diff --git a/eth/downloader/downloader.go b/eth/downloader/downloader.go
index 4cd927fd5..a48b60716 100644
--- a/eth/downloader/downloader.go
+++ b/eth/downloader/downloader.go
@@ -30,7 +30,7 @@ var (
 	errLowTd            = errors.New("peer's TD is too low")
 	errBusy             = errors.New("busy")
 	errUnknownPeer      = errors.New("peer's unknown or unhealthy")
-	errBadPeer          = errors.New("action from bad peer ignored")
+	ErrBadPeer          = errors.New("action from bad peer ignored")
 	errTimeout          = errors.New("timeout")
 	errEmptyHashSet     = errors.New("empty hash set by peer")
 	errPeersUnavailable = errors.New("no peers available or all peers tried for block download process")
@@ -376,7 +376,7 @@ func (d *Downloader) AddBlock(id string, block *types.Block, td *big.Int) error
 	// and add the block. Otherwise just ignore it
 	if peer == nil {
 		glog.V(logger.Detail).Infof("Ignored block from bad peer %s\n", id)
-		return errBadPeer
+		return ErrBadPeer
 	}
 
 	peer.mu.Lock()
@@ -422,10 +422,7 @@ func (d *Downloader) process(peer *peer) error {
 		return nil
 	}
 
-	var (
-		blocks = d.queue.blocks
-		err    error
-	)
+	var blocks = d.queue.blocks
 	glog.V(logger.Debug).Infof("Inserting chain with %d blocks (#%v - #%v)\n", len(blocks), blocks[0].Number(), blocks[len(blocks)-1].Number())
 
 	// Loop untill we're out of blocks
@@ -435,7 +432,7 @@ func (d *Downloader) process(peer *peer) error {
 		// processing and start requesting the `block.hash` so that it's parent and
 		// grandparents can be requested and queued.
 		var i int
-		i, err = d.insertChain(blocks[:max])
+		i, err := d.insertChain(blocks[:max])
 		if err != nil && core.IsParentErr(err) {
 			// Ignore the missing blocks. Handler should take care of anything that's missing.
 			glog.V(logger.Debug).Infof("Ignored block with missing parent (%d)\n", i)
@@ -447,8 +444,9 @@ func (d *Downloader) process(peer *peer) error {
 			d.UnregisterPeer(d.activePeer)
 			// Reset chain completely. This needs much, much improvement.
 			// instead: check all blocks leading down to this block false block and remove it
-			blocks = nil
-			break
+			d.queue.blocks = nil
+
+			return ErrBadPeer
 		}
 		blocks = blocks[max:]
 	}
@@ -459,7 +457,7 @@ func (d *Downloader) process(peer *peer) error {
 	} else {
 		d.queue.blocks = blocks
 	}
-	return err
+	return nil
 }
 
 func (d *Downloader) isFetchingHashes() bool {
diff --git a/eth/handler.go b/eth/handler.go
index fecd71632..6cc69aa26 100644
--- a/eth/handler.go
+++ b/eth/handler.go
@@ -122,6 +122,12 @@ func NewProtocolManager(protocolVersion, networkId int, mux *event.TypeMux, txpo
 	return manager
 }
 
+func (pm *ProtocolManager) removePeer(peer *peer) {
+	pm.pmu.Lock()
+	defer pm.pmu.Unlock()
+	delete(pm.peers, peer.id)
+}
+
 func (pm *ProtocolManager) syncHandler() {
 	// itimer is used to determine when to start ignoring `minDesiredPeerCount`
 	itimer := time.NewTimer(peerCountTimeout)
@@ -172,7 +178,10 @@ func (pm *ProtocolManager) synchronise(peer *peer) {
 	glog.V(logger.Info).Infof("Synchronisation attempt using %s TD=%v\n", peer.id, peer.td)
 	// Get the hashes from the peer (synchronously)
 	err := pm.downloader.Synchronise(peer.id, peer.recentHash)
-	if err != nil {
+	if err != nil && err == downloader.ErrBadPeer {
+		glog.V(logger.Debug).Infoln("removed peer from peer set due to bad action")
+		pm.removePeer(peer)
+	} else if err != nil {
 		// handle error
 		glog.V(logger.Debug).Infoln("error downloading:", err)
 	}
@@ -214,10 +223,8 @@ func (pm *ProtocolManager) handle(p *peer) error {
 
 	pm.downloader.RegisterPeer(p.id, p.recentHash, p.requestHashes, p.requestBlocks)
 	defer func() {
-		pm.pmu.Lock()
-		defer pm.pmu.Unlock()
-		delete(pm.peers, p.id)
 		pm.downloader.UnregisterPeer(p.id)
+		pm.removePeer(p)
 	}()
 
 	// propagate existing transactions. new transactions appearing
@@ -379,16 +386,23 @@ func (self *ProtocolManager) handleMsg(p *peer) error {
 		// if the parent does not exists we delegate to the downloader.
 		if self.chainman.HasBlock(request.Block.ParentHash()) {
 			if _, err := self.chainman.InsertChain(types.Blocks{request.Block}); err != nil {
-				// handle error
+				glog.V(logger.Error).Infoln("removed peer (", p.id, ") due to block error")
+
+				self.removePeer(p)
+
 				return nil
 			}
 			self.BroadcastBlock(hash, request.Block)
 		} else {
 			// adding blocks is synchronous
 			go func() {
-				// TODO check parent error
 				err := self.downloader.AddBlock(p.id, request.Block, request.TD)
-				if err != nil {
+				if err != nil && err == downloader.ErrBadPeer {
+					glog.V(logger.Error).Infoln("removed peer (", p.id, ") with err:", err)
+
+					self.removePeer(p)
+					return
+				} else if err != nil {
 					glog.V(logger.Detail).Infoln("downloader err:", err)
 					return
 				}