diff --git a/add-on/src/landing-pages/welcome/page.js b/add-on/src/landing-pages/welcome/page.js
index 7d4db4bc8..eda66fb6b 100644
--- a/add-on/src/landing-pages/welcome/page.js
+++ b/add-on/src/landing-pages/welcome/page.js
@@ -16,7 +16,7 @@ const colorYellow = '#f39021'
 
 function createWelcomePage (i18n) {
   return function welcomePage (state, emit) {
-    const { isIpfsOnline, peerCount } = state
+    const { apiAvailable, peerCount } = state
     const openWebUi = (page) => () => emit('openWebUi', page)
 
     // Set translated title
@@ -25,8 +25,8 @@ function createWelcomePage (i18n) {
     return html`
       <div class="flex flex-column flex-row-l">
         <div id="left-col" class="min-vh-100 flex flex-column justify-center items-center bg-navy white">
-          ${renderCompanionLogo(i18n, isIpfsOnline)}
-          ${isIpfsOnline ? renderWelcome(i18n, peerCount, openWebUi) : renderInstallSteps(i18n, isIpfsOnline)}
+          ${renderCompanionLogo(i18n, apiAvailable)}
+          ${apiAvailable ? renderWelcome(i18n, peerCount, openWebUi) : renderInstallSteps(i18n, apiAvailable)}
         </div>
 
         <div id="right-col" class="min-vh-100 w-100 flex flex-column justify-around items-center">
@@ -43,14 +43,14 @@ function createWelcomePage (i18n) {
    Render functions for the left side
    ======================================================== */
 
-const renderCompanionLogo = (i18n, isIpfsOnline) => {
+const renderCompanionLogo = (i18n, apiAvailable) => {
   const logoPath = '../../../icons'
   const logoSize = 128
-  const stateUnknown = isIpfsOnline === null
+  const stateUnknown = apiAvailable === null
 
   return html`
     <div class="mt4 mb2 flex flex-column justify-center items-center transition-all ${stateUnknown && 'state-unknown'}">
-      ${logo({ path: logoPath, size: logoSize, isIpfsOnline: isIpfsOnline })}
+      ${logo({ path: logoPath, size: logoSize, apiAvailable: apiAvailable })}
       <p class="montserrat mt3 mb0 f2">${i18n.getMessage('page_landingWelcome_logo_title')}</p>
     </div>
   `
@@ -83,10 +83,10 @@ const renderWelcome = (i18n, peerCount, openWebUi) => {
   `
 }
 
-const renderInstallSteps = (i18n, isIpfsOnline) => {
+const renderInstallSteps = (i18n, apiAvailable) => {
   const copyClass = 'mv0 white f5 lh-copy'
   const anchorClass = 'aqua hover-white'
-  const stateUnknown = isIpfsOnline === null
+  const stateUnknown = apiAvailable == null
   const svgWidth = 130
 
   const nodeOffSvg = () => html`
diff --git a/add-on/src/landing-pages/welcome/store.js b/add-on/src/landing-pages/welcome/store.js
index 19833abc2..6d5614e29 100644
--- a/add-on/src/landing-pages/welcome/store.js
+++ b/add-on/src/landing-pages/welcome/store.js
@@ -4,7 +4,7 @@ const browser = require('webextension-polyfill')
 
 function createWelcomePageStore (i18n, runtime) {
   return function welcomePageStore (state, emitter) {
-    state.isIpfsOnline = null
+    state.apiAvailable = null
     state.peerCount = null
     state.webuiRootUrl = null
     let port
@@ -13,12 +13,10 @@ function createWelcomePageStore (i18n, runtime) {
       port = runtime.connect({ name: 'browser-action-port' })
       port.onMessage.addListener(async (message) => {
         if (message.statusUpdate) {
-          const webuiRootUrl = message.statusUpdate.webuiRootUrl
-          const peerCount = message.statusUpdate.peerCount
-          const isIpfsOnline = peerCount > -1
-          if (isIpfsOnline !== state.isIpfsOnline || peerCount !== state.peerCount || webuiRootUrl !== state.webuiRootUrl) {
+          const { webuiRootUrl, peerCount, apiAvailable } = message.statusUpdate
+          if (apiAvailable !== state.apiAvailable || peerCount !== state.peerCount || webuiRootUrl !== state.webuiRootUrl) {
             state.webuiRootUrl = webuiRootUrl
-            state.isIpfsOnline = isIpfsOnline
+            state.apiAvailable = apiAvailable
             state.peerCount = peerCount
             emitter.emit('render')
           }
diff --git a/add-on/src/lib/context-menus.js b/add-on/src/lib/context-menus.js
index 01943c3d2..d35e156ae 100644
--- a/add-on/src/lib/context-menus.js
+++ b/add-on/src/lib/context-menus.js
@@ -163,15 +163,15 @@ function createContextMenus (getState, runtime, ipfsPathValidator, { onAddFromCo
             ipfsContext = ipfsPathValidator.isIpfsPageActionsContext(currentTab.url)
           }
         }
-        const ifApi = getState().peerCount > -1
+        const { apiAvailable } = getState()
         for (const item of apiMenuItems) {
-          await browser.contextMenus.update(item, { enabled: ifApi })
+          await browser.contextMenus.update(item, { enabled: apiAvailable })
         }
         for (const item of ipfsContextItems) {
           await browser.contextMenus.update(item, { enabled: ipfsContext })
         }
         for (const item of apiAndIpfsContextItems) {
-          await browser.contextMenus.update(item, { enabled: (ifApi && ipfsContext) })
+          await browser.contextMenus.update(item, { enabled: (apiAvailable && ipfsContext) })
         }
       } catch (err) {
         log.error('Error updating context menus', err)
diff --git a/add-on/src/lib/dnslink.js b/add-on/src/lib/dnslink.js
index b27736f44..f91ef519d 100644
--- a/add-on/src/lib/dnslink.js
+++ b/add-on/src/lib/dnslink.js
@@ -8,7 +8,6 @@ log.error = debug('ipfs-companion:dnslink:error')
 const IsIpfs = require('is-ipfs')
 const LRU = require('lru-cache')
 const { default: PQueue } = require('p-queue')
-const { offlinePeerCount } = require('./state')
 const { ipfsContentPath, sameGateway, pathAtHttpGateway } = require('./ipfs-path')
 
 module.exports = function createDnslinkResolver (getState) {
@@ -123,7 +122,7 @@ module.exports = function createDnslinkResolver (getState) {
       const state = getState()
       let apiProvider
       // TODO: fix DNS resolver for ipfsNodeType='embedded:chromesockets', for now use ipfs.io
-      if (!state.ipfsNodeType.startsWith('embedded') && state.peerCount !== offlinePeerCount) {
+      if (state.localGwAvailable && state.apiAvailable) {
         // Use gw port so it can be a GET:
         // Chromium does not execute onBeforeSendHeaders for synchronous calls
         // made from the same extension context as onBeforeSendHeaders
diff --git a/add-on/src/lib/ipfs-companion.js b/add-on/src/lib/ipfs-companion.js
index 2ef04a551..e5698a44e 100644
--- a/add-on/src/lib/ipfs-companion.js
+++ b/add-on/src/lib/ipfs-companion.js
@@ -11,7 +11,7 @@ const pMemoize = require('p-memoize')
 const LRU = require('lru-cache')
 const all = require('it-all')
 const { optionDefaults, storeMissingOptions, migrateOptions, guiURLString, safeURL } = require('./options')
-const { initState, offlinePeerCount } = require('./state')
+const { initState, offlinePeerCount, apiDownPeerCount } = require('./state')
 const { createIpfsPathValidator, sameGateway } = require('./ipfs-path')
 const createDnslinkResolver = require('./dnslink')
 const { createRequestModifier } = require('./ipfs-request')
@@ -257,6 +257,7 @@ module.exports = async function init () {
       importDir: state.importDir,
       openViaWebUI: state.openViaWebUI,
       apiURLString: dropSlash(state.apiURLString),
+      apiAvailable: state.apiAvailable,
       redirect: state.redirect,
       enabledOn: state.enabledOn,
       disabledOn: state.disabledOn,
@@ -462,13 +463,18 @@ module.exports = async function init () {
   }
 
   async function getSwarmPeerCount () {
-    if (!ipfs) return offlinePeerCount
+    if (!ipfs) return apiDownPeerCount
     try {
       const peerInfos = await ipfs.swarm.peers({ timeout: 2500 })
       return peerInfos.length
     } catch (error) {
+      if (error.message.includes('action must be run in online mode')) {
+        // node is running in offline mode (ipfs daemon --offline)
+        // https://github.com/ipfs-shipyard/ipfs-companion/issues/790
+        return offlinePeerCount // ipfs daemon --offline
+      }
       console.error(`Error while ipfs.swarm.peers: ${error}`)
-      return offlinePeerCount
+      return apiDownPeerCount
     }
   }
 
@@ -495,11 +501,11 @@ module.exports = async function init () {
 
     let badgeText, badgeColor, badgeIcon
     badgeText = state.peerCount.toString()
-    if (state.peerCount > 0) {
+    if (state.peerCount > offlinePeerCount) {
       // All is good (online with peers)
       badgeColor = '#418B8E'
       badgeIcon = '/icons/ipfs-logo-on.svg'
-    } else if (state.peerCount === 0) {
+    } else if (state.peerCount === offlinePeerCount) {
       // API is online but no peers
       badgeColor = 'red'
       badgeIcon = '/icons/ipfs-logo-on.svg'
@@ -578,13 +584,11 @@ module.exports = async function init () {
 
   function updateAutomaticModeRedirectState (oldPeerCount, newPeerCount) {
     // enable/disable gw redirect based on API going online or offline
-    // newPeerCount === -1 currently implies node is offline.
-    // TODO: use `node.isOnline()` if available (js-ipfs)
     if (state.automaticMode && state.localGwAvailable) {
-      if (oldPeerCount === offlinePeerCount && newPeerCount > offlinePeerCount && !state.redirect) {
+      if (oldPeerCount === apiDownPeerCount && newPeerCount > apiDownPeerCount && !state.redirect) {
         browser.storage.local.set({ useCustomGateway: true })
           .then(() => notify('notify_apiOnlineTitle', 'notify_apiOnlineAutomaticModeMsg'))
-      } else if (newPeerCount === offlinePeerCount && state.redirect) {
+      } else if (newPeerCount === apiDownPeerCount && state.redirect) {
         browser.storage.local.set({ useCustomGateway: false })
           .then(() => notify('notify_apiOfflineTitle', 'notify_apiOfflineAutomaticModeMsg'))
       }
diff --git a/add-on/src/lib/state.js b/add-on/src/lib/state.js
index 0a6174449..769354574 100644
--- a/add-on/src/lib/state.js
+++ b/add-on/src/lib/state.js
@@ -4,7 +4,8 @@
 const isFQDN = require('is-fqdn')
 const { safeURL } = require('./options')
 const { braveJsIpfsWebuiCid } = require('./precache')
-const offlinePeerCount = -1
+const offlinePeerCount = 0 // always the case when running: ipfs daemon --offline
+const apiDownPeerCount = -1 // unable to read, most likely API is down
 
 function initState (options, overrides) {
   // we store options and some pregenerated values to avoid async storage
@@ -48,6 +49,12 @@ function initState (options, overrides) {
     // TODO: make quick fetch to confirm it works?
     get: function () { return this.ipfsNodeType !== 'embedded' }
   })
+  Object.defineProperty(state, 'apiAvailable', {
+    // TODO: when we move away from constantly polling in the backgroun,
+    // this can be replaced with ipfs.id check to confirm it works + memoize for ipfsApiPollMs
+    // that way there is no need for polling, api check would execute only when user actualy needs it
+    get: function () { return this.peerCount > apiDownPeerCount }
+  })
   Object.defineProperty(state, 'webuiRootUrl', {
     get: function () {
       // Did user opt-in for rolling release published on DNSLink?
@@ -67,3 +74,4 @@ function initState (options, overrides) {
 
 exports.initState = initState
 exports.offlinePeerCount = offlinePeerCount
+exports.apiDownPeerCount = apiDownPeerCount
diff --git a/add-on/src/popup/browser-action/context-actions.js b/add-on/src/popup/browser-action/context-actions.js
index f6955f703..8957e9466 100644
--- a/add-on/src/popup/browser-action/context-actions.js
+++ b/add-on/src/popup/browser-action/context-actions.js
@@ -32,16 +32,15 @@ function contextActions ({
   isPinning,
   isUnPinning,
   isPinned,
-  isIpfsOnline,
-  isApiAvailable,
+  apiAvailable,
   onToggleSiteIntegrations,
   onViewOnGateway,
   onCopy,
   onPin,
   onUnPin
 }) {
-  const activeCidResolver = active && isIpfsOnline && isApiAvailable && currentTabCid
-  const activePinControls = active && isApiAvailable
+  const activeCidResolver = active && apiAvailable && currentTabCid
+  const activePinControls = active && apiAvailable
   const activeViewOnGateway = (currentTab) => {
     if (!currentTab) return false
     const { url } = currentTab
diff --git a/add-on/src/popup/browser-action/gateway-status.js b/add-on/src/popup/browser-action/gateway-status.js
index 2711294bb..b268ac9b5 100644
--- a/add-on/src/popup/browser-action/gateway-status.js
+++ b/add-on/src/popup/browser-action/gateway-status.js
@@ -8,7 +8,7 @@ function statusEntry ({ label, labelLegend, value, check, itemClass = '', valueC
   const offline = browser.i18n.getMessage('panel_statusOffline')
   label = label ? browser.i18n.getMessage(label) : null
   labelLegend = labelLegend ? browser.i18n.getMessage(labelLegend) : label
-  value = value || value === 0 ? value : offline
+  value = value || offline
   return html`
       <div class="flex mb1 ${check ? '' : 'o-60'} ${itemClass}" title="${labelLegend}">
         <span class="w-40 f7 ttu no-user-select">${label}</span>
diff --git a/add-on/src/popup/browser-action/header.js b/add-on/src/popup/browser-action/header.js
index e5fcbfe04..ab7e04927 100644
--- a/add-on/src/popup/browser-action/header.js
+++ b/add-on/src/popup/browser-action/header.js
@@ -9,7 +9,7 @@ const ipfsVersion = require('./ipfs-version')
 const gatewayStatus = require('./gateway-status')
 
 module.exports = function header (props) {
-  const { ipfsNodeType, active, onToggleActive, onOpenPrefs, isIpfsOnline, onOpenWelcomePage } = props
+  const { ipfsNodeType, active, onToggleActive, onOpenPrefs, apiAvailable, onOpenWelcomePage } = props
   return html`
     <div class="br2 br--top ba bw1 b--white ipfs-gradient-0">
       <div class="pt3 pr3 pb2 pl3 no-user-select flex justify-between items-center">
@@ -22,7 +22,7 @@ module.exports = function header (props) {
     size: 54,
     path: '../../../icons',
     ipfsNodeType,
-    isIpfsOnline: (active && isIpfsOnline)
+    apiAvailable
   })}
         </div>
           <div class="flex flex-column ml2 white ${active ? '' : 'o-40'}">
diff --git a/add-on/src/popup/browser-action/store.js b/add-on/src/popup/browser-action/store.js
index 6fa955ed1..acc437c1e 100644
--- a/add-on/src/popup/browser-action/store.js
+++ b/add-on/src/popup/browser-action/store.js
@@ -22,14 +22,13 @@ module.exports = (state, emitter) => {
     isPinned: false,
     // IPFS details
     ipfsNodeType: 'external',
-    isIpfsOnline: false,
+    apiAvailable: false,
     ipfsApiUrl: null,
     publicGatewayUrl: null,
     publicSubdomainGatewayUrl: null,
     gatewayAddress: null,
     swarmPeers: null,
     gatewayVersion: null,
-    isApiAvailable: false,
     // isRedirectContext
     currentTab: null,
     currentFqdn: null,
@@ -229,7 +228,7 @@ module.exports = (state, emitter) => {
       state.ipfsApiUrl = null
       state.gatewayVersion = null
       state.swarmPeers = null
-      state.isIpfsOnline = false
+      state.apiAvailable = false
     }
     try {
       await browser.storage.local.set({ active: state.active })
@@ -257,7 +256,7 @@ module.exports = (state, emitter) => {
       // Note: access to background page will be denied in Private Browsing mode
       const ipfs = await getIpfsApi()
       // There is no point in displaying actions that require API interaction if API is down
-      const apiIsUp = ipfs && status && status.peerCount >= 0
+      const apiIsUp = ipfs && status && status.apiAvailable
       if (apiIsUp) await updatePinnedState(ipfs, status)
     }
   }
@@ -273,15 +272,14 @@ module.exports = (state, emitter) => {
         state.gatewayAddress = status.pubGwURLString
       }
       // Import requires access to the background page (https://github.com/ipfs-shipyard/ipfs-companion/issues/477)
-      state.isApiAvailable = state.active && !!(await getBackgroundPage()) && !browser.extension.inIncognitoContext // https://github.com/ipfs-shipyard/ipfs-companion/issues/243
-      state.swarmPeers = !state.active || status.peerCount === -1 ? null : status.peerCount
-      state.isIpfsOnline = state.active && status.peerCount > -1
+      state.apiAvailable = state.active && status.apiAvailable && !!(await getBackgroundPage()) && !browser.extension.inIncognitoContext // https://github.com/ipfs-shipyard/ipfs-companion/issues/243
+      state.swarmPeers = state.apiAvailable ? status.peerCount : null
       state.gatewayVersion = state.active && status.gatewayVersion ? status.gatewayVersion : null
       state.ipfsApiUrl = state.active ? status.apiURLString : null
     } else {
       state.ipfsNodeType = 'external'
       state.swarmPeers = null
-      state.isIpfsOnline = false
+      state.apiAvailable = false
       state.gatewayVersion = null
       state.isIpfsContext = false
       state.isRedirectContext = false
diff --git a/add-on/src/popup/browser-action/tools.js b/add-on/src/popup/browser-action/tools.js
index 4e43571dd..60c495d1a 100644
--- a/add-on/src/popup/browser-action/tools.js
+++ b/add-on/src/popup/browser-action/tools.js
@@ -8,13 +8,13 @@ const navItem = require('./nav-item')
 module.exports = function tools ({
   active,
   ipfsNodeType,
-  isIpfsOnline,
-  isApiAvailable,
+  apiAvailable,
   onQuickImport,
   onOpenWebUi
 }) {
-  const activeQuickImport = active && isApiAvailable
-  const activeWebUI = active && isApiAvailable && ipfsNodeType !== 'embedded'
+  const localGwAvailable = ipfsNodeType !== 'embedded'
+  const activeQuickImport = active && apiAvailable
+  const activeWebUI = active && apiAvailable && localGwAvailable
 
   return html`
     <div class="fade-in pv1">
diff --git a/add-on/src/popup/logo.js b/add-on/src/popup/logo.js
index e2ee0da41..9853e99b0 100644
--- a/add-on/src/popup/logo.js
+++ b/add-on/src/popup/logo.js
@@ -3,14 +3,14 @@
 
 const html = require('choo/html')
 
-function logo ({ path, size = 52, ipfsNodeType = 'external', isIpfsOnline = true, heartbeat = true }) {
+function logo ({ path, size = 52, ipfsNodeType = 'external', apiAvailable = true, heartbeat = true }) {
   const logoTypePrefix = ipfsNodeType.startsWith('embedded') ? 'js-' : ''
-  const logoFileName = `${logoTypePrefix}ipfs-logo-${isIpfsOnline ? 'on' : 'off'}.svg`
+  const logoFileName = `${logoTypePrefix}ipfs-logo-${apiAvailable ? 'on' : 'off'}.svg`
   return html`
     <img
       alt="IPFS"
       src="${path}/${logoFileName}"
-      class="v-mid ${isIpfsOnline ? '' : 'o-40'} ${isIpfsOnline && heartbeat ? 'heartbeat' : ''}"
+      class="v-mid ${apiAvailable ? '' : 'o-40'} ${apiAvailable && heartbeat ? 'heartbeat' : ''}"
       style="width:${size}px; height:${size}px" />
   `
 }
diff --git a/add-on/src/popup/page-action/header.js b/add-on/src/popup/page-action/header.js
index a660a3c92..7dd9c5923 100644
--- a/add-on/src/popup/page-action/header.js
+++ b/add-on/src/popup/page-action/header.js
@@ -13,7 +13,7 @@ module.exports = function header ({ isIpfsContext, pageActionTitle }) {
     size: 20,
     path: '../../../icons',
     ipfsNodeType: 'external',
-    isIpfsOnline: true,
+    apiAvailable: true,
     heartbeat: false
   })} <span class="pl1 f6 fw4 v-mid">${pageActionTitle || '…'}</span>
       </h2>
diff --git a/add-on/src/popup/quick-import.js b/add-on/src/popup/quick-import.js
index 9feac1a39..38cbc8acf 100644
--- a/add-on/src/popup/quick-import.js
+++ b/add-on/src/popup/quick-import.js
@@ -8,6 +8,7 @@ const choo = require('choo')
 const html = require('choo/html')
 const logo = require('./logo')
 const externalApiClient = require('../lib/ipfs-client/external')
+const { offlinePeerCount } = require('../lib/state')
 const all = require('it-all')
 const drop = require('drag-and-drop-files')
 const filesize = require('filesize')
@@ -22,7 +23,7 @@ app.mount('#root')
 
 function quickImportStore (state, emitter) {
   state.message = ''
-  state.peerCount = ''
+  state.peerCount = offlinePeerCount
   state.ipfsNodeType = 'external'
   state.expandOptions = false
   state.openViaWebUI = true