diff --git a/e2e-tests/src/lib.rs b/e2e-tests/src/lib.rs
index 8b34fd2..f58c8cd 100644
--- a/e2e-tests/src/lib.rs
+++ b/e2e-tests/src/lib.rs
@@ -410,7 +410,7 @@ pub async fn setup_funded_channel(
 		.client()
 		.open_channel(OpenChannelRequest {
 			node_pubkey: server_b.node_id().to_string(),
-			address: format!("127.0.0.1:{}", server_b.p2p_port),
+			address: Some(format!("127.0.0.1:{}", server_b.p2p_port)),
 			channel_amount_sats,
 			push_to_counterparty_msat: None,
 			channel_config: None,
diff --git a/e2e-tests/tests/e2e.rs b/e2e-tests/tests/e2e.rs
index 7744a0d..b2f432c 100644
--- a/e2e-tests/tests/e2e.rs
+++ b/e2e-tests/tests/e2e.rs
@@ -12,7 +12,8 @@ use std::time::Duration;
 
 use e2e_tests::{
 	find_available_port, mine_and_sync, run_cli, run_cli_raw, setup_funded_channel,
-	wait_for_onchain_balance, LdkServerHandle, RabbitMqEventConsumer, TestBitcoind,
+	wait_for_onchain_balance, wait_for_usable_channel, LdkServerHandle, RabbitMqEventConsumer,
+	TestBitcoind,
 };
 use ldk_node::lightning::ln::msgs::SocketAddress;
 use ldk_server_client::ldk_server_protos::api::{
@@ -226,9 +227,27 @@ async fn test_cli_open_channel() {
 	let addr = format!("127.0.0.1:{}", server_b.p2p_port);
 	let output = run_cli(
 		&server_a,
-		&["open-channel", server_b.node_id(), &addr, "100000sat", "--announce-channel"],
+		&[
+			"open-channel",
+			server_b.node_id(),
+			"100000sat",
+			"--address",
+			&addr,
+			"--announce-channel",
+		],
 	);
-	assert!(!output["user_channel_id"].as_str().unwrap().is_empty());
+	let first_user_channel_id = output["user_channel_id"].as_str().unwrap().to_string();
+	assert!(!first_user_channel_id.is_empty());
+
+	// Confirm first channel is usable before opening a second one.
+	mine_and_sync(&bitcoind, &[&server_a, &server_b], 6).await;
+	wait_for_usable_channel(server_a.client(), &bitcoind, Duration::from_secs(60)).await;
+
+	// Open a second channel without specifying address (resolved by backend from connected peers).
+	let output = run_cli(&server_a, &["open-channel", server_b.node_id(), "50000sat"]);
+	let second_user_channel_id = output["user_channel_id"].as_str().unwrap().to_string();
+	assert!(!second_user_channel_id.is_empty());
+	assert_ne!(first_user_channel_id, second_user_channel_id);
 }
 
 #[tokio::test]
diff --git a/ldk-server-cli/src/main.rs b/ldk-server-cli/src/main.rs
index 8cfa087..af3956b 100644
--- a/ldk-server-cli/src/main.rs
+++ b/ldk-server-cli/src/main.rs
@@ -249,16 +249,18 @@ enum Commands {
 	},
 	#[command(about = "Create a new outbound channel to the given remote node")]
 	OpenChannel {
-		#[arg(help = "The hex-encoded public key of the node to open a channel with")]
+		#[arg(help = "The node to open a channel with, as hex pubkey or pubkey@address format")]
 		node_pubkey: String,
-		#[arg(
-			help = "Address to connect to remote peer (IPv4:port, IPv6:port, OnionV3:port, or hostname:port)"
-		)]
-		address: String,
 		#[arg(
 			help = "The amount to commit to the channel, e.g. 100sat or 100000msat, must be a whole sat amount, cannot send msats on-chain."
 		)]
 		channel_amount: Amount,
+		#[arg(
+			short,
+			long,
+			help = "Address to connect to remote peer (IPv4:port, IPv6:port, OnionV3:port, or hostname:port). Optional if included in pubkey via @ separator or if peer is already connected."
+		)]
+		address: Option<String>,
 		#[arg(long, help = "Amount to push to the remote side, e.g. 50sat or 50000msat")]
 		push_to_counterparty: Option<Amount>,
 		#[arg(long, help = "Whether the channel should be public")]
@@ -678,14 +680,21 @@ async fn main() {
 		},
 		Commands::OpenChannel {
 			node_pubkey,
-			address,
 			channel_amount,
+			address,
 			push_to_counterparty,
 			announce_channel,
 			forwarding_fee_proportional_millionths,
 			forwarding_fee_base_msat,
 			cltv_expiry_delta,
 		} => {
+			let (node_pubkey, inline_address) = parse_node_pubkey_and_inline_address(node_pubkey);
+			if inline_address.is_some() && address.is_some() {
+				handle_error_msg(
+					"Address was provided twice. Use either pubkey@address or a separate address argument.",
+				);
+			}
+			let address = address.or(inline_address);
 			let channel_amount_sats =
 				channel_amount.to_sat().unwrap_or_else(|e| handle_error_msg(&e));
 			let push_to_counterparty_msat = push_to_counterparty.map(|a| a.to_msat());
@@ -804,12 +813,13 @@ async fn main() {
 			);
 		},
 		Commands::ConnectPeer { node_pubkey, address, persist } => {
-			let (node_pubkey, address) = if let Some(address) = address {
-				(node_pubkey, address)
-			} else if let Some((pubkey, addr)) = node_pubkey.split_once('@') {
-				(pubkey.to_string(), addr.to_string())
+			let (node_pubkey, inline_address) = parse_node_pubkey_and_inline_address(node_pubkey);
+			let address = if let Some(address) = address.or(inline_address) {
+				address
 			} else {
-				eprintln!("Error: address is required. Provide it as pubkey@address or as a separate argument.");
+				eprintln!(
+					"Error: address is required. Provide it as pubkey@address or as a separate argument."
+				);
 				std::process::exit(1);
 			};
 			handle_response_result::<_, ConnectPeerResponse>(
@@ -878,6 +888,14 @@ async fn main() {
 	}
 }
 
+fn parse_node_pubkey_and_inline_address(node_pubkey: String) -> (String, Option<String>) {
+	if let Some((pubkey, address)) = node_pubkey.split_once('@') {
+		(pubkey.to_string(), Some(address.to_string()))
+	} else {
+		(node_pubkey, None)
+	}
+}
+
 fn build_open_channel_config(
 	forwarding_fee_proportional_millionths: Option<u32>, forwarding_fee_base_msat: Option<u32>,
 	cltv_expiry_delta: Option<u32>,
diff --git a/ldk-server-protos/src/api.rs b/ldk-server-protos/src/api.rs
index 4dbdb66..3d3962c 100644
--- a/ldk-server-protos/src/api.rs
+++ b/ldk-server-protos/src/api.rs
@@ -317,10 +317,11 @@ pub struct OpenChannelRequest {
 	/// The hex-encoded public key of the node to open a channel with.
 	#[prost(string, tag = "1")]
 	pub node_pubkey: ::prost::alloc::string::String,
-	/// An address which can be used to connect to a remote peer.
-	/// It can be of type IPv4:port, IPv6:port, OnionV3:port or hostname:port
-	#[prost(string, tag = "2")]
-	pub address: ::prost::alloc::string::String,
+	/// An optional address which can be used to connect to a remote peer.
+	/// It can be of type IPv4:port, IPv6:port, OnionV3:port or hostname:port.
+	/// If unset, the server will try to resolve it from currently connected peers.
+	#[prost(string, optional, tag = "2")]
+	pub address: ::core::option::Option<::prost::alloc::string::String>,
 	/// The amount of satoshis the caller is willing to commit to the channel.
 	#[prost(uint64, tag = "3")]
 	pub channel_amount_sats: u64,
diff --git a/ldk-server-protos/src/proto/api.proto b/ldk-server-protos/src/proto/api.proto
index a841bc0..603fb48 100644
--- a/ldk-server-protos/src/proto/api.proto
+++ b/ldk-server-protos/src/proto/api.proto
@@ -263,9 +263,10 @@ message OpenChannelRequest {
   // The hex-encoded public key of the node to open a channel with.
   string node_pubkey = 1;
 
-  // An address which can be used to connect to a remote peer.
-  // It can be of type IPv4:port, IPv6:port, OnionV3:port or hostname:port
-  string address = 2;
+  // An optional address which can be used to connect to a remote peer.
+  // It can be of type IPv4:port, IPv6:port, OnionV3:port or hostname:port.
+  // If unset, the server will try to resolve it from currently connected peers.
+  optional string address = 2;
 
   // The amount of satoshis the caller is willing to commit to the channel.
   uint64 channel_amount_sats = 3;
diff --git a/ldk-server/src/api/open_channel.rs b/ldk-server/src/api/open_channel.rs
index 6c470b7..468f837 100644
--- a/ldk-server/src/api/open_channel.rs
+++ b/ldk-server/src/api/open_channel.rs
@@ -16,6 +16,7 @@ use ldk_server_protos::api::{OpenChannelRequest, OpenChannelResponse};
 
 use crate::api::build_channel_config_from_proto;
 use crate::api::error::LdkServerError;
+use crate::api::error::LdkServerErrorCode::InvalidRequestError;
 use crate::service::Context;
 
 pub(crate) fn handle_open_channel(
@@ -23,8 +24,23 @@ pub(crate) fn handle_open_channel(
 ) -> Result<OpenChannelResponse, LdkServerError> {
 	let node_id = PublicKey::from_str(&request.node_pubkey)
 		.map_err(|_| ldk_node::NodeError::InvalidPublicKey)?;
-	let address = SocketAddress::from_str(&request.address)
-		.map_err(|_| ldk_node::NodeError::InvalidSocketAddress)?;
+	let address = match request.address {
+		Some(address) => {
+			SocketAddress::from_str(&address).map_err(|_| ldk_node::NodeError::InvalidSocketAddress)?
+		},
+		None => context
+			.node
+			.list_peers()
+			.into_iter()
+			.find(|peer| peer.node_id == node_id)
+			.map(|peer| peer.address)
+			.ok_or_else(|| {
+				LdkServerError::new(
+					InvalidRequestError,
+					"Address is required unless the peer is currently connected. Provide an address or connect-peer first.".to_string(),
+				)
+			})?,
+	};
 
 	let channel_config = request
 		.channel_config