diff --git a/test/functional/test_framework/p2p.py b/test/functional/test_framework/p2p.py
index 4ababe01dc1..aa9c093b650 100755
--- a/test/functional/test_framework/p2p.py
+++ b/test/functional/test_framework/p2p.py
@@ -168,6 +168,7 @@ class P2PConnection(asyncio.Protocol):
         # p2p_lock must not be acquired after _send_lock as it could result in deadlocks.
         self._send_lock = threading.Lock()
         self.v2_state = None  # EncryptedP2PState object needed for v2 p2p connections
+        self.reconnect = False  # set if reconnection needs to happen
 
     @property
     def is_connected(self):
@@ -197,8 +198,9 @@ class P2PConnection(asyncio.Protocol):
         coroutine = loop.create_connection(lambda: self, host=self.dstaddr, port=self.dstport)
         return lambda: loop.call_soon_threadsafe(loop.create_task, coroutine)
 
-    def peer_accept_connection(self, connect_id, connect_cb=lambda: None, *, net, timeout_factor, supports_v2_p2p):
+    def peer_accept_connection(self, connect_id, connect_cb=lambda: None, *, net, timeout_factor, supports_v2_p2p, reconnect):
         self.peer_connect_helper('0', 0, net, timeout_factor)
+        self.reconnect = reconnect
         if supports_v2_p2p:
             self.v2_state = EncryptedP2PState(initiating=False, net=net)
 
@@ -222,14 +224,16 @@ class P2PConnection(asyncio.Protocol):
             send_handshake_bytes = self.v2_state.initiate_v2_handshake()
             self.send_raw_message(send_handshake_bytes)
         # if v2 connection, send `on_connection_send_msg` after initial v2 handshake.
-        if self.on_connection_send_msg and not self.supports_v2_p2p:
+        # if reconnection situation, send `on_connection_send_msg` after version message is received in `on_version()`.
+        if self.on_connection_send_msg and not self.supports_v2_p2p and not self.reconnect:
             self.send_message(self.on_connection_send_msg)
             self.on_connection_send_msg = None  # Never used again
         self.on_open()
 
     def connection_lost(self, exc):
         """asyncio callback when a connection is closed."""
-        if exc:
+        # don't display warning if reconnection needs to be attempted using v1 P2P
+        if exc and not self.reconnect:
             logger.warning("Connection lost to {}:{} due to {}".format(self.dstaddr, self.dstport, exc))
         else:
             logger.debug("Closed connection to: %s:%d" % (self.dstaddr, self.dstport))
@@ -279,9 +283,9 @@ class P2PConnection(asyncio.Protocol):
         if not is_mac_auth:
             raise ValueError("invalid v2 mac tag in handshake authentication")
         self.recvbuf = self.recvbuf[length:]
-        while self.v2_state.tried_v2_handshake and self.queue_messages:
-            message = self.queue_messages.pop(0)
-            self.send_message(message)
+        if self.v2_state.tried_v2_handshake and self.on_connection_send_msg:
+            self.send_message(self.on_connection_send_msg)
+            self.on_connection_send_msg = None
 
     # Socket read methods
 
@@ -350,7 +354,8 @@ class P2PConnection(asyncio.Protocol):
                 self._log_message("receive", t)
                 self.on_message(t)
         except Exception as e:
-            logger.exception('Error reading message:', repr(e))
+            if not self.reconnect:
+                logger.exception('Error reading message:', repr(e))
             raise
 
     def on_message(self, message):
@@ -549,6 +554,12 @@ class P2PInterface(P2PConnection):
 
     def on_version(self, message):
         assert message.nVersion >= MIN_P2P_VERSION_SUPPORTED, "Version {} received. Test framework only supports versions greater than {}".format(message.nVersion, MIN_P2P_VERSION_SUPPORTED)
+        # reconnection using v1 P2P has happened since version message can be processed, previously unsent version message is sent using v1 P2P here
+        if self.reconnect:
+            if self.on_connection_send_msg:
+                self.send_message(self.on_connection_send_msg)
+                self.on_connection_send_msg = None
+            self.reconnect = False
         if message.nVersion >= 70016 and self.wtxidrelay:
             self.send_message(msg_wtxidrelay())
         if self.support_addrv2:
@@ -721,6 +732,11 @@ class NetworkThread(threading.Thread):
         if addr is None:
             addr = '127.0.0.1'
 
+        def exception_handler(loop, context):
+            if not p2p.reconnect:
+                loop.default_exception_handler(context)
+
+        cls.network_event_loop.set_exception_handler(exception_handler)
         coroutine = cls.create_listen_server(addr, port, callback, p2p)
         cls.network_event_loop.call_soon_threadsafe(cls.network_event_loop.create_task, coroutine)
 
@@ -734,7 +750,9 @@ class NetworkThread(threading.Thread):
             protocol function from that dict, and returns it so the event loop
             can start executing it."""
             response = cls.protos.get((addr, port))
-            cls.protos[(addr, port)] = None
+            # remove protocol function from dict only when reconnection doesn't need to happen/already happened
+            if not proto.reconnect:
+                cls.protos[(addr, port)] = None
             return response
 
         if (addr, port) not in cls.listeners:
diff --git a/test/functional/test_framework/test_node.py b/test/functional/test_framework/test_node.py
index 444976e54f7..9088783d122 100755
--- a/test/functional/test_framework/test_node.py
+++ b/test/functional/test_framework/test_node.py
@@ -702,7 +702,7 @@ class TestNode():
             self.addconnection('%s:%d' % (address, port), connection_type)
 
         p2p_conn.p2p_connected_to_node = False
-        p2p_conn.peer_accept_connection(connect_cb=addconnection_callback, connect_id=p2p_idx + 1, net=self.chain, timeout_factor=self.timeout_factor, supports_v2_p2p=supports_v2_p2p, **kwargs)()
+        p2p_conn.peer_accept_connection(connect_cb=addconnection_callback, connect_id=p2p_idx + 1, net=self.chain, timeout_factor=self.timeout_factor, supports_v2_p2p=supports_v2_p2p, reconnect=False, **kwargs)()
 
         if connection_type == "feeler":
             # feeler connections are closed as soon as the node receives a `version` message