diff --git a/node/src/new_beacon/mod.rs b/node/src/new_beacon/mod.rs
index df467a63fe..26ea8f7d0b 100644
--- a/node/src/new_beacon/mod.rs
+++ b/node/src/new_beacon/mod.rs
@@ -254,6 +254,12 @@ impl<N: CurrentNetwork, C: ConsensusStorage<N>> Beacon<N, C> {
         Ok(())
     }
 
+    async fn process_peer_response(&self, source: SocketAddr, message: PeerResponse) -> anyhow::Result<()> {
+        self.router().insert_candidate_peers(&message.peers);
+
+        Ok(())
+    }
+
     async fn process_unconfirmed_block(&self, source: SocketAddr, message: UnconfirmedBlock<N>) -> anyhow::Result<()> {
         let message_clone = message.clone();
 
@@ -388,7 +394,7 @@ impl<N: CurrentNetwork, C: ConsensusStorage<N>> Reading for Beacon<N, C> {
             Message::Pong(pong) => todo!(),
 
             Message::PeerRequest(peer_request) => self.process_peer_request(source, peer_request).await,
-            Message::PeerResponse(peer_response) => todo!(),
+            Message::PeerResponse(peer_response) => self.process_peer_response(source, peer_response).await,
 
             Message::UnconfirmedBlock(unconfirmed_block) => {
                 // TODO(nkls): spawn task.
diff --git a/node/src/new_beacon/router.rs b/node/src/new_beacon/router.rs
index 7c728f9b17..ded6ba9732 100644
--- a/node/src/new_beacon/router.rs
+++ b/node/src/new_beacon/router.rs
@@ -53,6 +53,21 @@ impl Router {
         &self.network
     }
 
+    pub fn is_local_addr(&self, addr: SocketAddr) -> bool {
+        let local_addr = self.network().listening_addr().expect("listening addr must be present");
+        addr == local_addr
+            || (addr.ip().is_unspecified() || addr.ip().is_loopback()) && addr.port() == local_addr.port()
+    }
+
+    pub fn is_connected(&self, addr: SocketAddr) -> bool {
+        self.network().is_connected(addr)
+            || self.current_peers.read().iter().find(|(_, meta)| meta.listening_addr() == addr).is_some()
+    }
+
+    pub fn is_restricted(&self, addr: SocketAddr) -> bool {
+        self.restricted_peers.read().contains_key(&addr)
+    }
+
     pub fn insert_peer(&self, addr: SocketAddr, meta: PeerMeta) {
         self.current_peers.write().insert(addr, meta);
     }
@@ -77,6 +92,18 @@ impl Router {
         self.candidate_peers.write().remove(&addr);
     }
 
+    pub fn insert_candidate_peers(&self, addrs: &[SocketAddr]) {
+        let candidate_peers = self.candidate_peers.write();
+
+        for &addr in addrs {
+            if self.is_local_addr(addr) || self.is_connected(addr) || self.is_restricted(addr) {
+                continue;
+            }
+
+            self.candidate_peers.write().insert(addr);
+        }
+    }
+
     pub fn insert_restricted_peer(&self, addr: SocketAddr) {
         self.restricted_peers.write().insert(addr, OffsetDateTime::now_utc());
     }