlockIngest {
         if let Some(block) = self.try_collect_local_block(height).await {
             info!("Returning locally synced block for @ Height [{height}]");
             return Some(block);
-        } else {
-            self.try_collect_s3_block(height)
         }
+
+        if let Some(hlfs) = &self.hlfs {
+            let u_cache = self.local_blocks_cache.lock().await;
+            let head = u_cache.keys().next_back().copied().unwrap_or(0);
+            if hlfs.try_fetch_one(height, head).await.ok().flatten().is_some() {
+                if let Some(block) = self.try_collect_local_block(height).await {
+                    info!("Returning HLFS-fetched block @[{height}]");
+                    return Some(block);
+                }
+            }
+        }
+
+        self.try_collect_s3_block(height)
     }
 
     pub(crate) fn try_collect_s3_block(&self, height: u64) -> Option<BlockAndReceipts> {
diff --git a/bin/reth/src/main.rs b/bin/reth/src/main.rs
index d65506fe0..b53231b43 100644
--- a/bin/reth/src/main.rs
+++ b/bin/reth/src/main.rs
@@ -92,15 +92,23 @@ fn main() {
                 .await?;
 
             // start HLFS (serve + peer-backed backfill) using the node's network
-            if ext_args.hlfs.share_blocks {
-                let net = handle.node.network.clone(); // returns a FullNetwork (NetworkHandle under the hood)
-                                                         // keep handle alive for the whole process
-                let _hlfs =
-                    share_blocks::ShareBlocks::start_with_network(&ext_args.hlfs, net).await?;
-            }
+            let hlfs = if ext_args.hlfs.share_blocks {
+                let net = handle.node.network.clone();
+                Some(
+                    crate::share_blocks::ShareBlocks::start_with_network(&ext_args.hlfs, net)
+                        .await?,
+                )
+            } else {
+                None
+            };
 
-            let ingest =
-                BlockIngest { ingest_dir, local_ingest_dir, local_blocks_cache, precompiles_cache };
+            let ingest = BlockIngest {
+                ingest_dir,
+                local_ingest_dir,
+                local_blocks_cache,
+                precompiles_cache,
+                hlfs,
+            };
             ingest.run(handle.node).await.unwrap();
             handle.node_exit_future.await
         },
diff --git a/crates/net/hlfs/src/lib.rs b/crates/net/hlfs/src/lib.rs
index f67fbee74..bd6419a4c 100644
--- a/crates/net/hlfs/src/lib.rs
+++ b/crates/net/hlfs/src/lib.rs
@@ -240,19 +240,21 @@ impl Backfiller {
         head: u64,
         rr_index: usize,
     ) -> Result<Option<usize>, HlfsError> {
-        if number + self.hist_threshold > head {
+        if head >= self.hist_threshold && number + self.hist_threshold > head {
             return Ok(None);
         }
-        let path = self.root.join(format!("{number}.rlp"));
+        let f = ((number - 1) / 1_000_000) * 1_000_000;
+        let s = ((number - 1) / 1_000) * 1_000;
+        let path = format!("{}/{f}/{s}/{number}.rmp.lz4", self.root.to_string_lossy());
         if fs::try_exists(&path).await? {
             return Ok(None);
         }
         match self.client.get_block(number, rr_index).await {
             Ok(bytes) => {
-                let tmp = self.root.join(format!("{number}.rlp.part"));
+                let tmp = format!("{}/{f}/{s}/{number}.rlp.lz4.part", self.root.to_string_lossy());
                 fs::write(&tmp, &bytes).await?;
                 fs::rename(&tmp, &path).await?;
-                info!(block=number, bytes=bytes.len(), path=%path.display(), "hlfs: wrote");
+                info!(block=number, bytes=bytes.len(), path=%path, "hlfs: wrote");
                 Ok(Some(bytes.len()))
             }
             Err(e) => {