diff --git a/geth/peers/peerpool.go b/geth/peers/peerpool.go
index 6e3e6e043..5826924ec 100644
--- a/geth/peers/peerpool.go
+++ b/geth/peers/peerpool.go
@@ -152,18 +152,27 @@ func (p *PeerPool) handleServerPeers(server *p2p.Server, events <-chan *p2p.Peer
 					retryDiscv5 = time.After(0)
 				}
 			case p2p.PeerEventTypeAdd:
-				log.Debug("confirm peer added", "ID", event.Peer)
-				if p.stopOnMax && p.handleAddedPeer(server, event.Peer) {
-					log.Debug("closing discv5 connection", "server", server.Self())
-					server.DiscV5.Close()
-					server.DiscV5 = nil
-					p.feed.Send(Discv5Closed)
-				}
+				p.handleAddedEvent(server, event)
 			}
 		}
 	}
 }
 
+// handledAddedEvent maintains logic of stopping discovery server and added mainly
+// for easier testing.
+func (p *PeerPool) handleAddedEvent(server *p2p.Server, event *p2p.PeerEvent) {
+	log.Debug("confirm peer added", "ID", event.Peer)
+	if p.stopOnMax && p.handleAddedPeer(server, event.Peer) {
+		if server.DiscV5 == nil {
+			return
+		}
+		log.Debug("closing discv5 connection", "server", server.Self())
+		server.DiscV5.Close()
+		server.DiscV5 = nil
+		p.feed.Send(Discv5Closed)
+	}
+}
+
 // handleAddedPeer notifies all topics about added peer and return true if all topics has max limit of connections
 func (p *PeerPool) handleAddedPeer(server *p2p.Server, nodeID discover.NodeID) (all bool) {
 	p.mu.Lock()
diff --git a/geth/peers/peerpool_test.go b/geth/peers/peerpool_test.go
index 28c21e757..d32737086 100644
--- a/geth/peers/peerpool_test.go
+++ b/geth/peers/peerpool_test.go
@@ -12,6 +12,7 @@ import (
 	"github.com/ethereum/go-ethereum/p2p"
 	"github.com/ethereum/go-ethereum/p2p/discover"
 	"github.com/ethereum/go-ethereum/p2p/discv5"
+	"github.com/stretchr/testify/require"
 	"github.com/stretchr/testify/suite"
 
 	"github.com/status-im/status-go/geth/params"
@@ -133,3 +134,28 @@ func (s *PeerPoolSimulationSuite) TearDown() {
 		p.Stop()
 	}
 }
+
+// TestMaxPeersOverflow verifies that following scenario will not occur:
+// - found peer A and B in the same kademlia cycle
+// - process peer A
+// - max limit is reached -> closed discv5 and set it to nil
+// - process peer B
+// - panic because discv5 is nil!!!
+func TestMaxPeersOverflow(t *testing.T) {
+	key, err := crypto.GenerateKey()
+	require.NoError(t, err)
+	peer := &p2p.Server{
+		Config: p2p.Config{
+			PrivateKey:  key,
+			DiscoveryV5: true,
+			NoDiscovery: true,
+		},
+	}
+	require.NoError(t, peer.Start())
+	defer peer.Stop()
+	require.NotNil(t, peer.DiscV5)
+	pool := NewPeerPool(nil, DefaultFastSync, DefaultSlowSync, nil, true)
+	pool.handleAddedEvent(peer, &p2p.PeerEvent{})
+	require.Nil(t, peer.DiscV5)
+	pool.handleAddedEvent(peer, &p2p.PeerEvent{})
+}