diff --git a/beacon-chain/p2p/connection_gater.go b/beacon-chain/p2p/connection_gater.go
index 896e2b95e7..21f728d732 100644
--- a/beacon-chain/p2p/connection_gater.go
+++ b/beacon-chain/p2p/connection_gater.go
@@ -78,7 +78,7 @@ func (s *Service) validateDial(addr multiaddr.Multiaddr) bool {
 		return false
 	}
 	s.ipLimiter.Add(ip.String(), 1)
-	return !s.peers.IsAboveInboundLimit()
+	return true
 }
 
 // configureFilter looks at the provided allow lists and
diff --git a/beacon-chain/p2p/connection_gater_test.go b/beacon-chain/p2p/connection_gater_test.go
index 11e4632007..0af2bccae9 100644
--- a/beacon-chain/p2p/connection_gater_test.go
+++ b/beacon-chain/p2p/connection_gater_test.go
@@ -9,10 +9,12 @@ import (
 	"github.com/libp2p/go-libp2p"
 	"github.com/libp2p/go-libp2p-core/peer"
 	"github.com/multiformats/go-multiaddr"
+	ma "github.com/multiformats/go-multiaddr"
 	ethpb "github.com/prysmaticlabs/ethereumapis/eth/v1"
 	"github.com/prysmaticlabs/prysm/beacon-chain/p2p/peers"
 	"github.com/prysmaticlabs/prysm/beacon-chain/p2p/peers/peerdata"
 	"github.com/prysmaticlabs/prysm/beacon-chain/p2p/peers/scorers"
+	mockp2p "github.com/prysmaticlabs/prysm/beacon-chain/p2p/testing"
 	"github.com/prysmaticlabs/prysm/shared/testutil/assert"
 	"github.com/prysmaticlabs/prysm/shared/testutil/require"
 )
@@ -102,6 +104,8 @@ func TestService_RejectInboundPeersBeyondLimit(t *testing.T) {
 			PeerLimit:    limit,
 			ScorerParams: &scorers.Config{},
 		}),
+		host: mockp2p.NewTestP2P(t).BHost,
+		cfg:  &Config{MaxPeers: uint(limit)},
 	}
 	var err error
 	s.addrFilter, err = configureFilter(&Config{})
@@ -110,19 +114,20 @@ func TestService_RejectInboundPeersBeyondLimit(t *testing.T) {
 	multiAddress, err := multiaddr.NewMultiaddr(fmt.Sprintf("/ip4/%s/tcp/%d", ip, 3000))
 	require.NoError(t, err)
 
-	valid := s.validateDial(multiAddress)
+	valid := s.InterceptAccept(&maEndpoints{raddr: multiAddress})
 	if !valid {
 		t.Errorf("Expected multiaddress with ip %s to be accepted as it is below the inbound limit", ip)
 	}
 
 	inboundLimit := float64(limit) * peers.InboundRatio
+	inboundLimit += highWatermarkBuffer
 	// top off by 1 to trigger it above the limit.
 	inboundLimit += 1
 	// Add in up to inbound peer limit.
 	for i := 0; i < int(inboundLimit); i++ {
 		addPeer(t, s.peers, peerdata.PeerConnectionState(ethpb.ConnectionState_CONNECTED))
 	}
-	valid = s.validateDial(multiAddress)
+	valid = s.InterceptAccept(&maEndpoints{raddr: multiAddress})
 	if valid {
 		t.Errorf("Expected multiaddress with ip %s to be rejected as it exceeds the inbound limit", ip)
 	}
@@ -285,3 +290,21 @@ func TestService_InterceptAddrDial_Allow(t *testing.T) {
 		t.Errorf("Expected multiaddress with ip %s to not be rejected with an allow cidr mask of %s", ip, cidr)
 	}
 }
+
+// Mock type for testing.
+type maEndpoints struct {
+	laddr ma.Multiaddr
+	raddr ma.Multiaddr
+}
+
+// LocalMultiaddr returns the local address associated with
+// this connection
+func (c *maEndpoints) LocalMultiaddr() ma.Multiaddr {
+	return c.laddr
+}
+
+// RemoteMultiaddr returns the remote address associated with
+// this connection
+func (c *maEndpoints) RemoteMultiaddr() ma.Multiaddr {
+	return c.raddr
+}
diff --git a/beacon-chain/p2p/discovery.go b/beacon-chain/p2p/discovery.go
index 309432166a..84d58f67df 100644
--- a/beacon-chain/p2p/discovery.go
+++ b/beacon-chain/p2p/discovery.go
@@ -288,9 +288,14 @@ func (s *Service) isPeerAtLimit(inbound bool) bool {
 	// we apply the high watermark buffer.
 	if inbound {
 		maxPeers += highWatermarkBuffer
+		maxInbound := s.peers.InboundLimit() + highWatermarkBuffer
+		currInbound := len(s.peers.Inbound())
+		// Exit early if we are at the inbound limit.
+		if currInbound >= maxInbound {
+			return true
+		}
 	}
 	activePeers := len(s.Peers().Active())
-
 	return activePeers >= maxPeers || numOfConns >= maxPeers
 }
 
diff --git a/beacon-chain/p2p/peers/status.go b/beacon-chain/p2p/peers/status.go
index 2c165f71ad..2684eecab0 100644
--- a/beacon-chain/p2p/peers/status.go
+++ b/beacon-chain/p2p/peers/status.go
@@ -62,7 +62,7 @@ const (
 	maxLimitBuffer = 150
 
 	// InboundRatio is the proportion of our connected peer limit at which we will allow inbound peers.
-	InboundRatio = float64(1)
+	InboundRatio = float64(0.8)
 )
 
 // Status is the structure holding the peer status information.
@@ -208,6 +208,14 @@ func (p *Status) IsAboveInboundLimit() bool {
 	return totalInbound > inboundLimit
 }
 
+// InboundLimit returns the current inbound
+// peer limit.
+func (p *Status) InboundLimit() int {
+	p.store.RLock()
+	defer p.store.RUnlock()
+	return int(float64(p.ConnectedPeerLimit()) * InboundRatio)
+}
+
 // SetMetadata sets the metadata of the given remote peer.
 func (p *Status) SetMetadata(pid peer.ID, metaData *pb.MetaData) {
 	p.store.Lock()
@@ -662,7 +670,7 @@ func (p *Status) PeersToPrune() []peer.ID {
 		badResp int
 	}
 	peersToPrune := make([]*peerResp, 0)
-	// Select disconnected peers with a smaller bad response count.
+	// Select connected and inbound peers to prune.
 	for pid, peerData := range p.store.Peers() {
 		if peerData.ConnState == PeerConnected && peerData.Direction == network.DirInbound {
 			peersToPrune = append(peersToPrune, &peerResp{