diff --git a/core/connection/manager.go b/core/connection/manager.go
index e87d5a32a..2e68c945b 100644
--- a/core/connection/manager.go
+++ b/core/connection/manager.go
@@ -145,6 +145,8 @@ type connectionManager struct {
 	validator            validator
 	p2pDialer            p2p.Dialer
 	timeGetter           TimeGetter
+	priceCheckInterval   time.Duration
+	priceDropPercent     float64
 
 	// These are populated by Connect at runtime.
 	ctx                    context.Context
@@ -207,6 +209,8 @@ func NewManager(
 		preReconnect:         preReconnect,
 		postReconnect:        postReconnect,
 		uuid:                 uuid.String(),
+		priceDropPercent:     10, // reconnect if price dropped 10% or more
+		priceCheckInterval:   30 * time.Second,
 	}
 
 	m.eventBus.SubscribeAsync(connectionstate.AppTopicConnectionState, m.reconnectOnHold)
@@ -303,6 +307,7 @@ func (m *connectionManager) Connect(consumerID identity.Identity, hermesID commo
 
 	go m.consumeConnectionStates(m.activeConnection.State())
 	go m.checkSessionIP(m.channel, m.connectOptions.ConsumerID, m.connectOptions.SessionID, originalPublicIP)
+	go m.monitorPrice(prc, proposalLookup)
 
 	return nil
 }
@@ -384,7 +389,7 @@ func (m *connectionManager) initSession(tracer *trace.Tracer, prc market.Price)
 	m.setStatus(func(status *connectionstate.Status) {
 		status.SessionID = sessionID
 	})
-	m.publishSessionCreate(sessionID)
+	m.publishSessionCreate()
 	paymentSession.SetSessionID(string(sessionID))
 	tracer.EndStage(traceStart)
 
@@ -662,7 +667,7 @@ func (m *connectionManager) createP2PSession(c Connection, opts ConnectOptions,
 	return &sessionResponse, nil
 }
 
-func (m *connectionManager) publishSessionCreate(sessionID session.ID) {
+func (m *connectionManager) publishSessionCreate() {
 	sessionInfo := m.Status()
 	// avoid printing IP address in logs
 	sessionInfo.ConsumerLocation.IP = ""
@@ -1031,3 +1036,30 @@ func logDisconnectError(err error) {
 		log.Error().Err(err).Msg("Disconnect error")
 	}
 }
+
+func (m *connectionManager) monitorPrice(currentPrice market.Price, proposalLookup ProposalLookup) {
+	t := time.NewTicker(m.priceCheckInterval)
+	for {
+		select {
+		case <-m.currentCtx().Done():
+			return
+		case <-t.C:
+			proposal, err := proposalLookup()
+			if err != nil {
+				log.Error().Err(err).Msg("Failed to lookup proposal")
+				continue
+			}
+			newPrice := m.priceFromProposal(*proposal)
+
+			// Check if both GiB and Hourly prices dropped by at least 10%
+			giBDrop := float64(currentPrice.PricePerGiB.Int64()-newPrice.PricePerGiB.Int64()) / float64(currentPrice.PricePerGiB.Int64())
+			hourDrop := float64(currentPrice.PricePerHour.Int64()-newPrice.PricePerHour.Int64()) / float64(currentPrice.PricePerHour.Int64())
+
+			if giBDrop*100 >= m.priceDropPercent || hourDrop*100 >= m.priceDropPercent {
+				log.Info().Msgf("Price dropped significantly from %q to %q, disconnecting", currentPrice.String(), newPrice.String())
+				m.Disconnect()
+				return
+			}
+		}
+	}
+}
diff --git a/core/connection/manager_test.go b/core/connection/manager_test.go
index 030445967..d3c658eb7 100644
--- a/core/connection/manager_test.go
+++ b/core/connection/manager_test.go
@@ -392,6 +392,36 @@ func (tc *testContext) TestConnectMethodReturnsErrorIfConnectionExitsDuringConne
 	assert.Equal(tc.T(), ErrConnectionFailed, err)
 }
 
+func (tc *testContext) TestDisconnectDueToPriceDrop() {
+	tc.fakeConnectionFactory.mockConnection.onStartReportStates = []fakeState{
+		connectedState,
+	}
+	tc.connManager.priceCheckInterval = time.Millisecond
+
+	mux := sync.RWMutex{}
+	proposalLookup := func() (proposal *proposal.PricedServiceProposal, err error) {
+		mux.RLock()
+		defer mux.RUnlock()
+		return &activeProposal, nil
+	}
+
+	err := tc.connManager.Connect(consumerID, hermesID, proposalLookup, ConnectParams{})
+	assert.NoError(tc.T(), err)
+	assert.Equal(tc.T(), connectionstate.Connected, tc.connManager.Status().State)
+
+	newPrice := market.Price{
+		PricePerHour: big.NewInt(1),
+		PricePerGiB:  big.NewInt(1),
+	}
+	mux.Lock()
+	activeProposal.Price = newPrice
+	mux.Unlock()
+
+	waitABit()
+
+	assert.Equal(tc.T(), connectionstate.NotConnected, tc.connManager.Status().State)
+}
+
 func (tc *testContext) Test_PaymentManager_WhenManagerMadeConnectionIsStarted() {
 	err := tc.connManager.Connect(consumerID, hermesID, activeProposalLookup, ConnectParams{})
 	waitABit()