diff --git a/packages/peer-exchange/src/waku_peer_exchange_discovery.ts b/packages/peer-exchange/src/waku_peer_exchange_discovery.ts
index ea3135d570..e8322d49c0 100644
--- a/packages/peer-exchange/src/waku_peer_exchange_discovery.ts
+++ b/packages/peer-exchange/src/waku_peer_exchange_discovery.ts
@@ -1,4 +1,4 @@
-import type { PeerUpdate } from "@libp2p/interface-libp2p";
+import type { IdentifyResult } from "@libp2p/interface-libp2p";
 import type {
   PeerDiscovery,
   PeerDiscoveryEvents,
@@ -61,11 +61,10 @@ export class PeerExchangeDiscovery
   private queryAttempts: Map<string, number> = new Map();
 
   private readonly handleDiscoveredPeer = (
-    event: CustomEvent<PeerUpdate>,
+    event: CustomEvent<IdentifyResult>,
   ): void => {
-    const {
-      peer: { protocols, id: peerId },
-    } = event.detail;
+    const { protocols, peerId } = event.detail;
+
     if (
       !protocols.includes(PeerExchangeCodec) ||
       this.queryingPeers.has(peerId.toString())
@@ -98,7 +97,7 @@ export class PeerExchangeDiscovery
 
     // might be better to use "peer:identify" or "peer:update"
     this.components.events.addEventListener(
-      "peer:update",
+      "peer:identify",
       this.handleDiscoveredPeer,
     );
   }
@@ -112,7 +111,7 @@ export class PeerExchangeDiscovery
     this.isStarted = false;
     this.queryingPeers.clear();
     this.components.events.removeEventListener(
-      "peer:update",
+      "peer:identify",
       this.handleDiscoveredPeer,
     );
   }
diff --git a/packages/tests/tests/peer_exchange.node.spec.ts b/packages/tests/tests/peer_exchange.node.spec.ts
index 2af495470e..7ea9d520ea 100644
--- a/packages/tests/tests/peer_exchange.node.spec.ts
+++ b/packages/tests/tests/peer_exchange.node.spec.ts
@@ -117,7 +117,11 @@ describe("Peer Exchange", () => {
         await waku.start();
 
         const nwaku2Ma = await nwaku2.getMultiaddrWithId();
-        await waku.libp2p.dialProtocol(nwaku2Ma, PeerExchangeCodec);
+
+        // we do this because we want peer-exchange discovery to get initialised before we dial the peer which contains info about the other peer
+        setTimeout(() => {
+          void waku.libp2p.dialProtocol(nwaku2Ma, PeerExchangeCodec);
+        }, 1000);
 
         return new PeerExchangeDiscovery(waku.libp2p.components);
       },