diff --git a/swap/src/protocol/alice/event_loop.rs b/swap/src/protocol/alice/event_loop.rs
index 26efd22b..b2b3873c 100644
--- a/swap/src/protocol/alice/event_loop.rs
+++ b/swap/src/protocol/alice/event_loop.rs
@@ -1,4 +1,5 @@
 use crate::{
+    execution_params::ExecutionParams,
     network::{transport::SwapTransport, TokioExecutor},
     protocol::{
         alice::{Behaviour, OutEvent, State0, State3, SwapResponse, TransferProof},
@@ -9,7 +10,10 @@ use anyhow::{anyhow, Context, Result};
 use libp2p::{
     core::Multiaddr, futures::FutureExt, request_response::ResponseChannel, PeerId, Swarm,
 };
-use tokio::sync::mpsc::{Receiver, Sender};
+use tokio::{
+    sync::mpsc::{Receiver, Sender},
+    time::timeout,
+};
 use tracing::{error, trace};
 
 #[allow(missing_debug_implementations)]
@@ -91,13 +95,27 @@ impl EventLoopHandle {
         Ok(())
     }
 
-    pub async fn send_transfer_proof(&mut self, bob: PeerId, msg: TransferProof) -> Result<()> {
+    pub async fn send_transfer_proof(
+        &mut self,
+        bob: PeerId,
+        msg: TransferProof,
+        execution_params: ExecutionParams,
+    ) -> Result<()> {
         let _ = self.send_transfer_proof.send((bob, msg)).await?;
 
-        self.recv_transfer_proof_ack
-            .recv()
-            .await
-            .ok_or_else(|| anyhow!("Failed to receive transfer proof ack from Bob"))?;
+        // TODO: Re-evaluate if these acknowledges are necessary at all.
+        // If we don't use a timeout here and Alice fails to dial Bob she will wait
+        // indefinitely for this acknowledge.
+        if timeout(
+            execution_params.bob_time_to_act,
+            self.recv_transfer_proof_ack.recv(),
+        )
+        .await
+        .is_err()
+        {
+            error!("Failed to receive transfer proof ack from Bob")
+        }
+
         Ok(())
     }
 }
diff --git a/swap/src/protocol/alice/steps.rs b/swap/src/protocol/alice/steps.rs
index d07b72d7..8cff4b5e 100644
--- a/swap/src/protocol/alice/steps.rs
+++ b/swap/src/protocol/alice/steps.rs
@@ -96,6 +96,7 @@ pub async fn lock_xmr<W>(
     state3: alice::State3,
     event_loop_handle: &mut EventLoopHandle,
     monero_wallet: Arc<W>,
+    execution_params: ExecutionParams,
 ) -> Result<()>
 where
     W: Transfer,
@@ -117,9 +118,13 @@ where
     //  Otherwise Alice might publish the lock tx twice!
 
     event_loop_handle
-        .send_transfer_proof(bob_peer_id, TransferProof {
-            tx_lock_proof: transfer_proof,
-        })
+        .send_transfer_proof(
+            bob_peer_id,
+            TransferProof {
+                tx_lock_proof: transfer_proof,
+            },
+            execution_params,
+        )
         .await?;
 
     Ok(())
diff --git a/swap/src/protocol/alice/swap.rs b/swap/src/protocol/alice/swap.rs
index beb17e91..1d7d5a79 100644
--- a/swap/src/protocol/alice/swap.rs
+++ b/swap/src/protocol/alice/swap.rs
@@ -165,6 +165,7 @@ async fn run_until_internal(
                     *state3.clone(),
                     &mut event_loop_handle,
                     monero_wallet.clone(),
+                    execution_params,
                 )
                 .await?;
 
diff --git a/swap/tests/bob_refunds_using_cancel_and_refund_command.rs b/swap/tests/bob_refunds_using_cancel_and_refund_command.rs
index 04b33df1..854fbe33 100644
--- a/swap/tests/bob_refunds_using_cancel_and_refund_command.rs
+++ b/swap/tests/bob_refunds_using_cancel_and_refund_command.rs
@@ -10,7 +10,7 @@ async fn given_bob_manually_refunds_after_btc_locked_bob_refunds() {
         let (bob_swap, bob_join_handle) = ctx.new_swap_as_bob().await;
 
         let alice_handle = alice::run(alice_swap);
-        tokio::spawn(alice_handle);
+        let alice_swap_handle = tokio::spawn(alice_handle);
 
         let bob_state = bob::run_until(bob_swap, is_btc_locked).await.unwrap();
 
@@ -57,10 +57,8 @@ async fn given_bob_manually_refunds_after_btc_locked_bob_refunds() {
 
         ctx.assert_bob_refunded(bob_state).await;
 
-        // TODO: Alice hangs indefinitely waiting for Blob's acknowledge on
-        //  sending the transfer proof
-        // let alice_state = alice_swap_handle.await.unwrap().unwrap();
-        // ctx.assert_alice_refunded(alice_state).await;
+        let alice_state = alice_swap_handle.await.unwrap().unwrap();
+        ctx.assert_alice_refunded(alice_state).await;
     })
     .await;
 }