diff --git a/network/kademlia.go b/network/kademlia.go
index 3e5008e319..67962beee3 100644
--- a/network/kademlia.go
+++ b/network/kademlia.go
@@ -377,42 +377,66 @@ func (k *Kademlia) SuggestPeer() (suggestedPeer *BzzAddr, saturationDepth int, c
 			// no bin with this size
 			continue
 		}
-		cur := 0
-		curPO := bins[0]
-		k.addrs.EachBin(k.base, Pof, curPO, func(bin *pot.Bin) bool {
-			curPO = bins[cur]
-			// find the next bin that has size size
-			po := bin.ProximityOrder
-			if curPO == po {
-				cur++
-			} else {
-				// skip bins that have no addresses
-				for ; cur < len(bins) && curPO < po; cur++ {
-					curPO = bins[cur]
-				}
-				if po < curPO {
-					cur--
-					return true
+		//If we have unsaturated bins in the neighborhood, try to connect the closest peer
+		if bins[len(bins)-1] >= k.nDepth {
+			currBinIndex := len(bins) - 1
+			valIterator := func(val pot.Val, po int) bool {
+				if po < bins[currBinIndex] {
+					currBinIndex--
+					if currBinIndex < 0 {
+						return false
+					}
 				}
-				// stop if there are no addresses
-				if curPO < po {
-					return false
+				if po == bins[currBinIndex] && po >= k.nDepth {
+					e := val.(*entry)
+					if k.callable(e) {
+						suggestedPeer = e.BzzAddr
+						return false
+					}
 				}
+				return true
 			}
-			// curPO found
-			// find a callable peer out of the addresses in the unsaturated bin
-			// stop if found
-			bin.ValIterator(func(val pot.Val) bool {
-				e := val.(*entry)
-				if k.callable(e) {
-					suggestedPeer = e.BzzAddr
-					return false
+			k.addrs.EachNeighbour(k.base, Pof, valIterator)
+		}
+
+		if suggestedPeer == nil {
+			cur := 0
+			curPO := bins[0]
+			k.addrs.EachBin(k.base, Pof, curPO, func(bin *pot.Bin) bool {
+				curPO = bins[cur]
+				// find the next bin that has size size
+				po := bin.ProximityOrder
+				if curPO == po {
+					cur++
+				} else {
+					// skip bins that have no addresses
+					for ; cur < len(bins) && curPO < po; cur++ {
+						curPO = bins[cur]
+					}
+					if po < curPO {
+						cur--
+						return true
+					}
+					// stop if there are no addresses
+					if curPO < po {
+						return false
+					}
 				}
+				// curPO found
+				// find a callable peer out of the addresses in the unsaturated bin
+				// stop if found
+				bin.ValIterator(func(val pot.Val) bool {
+					e := val.(*entry)
+					if k.callable(e) {
+						suggestedPeer = e.BzzAddr
+						return false
+					}
 
-				return true
+					return true
+				})
+				return cur < len(bins) && suggestedPeer == nil
 			})
-			return cur < len(bins) && suggestedPeer == nil
-		})
+		}
 	}
 	if uint8(saturationDepth) < k.saturationDepth {
 		k.saturationDepth = uint8(saturationDepth)
diff --git a/network/kademlia_test.go b/network/kademlia_test.go
index 60e74e5605..44658d7332 100644
--- a/network/kademlia_test.go
+++ b/network/kademlia_test.go
@@ -375,45 +375,37 @@ func TestSuggestPeers(t *testing.T) {
 	base := "00000000"
 	tk := newTestKademlia(t, base)
 
-	//Add peers to bin 2 and 3 in order to be able to have depth 2
+	//Add peers to bin 2 and 3 in order to later be able to have depth 2
 	tk.On("00100000")
 	tk.On("00010000")
-
 	//No unconnected peers
 	tk.checkSuggestPeer("<nil>", 0, false)
 
 	//We add some addresses that fall in bin0 and bin1
 	tk.Register("11111000")
 	tk.Register("01110000")
-
-	//Bins should fill from  most empty to least empty and shallower to deeper
-	//first suggestion should be for bin 0
-	tk.checkSuggestPeer("11111000", 0, false)
-	tk.On("11111000")
-
-	//Since we now have 1 peer in bin0 and none in bin1, next suggested peer should be for bin1
+	//Bins should fill from  most empty to least empty and shallower to deeper, always prioritizing the closest peer
+	//in the neighborhood, first suggestion should be for bin 1 (both bin 0 and 1 in neighbourhood)
 	tk.checkSuggestPeer("01110000", 0, false)
 	tk.On("01110000")
+	tk.checkSuggestPeer("11111000", 0, false)
+	tk.On("11111000")
 
 	tk.Register("11110000")
 	tk.Register("01100000")
-
-	//Both bins 0 and 1 have at least 1 peer, so next suggested peer should be for 0 (shallower)
+	//Both bins 0 and 1 have  1 peer and are out of the neighborhood, so next suggested peer should be for 0 (shallower)
 	tk.checkSuggestPeer("11110000", 0, false)
 	tk.On("11110000")
-
 	//Bin0 has 2 peers, bin1 has 1 peer, should recommend peer for bin 1
 	tk.checkSuggestPeer("01100000", 0, false)
 	tk.On("01100000")
 
 	tk.Register("11100000")
 	tk.Register("01100011")
-
 	//Bin1 should be saturated now
 	//Next suggestion should  be bin0 peers
 	tk.checkSuggestPeer("11100000", 0, false)
 	tk.On("11100000")
-
 	//Bin0 should also  be saturated now
 	//All bins saturated, shouldn't suggest more peers
 	tk.Register("11000000")
@@ -424,16 +416,15 @@ func TestSuggestPeers(t *testing.T) {
 	//We add addresses that fall in bin2 and bin3
 	tk.Register("00111000")
 	tk.Register("00011100")
-
-	tk.checkSuggestPeer("00111000", 0, false)
-	tk.On("00110000")
+	//Since both peers fall in bins in neighborhood, first should be for closest bin
 	tk.checkSuggestPeer("00011100", 0, false)
 	tk.On("00011100")
+	tk.checkSuggestPeer("00111000", 0, false)
+	tk.On("00111000")
 
-	//Now depth has changed to 3 since bin3 and deeper include neighbourSize peers (2)
-	//Bin0 and Bin1 not saturated, Bin2 saturated
-	tk.Register("11000000")
-
+	//Now depth has changed to 3 since bin3 and deeper include neighbourSize peers(2)
+	//Bin0 and bin1 not saturated, bin2 saturated
+	//Since size of bin1 < bin0 , should first suggest for bin1
 	tk.checkSuggestPeer("01100011", 0, false)
 	tk.On("01100011")
 	tk.checkSuggestPeer("11000000", 0, false)
@@ -444,16 +435,39 @@ func TestSuggestPeers(t *testing.T) {
 	tk.Register("01010100")
 	tk.checkSuggestPeer("<nil>", 0, false)
 
-	//If bin in neighbour (bin3), should keep adding peers even if size >== expectedSize
+	//If bin (bin3) in neighbour, should keep adding peers even if size >= expectedMinBinSize
 	tk.Register("00011111")
-	tk.checkSuggestPeer("00011111", 0, false)
-	tk.On("00011111")
 	tk.Register("00010001")
 	tk.checkSuggestPeer("00010001", 0, false)
 	tk.On("00010001")
+	tk.checkSuggestPeer("00011111", 0, false)
+	tk.On("00011111")
 
 	//No more peers left in unsaturated bins
 	tk.checkSuggestPeer("<nil>", 0, false)
+
+	//Add more peers inside neighborhood (bins 3 and 4)
+	tk.Register("00011011")
+	tk.Register("00001000")
+	tk.Register("00001010")
+	//Should suggest peer for bin4 first (since in neighbourhood, closest one)
+	tk.checkSuggestPeer("00001000", 0, false)
+	tk.On("00001000")
+	//Both bins still in neighbourhood, suggest peer for closest bin (also bin4)
+	tk.checkSuggestPeer("00001010", 0, false)
+	tk.On("00001010")
+	//Bin 4 has now  neighbourhood size peers, depth is now 4
+	//Since bin 3 not in neighbourhood anymore and connected peers > expectedMinBinSize(2), shouldn't suggest peer for it
+	//Bins 0 and 1 have peers unconnected and are not saturated now, should suggest for bin1 (smaller)
+	tk.checkSuggestPeer("01010100", 0, false)
+	tk.On("01010100")
+	//Unconnected peer left in  unsaturated bin 0, should suggest it
+	tk.checkSuggestPeer("11111110", 0, false)
+	tk.On("11111110")
+
+	//All bins saturated or without peers available to connect
+	tk.checkSuggestPeer("<nil>", 0, false)
+
 }
 
 //Tests change of saturationDepth returned by suggestPeers
@@ -490,7 +504,7 @@ func TestSuggestPeersSaturationDepthChange(t *testing.T) {
 	tk.Off("00010000")
 	tk.Off("00010001")
 	//Saturation depth should have fallen to 2
-	tk.checkSuggestPeer("00010001", 2, true)
+	tk.checkSuggestPeer("00010000", 2, true)
 
 	//We bring saturation depth back to 3
 	tk.On("00010000")