diff --git a/chain/src/error.rs b/chain/src/error.rs
index 613dd4277..b35c88a3f 100644
--- a/chain/src/error.rs
+++ b/chain/src/error.rs
@@ -157,6 +157,10 @@ pub enum ErrorKind {
 	/// PIBD segment related error
 	#[fail(display = "Segment error")]
 	SegmentError(segment::SegmentError),
+	/// We've decided to halt the PIBD process due to lack of supporting peers or
+	/// otherwise failing to progress for a certain amount of time
+	#[fail(display = "Aborting PIBD error")]
+	AbortingPIBDError,
 	/// The segmenter is associated to a different block header
 	#[fail(display = "Segmenter header mismatch")]
 	SegmenterHeaderMismatch,
diff --git a/chain/src/types.rs b/chain/src/types.rs
index 0a56b04bc..602843e98 100644
--- a/chain/src/types.rs
+++ b/chain/src/types.rs
@@ -15,6 +15,7 @@
 //! Base types that the block chain pipeline requires.
 
 use chrono::prelude::{DateTime, Utc};
+use chrono::Duration;
 
 use crate::core::core::hash::{Hash, Hashed, ZERO_HASH};
 use crate::core::core::{pmmr, Block, BlockHeader, HeaderVersion, SegmentTypeIdentifier};
@@ -176,7 +177,6 @@ pub struct SyncState {
 	/// but it's currently the only place that makes the info
 	/// available where it will be needed (both in the adapter
 	/// and the sync loop)
-	/// TODO: Better struct for this, perhaps hash identifiers
 	requested_pibd_segments: RwLock<Vec<PIBDSegmentContainer>>,
 }
 
@@ -291,11 +291,15 @@ impl SyncState {
 			.retain(|i| &i.identifier != id);
 	}
 
-	/// Remove segments with request timestamps less cutoff time
-	pub fn remove_stale_pibd_requests(&self, cutoff_time: DateTime<Utc>) {
-		self.requested_pibd_segments
-			.write()
-			.retain(|i| i.request_time < cutoff_time);
+	/// Remove segments with request timestamps less than cutoff time
+	pub fn remove_stale_pibd_requests(&self, timeout_seconds: i64) {
+		let cutoff_time = Utc::now() - Duration::seconds(timeout_seconds);
+		self.requested_pibd_segments.write().retain(|i| {
+			if i.request_time <= cutoff_time {
+				debug!("Removing + retrying PIBD request after timeout: {:?}", i)
+			};
+			i.request_time > cutoff_time
+		});
 	}
 
 	/// Check whether segment is in request list
diff --git a/servers/src/grin/sync/state_sync.rs b/servers/src/grin/sync/state_sync.rs
index a580cf42b..08358b52c 100644
--- a/servers/src/grin/sync/state_sync.rs
+++ b/servers/src/grin/sync/state_sync.rs
@@ -36,6 +36,9 @@ pub struct StateSync {
 
 	prev_state_sync: Option<DateTime<Utc>>,
 	state_sync_peer: Option<Arc<Peer>>,
+
+	pibd_aborted: bool,
+	earliest_zero_pibd_peer_time: Option<DateTime<Utc>>,
 }
 
 impl StateSync {
@@ -50,9 +53,22 @@ impl StateSync {
 			chain,
 			prev_state_sync: None,
 			state_sync_peer: None,
+			pibd_aborted: false,
+			earliest_zero_pibd_peer_time: None,
 		}
 	}
 
+	/// Flag to abort PIBD process
+	pub fn set_pibd_aborted(&mut self) {
+		self.pibd_aborted = true;
+	}
+
+	/// Record earliest time at which we had no suitable
+	/// peers for continuing PIBD
+	pub fn set_earliest_zero_pibd_peer_time(&mut self, t: Option<DateTime<Utc>>) {
+		self.earliest_zero_pibd_peer_time = t;
+	}
+
 	/// Check whether state sync should run and triggers a state download when
 	/// it's time (we have all headers). Returns true as long as state sync
 	/// needs monitoring, false when it's either done or turned off.
@@ -81,6 +97,8 @@ impl StateSync {
 		let using_pibd =
 			if let SyncStatus::TxHashsetPibd { aborted: true, .. } = self.sync_state.status() {
 				false
+			} else if self.pibd_aborted {
+				false
 			} else {
 				// Only on testing chains for now
 				if global::get_chain_type() != global::ChainTypes::Mainnet {
@@ -240,10 +258,9 @@ impl StateSync {
 		let archive_header = self.chain.txhashset_archive_header_header_only().unwrap();
 		let desegmenter = self.chain.desegmenter(&archive_header).unwrap();
 
-		// Remove stale requests
+		// Remove stale requests, if we haven't recieved the segment within a minute re-request
 		// TODO: verify timing
-		let timeout_time = Utc::now() + Duration::seconds(15);
-		self.sync_state.remove_stale_pibd_requests(timeout_time);
+		self.sync_state.remove_stale_pibd_requests(60);
 
 		// Apply segments... TODO: figure out how this should be called, might
 		// need to be a separate thread.
@@ -280,22 +297,50 @@ impl StateSync {
 				continue;
 			}
 
-			let peers_iter = || {
-				self.peers
-					.iter()
+			// TODO: urg
+			let peers = self.peers.clone();
+
+			// First, get max difficulty or greater peers
+			let peers_iter = || peers.iter().connected();
+			let max_diff = peers_iter().max_difficulty().unwrap_or(Difficulty::zero());
+			let peers_iter_max = || peers_iter().with_difficulty(|x| x >= max_diff);
+
+			// Then, further filter by PIBD capabilities
+			let peers_iter_pibd = || {
+				peers_iter_max()
 					.with_capabilities(Capabilities::PIBD_HIST)
 					.connected()
 			};
 
-			// Filter peers further based on max difficulty.
-			let max_diff = peers_iter().max_difficulty().unwrap_or(Difficulty::zero());
-			let peers_iter = || peers_iter().with_difficulty(|x| x >= max_diff);
+			// If there are no suitable PIBD-Enabled peers, AND there hasn't been one for a minute,
+			// abort PIBD and fall back to txhashset download
+			// Waiting a minute helps ensures that the cancellation isn't simply due to a single non-PIBD enabled
+			// peer having the max difficulty
+			if peers_iter_pibd().count() == 0 {
+				if let None = self.earliest_zero_pibd_peer_time {
+					self.set_earliest_zero_pibd_peer_time(Some(Utc::now()));
+				}
+				if self.earliest_zero_pibd_peer_time.unwrap() + Duration::seconds(60) < Utc::now() {
+					// random abort test
+					info!("No PIBD-enabled max-difficulty peers for the past minute - Aborting PIBD and falling back to TxHashset.zip download");
+					self.sync_state
+						.update_pibd_progress(true, true, 0, 1, &archive_header);
+					self.sync_state
+						.set_sync_error(chain::ErrorKind::AbortingPIBDError.into());
+					self.set_pibd_aborted();
+					return false;
+				}
+			} else {
+				self.set_earliest_zero_pibd_peer_time(None)
+			}
+
 			// Choose a random "most work" peer, preferring outbound if at all possible.
-			let peer = peers_iter().outbound().choose_random().or_else(|| {
+			let peer = peers_iter_pibd().outbound().choose_random().or_else(|| {
 				warn!("no suitable outbound peer for pibd message, considering inbound");
-				peers_iter().inbound().choose_random()
+				peers_iter_pibd().inbound().choose_random()
 			});
 			trace!("Chosen peer is {:?}", peer);
+
 			if let Some(p) = peer {
 				// add to list of segments that are being tracked
 				self.sync_state.add_pibd_segment(seg_id);