diff --git a/tests/v2/test_peer_manager.nim b/tests/v2/test_peer_manager.nim
index b11f96c48..65961372f 100644
--- a/tests/v2/test_peer_manager.nim
+++ b/tests/v2/test_peer_manager.nim
@@ -47,7 +47,7 @@ procSuite "Peer Manager":
 
     # Check connectedness
     check:
-      node1.peerManager.connectedness(peerInfo2.peerId)
+      node1.peerManager.connectedness(peerInfo2.peerId) == Connectedness.Connected
     
     await allFutures([node1.stop(), node2.stop()])
   
@@ -118,3 +118,45 @@ procSuite "Peer Manager":
                                                    it.protos.contains(WakuStoreCodec))
     
     await node.stop()
+  
+
+  asyncTest "Peer manager keeps track of connections":
+    let
+      nodeKey1 = crypto.PrivateKey.random(Secp256k1, rng[])[]
+      node1 = WakuNode.init(nodeKey1, ValidIpAddress.init("0.0.0.0"),
+        Port(60000))
+      nodeKey2 = crypto.PrivateKey.random(Secp256k1, rng[])[]
+      node2 = WakuNode.init(nodeKey2, ValidIpAddress.init("0.0.0.0"),
+        Port(60002))
+      peerInfo2 = node2.peerInfo
+    
+    await node1.start()
+
+    node1.mountRelay()
+    node2.mountRelay()
+
+    # Test default connectedness for new peers
+    node1.peerManager.addPeer(peerInfo2, WakuRelayCodec)
+    check:
+      # No information about node2's connectedness
+      node1.peerManager.connectedness(peerInfo2.peerId) == NotConnected
+
+    # Purposefully don't start node2
+    # Attempt dialing node2 from node1
+    discard await node1.peerManager.dialPeer(peerInfo2, WakuRelayCodec, 2.seconds)
+    check:
+      # Cannot connect to node2
+      node1.peerManager.connectedness(peerInfo2.peerId) == CannotConnect
+
+    # Successful connection
+    await node2.start()
+    discard await node1.peerManager.dialPeer(peerInfo2, WakuRelayCodec, 2.seconds)
+    check:
+      # Currently connected to node2
+      node1.peerManager.connectedness(peerInfo2.peerId) == Connected
+
+    # Stop node. Gracefully disconnect from all peers.
+    await node1.stop()
+    check:
+      # Not currently connected to node2, but had recent, successful connection.
+      node1.peerManager.connectedness(peerInfo2.peerId) == CanConnect
diff --git a/waku/v2/node/jsonrpc/admin_api.nim b/waku/v2/node/jsonrpc/admin_api.nim
index 709c9f628..819b02e19 100644
--- a/waku/v2/node/jsonrpc/admin_api.nim
+++ b/waku/v2/node/jsonrpc/admin_api.nim
@@ -42,7 +42,7 @@ proc installAdminApiHandlers*(node: WakuNode, rpcsrv: RpcServer) =
       wPeers.insert(node.peerManager.peers(WakuRelayCodec)
                                     .mapIt(WakuPeer(multiaddr: constructMultiaddrStr(toSeq(it.addrs.items)[0], it.peerId),
                                                     protocol: WakuRelayCodec,
-                                                    connected: node.peerManager.connectedness(it.peerId))),
+                                                    connected: node.peerManager.connectedness(it.peerId) == Connectedness.Connected)),
                     wPeers.len) # Append to the end of the sequence
       
     if not node.wakuFilter.isNil:
@@ -50,7 +50,7 @@ proc installAdminApiHandlers*(node: WakuNode, rpcsrv: RpcServer) =
       wPeers.insert(node.peerManager.peers(WakuFilterCodec)
                                     .mapIt(WakuPeer(multiaddr: constructMultiaddrStr(toSeq(it.addrs.items)[0], it.peerId),
                                                     protocol: WakuFilterCodec,
-                                                    connected: node.peerManager.connectedness(it.peerId))),
+                                                    connected: node.peerManager.connectedness(it.peerId) == Connectedness.Connected)),
                     wPeers.len) # Append to the end of the sequence
     
     if not node.wakuSwap.isNil:
@@ -58,7 +58,7 @@ proc installAdminApiHandlers*(node: WakuNode, rpcsrv: RpcServer) =
       wPeers.insert(node.peerManager.peers(WakuSwapCodec)
                                     .mapIt(WakuPeer(multiaddr: constructMultiaddrStr(toSeq(it.addrs.items)[0], it.peerId),
                                                     protocol: WakuSwapCodec,
-                                                    connected: node.peerManager.connectedness(it.peerId))),
+                                                    connected: node.peerManager.connectedness(it.peerId) == Connectedness.Connected)),
                     wPeers.len) # Append to the end of the sequence
 
     if not node.wakuStore.isNil:
@@ -66,7 +66,7 @@ proc installAdminApiHandlers*(node: WakuNode, rpcsrv: RpcServer) =
       wPeers.insert(node.peerManager.peers(WakuStoreCodec)
                                     .mapIt(WakuPeer(multiaddr: constructMultiaddrStr(toSeq(it.addrs.items)[0], it.peerId),
                                                     protocol: WakuStoreCodec,
-                                                    connected: node.peerManager.connectedness(it.peerId))),
+                                                    connected: node.peerManager.connectedness(it.peerId) == Connectedness.Connected)),
                     wPeers.len) # Append to the end of the sequence
 
     # @TODO filter output on protocol/connected-status
diff --git a/waku/v2/node/peer_manager.nim b/waku/v2/node/peer_manager.nim
index 58d86666f..11ff6d393 100644
--- a/waku/v2/node/peer_manager.nim
+++ b/waku/v2/node/peer_manager.nim
@@ -14,16 +14,54 @@ logScope:
   topics = "wakupeers"
 
 type
+  Connectedness* = enum
+    # NotConnected: default state for a new peer. No connection and no further information on connectedness.
+    NotConnected,
+    # CannotConnect: attempted to connect to peer, but failed.
+    CannotConnect,
+    # CanConnect: was recently connected to peer and disconnected gracefully.
+    CanConnect,
+    # Connected: actively connected to peer.
+    Connected
+  
+  ConnectionBook* = object of PeerBook[Connectedness]
+
+  WakuPeerStore* = ref object of PeerStore
+    connectionBook*: ConnectionBook
+
   PeerManager* = ref object of RootObj
     switch*: Switch
-    peerStore*: PeerStore
+    peerStore*: WakuPeerStore
 
 const
   defaultDialTimeout = 1.minutes # @TODO should this be made configurable?
 
+proc onConnEvent(pm: PeerManager, peerId: PeerID, event: ConnEvent) {.async.} =
+  case event.kind
+  of ConnEventKind.Connected:
+    pm.peerStore.connectionBook.set(peerId, Connected)
+    return
+  of ConnEventKind.Disconnected:
+    pm.peerStore.connectionBook.set(peerId, CanConnect)
+    return
+
+proc new*(T: type WakuPeerStore): WakuPeerStore =
+  var p: WakuPeerStore
+  new(p)
+  return p
+
 proc new*(T: type PeerManager, switch: Switch): PeerManager =
-  T(switch: switch,
-    peerStore: PeerStore.new())
+  let pm = PeerManager(switch: switch,
+                       peerStore: WakuPeerStore.new())
+
+  proc peerHook(peerId: PeerID, event: ConnEvent): Future[void] {.gcsafe.} =
+    onConnEvent(pm, peerId, event)
+  
+
+  pm.switch.addConnEventHandler(peerHook, ConnEventKind.Connected)
+  pm.switch.addConnEventHandler(peerHook, ConnEventKind.Disconnected)
+
+  return pm
 
 ####################
 # Helper functions #
@@ -46,7 +84,7 @@ proc peers*(pm: PeerManager, proto: string): seq[StoredInfo] =
   # Return the known info for all peers registered on the specified protocol
   pm.peers.filterIt(it.protos.contains(proto))
 
-proc connectedness*(pm: PeerManager, peerId: PeerId): bool =
+proc connectedness*(pm: PeerManager, peerId: PeerId): Connectedness =
   # Return the connection state of the given, managed peer
   # @TODO the PeerManager should keep and update local connectedness state for peers, redial on disconnect, etc.
   # @TODO richer return than just bool, e.g. add enum "CanConnect", "CannotConnect", etc. based on recent connection attempts
@@ -55,9 +93,9 @@ proc connectedness*(pm: PeerManager, peerId: PeerId): bool =
 
   if (storedInfo == StoredInfo()):
     # Peer is not managed, therefore not connected
-    return false
+    return NotConnected
   else:
-    pm.switch.isConnected(peerId)
+    pm.peerStore.connectionBook.get(peerId)
 
 proc hasPeer*(pm: PeerManager, peerInfo: PeerInfo, proto: string): bool =
   # Returns `true` if peer is included in manager for the specified protocol
@@ -123,10 +161,12 @@ proc dialPeer*(pm: PeerManager, peerInfo: PeerInfo, proto: string, dialTimeout =
       # @TODO indicate CannotConnect on peer metadata
       debug "Dialing remote peer timed out"
       waku_peers_dials.inc(labelValues = ["timeout"])
+      pm.peerStore.connectionBook.set(peerInfo.peerId, CannotConnect)
       return none(Connection)
   except CatchableError as e:
     # @TODO any redial attempts?
     # @TODO indicate CannotConnect on peer metadata
     debug "Dialing remote peer failed", msg = e.msg
     waku_peers_dials.inc(labelValues = ["failed"])
+    pm.peerStore.connectionBook.set(peerInfo.peerId, CannotConnect)
     return none(Connection)
diff --git a/waku/v2/protocol/waku_store/waku_store.nim b/waku/v2/protocol/waku_store/waku_store.nim
index 79f5ddee3..ca972600d 100644
--- a/waku/v2/protocol/waku_store/waku_store.nim
+++ b/waku/v2/protocol/waku_store/waku_store.nim
@@ -394,7 +394,7 @@ proc query*(w: WakuStore, query: HistoryQuery, handler: QueryHandlerFunc) {.asyn
   let peerOpt = w.peerManager.selectPeer(WakuStoreCodec)
 
   if peerOpt.isNone():
-    error "failed to connect to remote peer"
+    error "no suitable remote peers"
     waku_store_errors.inc(labelValues = [dialFailure])
     return
 
@@ -433,7 +433,7 @@ proc queryWithAccounting*(ws: WakuStore, query: HistoryQuery, handler: QueryHand
   let peerOpt = ws.peerManager.selectPeer(WakuStoreCodec)
 
   if peerOpt.isNone():
-    error "failed to connect to remote peer"
+    error "no suitable remote peers"
     waku_store_errors.inc(labelValues = [dialFailure])
     return
 
diff --git a/waku/v2/protocol/waku_swap/waku_swap.nim b/waku/v2/protocol/waku_swap/waku_swap.nim
index 7f29b9b87..7ec827d71 100644
--- a/waku/v2/protocol/waku_swap/waku_swap.nim
+++ b/waku/v2/protocol/waku_swap/waku_swap.nim
@@ -93,7 +93,7 @@ proc sendCheque*(ws: WakuSwap) {.async.} =
   let peerOpt = ws.peerManager.selectPeer(WakuSwapCodec)
 
   if peerOpt.isNone():
-    error "failed to connect to remote peer"
+    error "no suitable remote peers"
     waku_swap_errors.inc(labelValues = [dialFailure])
     return