diff --git a/test/functional/p2p_v2_encrypted.py b/test/functional/p2p_v2_encrypted.py
index 0444cffed7..05755dece0 100755
--- a/test/functional/p2p_v2_encrypted.py
+++ b/test/functional/p2p_v2_encrypted.py
@@ -68,13 +68,19 @@ class P2PEncrypted(BitcoinTestFramework):
         assert not peer3.supports_v2_p2p
         assert_equal(node0.getpeerinfo()[-1]["transport_protocol_type"], "v1")
 
+        # v2 TestNode performs downgrading here
+        self.log.info("Check outbound connection from v2 TestNode to v1 P2PConnection advertised as v2 is v1")
+        peer4 = node0.add_outbound_p2p_connection(P2PInterface(), p2p_idx=1, supports_v2_p2p=False, advertise_v2_p2p=True)
+        assert not peer4.supports_v2_p2p
+        assert_equal(node0.getpeerinfo()[-1]["transport_protocol_type"], "v1")
+
         self.log.info("Check outbound connection from v2 TestNode to v2 P2PConnection advertised as v2 is v2")
         peer5 = node0.add_outbound_p2p_connection(P2PInterface(), p2p_idx=2, supports_v2_p2p=True, advertise_v2_p2p=True)
         assert peer5.supports_v2_p2p
         assert_equal(node0.getpeerinfo()[-1]["transport_protocol_type"], "v2")
 
         self.log.info("Check if version is sent and verack is received in inbound/outbound connections")
-        assert_equal(len(node0.getpeerinfo()), 4)  # check if above 4 connections are present in node0's getpeerinfo()
+        assert_equal(len(node0.getpeerinfo()), 5)  # check if above 5 connections are present in node0's getpeerinfo()
         for peer in node0.getpeerinfo():
             assert_greater_than(peer['bytessent_per_msg']['version'], 0)
             assert_greater_than(peer['bytesrecv_per_msg']['verack'], 0)
@@ -114,7 +120,7 @@ class P2PEncrypted(BitcoinTestFramework):
             self.disconnect_nodes(0, 1)
 
         self.log.info("Check the connections opened as expected")
-        check_node_connections(node=node0, num_in=4, num_out=2)
+        check_node_connections(node=node0, num_in=4, num_out=3)
 
         self.log.info("Check inbound connection to v1 TestNode from v2 P2PConnection is v1")
         self.restart_node(0, ["-v2transport=0"])
diff --git a/test/functional/test_framework/p2p.py b/test/functional/test_framework/p2p.py
index 1194c7c88d..c41abec42d 100755
--- a/test/functional/test_framework/p2p.py
+++ b/test/functional/test_framework/p2p.py
@@ -590,6 +590,13 @@ class P2PInterface(P2PConnection):
         test_function = lambda: not self.is_connected
         self.wait_until(test_function, timeout=timeout, check_connected=False)
 
+    def wait_for_reconnect(self, timeout=60):
+        def test_function():
+            if not (self.is_connected and self.last_message.get('version') and self.v2_state is None):
+                return False
+            return True
+        self.wait_until(test_function, timeout=timeout, check_connected=False)
+
     # Message receiving helper methods
 
     def wait_for_tx(self, txid, timeout=60):
diff --git a/test/functional/test_framework/test_node.py b/test/functional/test_framework/test_node.py
index 8662391b93..29796865c2 100755
--- a/test/functional/test_framework/test_node.py
+++ b/test/functional/test_framework/test_node.py
@@ -736,6 +736,9 @@ class TestNode():
         supports_v2_p2p = supports_v2_p2p and advertise_v2_p2p
         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=reconnect, **kwargs)()
 
+        if reconnect:
+            p2p_conn.wait_for_reconnect()
+
         if connection_type == "feeler":
             # feeler connections are closed as soon as the node receives a `version` message
             p2p_conn.wait_until(lambda: p2p_conn.message_count["version"] == 1, check_connected=False)