diff --git a/src/net.cpp b/src/net.cpp
--- a/src/net.cpp
+++ b/src/net.cpp
@@ -1059,18 +1059,27 @@
 
     int bannedlevel = m_banman ? m_banman->IsBannedLevel(addr) : 0;
 
-    // Don't accept connections from banned peers, but if our inbound slots
-    // aren't almost full, accept if the only banning reason was an automatic
-    // misbehavior ban.
+    // Don't accept connections from banned peers.
     if (!NetPermissions::HasFlag(permissionFlags,
                                  NetPermissionFlags::PF_NOBAN) &&
-        bannedlevel > ((nInbound + 1 < nMaxInbound) ? 1 : 0)) {
+        bannedlevel == 2) {
         LogPrint(BCLog::NET, "connection from %s dropped (banned)\n",
                  addr.ToString());
         CloseSocket(hSocket);
         return;
     }
 
+    // Only accept connections from discouraged peers if our inbound slots
+    // aren't (almost) full.
+    if (!NetPermissions::HasFlag(permissionFlags,
+                                 NetPermissionFlags::PF_NOBAN) &&
+        nInbound + 1 >= nMaxInbound && bannedlevel >= 1) {
+        LogPrint(BCLog::NET, "connection from %s dropped (discouraged)\n",
+                 addr.ToString());
+        CloseSocket(hSocket);
+        return;
+    }
+
     if (nInbound >= nMaxInbound) {
         if (!AttemptToEvictConnection()) {
             // No connection to evict, disconnect the new connection