diff --git a/waku/v2/protocol/peer_exchange/enr_cache.go b/waku/v2/protocol/peer_exchange/enr_cache.go
index 06538d2b..90fb096a 100644
--- a/waku/v2/protocol/peer_exchange/enr_cache.go
+++ b/waku/v2/protocol/peer_exchange/enr_cache.go
@@ -3,69 +3,45 @@ package peer_exchange
 import (
 	"bufio"
 	"bytes"
-	"math/rand"
-	"sync"
 
 	"github.com/ethereum/go-ethereum/p2p/enode"
-	"github.com/hashicorp/golang-lru/simplelru"
+
 	"github.com/waku-org/go-waku/waku/v2/protocol/peer_exchange/pb"
-	"go.uber.org/zap"
 )
 
 // simpleLRU internal uses container/list, which is ring buffer(double linked list)
 type enrCache struct {
-	// using lru, saves us from periodically cleaning the cache to maintain a certain size
-	data *simplelru.LRU
-	rng  *rand.Rand
-	mu   sync.RWMutex
-	log  *zap.Logger
+	// using lru, saves us from periodically cleaning the cache to mauintain a certain size
+	data *shardLRU
 }
 
 // err on negative size
-func newEnrCache(size int, log *zap.Logger) (*enrCache, error) {
-	inner, err := simplelru.NewLRU(size, nil)
+func newEnrCache(size int) *enrCache {
+	inner := newShardLRU(int(size))
 	return &enrCache{
 		data: inner,
-		rng:  rand.New(rand.NewSource(rand.Int63())),
-		log:  log.Named("enr-cache"),
-	}, err
+	}
 }
 
 // updating cache
-func (c *enrCache) updateCache(node *enode.Node) {
-	c.mu.Lock()
-	defer c.mu.Unlock()
-	currNode, ok := c.data.Get(node.ID())
-	if !ok || node.Seq() > currNode.(*enode.Node).Seq() {
-		c.data.Add(node.ID(), node)
-		c.log.Debug("discovered px peer via discv5", zap.Stringer("enr", node))
+func (c *enrCache) updateCache(node *enode.Node) error {
+	currNode := c.data.Get(node.ID())
+	if currNode == nil || node.Seq() > currNode.Seq() {
+		return c.data.Add(node)
 	}
+	return nil
 }
 
 // get `numPeers` records of enr
-func (c *enrCache) getENRs(neededPeers int) ([]*pb.PeerInfo, error) {
-	c.mu.RLock()
-	defer c.mu.RUnlock()
+func (c *enrCache) getENRs(neededPeers int, clusterIndex *ShardInfo) ([]*pb.PeerInfo, error) {
 	//
-	availablePeers := c.data.Len()
-	if availablePeers == 0 {
-		return nil, nil
-	}
-	if availablePeers < neededPeers {
-		neededPeers = availablePeers
-	}
-
-	perm := c.rng.Perm(availablePeers)[0:neededPeers]
-	keys := c.data.Keys()
+	nodes := c.data.GetRandomNodes(clusterIndex, neededPeers)
 	result := []*pb.PeerInfo{}
-	for _, ind := range perm {
-		node, ok := c.data.Get(keys[ind])
-		if !ok {
-			continue
-		}
+	for _, node := range nodes {
+		//
 		var b bytes.Buffer
 		writer := bufio.NewWriter(&b)
-		err := node.(*enode.Node).Record().EncodeRLP(writer)
+		err := node.Record().EncodeRLP(writer)
 		if err != nil {
 			return nil, err
 		}
diff --git a/waku/v2/protocol/peer_exchange/protocol.go b/waku/v2/protocol/peer_exchange/protocol.go
index e8af91c5..374cde3a 100644
--- a/waku/v2/protocol/peer_exchange/protocol.go
+++ b/waku/v2/protocol/peer_exchange/protocol.go
@@ -57,17 +57,11 @@ func NewWakuPeerExchange(disc *discv5.DiscoveryV5, peerConnector PeerConnector,
 	wakuPX.disc = disc
 	wakuPX.metrics = newMetrics(reg)
 	wakuPX.log = log.Named("wakupx")
+	wakuPX.enrCache = newEnrCache(MaxCacheSize)
 	wakuPX.peerConnector = peerConnector
 	wakuPX.pm = pm
 	wakuPX.CommonService = service.NewCommonService()
 
-	newEnrCache, err := newEnrCache(MaxCacheSize, wakuPX.log)
-	if err != nil {
-		return nil, err
-	}
-
-	wakuPX.enrCache = newEnrCache
-
 	return wakuPX, nil
 }
 
@@ -108,7 +102,7 @@ func (wakuPX *WakuPeerExchange) onRequest() func(network.Stream) {
 		if requestRPC.Query != nil {
 			logger.Info("request received")
 
-			records, err := wakuPX.enrCache.getENRs(int(requestRPC.Query.NumPeers))
+			records, err := wakuPX.enrCache.getENRs(int(requestRPC.Query.NumPeers), nil)
 			if err != nil {
 				logger.Error("obtaining enrs from cache", zap.Error(err))
 				wakuPX.metrics.RecordError(pxFailure)
@@ -161,7 +155,11 @@ func (wakuPX *WakuPeerExchange) iterate(ctx context.Context) error {
 			continue
 		}
 
-		wakuPX.enrCache.updateCache(iterator.Node())
+		err = wakuPX.enrCache.updateCache(iterator.Node())
+		if err != nil {
+			wakuPX.log.Error("adding peer to cache", zap.Error(err))
+			continue
+		}
 
 		select {
 		case <-ctx.Done():
diff --git a/waku/v2/protocol/peer_exchange/shard_lru.go b/waku/v2/protocol/peer_exchange/shard_lru.go
new file mode 100644
index 00000000..fade60a9
--- /dev/null
+++ b/waku/v2/protocol/peer_exchange/shard_lru.go
@@ -0,0 +1,178 @@
+package peer_exchange
+
+import (
+	"container/list"
+	"fmt"
+	"math/rand"
+	"sync"
+
+	"github.com/ethereum/go-ethereum/p2p/enode"
+	"github.com/waku-org/go-waku/waku/v2/protocol"
+	wenr "github.com/waku-org/go-waku/waku/v2/protocol/enr"
+	"github.com/waku-org/go-waku/waku/v2/utils"
+)
+
+type ShardInfo struct {
+	clusterID uint16
+	shard     uint16
+}
+type shardLRU struct {
+	size       int // number of nodes allowed per shard
+	idToNode   map[enode.ID][]*list.Element
+	shardNodes map[ShardInfo]*list.List
+	rng        *rand.Rand
+	mu         sync.RWMutex
+}
+
+func newShardLRU(size int) *shardLRU {
+	return &shardLRU{
+		idToNode:   map[enode.ID][]*list.Element{},
+		shardNodes: map[ShardInfo]*list.List{},
+		size:       size,
+		rng:        rand.New(rand.NewSource(rand.Int63())),
+	}
+}
+
+type nodeWithShardInfo struct {
+	key  ShardInfo
+	node *enode.Node
+}
+
+// time complexity: O(number of previous indexes present for node.ID)
+func (l *shardLRU) remove(node *enode.Node) {
+	elements := l.idToNode[node.ID()]
+	for _, element := range elements {
+		key := element.Value.(nodeWithShardInfo).key
+		l.shardNodes[key].Remove(element)
+	}
+	delete(l.idToNode, node.ID())
+}
+
+// if a node is removed for a list, remove it from idToNode too
+func (l *shardLRU) removeFromIdToNode(ele *list.Element) {
+	nodeID := ele.Value.(nodeWithShardInfo).node.ID()
+	for ind, entries := range l.idToNode[nodeID] {
+		if entries == ele {
+			l.idToNode[nodeID] = append(l.idToNode[nodeID][:ind], l.idToNode[nodeID][ind+1:]...)
+			break
+		}
+	}
+	if len(l.idToNode[nodeID]) == 0 {
+		delete(l.idToNode, nodeID)
+	}
+}
+
+func nodeToRelayShard(node *enode.Node) (*protocol.RelayShards, error) {
+	shard, err := wenr.RelaySharding(node.Record())
+	if err != nil {
+		return nil, err
+	}
+
+	if shard == nil { // if no shard info, then add to node to Cluster 0, Index 0
+		shard = &protocol.RelayShards{
+			ClusterID: 0,
+			ShardIDs:  []uint16{0},
+		}
+	}
+
+	return shard, nil
+}
+
+// time complexity: O(new number of indexes in node's shard)
+func (l *shardLRU) add(node *enode.Node) error {
+	shard, err := nodeToRelayShard(node)
+	if err != nil {
+		return err
+	}
+
+	elements := []*list.Element{}
+	for _, index := range shard.ShardIDs {
+		key := ShardInfo{
+			shard.ClusterID,
+			index,
+		}
+		if l.shardNodes[key] == nil {
+			l.shardNodes[key] = list.New()
+		}
+		if l.shardNodes[key].Len() >= l.size {
+			oldest := l.shardNodes[key].Back()
+			l.removeFromIdToNode(oldest)
+			l.shardNodes[key].Remove(oldest)
+		}
+		entry := l.shardNodes[key].PushFront(nodeWithShardInfo{
+			key:  key,
+			node: node,
+		})
+		elements = append(elements, entry)
+
+	}
+	l.idToNode[node.ID()] = elements
+
+	return nil
+}
+
+// this will be called when the seq number of node is more than the one in cache
+func (l *shardLRU) Add(node *enode.Node) error {
+	l.mu.Lock()
+	defer l.mu.Unlock()
+	// removing bcz previous node might be subscribed to different shards, we need to remove node from those shards
+	l.remove(node)
+	return l.add(node)
+}
+
+// clusterIndex is nil when peers for no specific shard are requested
+func (l *shardLRU) GetRandomNodes(clusterIndex *ShardInfo, neededPeers int) (nodes []*enode.Node) {
+	l.mu.Lock()
+	defer l.mu.Unlock()
+
+	availablePeers := l.len(clusterIndex)
+	if availablePeers < neededPeers {
+		neededPeers = availablePeers
+	}
+	// if clusterIndex is nil, then return all nodes
+	var elements []*list.Element
+	if clusterIndex == nil {
+		elements = make([]*list.Element, 0, len(l.idToNode))
+		for _, entries := range l.idToNode {
+			elements = append(elements, entries[0])
+		}
+	} else if entries := l.shardNodes[*clusterIndex]; entries != nil && entries.Len() != 0 {
+		elements = make([]*list.Element, 0, entries.Len())
+		for ent := entries.Back(); ent != nil; ent = ent.Prev() {
+			elements = append(elements, ent)
+		}
+	}
+	utils.Logger().Info(fmt.Sprintf("%d", len(elements)))
+	indexes := l.rng.Perm(len(elements))[0:neededPeers]
+	for _, ind := range indexes {
+		node := elements[ind].Value.(nodeWithShardInfo).node
+		nodes = append(nodes, node)
+		// this removes the node from all list (all cluster/shard pair that the node has) and adds it to the front
+		l.remove(node)
+		_ = l.add(node)
+	}
+	return nodes
+}
+
+// if clusterIndex is not nil, return len of nodes maintained for a given shard
+// if clusterIndex is nil, return count of all nodes maintained
+func (l *shardLRU) len(clusterIndex *ShardInfo) int {
+	if clusterIndex == nil {
+		return len(l.idToNode)
+	}
+	if entries := l.shardNodes[*clusterIndex]; entries != nil {
+		return entries.Len()
+	}
+	return 0
+}
+
+// get the node with the given id, if it is present in cache
+func (l *shardLRU) Get(id enode.ID) *enode.Node {
+	l.mu.RLock()
+	defer l.mu.RUnlock()
+
+	if elements, ok := l.idToNode[id]; ok && len(elements) > 0 {
+		return elements[0].Value.(nodeWithShardInfo).node
+	}
+	return nil
+}
diff --git a/waku/v2/protocol/peer_exchange/shard_lru_test.go b/waku/v2/protocol/peer_exchange/shard_lru_test.go
new file mode 100644
index 00000000..3bbd7f46
--- /dev/null
+++ b/waku/v2/protocol/peer_exchange/shard_lru_test.go
@@ -0,0 +1,156 @@
+package peer_exchange
+
+import (
+	"crypto/ecdsa"
+	"testing"
+
+	gcrypto "github.com/ethereum/go-ethereum/crypto"
+	"github.com/ethereum/go-ethereum/p2p/enode"
+	"github.com/ethereum/go-ethereum/p2p/enr"
+	"github.com/stretchr/testify/require"
+	"github.com/waku-org/go-waku/waku/v2/protocol"
+	wenr "github.com/waku-org/go-waku/waku/v2/protocol/enr"
+)
+
+func getEnode(t *testing.T, key *ecdsa.PrivateKey, cluster uint16, indexes ...uint16) *enode.Node {
+	if key == nil {
+		var err error
+		key, err = gcrypto.GenerateKey()
+		require.NoError(t, err)
+	}
+	myNode, err := wenr.NewLocalnode(key)
+	require.NoError(t, err)
+	if cluster != 0 {
+		shard, err := protocol.NewRelayShards(cluster, indexes...)
+		require.NoError(t, err)
+		myNode.Set(enr.WithEntry(wenr.ShardingBitVectorEnrField, shard.BitVector()))
+	}
+	return myNode.Node()
+}
+
+func TestLruMoreThanSize(t *testing.T) {
+	node1 := getEnode(t, nil, 1, 1)
+	node2 := getEnode(t, nil, 1, 1, 2)
+	node3 := getEnode(t, nil, 1, 1)
+
+	lru := newShardLRU(2)
+
+	err := lru.Add(node1)
+	require.NoError(t, err)
+
+	err = lru.Add(node2)
+	require.NoError(t, err)
+
+	err = lru.Add(node3)
+	require.NoError(t, err)
+
+	nodes := lru.GetRandomNodes(&ShardInfo{1, 1}, 1)
+
+	require.Equal(t, 1, len(nodes))
+	if nodes[0].ID() != node2.ID() && nodes[0].ID() != node3.ID() {
+		t.Fatalf("different node found %v", nodes)
+	}
+	// checks if removed node is deleted from lru or not
+	require.Nil(t, lru.Get(node1.ID()))
+
+	// node 2 is removed from lru for cluster 1/shard 1 but it is still being maintained for cluster1,index2
+	{
+		err = lru.Add(getEnode(t, nil, 1, 1)) // add two more nodes to 1/1 cluster shard
+		require.NoError(t, err)
+
+		err = lru.Add(getEnode(t, nil, 1, 1))
+		require.NoError(t, err)
+
+	}
+
+	// node2 still present in lru
+	require.Equal(t, node2, lru.Get(node2.ID()))
+
+	// now node2 is removed from all shards' cache
+	{
+		err = lru.Add(getEnode(t, nil, 1, 2)) // add two more nodes to 1/2 cluster shard
+		require.NoError(t, err)
+
+		err = lru.Add(getEnode(t, nil, 1, 2))
+		require.NoError(t, err)
+	}
+
+	// node2 still present in lru
+	require.Nil(t, lru.Get(node2.ID()))
+}
+
+func TestLruNodeWithNewSeq(t *testing.T) {
+	lru := newShardLRU(2)
+	//
+	key, err := gcrypto.GenerateKey()
+	require.NoError(t, err)
+
+	node1 := getEnode(t, key, 1, 1)
+	err = lru.Add(node1)
+	require.NoError(t, err)
+
+	node1 = getEnode(t, key, 1, 2, 3)
+	err = lru.Add(node1)
+	require.NoError(t, err)
+
+	//
+	nodes := lru.GetRandomNodes(&ShardInfo{1, 1}, 2)
+	require.Equal(t, 0, len(nodes))
+	//
+	nodes = lru.GetRandomNodes(&ShardInfo{1, 2}, 2)
+	require.Equal(t, 1, len(nodes))
+	//
+	nodes = lru.GetRandomNodes(&ShardInfo{1, 3}, 2)
+	require.Equal(t, 1, len(nodes))
+}
+
+func TestLruNoShard(t *testing.T) {
+	lru := newShardLRU(2)
+
+	node1 := getEnode(t, nil, 0)
+	node2 := getEnode(t, nil, 0)
+
+	err := lru.Add(node1)
+	require.NoError(t, err)
+
+	err = lru.Add(node2)
+	require.NoError(t, err)
+
+	// check returned nodes
+	require.Equal(t, 2, lru.len(nil))
+	for _, node := range lru.GetRandomNodes(nil, 2) {
+		if node.ID() != node1.ID() && node.ID() != node2.ID() {
+			t.Fatalf("different node found %v", node)
+		}
+	}
+}
+
+// checks if lru is able to handle nodes with/without shards together
+func TestLruMixedNodes(t *testing.T) {
+	lru := newShardLRU(2)
+
+	node1 := getEnode(t, nil, 0)
+	err := lru.Add(node1)
+	require.NoError(t, err)
+
+	node2 := getEnode(t, nil, 1, 1)
+	err = lru.Add(node2)
+	require.NoError(t, err)
+
+	node3 := getEnode(t, nil, 1, 2)
+	err = lru.Add(node3)
+	require.NoError(t, err)
+
+	// check that default
+	require.Equal(t, 3, lru.len(nil))
+
+	//
+	nodes := lru.GetRandomNodes(&ShardInfo{1, 1}, 2)
+	require.Equal(t, 1, len(nodes))
+	require.Equal(t, node2.ID(), nodes[0].ID())
+
+	//
+	nodes = lru.GetRandomNodes(&ShardInfo{1, 2}, 2)
+	require.Equal(t, 1, len(nodes))
+	require.Equal(t, node3.ID(), nodes[0].ID())
+}