diff --git a/addrs.go b/addrs.go
new file mode 100644
index 0000000000000000000000000000000000000000..ed510f26264af8c6c337a58b09e8992d09f70c78
--- /dev/null
+++ b/addrs.go
@@ -0,0 +1,35 @@
+package swarm
+
+import (
+	mafilter "github.com/libp2p/go-maddr-filter"
+	mamask "github.com/whyrusleeping/multiaddr-filter"
+)
+
+// http://www.iana.org/assignments/iana-ipv4-special-registry/iana-ipv4-special-registry.xhtml
+var lowTimeoutFilters = mafilter.NewFilters()
+
+func init() {
+	for _, p := range []string{
+		"/ip4/10.0.0.0/ipcidr/8",
+		"/ip4/100.64.0.0/ipcidr/10",
+		"/ip4/169.254.0.0/ipcidr/16",
+		"/ip4/172.16.0.0/ipcidr/12",
+		"/ip4/192.0.0.0/ipcidr/24",
+		"/ip4/192.0.0.0/ipcidr/29",
+		"/ip4/192.0.0.8/ipcidr/32",
+		"/ip4/192.0.0.170/ipcidr/32",
+		"/ip4/192.0.0.171/ipcidr/32",
+		"/ip4/192.0.2.0/ipcidr/24",
+		"/ip4/192.168.0.0/ipcidr/16",
+		"/ip4/198.18.0.0/ipcidr/15",
+		"/ip4/198.51.100.0/ipcidr/24",
+		"/ip4/203.0.113.0/ipcidr/24",
+		"/ip4/240.0.0.0/ipcidr/4",
+	} {
+		f, err := mamask.NewMask(p)
+		if err != nil {
+			panic("error in lowTimeoutFilters init: " + err.Error())
+		}
+		lowTimeoutFilters.AddDialFilter(f)
+	}
+}
diff --git a/limiter.go b/limiter.go
index 3d3437b95f8c35cc9831984b42fb64e8b39fa88c..a740e27efd29f8f53031c69a0b2373781687f65f 100644
--- a/limiter.go
+++ b/limiter.go
@@ -3,6 +3,7 @@ package swarm
 import (
 	"context"
 	"sync"
+	"time"
 
 	addrutil "github.com/libp2p/go-addr-util"
 	peer "github.com/libp2p/go-libp2p-peer"
@@ -33,6 +34,15 @@ func (dj *dialJob) cancelled() bool {
 	}
 }
 
+func (dj *dialJob) dialTimeout() time.Duration {
+	timeout := DialTimeout
+	if lowTimeoutFilters.AddrBlocked(dj.addr) {
+		timeout = DialTimeoutLocal
+	}
+
+	return timeout
+}
+
 type dialLimiter struct {
 	rllock      sync.Mutex
 	fdConsuming int
@@ -162,7 +172,10 @@ func (dl *dialLimiter) executeDial(j *dialJob) {
 		return
 	}
 
-	con, err := dl.dialFunc(j.ctx, j.peer, j.addr)
+	dctx, cancel := context.WithTimeout(j.ctx, j.dialTimeout())
+	defer cancel()
+
+	con, err := dl.dialFunc(dctx, j.peer, j.addr)
 	select {
 	case j.resp <- dialResult{Conn: con, Addr: j.addr, Err: err}:
 	case <-j.ctx.Done():
diff --git a/swarm.go b/swarm.go
index dbf81613f9811452e44d472f01b58b971b841768..002abd2d9f1fe4edc0a31042e39ed5695371f33a 100644
--- a/swarm.go
+++ b/swarm.go
@@ -22,9 +22,15 @@ import (
 )
 
 // DialTimeout is the maximum duration a Dial is allowed to take.
+// This includes the time spent waiting in dial limiter, between dialing the raw
+// network connection, protocol selection as well the handshake, if applicable.
+var DialTimeout = 60 * time.Second
+
+// DialTimeoutLocal is the maximum duration a Dial to local network address
+// is allowed to take.
 // This includes the time between dialing the raw network connection,
 // protocol selection as well the handshake, if applicable.
-var DialTimeout = 60 * time.Second
+var DialTimeoutLocal = 5 * time.Second
 
 var log = logging.Logger("swarm2")