diff --git a/beacon_node/eth2-libp2p/Cargo.toml b/beacon_node/eth2-libp2p/Cargo.toml
index 31c0a7f2d4..aded78b02f 100644
--- a/beacon_node/eth2-libp2p/Cargo.toml
+++ b/beacon_node/eth2-libp2p/Cargo.toml
@@ -8,7 +8,8 @@ edition = "2018"
 beacon_chain =  { path = "../beacon_chain" }
 clap = "2.32.0"
 # SigP repository until PR is merged
-libp2p =  { git = "https://github.com/SigP/rust-libp2p", rev = "fb852bcc2b9b3935555cc93930e913cbec2b0688" }
+#libp2p =  { git = "https://github.com/SigP/rust-libp2p", rev = "fb852bcc2b9b3935555cc93930e913cbec2b0688" }
+libp2p =  { path = "../../../sharding/rust-libp2p" }
 types = { path =  "../../eth2/types" }
 serde = "1.0"
 serde_derive = "1.0"
diff --git a/beacon_node/eth2-libp2p/src/behaviour.rs b/beacon_node/eth2-libp2p/src/behaviour.rs
index b808818534..e952d1f81a 100644
--- a/beacon_node/eth2-libp2p/src/behaviour.rs
+++ b/beacon_node/eth2-libp2p/src/behaviour.rs
@@ -1,3 +1,4 @@
+use crate::discovery::Discovery;
 use crate::rpc::{RPCEvent, RPCMessage, Rpc};
 use crate::NetworkConfig;
 use crate::{Topic, TopicHash};
@@ -9,7 +10,7 @@ use libp2p::{
     },
     gossipsub::{Gossipsub, GossipsubEvent},
     identify::{protocol::IdentifyInfo, Identify, IdentifyEvent},
-    kad::{Kademlia, KademliaOut},
+    kad::KademliaOut,
     ping::{Ping, PingEvent},
     tokio_io::{AsyncRead, AsyncWrite},
     NetworkBehaviour, PeerId,
@@ -18,12 +19,8 @@ use slog::{debug, o, trace, warn};
 use ssz::{ssz_encode, Decode, DecodeError, Encode};
 use std::time::{Duration, Instant};
 use tokio_timer::Delay;
->>>>>>> Adds Kademlia for peer discovery
 use types::{Attestation, BeaconBlock};
 
-//TODO: Make this dynamic
-const TIME_BETWEEN_KAD_REQUESTS: Duration = Duration::from_secs(30);
-
 /// Builds the network behaviour for the libp2p Swarm.
 /// Implements gossipsub message routing.
 #[derive(NetworkBehaviour)]
@@ -38,13 +35,10 @@ pub struct Behaviour<TSubstream: AsyncRead + AsyncWrite> {
     /// Keep regular connection to peers and disconnect if absent.
     ping: Ping<TSubstream>,
     /// Kademlia for peer discovery.
-    kad: Kademlia<TSubstream>,
+    discovery: Discovery<TSubstream>,
     /// Queue of behaviour events to be processed.
     #[behaviour(ignore)]
     events: Vec<BehaviourEvent>,
-    /// The delay until we next search for more peers.
-    #[behaviour(ignore)]
-    kad_delay: Delay,
     /// Logger for behaviour actions.
     #[behaviour(ignore)]
     log: slog::Logger,
@@ -116,6 +110,12 @@ impl<TSubstream: AsyncRead + AsyncWrite> NetworkBehaviourEventProcess<IdentifyEv
                 }
                 self.events
                     .push(BehaviourEvent::Identified(peer_id, Box::new(info)));
+                trace!(self.log, "Found addresses"; "Peer Id" => format!("{:?}", peer_id), "Addresses" => format!("{:?}", info.listen_addrs));
+                // inject the found addresses into our discovery behaviour
+                for address in &info.listen_addrs {
+                    self.discovery
+                        .add_connected_address(&peer_id, address.clone());
+                }
             }
             IdentifyEvent::Error { .. } => {}
             IdentifyEvent::SendBack { .. } => {}
@@ -131,31 +131,12 @@ impl<TSubstream: AsyncRead + AsyncWrite> NetworkBehaviourEventProcess<PingEvent>
     }
 }
 
-// implement the kademlia behaviour
+// implement the discovery behaviour (currently kademlia)
 impl<TSubstream: AsyncRead + AsyncWrite> NetworkBehaviourEventProcess<KademliaOut>
     for Behaviour<TSubstream>
 {
-    fn inject_event(&mut self, out: KademliaOut) {
-        match out {
-            KademliaOut::Discovered { peer_id, .. } => {
-                debug!(self.log, "Kademlia peer discovered: {:?}", peer_id);
-                // send this to our topology behaviour
-            }
-            KademliaOut::KBucketAdded { .. } => {
-                // send this to our topology behaviour
-            }
-            KademliaOut::FindNodeResult { closer_peers, .. } => {
-                debug!(
-                    self.log,
-                    "Kademlia query found {} peers",
-                    closer_peers.len()
-                );
-                if closer_peers.is_empty() {
-                    warn!(self.log, "Kademlia random query yielded empty results");
-                }
-            }
-            KademliaOut::GetProvidersResult { .. } => (),
-        }
+    fn inject_event(&mut self, _out: KademliaOut) {
+        // not interested in kademlia results at the moment
     }
 }
 
@@ -168,7 +149,7 @@ impl<TSubstream: AsyncRead + AsyncWrite> Behaviour<TSubstream> {
         Behaviour {
             serenity_rpc: Rpc::new(log),
             gossipsub: Gossipsub::new(local_peer_id.clone(), net_conf.gs_config.clone()),
-            kad: Kademlia::new(local_peer_id),
+            discovery: Discovery::new(local_peer_id, log),
             identify: Identify::new(
                 identify_config.version,
                 identify_config.user_agent,
@@ -176,7 +157,6 @@ impl<TSubstream: AsyncRead + AsyncWrite> Behaviour<TSubstream> {
             ),
             ping: Ping::new(),
             events: Vec::new(),
-            kad_delay: Delay::new(Instant::now()),
             log: behaviour_log,
         }
     }
@@ -189,19 +169,6 @@ impl<TSubstream: AsyncRead + AsyncWrite> Behaviour<TSubstream> {
             return Async::Ready(NetworkBehaviourAction::GenerateEvent(self.events.remove(0)));
         }
 
-        // check to see if it's time to search for me peers with kademlia
-        loop {
-            match self.kad_delay.poll() {
-                Ok(Async::Ready(_)) => {
-                    self.get_kad_peers();
-                }
-                Ok(Async::NotReady) => break,
-                Err(e) => {
-                    warn!(self.log, "Error getting peers from Kademlia. Err: {:?}", e);
-                }
-            }
-        }
-
         Async::NotReady
     }
 }
@@ -225,18 +192,6 @@ impl<TSubstream: AsyncRead + AsyncWrite> Behaviour<TSubstream> {
             self.gossipsub.publish(topic, message_bytes.clone());
         }
     }
-
-    /// Queries for more peers randomly using Kademlia.
-    pub fn get_kad_peers(&mut self) {
-        // pick a random PeerId
-        let random_peer = PeerId::random();
-        debug!(self.log, "Running kademlia random peer query");
-        self.kad.find_node(random_peer);
-
-        // update the kademlia timeout
-        self.kad_delay
-            .reset(Instant::now() + TIME_BETWEEN_KAD_REQUESTS);
-    }
 }
 
 /// The types of events than can be obtained from polling the behaviour.
diff --git a/beacon_node/eth2-libp2p/src/config.rs b/beacon_node/eth2-libp2p/src/config.rs
index 1a3f3ad3d9..b6857cd378 100644
--- a/beacon_node/eth2-libp2p/src/config.rs
+++ b/beacon_node/eth2-libp2p/src/config.rs
@@ -36,6 +36,7 @@ impl Default for Config {
             gs_config: GossipsubConfigBuilder::new()
                 .max_gossip_size(4_000_000)
                 .inactivity_timeout(Duration::from_secs(90))
+                .heartbeat_interval(Duration::from_secs(20))
                 .build(),
             identify_config: IdentifyConfig::default(),
             boot_nodes: vec![],
diff --git a/beacon_node/eth2-libp2p/src/discovery.rs b/beacon_node/eth2-libp2p/src/discovery.rs
new file mode 100644
index 0000000000..232590c05a
--- /dev/null
+++ b/beacon_node/eth2-libp2p/src/discovery.rs
@@ -0,0 +1,182 @@
+/// This manages the discovery and management of peers.
+///
+/// Currently using Kademlia for peer discovery.
+///
+use futures::prelude::*;
+use libp2p::core::swarm::{
+    ConnectedPoint, NetworkBehaviour, NetworkBehaviourAction, PollParameters,
+};
+use libp2p::core::{Multiaddr, PeerId, ProtocolsHandler};
+use libp2p::kad::{Kademlia, KademliaOut};
+use slog::{debug, o, warn};
+use std::collections::HashMap;
+use std::time::{Duration, Instant};
+use tokio::io::{AsyncRead, AsyncWrite};
+use tokio_timer::Delay;
+
+//TODO: Make this dynamic
+const TIME_BETWEEN_KAD_REQUESTS: Duration = Duration::from_secs(30);
+
+/// Maintains a list of discovered peers and implements the discovery protocol to discover new
+/// peers.
+pub struct Discovery<TSubstream> {
+    /// Queue of events to processed.
+    // TODO: Re-implement as discovery protocol grows
+    //    events: Vec<NetworkBehaviourAction<_, _>>,
+    /// The discovery behaviour used to discover new peers.
+    discovery: Kademlia<TSubstream>,
+    /// The delay between peer discovery searches.
+    peer_discovery_delay: Delay,
+    /// Mapping of known addresses for peer ids.
+    known_peers: HashMap<PeerId, Vec<Multiaddr>>,
+    /// Logger for the discovery behaviour.
+    log: slog::Logger,
+}
+
+impl<TSubstream> Discovery<TSubstream> {
+    pub fn new(local_peer_id: PeerId, log: &slog::Logger) -> Self {
+        let log = log.new(o!("Service" => "Libp2p-Discovery"));
+        Self {
+            //            events: Vec::new(),
+            discovery: Kademlia::new(local_peer_id),
+            peer_discovery_delay: Delay::new(Instant::now()),
+            known_peers: HashMap::new(),
+            log,
+        }
+    }
+
+    /// Uses discovery to search for new peers.
+    pub fn find_peers(&mut self) {
+        // pick a random PeerId
+        let random_peer = PeerId::random();
+        debug!(self.log, "Searching for peers...");
+        self.discovery.find_node(random_peer);
+
+        // update the kademlia timeout
+        self.peer_discovery_delay
+            .reset(Instant::now() + TIME_BETWEEN_KAD_REQUESTS);
+    }
+
+    /// We have discovered an address for a peer, add it to known peers.
+    pub fn add_connected_address(&mut self, peer_id: &PeerId, address: Multiaddr) {
+        let known_peers = self
+            .known_peers
+            .entry(peer_id.clone())
+            .or_insert_with(|| vec![]);
+        if !known_peers.contains(&address) {
+            known_peers.push(address.clone());
+        }
+        // pass the address on to kademlia
+        self.discovery.add_connected_address(peer_id, address);
+    }
+}
+
+// Redirect all behaviour event to underlying discovery behaviour.
+impl<TSubstream> NetworkBehaviour for Discovery<TSubstream>
+where
+    TSubstream: AsyncRead + AsyncWrite,
+{
+    type ProtocolsHandler = <Kademlia<TSubstream> as NetworkBehaviour>::ProtocolsHandler;
+    type OutEvent = <Kademlia<TSubstream> as NetworkBehaviour>::OutEvent;
+
+    fn new_handler(&mut self) -> Self::ProtocolsHandler {
+        NetworkBehaviour::new_handler(&mut self.discovery)
+    }
+
+    // TODO: we store all peers in known_peers, when upgrading to discv5 we will avoid duplication
+    // of peer storage.
+    fn addresses_of_peer(&mut self, peer_id: &PeerId) -> Vec<Multiaddr> {
+        if let Some(addresses) = self.known_peers.get(peer_id) {
+            addresses.clone()
+        } else {
+            debug!(
+                self.log,
+                "Tried to dial: {:?} but no address stored", peer_id
+            );
+            Vec::new()
+        }
+    }
+
+    fn inject_connected(&mut self, peer_id: PeerId, endpoint: ConnectedPoint) {
+        NetworkBehaviour::inject_connected(&mut self.discovery, peer_id, endpoint)
+    }
+
+    fn inject_disconnected(&mut self, peer_id: &PeerId, endpoint: ConnectedPoint) {
+        NetworkBehaviour::inject_disconnected(&mut self.discovery, peer_id, endpoint)
+    }
+
+    fn inject_replaced(&mut self, peer_id: PeerId, closed: ConnectedPoint, opened: ConnectedPoint) {
+        NetworkBehaviour::inject_replaced(&mut self.discovery, peer_id, closed, opened)
+    }
+
+    fn inject_node_event(
+        &mut self,
+        peer_id: PeerId,
+        event: <Self::ProtocolsHandler as ProtocolsHandler>::OutEvent,
+    ) {
+        // TODO: Upgrade to discv5
+        NetworkBehaviour::inject_node_event(&mut self.discovery, peer_id, event)
+    }
+
+    fn poll(
+        &mut self,
+        params: &mut PollParameters,
+    ) -> Async<
+        NetworkBehaviourAction<
+            <Self::ProtocolsHandler as ProtocolsHandler>::InEvent,
+            Self::OutEvent,
+        >,
+    > {
+        // check to see if it's time to search for peers
+        loop {
+            match self.peer_discovery_delay.poll() {
+                Ok(Async::Ready(_)) => {
+                    self.find_peers();
+                }
+                Ok(Async::NotReady) => break,
+                Err(e) => {
+                    warn!(
+                        self.log,
+                        "Error getting peers from discovery behaviour. Err: {:?}", e
+                    );
+                }
+            }
+        }
+        // Poll discovery
+        match self.discovery.poll(params) {
+            Async::Ready(action) => {
+                match &action {
+                    NetworkBehaviourAction::GenerateEvent(disc_output) => match disc_output {
+                        KademliaOut::Discovered {
+                            peer_id, addresses, ..
+                        } => {
+                            debug!(self.log, "Kademlia peer discovered"; "Peer"=> format!("{:?}", peer_id), "Addresses" => format!("{:?}", addresses));
+                            (*self
+                                .known_peers
+                                .entry(peer_id.clone())
+                                .or_insert_with(|| vec![]))
+                            .extend(addresses.clone());
+                        }
+                        KademliaOut::FindNodeResult { closer_peers, .. } => {
+                            debug!(
+                                self.log,
+                                "Kademlia query found {} peers",
+                                closer_peers.len()
+                            );
+                            if closer_peers.is_empty() {
+                                debug!(self.log, "Kademlia random query yielded empty results");
+                            }
+                            return Async::Ready(action);
+                        }
+                        _ => {}
+                    },
+                    _ => {}
+                };
+                return Async::Ready(action);
+            }
+            Async::NotReady => (),
+        }
+
+        Async::NotReady
+    }
+}
diff --git a/beacon_node/eth2-libp2p/src/lib.rs b/beacon_node/eth2-libp2p/src/lib.rs
index 5597f9107d..197c074df4 100644
--- a/beacon_node/eth2-libp2p/src/lib.rs
+++ b/beacon_node/eth2-libp2p/src/lib.rs
@@ -4,6 +4,7 @@
 /// This crate builds and manages the libp2p services required by the beacon node.
 pub mod behaviour;
 mod config;
+mod discovery;
 pub mod error;
 pub mod rpc;
 mod service;