diff --git a/dot/network/notifications.go b/dot/network/notifications.go
index 6ef0031311..1cb102d0c5 100644
--- a/dot/network/notifications.go
+++ b/dot/network/notifications.go
@@ -19,6 +19,7 @@ package network
 import (
 	"errors"
 	"sync"
+	"time"
 	"unsafe"
 
 	libp2pnetwork "github.com/libp2p/go-libp2p-core/network"
@@ -29,6 +30,7 @@ import (
 var errCannotValidateHandshake = errors.New("failed to validate handshake")
 
 const maxHandshakeSize = unsafe.Sizeof(BlockAnnounceHandshake{}) //nolint
+const handshakeTimeout = time.Second * 10
 
 // Handshake is the interface all handshakes for notifications protocols must implement
 type Handshake interface {
@@ -53,6 +55,11 @@ type (
 	NotificationsMessageHandler = func(peer peer.ID, msg NotificationsMessage) (propagate bool, err error)
 )
 
+type handshakeReader struct {
+	hs  Handshake
+	err error
+}
+
 type notificationsProtocol struct {
 	protocolID         protocol.ID
 	getHandshake       HandshakeGetter
@@ -63,16 +70,17 @@ type notificationsProtocol struct {
 }
 
 func (n *notificationsProtocol) getHandshakeData(pid peer.ID, inbound bool) (handshakeData, bool) {
-	if inbound {
-		data, has := n.inboundHandshakeData.Load(pid)
-		if !has {
-			return handshakeData{}, false
-		}
+	var (
+		data interface{}
+		has  bool
+	)
 
-		return data.(handshakeData), true
+	if inbound {
+		data, has = n.inboundHandshakeData.Load(pid)
+	} else {
+		data, has = n.outboundHandshakeData.Load(pid)
 	}
 
-	data, has := n.outboundHandshakeData.Load(pid)
 	if !has {
 		return handshakeData{}, false
 	}
@@ -174,7 +182,7 @@ func (s *Service) createNotificationsMessageHandler(info *notificationsProtocol,
 			return nil
 		}
 
-		logger.Debug("received message on notifications sub-protocol", "protocol", info.protocolID,
+		logger.Trace("received message on notifications sub-protocol", "protocol", info.protocolID,
 			"message", msg,
 			"peer", stream.Conn().RemotePeer(),
 		)
@@ -231,14 +239,29 @@ func (s *Service) sendData(peer peer.ID, hs Handshake, info *notificationsProtoc
 			return
 		}
 
-		hs, err := s.readHandshake(stream, decodeBlockAnnounceHandshake)
-		if err != nil {
-			logger.Trace("failed to read handshake", "protocol", info.protocolID, "peer", peer, "error", err)
+		hsTimer := time.NewTimer(handshakeTimeout)
+
+		var hs Handshake
+		select {
+		case <-hsTimer.C:
+			logger.Trace("handshake timeout reached", "protocol", info.protocolID, "peer", peer)
 			_ = stream.Close()
+			info.outboundHandshakeData.Delete(peer)
 			return
-		}
 
-		hsData.received = true
+		case hsResponse := <-s.readHandshake(stream, decodeBlockAnnounceHandshake):
+			hsTimer.Stop()
+			if hsResponse.err != nil {
+				logger.Trace("failed to read handshake", "protocol", info.protocolID, "peer", peer, "error", err)
+				_ = stream.Close()
+
+				info.outboundHandshakeData.Delete(peer)
+				return
+			}
+
+			hs = hsResponse.hs
+			hsData.received = true
+		}
 
 		err = info.handshakeValidator(peer, hs)
 		if err != nil {
@@ -299,19 +322,30 @@ func (s *Service) broadcastExcluding(info *notificationsProtocol, excluding peer
 	}
 }
 
-func (s *Service) readHandshake(stream libp2pnetwork.Stream, decoder HandshakeDecoder) (Handshake, error) {
-	msgBytes := s.bufPool.get()
-	defer s.bufPool.put(&msgBytes)
+func (s *Service) readHandshake(stream libp2pnetwork.Stream, decoder HandshakeDecoder) <-chan *handshakeReader {
+	hsC := make(chan *handshakeReader)
 
-	tot, err := readStream(stream, msgBytes[:])
-	if err != nil {
-		return nil, err
-	}
+	go func() {
+		msgBytes := s.bufPool.get()
+		defer func() {
+			s.bufPool.put(&msgBytes)
+			close(hsC)
+		}()
 
-	hs, err := decoder(msgBytes[:tot])
-	if err != nil {
-		return nil, err
-	}
+		tot, err := readStream(stream, msgBytes[:])
+		if err != nil {
+			hsC <- &handshakeReader{hs: nil, err: err}
+			return
+		}
+
+		hs, err := decoder(msgBytes[:tot])
+		if err != nil {
+			hsC <- &handshakeReader{hs: nil, err: err}
+			return
+		}
+
+		hsC <- &handshakeReader{hs: hs, err: nil}
+	}()
 
-	return hs, nil
+	return hsC
 }
diff --git a/dot/network/notifications_test.go b/dot/network/notifications_test.go
index 83926edaef..3662943614 100644
--- a/dot/network/notifications_test.go
+++ b/dot/network/notifications_test.go
@@ -17,6 +17,8 @@
 package network
 
 import (
+	"context"
+	"fmt"
 	"math/big"
 	"sync"
 	"testing"
@@ -25,7 +27,10 @@ import (
 	"github.com/ChainSafe/gossamer/dot/types"
 	"github.com/ChainSafe/gossamer/lib/common"
 	"github.com/ChainSafe/gossamer/lib/utils"
+	ma "github.com/multiformats/go-multiaddr"
 
+	"github.com/libp2p/go-libp2p"
+	libp2pnetwork "github.com/libp2p/go-libp2p-core/network"
 	"github.com/libp2p/go-libp2p-core/peer"
 	"github.com/stretchr/testify/require"
 )
@@ -240,3 +245,80 @@ func TestCreateNotificationsMessageHandler_BlockAnnounceHandshake(t *testing.T)
 	require.True(t, data.received)
 	require.True(t, data.validated)
 }
+
+func Test_HandshakeTimeout(t *testing.T) {
+	// create service A
+	config := &Config{
+		BasePath:    utils.NewTestBasePath(t, "nodeA"),
+		Port:        7001,
+		RandSeed:    1,
+		NoBootstrap: true,
+		NoMDNS:      true,
+	}
+	ha := createTestService(t, config)
+
+	// create info and handler
+	info := &notificationsProtocol{
+		protocolID:            ha.host.protocolID + blockAnnounceID,
+		getHandshake:          ha.getBlockAnnounceHandshake,
+		handshakeValidator:    ha.validateBlockAnnounceHandshake,
+		inboundHandshakeData:  new(sync.Map),
+		outboundHandshakeData: new(sync.Map),
+	}
+
+	// creating host b with will never respond to a handshake
+	addrB, err := ma.NewMultiaddr(fmt.Sprintf("/ip4/0.0.0.0/tcp/%d", 7002))
+	require.NoError(t, err)
+
+	hb, err := libp2p.New(
+		context.Background(), libp2p.ListenAddrs(addrB),
+	)
+	require.NoError(t, err)
+
+	testHandshakeMsg := &BlockAnnounceHandshake{
+		Roles:           4,
+		BestBlockNumber: 77,
+		BestBlockHash:   common.Hash{1},
+		GenesisHash:     common.Hash{2},
+	}
+
+	hb.SetStreamHandler(info.protocolID, func(stream libp2pnetwork.Stream) {
+		fmt.Println("never respond a handshake message")
+	})
+
+	addrBInfo := peer.AddrInfo{
+		ID:    hb.ID(),
+		Addrs: hb.Addrs(),
+	}
+
+	err = ha.host.connect(addrBInfo)
+	if failedToDial(err) {
+		time.Sleep(TestBackoffTimeout)
+		err = ha.host.connect(addrBInfo)
+	}
+	require.NoError(t, err)
+
+	go ha.sendData(hb.ID(), testHandshakeMsg, info, nil)
+
+	time.Sleep(handshakeTimeout / 2)
+	// peer should be stored in handshake data until timeout
+	_, ok := info.outboundHandshakeData.Load(hb.ID())
+	require.True(t, ok)
+
+	// a stream should be open until timeout
+	connAToB := ha.host.h.Network().ConnsToPeer(hb.ID())
+	require.Len(t, connAToB, 1)
+	require.Len(t, connAToB[0].GetStreams(), 1)
+
+	// after the timeout
+	time.Sleep(handshakeTimeout)
+
+	// handshake data should be removed
+	_, ok = info.outboundHandshakeData.Load(hb.ID())
+	require.False(t, ok)
+
+	// stream should be closed
+	connAToB = ha.host.h.Network().ConnsToPeer(hb.ID())
+	require.Len(t, connAToB, 1)
+	require.Len(t, connAToB[0].GetStreams(), 0)
+}
diff --git a/dot/network/utils.go b/dot/network/utils.go
index 211f247a8f..67f60ddf5d 100644
--- a/dot/network/utils.go
+++ b/dot/network/utils.go
@@ -216,7 +216,7 @@ func readStream(stream libp2pnetwork.Stream, buf []byte) (int, error) {
 	}
 
 	if tot != int(length) {
-		return tot, fmt.Errorf("failed to read entire message: expected %d bytes", length)
+		return tot, fmt.Errorf("failed to read entire message: expected %d bytes, received %d bytes", length, tot)
 	}
 
 	return tot, nil