diff --git a/lightning/src/ln/peer_handler.rs b/lightning/src/ln/peer_handler.rs
index 9c27a23467c..da96693f079 100644
--- a/lightning/src/ln/peer_handler.rs
+++ b/lightning/src/ln/peer_handler.rs
@@ -1475,7 +1475,6 @@ impl<Descriptor: SocketDescriptor, CM: Deref, RM: Deref, OM: Deref, L: Deref, CM
 								let networks = self.message_handler.chan_handler.get_chain_hashes();
 								let resp = msgs::Init { features, networks, remote_network_address: filter_addresses(peer.their_socket_address.clone()) };
 								self.enqueue_message(peer, &resp);
-								peer.awaiting_pong_timer_tick_intervals = 0;
 							},
 							NextNoiseStep::ActThree => {
 								let their_node_id = try_potential_handleerror!(peer,
@@ -1488,7 +1487,6 @@ impl<Descriptor: SocketDescriptor, CM: Deref, RM: Deref, OM: Deref, L: Deref, CM
 								let networks = self.message_handler.chan_handler.get_chain_hashes();
 								let resp = msgs::Init { features, networks, remote_network_address: filter_addresses(peer.their_socket_address.clone()) };
 								self.enqueue_message(peer, &resp);
-								peer.awaiting_pong_timer_tick_intervals = 0;
 							},
 							NextNoiseStep::NoiseComplete => {
 								if peer.pending_read_is_header {
@@ -1681,6 +1679,7 @@ impl<Descriptor: SocketDescriptor, CM: Deref, RM: Deref, OM: Deref, L: Deref, CM
 				return Err(PeerHandleError { }.into());
 			}
 
+			peer_lock.awaiting_pong_timer_tick_intervals = 0;
 			peer_lock.their_features = Some(msg.features);
 			return Ok(None);
 		} else if peer_lock.their_features.is_none() {
@@ -2674,7 +2673,7 @@ mod tests {
 	use crate::ln::ChannelId;
 	use crate::ln::features::{InitFeatures, NodeFeatures};
 	use crate::ln::peer_channel_encryptor::PeerChannelEncryptor;
-	use crate::ln::peer_handler::{CustomMessageHandler, PeerManager, MessageHandler, SocketDescriptor, IgnoringMessageHandler, filter_addresses};
+	use crate::ln::peer_handler::{CustomMessageHandler, PeerManager, MessageHandler, SocketDescriptor, IgnoringMessageHandler, filter_addresses, ErroringMessageHandler, MAX_BUFFER_DRAIN_TICK_INTERVALS_PER_PEER};
 	use crate::ln::{msgs, wire};
 	use crate::ln::msgs::{LightningError, SocketAddress};
 	use crate::util::test_utils;
@@ -3216,6 +3215,105 @@ mod tests {
 		assert!(peers[0].read_event(&mut fd_a, &b_data).is_err());
 	}
 
+	#[test]
+	fn test_inbound_conn_handshake_complete_awaiting_pong() {
+		// Test that we do not disconnect an outbound peer after the noise handshake completes due
+		// to a pong timeout for a ping that was never sent if a timer tick fires after we send act
+		// two of the noise handshake along with our init message but before we receive their init
+		// message.
+		let logger = test_utils::TestLogger::new();
+		let node_signer_a = test_utils::TestNodeSigner::new(SecretKey::from_slice(&[42; 32]).unwrap());
+		let node_signer_b = test_utils::TestNodeSigner::new(SecretKey::from_slice(&[43; 32]).unwrap());
+		let peer_a = PeerManager::new(MessageHandler {
+			chan_handler: ErroringMessageHandler::new(),
+			route_handler: IgnoringMessageHandler {},
+			onion_message_handler: IgnoringMessageHandler {},
+			custom_message_handler: IgnoringMessageHandler {},
+		}, 0, &[0; 32], &logger, &node_signer_a);
+		let peer_b = PeerManager::new(MessageHandler {
+			chan_handler: ErroringMessageHandler::new(),
+			route_handler: IgnoringMessageHandler {},
+			onion_message_handler: IgnoringMessageHandler {},
+			custom_message_handler: IgnoringMessageHandler {},
+		}, 0, &[1; 32], &logger, &node_signer_b);
+
+		let a_id = node_signer_a.get_node_id(Recipient::Node).unwrap();
+		let mut fd_a = FileDescriptor {
+			fd: 1, outbound_data: Arc::new(Mutex::new(Vec::new())),
+			disconnect: Arc::new(AtomicBool::new(false)),
+		};
+		let mut fd_b = FileDescriptor {
+			fd: 1, outbound_data: Arc::new(Mutex::new(Vec::new())),
+			disconnect: Arc::new(AtomicBool::new(false)),
+		};
+
+		// Exchange messages with both peers until they both complete the init handshake.
+		let act_one = peer_b.new_outbound_connection(a_id, fd_b.clone(), None).unwrap();
+		peer_a.new_inbound_connection(fd_a.clone(), None).unwrap();
+
+		assert_eq!(peer_a.read_event(&mut fd_a, &act_one).unwrap(), false);
+		peer_a.process_events();
+
+		let act_two = fd_a.outbound_data.lock().unwrap().split_off(0);
+		assert_eq!(peer_b.read_event(&mut fd_b, &act_two).unwrap(), false);
+		peer_b.process_events();
+
+		// Calling this here triggers the race on inbound connections.
+		peer_b.timer_tick_occurred();
+
+		let act_three_with_init_b = fd_b.outbound_data.lock().unwrap().split_off(0);
+		assert!(!peer_a.peers.read().unwrap().get(&fd_a).unwrap().lock().unwrap().handshake_complete());
+		assert_eq!(peer_a.read_event(&mut fd_a, &act_three_with_init_b).unwrap(), false);
+		peer_a.process_events();
+		assert!(peer_a.peers.read().unwrap().get(&fd_a).unwrap().lock().unwrap().handshake_complete());
+
+		let init_a = fd_a.outbound_data.lock().unwrap().split_off(0);
+		assert!(!init_a.is_empty());
+
+		assert!(!peer_b.peers.read().unwrap().get(&fd_b).unwrap().lock().unwrap().handshake_complete());
+		assert_eq!(peer_b.read_event(&mut fd_b, &init_a).unwrap(), false);
+		peer_b.process_events();
+		assert!(peer_b.peers.read().unwrap().get(&fd_b).unwrap().lock().unwrap().handshake_complete());
+
+		// Make sure we're still connected.
+		assert_eq!(peer_b.peers.read().unwrap().len(), 1);
+
+		// B should send a ping on the first timer tick after `handshake_complete`.
+		assert!(fd_b.outbound_data.lock().unwrap().split_off(0).is_empty());
+		peer_b.timer_tick_occurred();
+		peer_b.process_events();
+		assert!(!fd_b.outbound_data.lock().unwrap().split_off(0).is_empty());
+
+		let mut send_warning = || {
+			{
+				let peers = peer_a.peers.read().unwrap();
+				let mut peer_b = peers.get(&fd_a).unwrap().lock().unwrap();
+				peer_a.enqueue_message(&mut peer_b, &msgs::WarningMessage {
+					channel_id: ChannelId([0; 32]),
+					data: "no disconnect plz".to_string(),
+				});
+			}
+			peer_a.process_events();
+			let msg = fd_a.outbound_data.lock().unwrap().split_off(0);
+			assert!(!msg.is_empty());
+			assert_eq!(peer_b.read_event(&mut fd_b, &msg).unwrap(), false);
+			peer_b.process_events();
+		};
+
+		// Fire more ticks until we reach the pong timeout. We send any message except pong to
+		// pretend the connection is still alive.
+		send_warning();
+		for _ in 0..MAX_BUFFER_DRAIN_TICK_INTERVALS_PER_PEER {
+			peer_b.timer_tick_occurred();
+			send_warning();
+		}
+		assert_eq!(peer_b.peers.read().unwrap().len(), 1);
+
+		// One more tick should enforce the pong timeout.
+		peer_b.timer_tick_occurred();
+		assert_eq!(peer_b.peers.read().unwrap().len(), 0);
+	}
+
 	#[test]
 	fn test_filter_addresses(){
 		// Tests the filter_addresses function.