diff --git a/lightningd/gossip_control.c b/lightningd/gossip_control.c
index 450f55770..992bc9f7c 100644
--- a/lightningd/gossip_control.c
+++ b/lightningd/gossip_control.c
@@ -134,7 +134,7 @@ static unsigned gossip_msg(struct subd *gossip, const u8 *msg, const int *fds)
 		peer_already_connected(gossip->ld, msg);
 		break;
 	case WIRE_GOSSIP_PEER_CONNECTION_FAILED:
-		/* TODO(cdecker) Implement handler */
+		peer_connection_failed(gossip->ld, msg);
 		break;
 	case WIRE_GOSSIP_PEER_NONGOSSIP:
 		if (tal_count(fds) != 2)
diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index 984d7c877..defe14718 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -606,6 +606,29 @@ void peer_already_connected(struct lightningd *ld, const u8 *msg)
 	connect_succeeded(ld, &id);
 }
 
+void peer_connection_failed(struct lightningd *ld, const u8 *msg)
+{
+	struct pubkey id;
+	u32 attempts, timediff;
+		struct connect *i, *next;
+	if (!fromwire_gossip_peer_connection_failed(msg, NULL, &id, &attempts, &timediff))
+		fatal("Gossip gave bad GOSSIP_PEER_CONNECTION_FAILED message %s", tal_hex(msg, msg));
+
+	/* Careful!  Completing command frees connect. */
+	list_for_each_safe(&ld->connects, i, next, list) {
+		if (!pubkey_eq(&i->id, &id))
+			continue;
+
+		command_fail(
+		    i->cmd,
+		    "Could not connect to %s after %d seconds and %d attempts",
+		    type_to_string(msg, struct pubkey, &id), timediff,
+		    attempts);
+	}
+}
+
+
+
 void peer_sent_nongossip(struct lightningd *ld,
 			 const struct pubkey *id,
 			 const struct wireaddr *addr,
diff --git a/lightningd/peer_control.h b/lightningd/peer_control.h
index 51f5003ed..117588bd9 100644
--- a/lightningd/peer_control.h
+++ b/lightningd/peer_control.h
@@ -179,6 +179,9 @@ void peer_connected(struct lightningd *ld, const u8 *msg,
 /* This simply means we asked to reach a peer, but we already have it */
 void peer_already_connected(struct lightningd *ld, const u8 *msg);
 
+/* We were unable to connect to the peer */
+void peer_connection_failed(struct lightningd *ld, const u8 *msg);
+
 void peer_sent_nongossip(struct lightningd *ld,
 			 const struct pubkey *id,
 			 const struct wireaddr *addr,