diff --git a/llarp/path/path.cpp b/llarp/path/path.cpp
index 43761a923..c3585cff1 100644
--- a/llarp/path/path.cpp
+++ b/llarp/path/path.cpp
@@ -106,7 +106,7 @@ namespace llarp
     Path::HandleLRSM(uint64_t status, std::array< EncryptedFrame, 8 >& frames,
                      AbstractRouter* r)
     {
-      uint64_t currentStatus = LR_StatusRecord::SUCCESS;
+      uint64_t currentStatus = status;
 
       size_t index = 0;
       while(index < hops.size())
@@ -143,7 +143,7 @@ namespace llarp
         ++index;
       }
 
-      if((currentStatus & LR_StatusRecord::SUCCESS) == 1)
+      if(currentStatus & LR_StatusRecord::SUCCESS)
       {
         llarp::LogDebug("LR_Status message processed, path build successful");
         auto self = shared_from_this();
@@ -153,7 +153,7 @@ namespace llarp
       {
         r->routerProfiling().MarkPathFail(this);
 
-        llarp::LogInfo("LR_Status message processed, path build failed");
+        llarp::LogDebug("LR_Status message processed, path build failed");
 
         if(currentStatus & LR_StatusRecord::FAIL_TIMEOUT)
         {
@@ -197,8 +197,9 @@ namespace llarp
         {
           llarp::LogDebug("Path build failed for an unspecified reason");
         }
-
-        EnterState(ePathFailed, r->Now());
+        auto self = shared_from_this();
+        r->logic()->queue_func(
+            [=]() { self->EnterState(ePathFailed, r->Now()); });
       }
 
       // TODO: meaningful return value?
@@ -211,6 +212,8 @@ namespace llarp
       if(st == ePathFailed)
       {
         _status = st;
+        m_PathSet->HandlePathBuildFailed(shared_from_this());
+        return;
       }
       else if(st == ePathExpired && _status == ePathBuilding)
       {
diff --git a/llarp/path/pathbuilder.cpp b/llarp/path/pathbuilder.cpp
index 6a94a356c..e0d1b4b11 100644
--- a/llarp/path/pathbuilder.cpp
+++ b/llarp/path/pathbuilder.cpp
@@ -442,15 +442,29 @@ namespace llarp
     }
 
     void
-    Builder::HandlePathBuildTimeout(Path_ptr p)
+    Builder::HandlePathBuildFailed(Path_ptr p)
+    {
+      router->routerProfiling().MarkPathFail(p.get());
+      PathSet::HandlePathBuildFailed(p);
+      DoPathBuildBackoff();
+    }
+
+    void
+    Builder::DoPathBuildBackoff()
     {
       // linear backoff
       static constexpr llarp_time_t MaxBuildInterval = 30 * 1000;
       buildIntervalLimit                             = std::min(
           MIN_PATH_BUILD_INTERVAL + buildIntervalLimit, MaxBuildInterval);
+      LogWarn(Name(), " build interval is now ", buildIntervalLimit);
+    }
+
+    void
+    Builder::HandlePathBuildTimeout(Path_ptr p)
+    {
       router->routerProfiling().MarkPathFail(p.get());
       PathSet::HandlePathBuildTimeout(p);
-      LogWarn(Name(), " build interval is now ", buildIntervalLimit);
+      DoPathBuildBackoff();
     }
 
     void
diff --git a/llarp/path/pathbuilder.hpp b/llarp/path/pathbuilder.hpp
index 5d47b3801..9d17ea561 100644
--- a/llarp/path/pathbuilder.hpp
+++ b/llarp/path/pathbuilder.hpp
@@ -27,6 +27,9 @@ namespace llarp
       UrgentBuild(llarp_time_t now) const;
 
      private:
+      void
+      DoPathBuildBackoff();
+
       bool
       DoUrgentBuildAlignedTo(const RouterID remote,
                              std::vector< RouterContact >& hops);
@@ -115,6 +118,9 @@ namespace llarp
 
       virtual void
       HandlePathBuildTimeout(Path_ptr p) override;
+
+      virtual void
+      HandlePathBuildFailed(Path_ptr p) override;
     };
 
     using Builder_ptr = std::shared_ptr< Builder >;
diff --git a/llarp/path/pathset.cpp b/llarp/path/pathset.cpp
index a752ed4f6..122948a4f 100644
--- a/llarp/path/pathset.cpp
+++ b/llarp/path/pathset.cpp
@@ -291,6 +291,14 @@ namespace llarp
       m_BuildStats.timeouts++;
     }
 
+    void
+    PathSet::HandlePathBuildFailed(Path_ptr p)
+    {
+      LogWarn(Name(), " path build ", p->HopsString(), " failed");
+      m_BuildStats.fails ++;
+    }
+
+
     void
     PathSet::PathBuildStarted(Path_ptr p)
     {
diff --git a/llarp/path/pathset.hpp b/llarp/path/pathset.hpp
index e8ddd6e5c..1acb8e7ca 100644
--- a/llarp/path/pathset.hpp
+++ b/llarp/path/pathset.hpp
@@ -128,6 +128,9 @@ namespace llarp
       virtual void
       HandlePathBuildTimeout(Path_ptr path);
 
+      virtual void
+      HandlePathBuildFailed(Path_ptr path);
+
       virtual void
       PathBuildStarted(Path_ptr path);