diff --git i/src/net_processing.cpp w/src/net_processing.cpp
index 413e3c034..ecd615995 100644
--- i/src/net_processing.cpp
+++ w/src/net_processing.cpp
@@ -3780,16 +3780,20 @@ bool PeerManager::MaybeDiscourageAndDisconnect(CNode& pnode)
     if (pnode.IsManualConn()) {
         // We never disconnect or discourage manual peers for bad behavior
         LogPrintf("Warning: not punishing manually connected peer %d!\n", peer_id);
         return false;
     }
 
-    if (pnode.addr.IsLocal()) {
-        // We disconnect local peers for bad behavior but don't discourage (since that would discourage
-        // all peers on the same local address)
-        LogPrint(BCLog::NET, "Warning: disconnecting but not discouraging local peer %d!\n", peer_id);
+    if (pnode.addr.IsLocal() || pnode.IsInboundOnion()) {
+        // We disconnect local or onion peers for bad behavior but don't discourage
+        // (since that would discourage all peers on the same address)
+        if (pnode.IsInboundOnion()) {
+            LogPrint(BCLog::NET, "Warning: disconnecting but not discouraging onion peer %d!\n", peer_id);
+        } else {
+            LogPrintf("Warning: disconnecting but not discouraging local peer %d!\n", peer_id);
+        }
         pnode.fDisconnect = true;
         return true;
     }
 
     // Normal case: Disconnect the peer and discourage all nodes sharing the address
     LogPrint(BCLog::NET, "Disconnecting and discouraging peer %d!\n", peer_id);