diff --git a/management/server/grpcserver.go b/management/server/grpcserver.go
index 12b59b691..393192eeb 100644
--- a/management/server/grpcserver.go
+++ b/management/server/grpcserver.go
@@ -86,7 +86,7 @@ func NewServer(
 	if appMetrics != nil {
 		// update gauge based on number of connected peers which is equal to open gRPC streams
 		err = appMetrics.GRPCMetrics().RegisterConnectedStreams(func() int64 {
-			return int64(len(peersUpdateManager.peerChannels))
+			return int64(peersUpdateManager.GetChannelCount())
 		})
 		if err != nil {
 			return nil, err
diff --git a/management/server/updatechannel.go b/management/server/updatechannel.go
index adf64592a..bcef2c6ee 100644
--- a/management/server/updatechannel.go
+++ b/management/server/updatechannel.go
@@ -11,17 +11,21 @@ import (
 	"github.com/netbirdio/netbird/shared/management/proto"
 )
 
-const channelBufferSize = 100
-
 type UpdateMessage struct {
 	Update *proto.SyncResponse
 }
 
+type peerUpdate struct {
+	mu      sync.Mutex
+	message *UpdateMessage
+	notify  chan struct{}
+}
+
 type PeersUpdateManager struct {
-	// peerChannels is an update channel indexed by Peer.ID
-	peerChannels map[string]chan *UpdateMessage
-	// channelsMux keeps the mutex to access peerChannels
-	channelsMux *sync.RWMutex
+	// latestUpdates stores the latest update message per peer
+	latestUpdates sync.Map // map[string]*peerUpdate
+	// activePeers tracks which peers have active sender goroutines
+	activePeers sync.Map // map[string]struct{}
 	// metrics provides method to collect application metrics
 	metrics telemetry.AppMetrics
 }
@@ -29,87 +33,137 @@ type PeersUpdateManager struct {
 // NewPeersUpdateManager returns a new instance of PeersUpdateManager
 func NewPeersUpdateManager(metrics telemetry.AppMetrics) *PeersUpdateManager {
 	return &PeersUpdateManager{
-		peerChannels: make(map[string]chan *UpdateMessage),
-		channelsMux:  &sync.RWMutex{},
-		metrics:      metrics,
+		metrics: metrics,
 	}
 }
 
-// SendUpdate sends update message to the peer's channel
+// SendUpdate stores the latest update message for a peer and notifies the sender goroutine
 func (p *PeersUpdateManager) SendUpdate(ctx context.Context, peerID string, update *UpdateMessage) {
 	start := time.Now()
 	var found, dropped bool
 
-	p.channelsMux.RLock()
-
 	defer func() {
-		p.channelsMux.RUnlock()
 		if p.metrics != nil {
 			p.metrics.UpdateChannelMetrics().CountSendUpdateDuration(time.Since(start), found, dropped)
 		}
 	}()
 
-	if channel, ok := p.peerChannels[peerID]; ok {
-		found = true
-		select {
-		case channel <- update:
-			log.WithContext(ctx).Debugf("update was sent to channel for peer %s", peerID)
-		default:
-			dropped = true
-			log.WithContext(ctx).Warnf("channel for peer %s is %d full or closed", peerID, len(channel))
-		}
-	} else {
-		log.WithContext(ctx).Debugf("peer %s has no channel", peerID)
+	// Check if peer has an active sender goroutine
+	if _, ok := p.activePeers.Load(peerID); !ok {
+		log.WithContext(ctx).Debugf("peer %s has no active sender", peerID)
+		return
+	}
+
+	found = true
+
+	// Load or create peerUpdate entry
+	val, _ := p.latestUpdates.LoadOrStore(peerID, &peerUpdate{
+		notify: make(chan struct{}, 1),
+	})
+
+	pu := val.(*peerUpdate)
+
+	// Store the latest message (overwrites any previous unsent message)
+	pu.mu.Lock()
+	pu.message = update
+	pu.mu.Unlock()
+
+	// Non-blocking notification
+	select {
+	case pu.notify <- struct{}{}:
+		log.WithContext(ctx).Debugf("update notification sent for peer %s", peerID)
+	default:
+		// Already notified, sender will pick up the latest message anyway
+		log.WithContext(ctx).Tracef("peer %s already notified, update will be picked up", peerID)
 	}
 }
 
-// CreateChannel creates a go channel for a given peer used to deliver updates relevant to the peer.
+// CreateChannel creates a sender goroutine for a given peer and returns a channel to receive updates
 func (p *PeersUpdateManager) CreateChannel(ctx context.Context, peerID string) chan *UpdateMessage {
 	start := time.Now()
 
 	closed := false
 
-	p.channelsMux.Lock()
 	defer func() {
-		p.channelsMux.Unlock()
 		if p.metrics != nil {
 			p.metrics.UpdateChannelMetrics().CountCreateChannelDuration(time.Since(start), closed)
 		}
 	}()
 
-	if channel, ok := p.peerChannels[peerID]; ok {
+	// Close existing sender if any
+	if _, exists := p.activePeers.LoadOrStore(peerID, struct{}{}); exists {
 		closed = true
-		delete(p.peerChannels, peerID)
-		close(channel)
+		p.closeChannel(ctx, peerID)
 	}
-	// mbragin: todo shouldn't it be more? or configurable?
-	channel := make(chan *UpdateMessage, channelBufferSize)
-	p.peerChannels[peerID] = channel
 
-	log.WithContext(ctx).Debugf("opened updates channel for a peer %s", peerID)
+	// Create peerUpdate entry with notification channel
+	pu := &peerUpdate{
+		notify: make(chan struct{}, 1),
+	}
+	p.latestUpdates.Store(peerID, pu)
 
-	return channel
+	// Create output channel for consumer
+	outChan := make(chan *UpdateMessage, 1)
+
+	// Start sender goroutine
+	go func() {
+		defer close(outChan)
+		for {
+			select {
+			case <-ctx.Done():
+				log.WithContext(ctx).Debugf("sender goroutine for peer %s stopped due to context cancellation", peerID)
+				return
+			case <-pu.notify:
+				// Check if still active
+				if _, ok := p.activePeers.Load(peerID); !ok {
+					log.WithContext(ctx).Debugf("sender goroutine for peer %s stopped", peerID)
+					return
+				}
+
+				// Get the latest message with mutex protection
+				pu.mu.Lock()
+				msg := pu.message
+				pu.message = nil // Clear after reading
+				pu.mu.Unlock()
+
+				if msg != nil {
+					select {
+					case outChan <- msg:
+						log.WithContext(ctx).Tracef("sent update to peer %s", peerID)
+					case <-ctx.Done():
+						return
+					}
+				}
+			}
+		}
+	}()
+
+	log.WithContext(ctx).Debugf("created sender goroutine for peer %s", peerID)
+
+	return outChan
 }
 
 func (p *PeersUpdateManager) closeChannel(ctx context.Context, peerID string) {
-	if channel, ok := p.peerChannels[peerID]; ok {
-		delete(p.peerChannels, peerID)
-		close(channel)
-
-		log.WithContext(ctx).Debugf("closed updates channel of a peer %s", peerID)
+	// Mark peer as inactive to stop the sender goroutine
+	if _, ok := p.activePeers.LoadAndDelete(peerID); ok {
+		// Close notification channel
+		if val, ok := p.latestUpdates.Load(peerID); ok {
+			pu := val.(*peerUpdate)
+			close(pu.notify)
+		}
+		p.latestUpdates.Delete(peerID)
+		log.WithContext(ctx).Debugf("closed sender for peer %s", peerID)
 		return
 	}
 
-	log.WithContext(ctx).Debugf("closing updates channel: peer %s has no channel", peerID)
+	log.WithContext(ctx).Debugf("closing sender: peer %s has no active sender", peerID)
 }
 
-// CloseChannels closes updates channel for each given peer
+// CloseChannels closes sender goroutines for each given peer
 func (p *PeersUpdateManager) CloseChannels(ctx context.Context, peerIDs []string) {
 	start := time.Now()
 
-	p.channelsMux.Lock()
 	defer func() {
-		p.channelsMux.Unlock()
 		if p.metrics != nil {
 			p.metrics.UpdateChannelMetrics().CountCloseChannelsDuration(time.Since(start), len(peerIDs))
 		}
@@ -120,13 +174,11 @@ func (p *PeersUpdateManager) CloseChannels(ctx context.Context, peerIDs []string
 	}
 }
 
-// CloseChannel closes updates channel of a given peer
+// CloseChannel closes the sender goroutine of a given peer
 func (p *PeersUpdateManager) CloseChannel(ctx context.Context, peerID string) {
 	start := time.Now()
 
-	p.channelsMux.Lock()
 	defer func() {
-		p.channelsMux.Unlock()
 		if p.metrics != nil {
 			p.metrics.UpdateChannelMetrics().CountCloseChannelDuration(time.Since(start))
 		}
@@ -139,38 +191,43 @@ func (p *PeersUpdateManager) CloseChannel(ctx context.Context, peerID string) {
 func (p *PeersUpdateManager) GetAllConnectedPeers() map[string]struct{} {
 	start := time.Now()
 
-	p.channelsMux.RLock()
-
 	m := make(map[string]struct{})
 
 	defer func() {
-		p.channelsMux.RUnlock()
 		if p.metrics != nil {
 			p.metrics.UpdateChannelMetrics().CountGetAllConnectedPeersDuration(time.Since(start), len(m))
 		}
 	}()
 
-	for ID := range p.peerChannels {
-		m[ID] = struct{}{}
-	}
+	p.activePeers.Range(func(key, value interface{}) bool {
+		m[key.(string)] = struct{}{}
+		return true
+	})
 
 	return m
 }
 
-// HasChannel returns true if peers has channel in update manager, otherwise false
+// HasChannel returns true if peer has an active sender goroutine, otherwise false
 func (p *PeersUpdateManager) HasChannel(peerID string) bool {
 	start := time.Now()
 
-	p.channelsMux.RLock()
-
 	defer func() {
-		p.channelsMux.RUnlock()
 		if p.metrics != nil {
 			p.metrics.UpdateChannelMetrics().CountHasChannelDuration(time.Since(start))
 		}
 	}()
 
-	_, ok := p.peerChannels[peerID]
+	_, ok := p.activePeers.Load(peerID)
 
 	return ok
 }
+
+// GetChannelCount returns the number of active peer channels
+func (p *PeersUpdateManager) GetChannelCount() int {
+	count := 0
+	p.activePeers.Range(func(key, value interface{}) bool {
+		count++
+		return true
+	})
+	return count
+}