diff --git a/aries_cloudagent/protocols/out_of_band/v1_0/manager.py b/aries_cloudagent/protocols/out_of_band/v1_0/manager.py
index 1c61cdedd0..75b7892e69 100644
--- a/aries_cloudagent/protocols/out_of_band/v1_0/manager.py
+++ b/aries_cloudagent/protocols/out_of_band/v1_0/manager.py
@@ -500,6 +500,10 @@ async def receive_invitation(
                             await conn_rec.metadata_delete(
                                 session=session, key="reuse_msg_state"
                             )
+                            # refetch connection for accurate state after handshake
+                            conn_rec = await ConnRecord.retrieve_by_id(
+                                session=session, record_id=conn_rec.connection_id
+                            )
                 except asyncio.TimeoutError:
                     # If no reuse_accepted or problem_report message was received within
                     # the 15s timeout then a new connection to be created