diff --git a/server/routers/newt/handleReceiveBandwidthMessage.ts b/server/routers/newt/handleReceiveBandwidthMessage.ts
index 3d060a0c..eb930e68 100644
--- a/server/routers/newt/handleReceiveBandwidthMessage.ts
+++ b/server/routers/newt/handleReceiveBandwidthMessage.ts
@@ -1,7 +1,7 @@
 import { db } from "@server/db";
 import { MessageHandler } from "@server/routers/ws";
-import { clients, Newt } from "@server/db";
-import { eq } from "drizzle-orm";
+import { clients } from "@server/db";
+import { eq, sql } from "drizzle-orm";
 import logger from "@server/logger";
 
 interface PeerBandwidth {
@@ -10,13 +10,57 @@ interface PeerBandwidth {
     bytesOut: number;
 }
 
+// Retry configuration for deadlock handling
+const MAX_RETRIES = 3;
+const BASE_DELAY_MS = 50;
+
+/**
+ * Check if an error is a deadlock error
+ */
+function isDeadlockError(error: any): boolean {
+    return (
+        error?.code === "40P01" ||
+        error?.cause?.code === "40P01" ||
+        (error?.message && error.message.includes("deadlock"))
+    );
+}
+
+/**
+ * Execute a function with retry logic for deadlock handling
+ */
+async function withDeadlockRetry<T>(
+    operation: () => Promise<T>,
+    context: string
+): Promise<T> {
+    let attempt = 0;
+    while (true) {
+        try {
+            return await operation();
+        } catch (error: any) {
+            if (isDeadlockError(error) && attempt < MAX_RETRIES) {
+                attempt++;
+                const baseDelay = Math.pow(2, attempt - 1) * BASE_DELAY_MS;
+                const jitter = Math.random() * baseDelay;
+                const delay = baseDelay + jitter;
+                logger.warn(
+                    `Deadlock detected in ${context}, retrying attempt ${attempt}/${MAX_RETRIES} after ${delay.toFixed(0)}ms`
+                );
+                await new Promise((resolve) => setTimeout(resolve, delay));
+                continue;
+            }
+            throw error;
+        }
+    }
+}
+
 export const handleReceiveBandwidthMessage: MessageHandler = async (
     context
 ) => {
-    const { message, client, sendToClient } = context;
+    const { message } = context;
 
     if (!message.data.bandwidthData) {
         logger.warn("No bandwidth data provided");
+        return;
     }
 
     const bandwidthData: PeerBandwidth[] = message.data.bandwidthData;
@@ -25,30 +69,40 @@ export const handleReceiveBandwidthMessage: MessageHandler = async (
         throw new Error("Invalid bandwidth data");
     }
 
-    await db.transaction(async (trx) => {
-        for (const peer of bandwidthData) {
-            const { publicKey, bytesIn, bytesOut } = peer;
+    // Sort bandwidth data by publicKey to ensure consistent lock ordering across all instances
+    // This is critical for preventing deadlocks when multiple instances update the same clients
+    const sortedBandwidthData = [...bandwidthData].sort((a, b) =>
+        a.publicKey.localeCompare(b.publicKey)
+    );
 
-            // Find the client by public key
-            const [client] = await trx
-                .select()
-                .from(clients)
-                .where(eq(clients.pubKey, publicKey))
-                .limit(1);
+    const currentTime = new Date().toISOString();
 
-            if (!client) {
-                continue;
-            }
+    // Update each client individually with retry logic
+    // This reduces transaction scope and allows retries per-client
+    for (const peer of sortedBandwidthData) {
+        const { publicKey, bytesIn, bytesOut } = peer;
 
-            // Update the client's bandwidth usage
-            await trx
-                .update(clients)
-                .set({
-                    megabytesOut: (client.megabytesIn || 0) + bytesIn,
-                    megabytesIn: (client.megabytesOut || 0) + bytesOut,
-                    lastBandwidthUpdate: new Date().toISOString()
-                })
-                .where(eq(clients.clientId, client.clientId));
+        try {
+            await withDeadlockRetry(async () => {
+                // Use atomic SQL increment to avoid SELECT then UPDATE pattern
+                // This eliminates the need to read the current value first
+                await db
+                    .update(clients)
+                    .set({
+                        // Note: bytesIn from peer goes to megabytesOut (data sent to client)
+                        // and bytesOut from peer goes to megabytesIn (data received from client)
+                        megabytesOut: sql`COALESCE(${clients.megabytesOut}, 0) + ${bytesIn}`,
+                        megabytesIn: sql`COALESCE(${clients.megabytesIn}, 0) + ${bytesOut}`,
+                        lastBandwidthUpdate: currentTime
+                    })
+                    .where(eq(clients.pubKey, publicKey));
+            }, `update client bandwidth ${publicKey}`);
+        } catch (error) {
+            logger.error(
+                `Failed to update bandwidth for client ${publicKey}:`,
+                error
+            );
+            // Continue with other clients even if one fails
         }
-    });
+    }
 };