diff --git a/.changelog/dry-ducks-write.md b/.changelog/dry-ducks-write.md
new file mode 100644
index 0000000000..de44e1b6ef
--- /dev/null
+++ b/.changelog/dry-ducks-write.md
@@ -0,0 +1,5 @@
+---
+reth-network: minor
+---
+
+Added reason label to backed_off_peers metric. The metric now tracks backed off peers by reason (too_many_peers, graceful_close, connection_error) to improve observability.
diff --git a/crates/net/network/src/manager.rs b/crates/net/network/src/manager.rs
index 7387a5b64a..6bfbb9d3e1 100644
--- a/crates/net/network/src/manager.rs
+++ b/crates/net/network/src/manager.rs
@@ -25,11 +25,11 @@ use crate::{
     listener::ConnectionListener,
     message::{NewBlockMessage, PeerMessage},
     metrics::{
-        ClosedSessionsMetrics, DisconnectMetrics, NetworkMetrics, PendingSessionFailureMetrics,
-        NETWORK_POOL_TRANSACTIONS_SCOPE,
+        BackedOffPeersMetrics, ClosedSessionsMetrics, DisconnectMetrics, NetworkMetrics,
+        PendingSessionFailureMetrics, NETWORK_POOL_TRANSACTIONS_SCOPE,
     },
     network::{NetworkHandle, NetworkHandleMessage},
-    peers::PeersManager,
+    peers::{BackoffReason, PeersManager},
     poll_nested_stream_with_budget,
     protocol::IntoRlpxSubProtocol,
     required_block_filter::RequiredBlockFilter,
@@ -146,6 +146,8 @@ pub struct NetworkManager<N: NetworkPrimitives = EthNetworkPrimitives> {
     closed_sessions_metrics: ClosedSessionsMetrics,
     /// Pending session failure metrics, split by direction.
     pending_session_failure_metrics: PendingSessionFailureMetrics,
+    /// Backed off peers metrics, split by reason.
+    backed_off_peers_metrics: BackedOffPeersMetrics,
 }
 
 impl NetworkManager {
@@ -363,6 +365,7 @@ impl<N: NetworkPrimitives> NetworkManager<N> {
             disconnect_metrics: Default::default(),
             closed_sessions_metrics: Default::default(),
             pending_session_failure_metrics: Default::default(),
+            backed_off_peers_metrics: Default::default(),
         })
     }
 
@@ -869,10 +872,15 @@ impl<N: NetworkPrimitives> NetworkManager<N> {
                         &peer_id,
                         err,
                     );
+                    self.backed_off_peers_metrics.increment_for_reason(
+                        BackoffReason::from_disconnect(err.as_disconnected()),
+                    );
                     err.as_disconnected()
                 } else {
                     // Gracefully disconnected
                     self.swarm.state_mut().peers_mut().on_active_session_gracefully_closed(peer_id);
+                    self.backed_off_peers_metrics
+                        .increment_for_reason(BackoffReason::GracefulClose);
                     None
                 };
                 self.closed_sessions_metrics.active.increment(1);
@@ -914,9 +922,6 @@ impl<N: NetworkPrimitives> NetworkManager<N> {
                 self.metrics
                     .incoming_connections
                     .set(self.swarm.state().peers().num_inbound_connections() as f64);
-                self.metrics
-                    .backed_off_peers
-                    .set(self.swarm.state().peers().num_backed_off_peers() as f64);
             }
             SwarmEvent::OutgoingPendingSessionClosed { remote_addr, peer_id, error } => {
                 trace!(
@@ -934,6 +939,9 @@ impl<N: NetworkPrimitives> NetworkManager<N> {
                         err,
                     );
                     self.pending_session_failure_metrics.outbound.increment(1);
+                    self.backed_off_peers_metrics.increment_for_reason(
+                        BackoffReason::from_disconnect(err.as_disconnected()),
+                    );
                     if let Some(reason) = err.as_disconnected() {
                         self.disconnect_metrics.increment(reason);
                     }
@@ -945,7 +953,6 @@ impl<N: NetworkPrimitives> NetworkManager<N> {
                 }
                 self.closed_sessions_metrics.outgoing_pending.increment(1);
                 self.update_pending_connection_metrics();
-
                 self.metrics
                     .backed_off_peers
                     .set(self.swarm.state().peers().num_backed_off_peers() as f64);
@@ -965,6 +972,7 @@ impl<N: NetworkPrimitives> NetworkManager<N> {
                     &error,
                 );
 
+                self.backed_off_peers_metrics.increment_for_reason(BackoffReason::ConnectionError);
                 self.metrics
                     .backed_off_peers
                     .set(self.swarm.state().peers().num_backed_off_peers() as f64);
diff --git a/crates/net/network/src/metrics.rs b/crates/net/network/src/metrics.rs
index 1a15866346..71fb1d5d08 100644
--- a/crates/net/network/src/metrics.rs
+++ b/crates/net/network/src/metrics.rs
@@ -2,7 +2,7 @@ use metrics::Histogram;
 use reth_eth_wire::DisconnectReason;
 use reth_ethereum_primitives::TxType;
 use reth_metrics::{
-    metrics::{self, Counter, Gauge},
+    metrics::{Counter, Gauge},
     Metrics,
 };
 
@@ -110,6 +110,29 @@ impl Default for PendingSessionFailureMetrics {
     }
 }
 
+/// Metrics for backed off peers, split by reason.
+#[derive(Metrics)]
+#[metrics(scope = "network.backed_off_peers")]
+pub struct BackedOffPeersMetrics {
+    /// Peers backed off because they reported too many peers.
+    pub too_many_peers: Counter,
+    /// Peers backed off after a graceful session close.
+    pub graceful_close: Counter,
+    /// Peers backed off due to connection or protocol errors.
+    pub connection_error: Counter,
+}
+
+impl BackedOffPeersMetrics {
+    /// Increments the counter for the given backoff reason.
+    pub fn increment_for_reason(&self, reason: crate::peers::BackoffReason) {
+        match reason {
+            crate::peers::BackoffReason::TooManyPeers => self.too_many_peers.increment(1),
+            crate::peers::BackoffReason::GracefulClose => self.graceful_close.increment(1),
+            crate::peers::BackoffReason::ConnectionError => self.connection_error.increment(1),
+        }
+    }
+}
+
 /// Metrics for `SessionManager`
 #[derive(Metrics)]
 #[metrics(scope = "network")]
diff --git a/crates/net/network/src/peers.rs b/crates/net/network/src/peers.rs
index 801c4795c7..049f15e907 100644
--- a/crates/net/network/src/peers.rs
+++ b/crates/net/network/src/peers.rs
@@ -1260,6 +1260,27 @@ impl Display for InboundConnectionError {
     }
 }
 
+/// The reason a peer was backed off.
+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+pub enum BackoffReason {
+    /// The remote peer responded with `TooManyPeers` (0x04).
+    TooManyPeers,
+    /// The session was gracefully closed and we're backing off briefly.
+    GracefulClose,
+    /// A connection or protocol-level error occurred.
+    ConnectionError,
+}
+
+impl BackoffReason {
+    /// Derives the backoff reason from an optional [`DisconnectReason`].
+    pub const fn from_disconnect(reason: Option<DisconnectReason>) -> Self {
+        match reason {
+            Some(DisconnectReason::TooManyPeers) => Self::TooManyPeers,
+            _ => Self::ConnectionError,
+        }
+    }
+}
+
 #[cfg(test)]
 mod tests {
     use alloy_primitives::B512;