diff --git a/dash-spv/src/network/manager.rs b/dash-spv/src/network/manager.rs
index bad467e87..9984f9416 100644
--- a/dash-spv/src/network/manager.rs
+++ b/dash-spv/src/network/manager.rs
@@ -304,6 +304,7 @@ impl PeerNetworkManager {
                         }
                         Err(e) => {
                             log::warn!("Handshake failed with {}: {}", addr, e);
+                            // Only clears connecting set. Peer was never added, so no count/event needed.
                             pool.remove_peer(&addr).await;
                             // Update reputation for handshake failure
                             reputation_manager
@@ -320,6 +321,7 @@ impl PeerNetworkManager {
                 }
                 Err(e) => {
                     log::debug!("Failed to connect to {}: {}", addr, e);
+                    // Only clears connecting set. Peer was never added, so no count/event needed.
                     pool.remove_peer(&addr).await;
                     // Minor reputation penalty for connection failure
                     reputation_manager
@@ -334,6 +336,45 @@ impl PeerNetworkManager {
         });
     }
 
+    /// Decrement the connected count and emit PeerDisconnected / PeersUpdated events.
+    async fn notify_peer_removed(
+        pool: &PeerPool,
+        addr: &SocketAddr,
+        connected_peer_count: &AtomicUsize,
+        network_event_sender: &broadcast::Sender<NetworkEvent>,
+    ) {
+        let sub_result =
+            connected_peer_count
+                .fetch_update(Ordering::Relaxed, Ordering::Relaxed, |c| c.checked_sub(1));
+        if sub_result.is_err() {
+            log::warn!("Peer count already zero when removing {}", addr);
+        }
+        let count = connected_peer_count.load(Ordering::Relaxed);
+        let addresses = pool.get_connected_addresses().await;
+        let best_height = pool.get_best_height().await;
+        let _ = network_event_sender.send(NetworkEvent::PeerDisconnected {
+            address: *addr,
+        });
+        let _ = network_event_sender.send(NetworkEvent::PeersUpdated {
+            connected_count: count,
+            addresses,
+            best_height,
+        });
+    }
+
+    /// Remove a peer from the pool, decrement the connected count, and emit
+    /// PeerDisconnected / PeersUpdated events.
+    async fn remove_peer_and_notify(
+        pool: &PeerPool,
+        addr: &SocketAddr,
+        connected_peer_count: &AtomicUsize,
+        network_event_sender: &broadcast::Sender<NetworkEvent>,
+    ) {
+        if pool.remove_peer(addr).await.is_some() {
+            Self::notify_peer_removed(pool, addr, connected_peer_count, network_event_sender).await;
+        }
+    }
+
     /// Start reading messages from a peer
     #[allow(clippy::too_many_arguments)] // TODO: refactor to reduce arguments
     async fn start_peer_reader(
@@ -664,26 +705,15 @@ impl PeerNetworkManager {
                 }
             }
 
-            // Remove from pool
+            // Remove from pool and notify consumers
             log::warn!("Disconnecting from {} (peer reader loop ended)", addr);
-            let removed = pool.remove_peer(&addr).await;
-            if removed.is_some() {
-                // Decrement connected peer counter when a peer is removed
-                connected_peer_count.fetch_sub(1, Ordering::Relaxed);
-
-                // Emit peer disconnected event
-                let count = connected_peer_count.load(Ordering::Relaxed);
-                let addresses = pool.get_connected_addresses().await;
-                let best_height = pool.get_best_height().await;
-                let _ = network_event_sender.send(NetworkEvent::PeerDisconnected {
-                    address: addr,
-                });
-                let _ = network_event_sender.send(NetworkEvent::PeersUpdated {
-                    connected_count: count,
-                    addresses,
-                    best_height,
-                });
-            }
+            Self::remove_peer_and_notify(
+                &pool,
+                &addr,
+                &connected_peer_count,
+                &network_event_sender,
+            )
+            .await;
 
             headers2_disabled.lock().await.remove(&addr);
 
@@ -762,8 +792,19 @@ impl PeerNetworkManager {
     }
 
     async fn maintenance_tick(&self) {
-        // Clean up disconnected peers
-        self.pool.cleanup_disconnected().await;
+        // Remove peers that the reader loop failed to clean up.
+        // This should not trigger under normal operation.
+        let unhealthy = self.pool.remove_unhealthy().await;
+        for addr in &unhealthy {
+            log::warn!("Maintenance removed stale peer {} - reader loop missed cleanup", addr);
+            Self::notify_peer_removed(
+                &self.pool,
+                addr,
+                &self.connected_peer_count,
+                &self.network_event_sender,
+            )
+            .await;
+        }
 
         let count = self.pool.peer_count().await;
         log::debug!("Connected peers: {}", count);
@@ -1182,8 +1223,13 @@ impl PeerNetworkManager {
     pub async fn disconnect_peer(&self, addr: &SocketAddr, reason: &str) -> Result<(), Error> {
         log::info!("Disconnecting peer {} - reason: {}", addr, reason);
 
-        // Remove the peer
-        self.pool.remove_peer(addr).await;
+        Self::remove_peer_and_notify(
+            &self.pool,
+            addr,
+            &self.connected_peer_count,
+            &self.network_event_sender,
+        )
+        .await;
 
         Ok(())
     }
diff --git a/dash-spv/src/network/pool.rs b/dash-spv/src/network/pool.rs
index 5ccb1ba11..657d620f7 100644
--- a/dash-spv/src/network/pool.rs
+++ b/dash-spv/src/network/pool.rs
@@ -159,8 +159,9 @@ impl PeerPool {
         self.peer_count().await < TARGET_PEERS
     }
 
-    /// Clean up disconnected peers
-    pub async fn cleanup_disconnected(&self) {
+    /// Remove unhealthy peers and return their addresses so the caller can
+    /// emit the appropriate network events.
+    pub async fn remove_unhealthy(&self) -> Vec<SocketAddr> {
         let peers = self.peers.read().await;
         let mut unhealthy = Vec::new();
 
@@ -179,14 +180,10 @@ impl PeerPool {
         // Remove unhealthy connections
         if !unhealthy.is_empty() {
             let mut peers = self.peers.write().await;
-            for addr in unhealthy {
-                peers.remove(&addr);
-                log::warn!(
-                    "Cleaned up unhealthy peer: {} (marked unhealthy by health check)",
-                    addr
-                );
-            }
+            unhealthy.retain(|addr| peers.remove(addr).is_some());
         }
+
+        unhealthy
     }
 }