diff --git a/src/net_processing.cpp b/src/net_processing.cpp
index 8d6489d5c6..99f793881c 100644
--- a/src/net_processing.cpp
+++ b/src/net_processing.cpp
@@ -4053,6 +4053,11 @@ void PeerManagerImpl::ProcessMessage(
     }
 
     if (msg_type == NetMsgType::TX || msg_type == NetMsgType::DSTX) {
+        // Stop processing the transaction early if we are still in IBD since we don't
+        // have enough information to validate it yet. Sending unsolicited transactions
+        // is not considered a protocol violation, so don't punish the peer.
+        if (m_chainman.ActiveChainstate().IsInitialBlockDownload()) return;
+
         CTransactionRef ptx;
         CCoinJoinBroadcastTx dstx;
         int nInvType = MSG_TX;
diff --git a/test/functional/p2p_ibd_txrelay.py b/test/functional/p2p_ibd_txrelay.py
new file mode 100755
index 0000000000..1af89d6a2f
--- /dev/null
+++ b/test/functional/p2p_ibd_txrelay.py
@@ -0,0 +1,78 @@
+#!/usr/bin/env python3
+# Copyright (c) 2020 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+"""Test transaction relay behavior during IBD:
+- Don't request transactions
+- Ignore all transaction messages
+"""
+
+from decimal import Decimal
+import time
+
+from test_framework.messages import (
+    CInv,
+    COIN,
+    CTransaction,
+    from_hex,
+    msg_inv,
+    msg_tx,
+    MSG_TX,
+)
+from test_framework.p2p import (
+    NONPREF_PEER_TX_DELAY,
+    P2PDataStore,
+    P2PInterface,
+    p2p_lock
+)
+from test_framework.test_framework import BitcoinTestFramework
+
+NORMAL_FEE_FILTER = Decimal(100) / COIN
+
+class P2PIBDTxRelayTest(BitcoinTestFramework):
+    def set_test_params(self):
+        self.setup_clean_chain = True
+        self.disable_mocktime = True
+        self.num_nodes = 2
+        self.extra_args = [
+            ["-minrelaytxfee={}".format(NORMAL_FEE_FILTER)],
+            ["-minrelaytxfee={}".format(NORMAL_FEE_FILTER)],
+        ]
+
+    def run_test(self):
+        self.log.info("Check that nodes don't send getdatas for transactions while still in IBD")
+        peer_inver = self.nodes[0].add_p2p_connection(P2PDataStore())
+        txid = 0xdeadbeef
+        peer_inver.send_and_ping(msg_inv([CInv(t=MSG_TX, h=txid)]))
+        # The node should not send a getdata, but if it did, it would first delay 2 seconds
+        self.nodes[0].setmocktime(int(time.time() + NONPREF_PEER_TX_DELAY))
+        peer_inver.sync_send_with_ping()
+        with p2p_lock:
+            assert txid not in peer_inver.getdata_requests
+        self.nodes[0].disconnect_p2ps()
+
+        self.log.info("Check that nodes don't process unsolicited transactions while still in IBD")
+        # A transaction hex pulled from tx_valid.json. There are no valid transactions since no UTXOs
+        # exist yet, but it should be a well-formed transaction.
+        rawhex = "0100000001b14bdcbc3e01bdaad36cc08e81e69c82e1060bc14e518db2b49aa43ad90ba260000000004a01ff473" + \
+            "04402203f16c6f40162ab686621ef3000b04e75418a0c0cb2d8aebeac894ae360ac1e780220ddc15ecdfc3507ac48e168" + \
+            "1a33eb60996631bf6bf5bc0a0682c4db743ce7ca2b01ffffffff0140420f00000000001976a914660d4ef3a743e3e696a" + \
+            "d990364e555c271ad504b88ac00000000"
+        assert self.nodes[1].decoderawtransaction(rawhex) # returns a dict, should not throw
+        tx = from_hex(CTransaction(), rawhex)
+        peer_txer = self.nodes[0].add_p2p_connection(P2PInterface())
+        with self.nodes[0].assert_debug_log(expected_msgs=["received: tx"], unexpected_msgs=["was not accepted"]):
+            peer_txer.send_and_ping(msg_tx(tx))
+        self.nodes[0].disconnect_p2ps()
+
+        # Come out of IBD by generating a block
+        self.nodes[0].generate(1)
+        self.sync_all()
+
+        self.log.info("Check that nodes process the same transaction, even when unsolicited, when no longer in IBD")
+        peer_txer = self.nodes[0].add_p2p_connection(P2PInterface())
+        with self.nodes[0].assert_debug_log(expected_msgs=["was not accepted"]):
+            peer_txer.send_and_ping(msg_tx(tx))
+
+if __name__ == '__main__':
+    P2PIBDTxRelayTest().main()
diff --git a/test/functional/test_framework/p2p.py b/test/functional/test_framework/p2p.py
index 4e88e5268a..1c9e9a2958 100755
--- a/test/functional/test_framework/p2p.py
+++ b/test/functional/test_framework/p2p.py
@@ -99,6 +99,8 @@ P2P_SERVICES = NODE_NETWORK | NODE_HEADERS_COMPRESSED
 P2P_SUBVERSION = "/python-p2p-tester:0.0.3%s/"
 # Value for relay that this test framework sends in its `version` message
 P2P_VERSION_RELAY = 1
+# Delay after receiving a tx inv before requesting transactions from non-preferred peers, in seconds
+NONPREF_PEER_TX_DELAY = 2
 
 MESSAGEMAP = {
     b"addr": msg_addr,
diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
index 80bd7abfb7..4ecef85f37 100755
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -306,6 +306,7 @@ BASE_SCRIPTS = [
     'rpc_estimatefee.py',
     'p2p_unrequested_blocks.py', # NOTE: needs dash_hash to pass
     'feature_shutdown.py',
+    'p2p_ibd_txrelay.py',
     'rpc_coinjoin.py',
     'rpc_masternode.py',
     'rpc_mnauth.py',