diff --git a/src/net.cpp b/src/net.cpp
index cc32747169813..70e40c7278749 100644
--- a/src/net.cpp
+++ b/src/net.cpp
@@ -462,11 +462,6 @@ void CNode::CloseSocketDisconnect()
         LogPrint("net", "disconnecting peer=%d\n", id);
         CloseSocket(hSocket);
     }
-
-    // in case this fails, we'll empty the recv buffer when the CNode is deleted
-    TRY_LOCK(cs_vRecvMsg, lockRecv);
-    if (lockRecv)
-        vRecvMsg.clear();
 }
 
 void CConnman::ClearBanned()
@@ -673,16 +668,18 @@ void CNode::copyStats(CNodeStats &stats)
 }
 #undef X
 
-// requires LOCK(cs_vRecvMsg)
 bool CNode::ReceiveMsgBytes(const char *pch, unsigned int nBytes, bool& complete)
 {
     complete = false;
+    int64_t nTimeMicros = GetTimeMicros();
+    nLastRecv = nTimeMicros / 1000000;
+    nRecvBytes += nBytes;
     while (nBytes > 0) {
 
         // get current incomplete message, or create a new one
         if (vRecvMsg.empty() ||
             vRecvMsg.back().complete())
-            vRecvMsg.push_back(CNetMessage(Params().MessageStart(), SER_NETWORK, nRecvVersion));
+            vRecvMsg.push_back(CNetMessage(Params().MessageStart(), SER_NETWORK, INIT_PROTO_VERSION));
 
         CNetMessage& msg = vRecvMsg.back();
 
@@ -714,7 +711,7 @@ bool CNode::ReceiveMsgBytes(const char *pch, unsigned int nBytes, bool& complete
             assert(i != mapRecvBytesPerMsgCmd.end());
             i->second += msg.hdr.nMessageSize + CMessageHeader::HEADER_SIZE;
 
-            msg.nTime = GetTimeMicros();
+            msg.nTime = nTimeMicros;
             complete = true;
         }
     }
@@ -805,7 +802,7 @@ int CNetMessage::readData(const char *pch, unsigned int nBytes)
 
 
 // requires LOCK(cs_vSend)
-size_t SocketSendData(CNode *pnode)
+size_t CConnman::SocketSendData(CNode *pnode)
 {
     std::deque<CSerializeData>::iterator it = pnode->vSendMsg.begin();
     size_t nSentSize = 0;
@@ -822,6 +819,7 @@ size_t SocketSendData(CNode *pnode)
             if (pnode->nSendOffset == data.size()) {
                 pnode->nSendOffset = 0;
                 pnode->nSendSize -= data.size();
+                pnode->fPauseSend = pnode->nSendSize > nSendBufferMaxSize;
                 it++;
             } else {
                 // could not send full message; stop sending more
@@ -1110,8 +1108,7 @@ void CConnman::ThreadSocketHandler()
             std::vector<CNode*> vNodesCopy = vNodes;
             BOOST_FOREACH(CNode* pnode, vNodesCopy)
             {
-                if (pnode->fDisconnect ||
-                    (pnode->GetRefCount() <= 0 && pnode->vRecvMsg.empty() && pnode->nSendSize == 0))
+                if (pnode->fDisconnect)
                 {
                     LogPrintf("ThreadSocketHandler -- removing node: peer=%d addr=%s nRefCount=%d fNetworkNode=%d fInbound=%d fMasternode=%d\n",
                               pnode->id, pnode->addr.ToString(), pnode->GetRefCount(), pnode->fNetworkNode, pnode->fInbound, pnode->fMasternode);
@@ -1148,13 +1145,9 @@ void CConnman::ThreadSocketHandler()
                         TRY_LOCK(pnode->cs_vSend, lockSend);
                         if (lockSend)
                         {
-                            TRY_LOCK(pnode->cs_vRecvMsg, lockRecv);
-                            if (lockRecv)
-                            {
                                 TRY_LOCK(pnode->cs_inventory, lockInv);
                                 if (lockInv)
                                     fDelete = true;
-                            }
                         }
                     }
                     if (fDelete)
@@ -1209,15 +1202,10 @@ void CConnman::ThreadSocketHandler()
                 //   write buffer in this case before receiving more. This avoids
                 //   needlessly queueing received data, if the remote peer is not themselves
                 //   receiving data. This means properly utilizing TCP flow control signalling.
-                // * Otherwise, if there is no (complete) message in the receive buffer,
-                //   or there is space left in the buffer, select() for receiving data.
-                // * (if neither of the above applies, there is certainly one message
-                //   in the receiver buffer ready to be processed).
-                // Together, that means that at least one of the following is always possible,
-                // so we don't deadlock:
-                // * We send some data.
-                // * We wait for data to be received (and disconnect after timeout).
-                // * We process a message in the buffer (message handler thread).
+                // * Otherwise, if there is space left in the receive buffer, select() for
+                //   receiving data.
+                // * Hand off all complete messages to the processor, to be handled without
+                //   blocking here.
                 {
                     TRY_LOCK(pnode->cs_vSend, lockSend);
                     if (lockSend) {
@@ -1228,10 +1216,7 @@ void CConnman::ThreadSocketHandler()
                     }
                 }
                 {
-                    TRY_LOCK(pnode->cs_vRecvMsg, lockRecv);
-                    if (lockRecv && (
-                        pnode->vRecvMsg.empty() || !pnode->vRecvMsg.front().complete() ||
-                        pnode->GetTotalRecvSize() <= GetReceiveFloodSize()))
+                    if (!pnode->fPauseRecv)
                         FD_SET(pnode->hSocket, &fdsetRecv);
                 }
             }
@@ -1284,8 +1269,6 @@ void CConnman::ThreadSocketHandler()
                 continue;
             if (FD_ISSET(pnode->hSocket, &fdsetRecv) || FD_ISSET(pnode->hSocket, &fdsetError))
             {
-                TRY_LOCK(pnode->cs_vRecvMsg, lockRecv);
-                if (lockRecv)
                 {
                     {
                         // typical socket buffer is 8K-64K
@@ -1296,11 +1279,23 @@ void CConnman::ThreadSocketHandler()
                             bool notify = false;
                             if (!pnode->ReceiveMsgBytes(pchBuf, nBytes, notify))
                                 pnode->CloseSocketDisconnect();
-                            if(notify)
-                                condMsgProc.notify_one();
-                            pnode->nLastRecv = GetTime();
-                            pnode->nRecvBytes += nBytes;
                             RecordBytesRecv(nBytes);
+                            if (notify) {
+                                size_t nSizeAdded = 0;
+                                auto it(pnode->vRecvMsg.begin());
+                                for (; it != pnode->vRecvMsg.end(); ++it) {
+                                    if (!it->complete())
+                                        break;
+                                    nSizeAdded += it->vRecv.size() + CMessageHeader::HEADER_SIZE;
+                                }
+                                {
+                                    LOCK(pnode->cs_vProcessMsg);
+                                    pnode->vProcessMsg.splice(pnode->vProcessMsg.end(), pnode->vRecvMsg, pnode->vRecvMsg.begin(), it);
+                                    pnode->nProcessQueueSize += nSizeAdded;
+                                    pnode->fPauseRecv = pnode->nProcessQueueSize > nReceiveFloodSize;
+                                }
+                                WakeMessageHandler();
+                            }
                         }
                         else if (nBytes == 0)
                         {
@@ -1334,8 +1329,9 @@ void CConnman::ThreadSocketHandler()
                 TRY_LOCK(pnode->cs_vSend, lockSend);
                 if (lockSend) {
                     size_t nBytes = SocketSendData(pnode);
-                    if (nBytes)
+                    if (nBytes) {
                         RecordBytesSent(nBytes);
+                    }
                 }
             }
 
@@ -1371,8 +1367,14 @@ void CConnman::ThreadSocketHandler()
     }
 }
 
-
-
+void CConnman::WakeMessageHandler()
+{
+    {
+        std::lock_guard<std::mutex> lock(mutexMsgProc);
+        fMsgProcWake = true;
+    }
+    condMsgProc.notify_one();
+}
 
 
 
@@ -1892,7 +1894,7 @@ void CConnman::ThreadMessageHandler()
     {
         std::vector<CNode*> vNodesCopy = CopyNodeVector();
 
-        bool fSleep = true;
+        bool fMoreWork = false;
 
         BOOST_FOREACH(CNode* pnode, vNodesCopy)
         {
@@ -1900,22 +1902,8 @@ void CConnman::ThreadMessageHandler()
                 continue;
 
             // Receive messages
-            {
-                TRY_LOCK(pnode->cs_vRecvMsg, lockRecv);
-                if (lockRecv)
-                {
-                    if (!GetNodeSignals().ProcessMessages(pnode, *this, flagInterruptMsgProc))
-                        pnode->fDisconnect = true;
-
-                    if (pnode->nSendSize < GetSendBufferSize())
-                    {
-                        if (!pnode->vRecvGetData.empty() || (!pnode->vRecvMsg.empty() && pnode->vRecvMsg[0].complete()))
-                        {
-                            fSleep = false;
-                        }
-                    }
-                }
-            }
+            bool fMoreNodeWork = GetNodeSignals().ProcessMessages(pnode, *this, flagInterruptMsgProc);
+            fMoreWork |= (fMoreNodeWork && !pnode->fPauseSend);
             if (flagInterruptMsgProc)
                 return;
 
@@ -1931,10 +1919,11 @@ void CConnman::ThreadMessageHandler()
 
         ReleaseNodeVector(vNodesCopy);
 
-        if (fSleep) {
-            std::unique_lock<std::mutex> lock(mutexMsgProc);
-            condMsgProc.wait_until(lock, std::chrono::steady_clock::now() + std::chrono::milliseconds(100));
+        std::unique_lock<std::mutex> lock(mutexMsgProc);
+        if (!fMoreWork) {
+            condMsgProc.wait_until(lock, std::chrono::steady_clock::now() + std::chrono::milliseconds(100), [this] { return fMsgProcWake; });
         }
+        fMsgProcWake = false;
     }
 }
 
@@ -2129,7 +2118,7 @@ bool CConnman::Start(CScheduler& scheduler, std::string& strNodeError, Options c
     nMaxFeeler = connOptions.nMaxFeeler;
 
     nSendBufferMaxSize = connOptions.nSendBufferMaxSize;
-    nReceiveFloodSize = connOptions.nSendBufferMaxSize;
+    nReceiveFloodSize = connOptions.nReceiveFloodSize;
 
     SetBestHeight(connOptions.nBestHeight);
 
@@ -2191,6 +2180,11 @@ bool CConnman::Start(CScheduler& scheduler, std::string& strNodeError, Options c
     interruptNet.reset();
     flagInterruptMsgProc = false;
 
+    {
+        std::unique_lock<std::mutex> lock(mutexMsgProc);
+        fMsgProcWake = false;
+    }
+
     // Send and receive from sockets, accept connections
     threadSocketHandler = std::thread(&TraceThread<std::function<void()> >, "net", std::function<void()>(std::bind(&CConnman::ThreadSocketHandler, this)));
 
@@ -2684,6 +2678,9 @@ CNode::CNode(NodeId idIn, ServiceFlags nLocalServicesIn, int nMyStartingHeightIn
     vchKeyedNetGroup = CalculateKeyedNetGroup(addr);
     id = idIn;
     nLocalServices = nLocalServicesIn;
+    fPauseRecv = false;
+    fPauseSend = false;
+    nProcessQueueSize = 0;
 
     GetRandBytes((unsigned char*)&nLocalHostNonce, sizeof(nLocalHostNonce));
     nMyStartingHeight = nMyStartingHeightIn;
@@ -2819,6 +2816,9 @@ void CConnman::PushMessage(CNode* pnode, CDataStream& strm, const std::string& s
         pnode->mapSendBytesPerMsgCmd[sCommand] += strm.size();
         pnode->nSendSize += strm.size();
 
+        if (pnode->nSendSize > nSendBufferMaxSize)
+            pnode->fPauseSend = true;
+
         // If write queue empty, attempt "optimistic write"
         if (optimisticSend == true)
             nBytesSent = SocketSendData(pnode);
diff --git a/src/net.h b/src/net.h
index 15a71c7b3063f..193eba6f22215 100644
--- a/src/net.h
+++ b/src/net.h
@@ -386,6 +386,7 @@ class CConnman
     int GetBestHeight() const;
 
 
+    unsigned int GetReceiveFloodSize() const;
 private:
     struct ListenSocket {
         SOCKET socket;
@@ -403,6 +404,8 @@ class CConnman
     void ThreadDNSAddressSeed();
     void ThreadMnbRequestConnections();
 
+    void WakeMessageHandler();
+
     CNode* FindNode(const CNetAddr& ip);
     CNode* FindNode(const CSubNet& subNet);
     CNode* FindNode(const std::string& addrName);
@@ -415,6 +418,7 @@ class CConnman
 
     NodeId GetNewNodeId();
 
+    size_t SocketSendData(CNode *pnode);
     //!check is the banlist has unwritten changes
     bool BannedSetIsDirty();
     //!set the "dirty" flag for the banlist
@@ -425,8 +429,6 @@ class CConnman
     void DumpData();
     void DumpBanlist();
 
-    unsigned int GetReceiveFloodSize() const;
-
     CDataStream BeginMessage(CNode* node, int nVersion, int flags, const std::string& sCommand);
     void PushMessage(CNode* pnode, CDataStream& strm, const std::string& sCommand);
     void EndMessage(CDataStream& strm);
@@ -487,6 +489,9 @@ class CConnman
     std::atomic<int> nBestHeight;
     CClientUIInterface* clientInterface;
 
+    /** flag for waking the message processor. */
+    bool fMsgProcWake;
+
     std::condition_variable condMsgProc;
     std::mutex mutexMsgProc;
     std::atomic<bool> flagInterruptMsgProc;
@@ -505,7 +510,6 @@ void Discover(boost::thread_group& threadGroup);
 void MapPort(bool fUseUPnP);
 unsigned short GetListenPort();
 bool BindListenPort(const CService &bindAddr, std::string& strError, bool fWhitelisted = false);
-size_t SocketSendData(CNode *pnode);
 
 struct CombinerAll
 {
@@ -666,11 +670,13 @@ class CNode
     std::deque<CSerializeData> vSendMsg;
     CCriticalSection cs_vSend;
 
+    CCriticalSection cs_vProcessMsg;
+    std::list<CNetMessage> vProcessMsg;
+    size_t nProcessQueueSize;
+
     std::deque<CInv> vRecvGetData;
-    std::deque<CNetMessage> vRecvMsg;
-    CCriticalSection cs_vRecvMsg;
     uint64_t nRecvBytes;
-    int nRecvVersion;
+    std::atomic<int> nRecvVersion;
 
     int64_t nLastSend;
     int64_t nLastRecv;
@@ -708,6 +714,9 @@ class CNode
     CBloomFilter* pfilter;
     int nRefCount;
     NodeId id;
+
+    std::atomic_bool fPauseRecv;
+    std::atomic_bool fPauseSend;
 protected:
 
     mapMsgCmdSize mapSendBytesPerMsgCmd;
@@ -770,6 +779,7 @@ class CNode
     ServiceFlags nLocalServices;
     int nMyStartingHeight;
     int nSendVersion;
+    std::list<CNetMessage> vRecvMsg;  // Used only by SocketHandler thread
 public:
 
     NodeId GetId() const {
@@ -791,24 +801,15 @@ class CNode
         return nRefCount;
     }
 
-    // requires LOCK(cs_vRecvMsg)
-    unsigned int GetTotalRecvSize()
-    {
-        unsigned int total = 0;
-        BOOST_FOREACH(const CNetMessage &msg, vRecvMsg)
-            total += msg.vRecv.size() + 24;
-        return total;
-    }
-
-    // requires LOCK(cs_vRecvMsg)
     bool ReceiveMsgBytes(const char *pch, unsigned int nBytes, bool& complete);
 
-    // requires LOCK(cs_vRecvMsg)
     void SetRecvVersion(int nVersionIn)
     {
         nRecvVersion = nVersionIn;
-        BOOST_FOREACH(CNetMessage &msg, vRecvMsg)
-            msg.SetVersion(nVersionIn);
+    }
+    int GetRecvVersion()
+    {
+        return nRecvVersion;
     }
     void SetSendVersion(int nVersionIn);
     int GetSendVersion() const;
diff --git a/src/net_processing.cpp b/src/net_processing.cpp
index edae321033ea3..0e1a83afa9f5a 100644
--- a/src/net_processing.cpp
+++ b/src/net_processing.cpp
@@ -782,15 +782,13 @@ static void RelayAddress(const CAddress& addr, bool fReachable, CConnman& connma
 void static ProcessGetData(CNode* pfrom, const Consensus::Params& consensusParams, CConnman& connman, std::atomic<bool>& interruptMsgProc)
 {
     std::deque<CInv>::iterator it = pfrom->vRecvGetData.begin();
-    unsigned int nMaxSendBufferSize = connman.GetSendBufferSize();
-
     vector<CInv> vNotFound;
 
     LOCK(cs_main);
 
     while (it != pfrom->vRecvGetData.end()) {
         // Don't bother if send buffer is too full to respond anyway
-        if (pfrom->nSendSize >= nMaxSendBufferSize)
+        if (pfrom->fPauseSend)
             break;
 
         const CInv &inv = *it;
@@ -1074,7 +1072,6 @@ bool static ProcessMessage(CNode* pfrom, string strCommand, CDataStream& vRecv,
 {
     const CChainParams& chainparams = Params();
     RandAddSeedPerfmon();
-    unsigned int nMaxSendBufferSize = connman.GetSendBufferSize();
 
     LogPrint("net", "received: %s (%u bytes) peer=%d\n", SanitizeString(strCommand), vRecv.size(), pfrom->id);
 
@@ -1416,11 +1413,6 @@ bool static ProcessMessage(CNode* pfrom, string strCommand, CDataStream& vRecv,
 
             // Track requests for our stuff
             GetMainSignals().Inventory(inv.hash);
-
-            if (pfrom->nSendSize > (nMaxSendBufferSize * 2)) {
-                Misbehaving(pfrom->GetId(), 50);
-                return error("send buffer size() = %u", pfrom->nSendSize);
-            }
         }
 
         if (!vToFetch.empty())
@@ -2171,14 +2163,9 @@ bool static ProcessMessage(CNode* pfrom, string strCommand, CDataStream& vRecv,
     return true;
 }
 
-// requires LOCK(cs_vRecvMsg)
 bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interruptMsgProc)
 {
     const CChainParams& chainparams = Params();
-    unsigned int nMaxSendBufferSize = connman.GetSendBufferSize();
-    //if (fDebug)
-    //    LogPrintf("%s(%u messages)\n", __func__, pfrom->vRecvMsg.size());
-
     //
     // Message format
     //  (4) message start
@@ -2187,40 +2174,40 @@ bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interru
     //  (4) checksum
     //  (x) data
     //
-    bool fOk = true;
+    bool fMoreWork = false;
 
     if (!pfrom->vRecvGetData.empty())
         ProcessGetData(pfrom, chainparams.GetConsensus(), connman, interruptMsgProc);
 
+    if (pfrom->fDisconnect)
+        return false;
+
     // this maintains the order of responses
-    if (!pfrom->vRecvGetData.empty()) return fOk;
+    if (!pfrom->vRecvGetData.empty()) return true;
 
-    std::deque<CNetMessage>::iterator it = pfrom->vRecvMsg.begin();
-    while (!pfrom->fDisconnect && it != pfrom->vRecvMsg.end()) {
         // Don't bother if send buffer is too full to respond anyway
-        if (pfrom->nSendSize >= nMaxSendBufferSize)
-            break;
-
-        // get next message
-        CNetMessage& msg = *it;
-
-        //if (fDebug)
-        //    LogPrintf("%s(message %u msgsz, %u bytes, complete:%s)\n", __func__,
-        //            msg.hdr.nMessageSize, msg.vRecv.size(),
-        //            msg.complete() ? "Y" : "N");
-
-        // end, if an incomplete message is found
-        if (!msg.complete())
-            break;
+        if (pfrom->fPauseSend)
+            return false;
 
-        // at this point, any failure means we can delete the current message
-        it++;
+        std::list<CNetMessage> msgs;
+        {
+            LOCK(pfrom->cs_vProcessMsg);
+            if (pfrom->vProcessMsg.empty())
+                return false;
+            // Just take one message
+            msgs.splice(msgs.begin(), pfrom->vProcessMsg, pfrom->vProcessMsg.begin());
+            pfrom->nProcessQueueSize -= msgs.front().vRecv.size() + CMessageHeader::HEADER_SIZE;
+            pfrom->fPauseRecv = pfrom->nProcessQueueSize > connman.GetReceiveFloodSize();
+            fMoreWork = !pfrom->vProcessMsg.empty();
+        }
+        CNetMessage& msg(msgs.front());
 
+        msg.SetVersion(pfrom->GetRecvVersion());
         // Scan for message start
         if (memcmp(msg.hdr.pchMessageStart, chainparams.MessageStart(), MESSAGE_START_SIZE) != 0) {
             LogPrintf("PROCESSMESSAGE: INVALID MESSAGESTART %s peer=%d\n", SanitizeString(msg.hdr.GetCommand()), pfrom->id);
-            fOk = false;
-            break;
+            pfrom->fDisconnect = true;
+            return false;
         }
 
         // Read header
@@ -2228,7 +2215,7 @@ bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interru
         if (!hdr.IsValid(chainparams.MessageStart()))
         {
             LogPrintf("PROCESSMESSAGE: ERRORS IN HEADER %s peer=%d\n", SanitizeString(hdr.GetCommand()), pfrom->id);
-            continue;
+            return fMoreWork;
         }
         string strCommand = hdr.GetCommand();
 
@@ -2244,7 +2231,7 @@ bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interru
                SanitizeString(strCommand), nMessageSize,
                HexStr(hash.begin(), hash.begin()+CMessageHeader::CHECKSUM_SIZE),
                HexStr(hdr.pchChecksum, hdr.pchChecksum+CMessageHeader::CHECKSUM_SIZE));
-            continue;
+            return fMoreWork;
         }
 
         // Process message
@@ -2253,7 +2240,9 @@ bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interru
         {
             fRet = ProcessMessage(pfrom, strCommand, vRecv, msg.nTime, connman, interruptMsgProc);
             if (interruptMsgProc)
-                return true;
+                return false;
+            if (!pfrom->vRecvGetData.empty())
+                fMoreWork = true;
         }
         catch (const std::ios_base::failure& e)
         {
@@ -2282,14 +2271,7 @@ bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interru
         if (!fRet)
             LogPrintf("%s(%s, %u bytes) FAILED peer=%d\n", __func__, SanitizeString(strCommand), nMessageSize, pfrom->id);
 
-        break;
-    }
-
-    // In case the connection got shut down, its receive buffer was wiped
-    if (!pfrom->fDisconnect)
-        pfrom->vRecvMsg.erase(pfrom->vRecvMsg.begin(), it);
-
-    return fOk;
+    return fMoreWork;
 }
 
 
diff --git a/src/net_processing.h b/src/net_processing.h
index db04b6014c914..afb0f0c944ce4 100644
--- a/src/net_processing.h
+++ b/src/net_processing.h
@@ -45,6 +45,7 @@ bool ProcessMessages(CNode* pfrom, CConnman& connman, std::atomic<bool>& interru
  * @param[in]   pto             The node which we are sending messages to.
  * @param[in]   connman         The connection manager for that node.
  * @param[in]   interrupt       Interrupt condition for processing threads
+ * @return                      True if there is more work to be done
  */
 bool SendMessages(CNode* pto, CConnman& connman, std::atomic<bool>& interrupt);