diff --git a/lbrynet/tests/functional/dht/test_contact_expiration.py b/lbrynet/tests/functional/dht/test_contact_expiration.py
new file mode 100644
index 000000000..f7f969b8f
--- /dev/null
+++ b/lbrynet/tests/functional/dht/test_contact_expiration.py
@@ -0,0 +1,43 @@
+import logging
+from twisted.internet import defer
+from dht_test_environment import TestKademliaBase
+
+log = logging.getLogger()
+
+
+class TestPeerExpiration(TestKademliaBase):
+    network_size = 40
+
+    @defer.inlineCallbacks
+    def test_expire_stale_peers(self):
+        removed_addresses = set()
+        removed_nodes = []
+        self.show_info()
+
+        for _ in range(5):
+            n = self.nodes[0]
+            removed_nodes.append(n)
+            removed_addresses.add(n.externalIP)
+            self.nodes.remove(n)
+            yield self.run_reactor(1, [n.stop()])
+
+        offline_addresses = self.get_routable_addresses().difference(self.get_online_addresses())
+        self.assertSetEqual(offline_addresses, removed_addresses)
+        get_nodes_with_stale_contacts = lambda: filter(lambda node: any(contact.address in offline_addresses
+                                                       for contact in node.contacts), self.nodes + self._seeds)
+        self.assertRaises(AssertionError, self.verify_all_nodes_are_routable)
+        self.assertTrue(len(get_nodes_with_stale_contacts()) > 1)
+        for _ in range(90):
+            log.info("Time is %f, nodes with stale contacts: %i/%i", self.clock.seconds(),
+                     len(get_nodes_with_stale_contacts()), len(self.nodes + self._seeds))
+            self.pump_clock(60)
+        self.assertTrue(len(get_nodes_with_stale_contacts()) == 0)
+        self.verify_all_nodes_are_routable()
+        self.verify_all_nodes_are_pingable()
+
+        restarted_node = removed_nodes[0]
+        yield self.run_reactor(1, [restarted_node.start([(seed_name, 4444)
+                                                         for seed_name in sorted(self.seed_dns.keys())])])
+
+        self.verify_all_nodes_are_routable()
+        self.verify_all_nodes_are_pingable()
\ No newline at end of file