diff --git a/pkg/dmsg/client_sessions.go b/pkg/dmsg/client_sessions.go
index d6b6ccd7..ba213b7f 100644
--- a/pkg/dmsg/client_sessions.go
+++ b/pkg/dmsg/client_sessions.go
@@ -93,14 +93,14 @@ func (ce *Client) dialSession(ctx context.Context, entry *disc.Entry) (cs Client
 		return ClientSession{}, err
 	}
 	if entry.Protocol == "smux" {
-		dSes.sm.smux, err = smux.Client(conn, smux.DefaultConfig())
+		dSes.sm.smux, err = smux.Client(conn, SmuxConfig())
 		if err != nil {
 			conn.Close() //nolint:errcheck,gosec
 			return ClientSession{}, err
 		}
 		ce.log.Infof("smux stream session initial for %s", dSes.RemotePK().String())
 	} else {
-		dSes.sm.yamux, err = yamux.Client(conn, yamux.DefaultConfig())
+		dSes.sm.yamux, err = yamux.Client(conn, YamuxConfig())
 		if err != nil {
 			conn.Close() //nolint:errcheck,gosec
 			return ClientSession{}, err
diff --git a/pkg/dmsg/server.go b/pkg/dmsg/server.go
index 9bd4a622..213e9091 100644
--- a/pkg/dmsg/server.go
+++ b/pkg/dmsg/server.go
@@ -380,7 +380,7 @@ func (s *Server) maintainPeerConnection(ctx context.Context, peer PeerEntry) {
 		}
 
 		ses.sm.mutx.Lock()
-		ses.sm.yamux, err = yamux.Client(conn, yamux.DefaultConfig())
+		ses.sm.yamux, err = yamux.Client(conn, YamuxConfig())
 		if err != nil {
 			ses.sm.mutx.Unlock()
 			log.WithError(err).Warn("Peer yamux setup failed.")
@@ -470,7 +470,7 @@ func (s *Server) handleSession(conn net.Conn) {
 	// based on protocol, create smux or yamux stream session
 	dSes.sm.mutx.Lock()
 	if protocol == "smux" {
-		dSes.sm.smux, err = smux.Server(conn, smux.DefaultConfig())
+		dSes.sm.smux, err = smux.Server(conn, SmuxConfig())
 		if err != nil {
 			dSes.sm.mutx.Unlock()
 			conn.Close() //nolint:errcheck,gosec
@@ -480,7 +480,7 @@ func (s *Server) handleSession(conn net.Conn) {
 		dSes.sm.addr = dSes.sm.smux.RemoteAddr()
 		log.Infof("smux stream session initial for %s", dSes.RemotePK().String())
 	} else {
-		dSes.sm.yamux, err = yamux.Server(conn, yamux.DefaultConfig())
+		dSes.sm.yamux, err = yamux.Server(conn, YamuxConfig())
 		if err != nil {
 			dSes.sm.mutx.Unlock()
 			conn.Close() //nolint:errcheck,gosec
diff --git a/pkg/dmsg/server_session.go b/pkg/dmsg/server_session.go
index 3ff0c90b..32f0b5dc 100644
--- a/pkg/dmsg/server_session.go
+++ b/pkg/dmsg/server_session.go
@@ -153,9 +153,15 @@ func (ss *ServerSession) serveStream(log logrus.FieldLogger, yStr io.ReadWriteCl
 		return err
 	}
 	if header[0] == 0 && header[1] == 0 {
-		// Ping: echo back the marker and close.
+		// Ping: echo back the marker and close the stream to flush the write.
+		// Without the explicit close, smux may buffer the response and the
+		// client's read times out waiting for data that never arrives.
 		_, err := yStr.Write(pingMarker)
-		return err
+		closeErr := yStr.Close()
+		if err != nil {
+			return err
+		}
+		return closeErr
 	}
 
 	// Not a ping — the 2 bytes are the length prefix of a normal object.
diff --git a/pkg/dmsg/stream.go b/pkg/dmsg/stream.go
index bb70240b..7f49ee5c 100644
--- a/pkg/dmsg/stream.go
+++ b/pkg/dmsg/stream.go
@@ -71,7 +71,10 @@ func (s *Stream) Close() error {
 	if s.sStr != nil {
 		return s.sStr.Close()
 	}
-	return s.yStr.Close()
+	if s.yStr != nil {
+		return s.yStr.Close()
+	}
+	return nil
 }
 
 // Logger returns the internal logrus.FieldLogger instance.
diff --git a/pkg/dmsg/types.go b/pkg/dmsg/types.go
index dfde5ade..99c6e31d 100644
--- a/pkg/dmsg/types.go
+++ b/pkg/dmsg/types.go
@@ -4,11 +4,14 @@ package dmsg
 import (
 	"errors"
 	"fmt"
+	"io"
 	"net"
 	"strings"
 	"time"
 
+	"github.com/hashicorp/yamux"
 	"github.com/skycoin/skywire/pkg/skywire-utilities/pkg/cipher"
+	"github.com/xtaci/smux"
 )
 
 const (
@@ -37,6 +40,32 @@ var (
 	AcceptBufferSize = 20
 )
 
+// YamuxConfig returns a tuned yamux configuration for dmsg sessions.
+func YamuxConfig() *yamux.Config {
+	return &yamux.Config{
+		AcceptBacklog:          512,
+		EnableKeepAlive:        true,
+		KeepAliveInterval:      30 * time.Second,
+		ConnectionWriteTimeout: 10 * time.Second,
+		MaxStreamWindowSize:    256 * 1024,
+		StreamOpenTimeout:      20 * time.Second,
+		StreamCloseTimeout:     30 * time.Second,
+		LogOutput:              io.Discard,
+	}
+}
+
+// SmuxConfig returns a tuned smux configuration for dmsg sessions.
+func SmuxConfig() *smux.Config {
+	return &smux.Config{
+		Version:           2,
+		KeepAliveInterval: 10 * time.Second,
+		KeepAliveTimeout:  30 * time.Second,
+		MaxFrameSize:      32768,
+		MaxReceiveBuffer:  1048576,
+		MaxStreamBuffer:   65536,
+	}
+}
+
 // Addr implements net.Addr for dmsg addresses.
 type Addr struct {
 	PK   cipher.PubKey `json:"public_key"`