diff --git a/src/https.rs b/src/https.rs
index 49df11a..2353c2d 100644
--- a/src/https.rs
+++ b/src/https.rs
@@ -233,7 +233,8 @@ async fn select_target_and_proxy(
 		.entries
 		.iter()
 		.filter(|ent| {
-			ent.host.matches(host)
+			ent.flags.healthy
+				&& ent.host.matches(host)
 				&& ent
 					.path_prefix
 					.as_ref()
diff --git a/src/main.rs b/src/main.rs
index f84d973..80c5b1e 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -245,7 +245,13 @@ async fn dump_config_on_change(
 			for ((host, prefix), ents) in cfg_map.iter_mut() {
 				println!("{}{}:", host, prefix.as_deref().unwrap_or_default());
 				for ent in ents.iter() {
-					println!("   {}", ent);
+					print!("    ");
+					if !ent.flags.healthy {
+						print!("/!\\ ");
+					} else {
+						print!("    ");
+					}
+					println!("{}", ent);
 				}
 			}
 			println!();
diff --git a/src/proxy_config.rs b/src/proxy_config.rs
index 18f9d53..848c99c 100644
--- a/src/proxy_config.rs
+++ b/src/proxy_config.rs
@@ -1,16 +1,13 @@
 use std::collections::HashMap;
 use std::net::SocketAddr;
 use std::sync::{atomic, Arc};
-use std::{cmp, time::Duration};
+use std::time::Duration;
 
 use anyhow::Result;
 use opentelemetry::{metrics, KeyValue};
 
-use futures::future::BoxFuture;
-use futures::stream::{FuturesUnordered, StreamExt};
-
 use log::*;
-use tokio::{select, sync::watch, time::sleep};
+use tokio::{select, sync::watch};
 
 use crate::consul;
 
@@ -93,6 +90,9 @@ impl Eq for ProxyEntry {}
 
 #[derive(Debug, Clone, Copy, Eq, PartialEq)]
 pub struct ProxyEntryFlags {
+	/// Is the target healthy?
+	pub healthy: bool,
+
 	/// Is the target the same node as we are running on?
 	/// (if yes priorize it over other matching targets)
 	pub same_node: bool,
@@ -119,6 +119,9 @@ impl std::fmt::Display for ProxyEntry {
 			self.path_prefix.as_deref().unwrap_or_default(),
 			self.priority
 		)?;
+		if !self.flags.healthy {
+			write!(f, " UNHEALTHY")?;
+		}
 		if self.flags.same_node {
 			write!(f, " OURSELF")?;
 		} else if self.flags.same_site {
@@ -141,16 +144,6 @@ pub struct ProxyConfig {
 	pub entries: Vec<ProxyEntry>,
 }
 
-fn retry_to_time(retries: u32, max_time: Duration) -> Duration {
-	// 1.2^x seems to be a good value to exponentially increase time at a good pace
-	// eg. 1.2^32 = 341 seconds ~= 5 minutes - ie. after 32 retries we wait 5
-	// minutes
-	Duration::from_secs(cmp::min(
-		max_time.as_secs(),
-		1.2f64.powf(retries as f64) as u64,
-	))
-}
-
 fn parse_tricot_tag(
 	service_name: String,
 	tag: &str,
@@ -209,63 +202,55 @@ fn parse_tricot_add_header_tag(tag: &str) -> Option<(String, String)> {
 	}
 }
 
-fn parse_consul_catalog(
-	catalog: &consul::catalog::CatalogNode,
-	same_node: bool,
-	same_site: bool,
+fn parse_consul_service(
+	s: &consul::catalog::HealthServiceNode,
+	mut flags: ProxyEntryFlags,
 ) -> Vec<ProxyEntry> {
-	trace!("Parsing node catalog: {:#?}", catalog);
+	trace!("Parsing service: {:#?}", s);
 
 	let mut entries = vec![];
 
-	for (_, svc) in catalog.services.iter() {
-		let ip_addr = match svc.address.parse() {
+	let ip_addr = match s.service.address.parse() {
+		Ok(ip) => ip,
+		_ => match s.node.address.parse() {
 			Ok(ip) => ip,
-			_ => match catalog.node.address.parse() {
-				Ok(ip) => ip,
-				_ => {
-					warn!(
-						"Could not get address for service {} at node {}",
-						svc.service, catalog.node.node
-					);
-					continue;
-				}
-			},
-		};
-		let addr = SocketAddr::new(ip_addr, svc.port);
-
-		let (site_lb, global_lb) = if svc.tags.contains(&"tricot-global-lb".into()) {
-			(false, true)
-		} else if svc.tags.contains(&"tricot-site-lb".into()) {
-			(true, false)
-		} else {
-			(false, false)
-		};
-
-		let flags = ProxyEntryFlags {
-			same_node,
-			same_site,
-			site_lb,
-			global_lb,
-		};
-
-		let mut add_headers = vec![];
-		for tag in svc.tags.iter() {
-			if let Some(pair) = parse_tricot_add_header_tag(tag) {
-				add_headers.push(pair);
+			_ => {
+				warn!(
+					"Could not get address for service {} at node {}",
+					s.service.service, s.node.node
+				);
+				return vec![];
 			}
-		}
+		},
+	};
+	let addr = SocketAddr::new(ip_addr, s.service.port);
 
-		for tag in svc.tags.iter() {
-			if let Some(ent) =
-				parse_tricot_tag(svc.service.clone(), tag, addr, &add_headers[..], flags)
-			{
-				entries.push(ent);
-			}
+	if s.service.tags.contains(&"tricot-global-lb".into()) {
+		flags.global_lb = true;
+	} else if s.service.tags.contains(&"tricot-site-lb".into()) {
+		flags.site_lb = true;
+	};
+
+	let mut add_headers = vec![];
+	for tag in s.service.tags.iter() {
+		if let Some(pair) = parse_tricot_add_header_tag(tag) {
+			add_headers.push(pair);
 		}
 	}
 
-	trace!("Result of parsing catalog:");
+	for tag in s.service.tags.iter() {
+		if let Some(ent) = parse_tricot_tag(
+			s.service.service.clone(),
+			tag,
+			addr,
+			&add_headers[..],
+			flags,
+		) {
+			entries.push(ent);
+		}
+	}
+
+	trace!("Result of parsing service:");
 	for ent in entries.iter() {
 		trace!("    {}", ent);
 	}
@@ -273,13 +258,6 @@ fn parse_consul_catalog(
 	entries
 }
 
-#[derive(Default)]
-struct NodeWatchState {
-	last_idx: Option<usize>,
-	last_catalog: Option<consul::catalog::CatalogNode>,
-	retries: u32,
-}
-
 pub fn spawn_proxy_config_task(
 	consul: consul::Consul,
 	local_node: String,
@@ -293,108 +271,50 @@ pub fn spawn_proxy_config_task(
 	let consul = Arc::new(consul);
 
 	tokio::spawn(async move {
-		let mut nodes = HashMap::new();
-		let mut watches = FuturesUnordered::<BoxFuture<'static, (String, Result<_>)>>::new();
-
-		let mut node_site = HashMap::new();
+		let mut catalog_rx = consul.watch_all_service_health(Duration::from_secs(300));
+		let mut local_node_site = None;
 
 		while !*must_exit.borrow() {
-			let list_nodes = select! {
-				ln = consul.catalog_node_list(None) => ln,
+			select! {
+				_ = catalog_rx.changed() => (),
 				_ = must_exit.changed() => continue,
 			};
 
-			match list_nodes {
-				Ok(consul_nodes) => {
-					info!("Watched consul nodes: {:?}", consul_nodes);
-					for consul_node in consul_nodes.into_inner() {
-						let node = &consul_node.node;
-						if !nodes.contains_key(node) {
-							nodes.insert(node.clone(), NodeWatchState::default());
-
-							let node = node.to_string();
-							let consul = consul.clone();
-
-							watches.push(Box::pin(async move {
-								let res = consul.catalog_node(&node, None).await;
-								(node, res)
-							}));
-						}
-						if let Some(site) = consul_node.meta.get("site") {
-							node_site.insert(node.clone(), site.clone());
+			let services = catalog_rx.borrow_and_update().clone();
+			if local_node_site.is_none() {
+				for (_, svcnodes) in services.iter() {
+					for svcnode in svcnodes.iter() {
+						if svcnode.node.node == local_node {
+							if let Some(site) = svcnode.node.meta.get("site") {
+								local_node_site = Some(site.to_string());
+							}
 						}
 					}
 				}
-				Err(e) => {
-					warn!("Could not get Consul node list: {}", e);
-				}
-			}
-
-			let next_watch = select! {
-				nw = watches.next() => nw,
-				_ = must_exit.changed() => continue,
-			};
-
-			let (node, res): (String, Result<_>) = match next_watch {
-				Some(v) => v,
-				None => {
-					warn!("No nodes currently watched in proxy_config.rs");
-					sleep(Duration::from_secs(10)).await;
-					continue;
-				}
-			};
-
-			match res {
-				Ok(res) => {
-					let new_idx = res.index();
-					let catalog = res.into_inner();
-
-					let mut watch_state = nodes.get_mut(&node).unwrap();
-					watch_state.last_idx = Some(new_idx);
-					watch_state.last_catalog = catalog;
-					watch_state.retries = 0;
-
-					let idx = watch_state.last_idx;
-					let consul = consul.clone();
-					watches.push(Box::pin(async move {
-						let res = consul.catalog_node(&node, idx).await;
-						(node, res)
-					}));
-				}
-				Err(e) => {
-					let mut watch_state = nodes.get_mut(&node).unwrap();
-					watch_state.retries += 1;
-					watch_state.last_idx = None;
-
-					let will_retry_in =
-						retry_to_time(watch_state.retries, Duration::from_secs(600));
-					error!(
-						"Failed to query consul for node {}. Will retry in {}s. {}",
-						node,
-						will_retry_in.as_secs(),
-						e
-					);
-
-					let consul = consul.clone();
-					watches.push(Box::pin(async move {
-						sleep(will_retry_in).await;
-						let res = consul.catalog_node(&node, None).await;
-						(node, res)
-					}));
-					continue;
-				}
 			}
 
 			let mut entries = vec![];
-			for (node_name, watch_state) in nodes.iter() {
-				if let Some(catalog) = &watch_state.last_catalog {
-					let same_node = *node_name == local_node;
-					let same_site = match (node_site.get(node_name), node_site.get(&local_node)) {
+
+			for (_service, svcnodes) in services.iter() {
+				for svcnode in svcnodes.iter() {
+					let healthy = !svcnode.checks.iter().any(|x| x.status == "critical");
+
+					let same_node = svcnode.node.node == local_node;
+					let same_site = match (svcnode.node.meta.get("site"), local_node_site.as_ref())
+					{
 						(Some(s1), Some(s2)) => s1 == s2,
 						_ => false,
 					};
 
-					entries.extend(parse_consul_catalog(catalog, same_node, same_site));
+					let flags = ProxyEntryFlags {
+						healthy,
+						same_node,
+						same_site,
+						site_lb: false,
+						global_lb: false,
+					};
+
+					entries.extend(parse_consul_service(&svcnode, flags));
 				}
 			}