diff --git a/synapse/api/errors.py b/synapse/api/errors.py
index 46b0d7b34c..aa15f73f36 100644
--- a/synapse/api/errors.py
+++ b/synapse/api/errors.py
@@ -141,6 +141,32 @@ class RegistrationError(SynapseError):
     pass
 
 
+class FederationDeniedError(SynapseError):
+    """An error raised when the server tries to federate with a server which
+    is not on its federation whitelist.
+
+    Attributes:
+        destination (str): The destination which has been denied
+    """
+
+    def __init__(self, destination):
+        """Raised by federation client or server to indicate that we are
+        are deliberately not attempting to contact a given server because it is
+        not on our federation whitelist.
+
+        Args:
+            destination (str): the domain in question
+        """
+
+        self.destination = destination
+
+        super(FederationDeniedError, self).__init__(
+            code=403,
+            msg="Federation denied with %s." % (self.destination,),
+            errcode=Codes.FORBIDDEN,
+        )
+
+
 class InteractiveAuthIncompleteError(Exception):
     """An error raised when UI auth is not yet complete
 
diff --git a/synapse/config/server.py b/synapse/config/server.py
index 436dd8a6fe..8f0b6d1f28 100644
--- a/synapse/config/server.py
+++ b/synapse/config/server.py
@@ -55,6 +55,17 @@ class ServerConfig(Config):
             "block_non_admin_invites", False,
         )
 
+        # FIXME: federation_domain_whitelist needs sytests
+        self.federation_domain_whitelist = None
+        federation_domain_whitelist = config.get(
+            "federation_domain_whitelist", None
+        )
+        # turn the whitelist into a hash for speed of lookup
+        if federation_domain_whitelist is not None:
+            self.federation_domain_whitelist = {}
+            for domain in federation_domain_whitelist:
+                self.federation_domain_whitelist[domain] = True
+
         if self.public_baseurl is not None:
             if self.public_baseurl[-1] != '/':
                 self.public_baseurl += '/'
@@ -210,6 +221,17 @@ class ServerConfig(Config):
         # (except those sent by local server admins). The default is False.
         # block_non_admin_invites: True
 
+        # Restrict federation to the following whitelist of domains.
+        # N.B. we recommend also firewalling your federation listener to limit
+        # inbound federation traffic as early as possible, rather than relying
+        # purely on this application-layer restriction.  If not specified, the
+        # default is to whitelist everything.
+        #
+        # federation_domain_whitelist:
+        #  - lon.example.com
+        #  - nyc.example.com
+        #  - syd.example.com
+
         # List of ports that Synapse should listen on, their purpose and their
         # configuration.
         listeners:
diff --git a/synapse/federation/federation_client.py b/synapse/federation/federation_client.py
index b1fe03f702..813907f7f2 100644
--- a/synapse/federation/federation_client.py
+++ b/synapse/federation/federation_client.py
@@ -23,7 +23,7 @@ from twisted.internet import defer
 
 from synapse.api.constants import Membership
 from synapse.api.errors import (
-    CodeMessageException, HttpResponseException, SynapseError,
+    CodeMessageException, HttpResponseException, SynapseError, FederationDeniedError
 )
 from synapse.events import builder
 from synapse.federation.federation_base import (
@@ -266,6 +266,9 @@ class FederationClient(FederationBase):
             except NotRetryingDestination as e:
                 logger.info(e.message)
                 continue
+            except FederationDeniedError as e:
+                logger.info(e.message)
+                continue
             except Exception as e:
                 pdu_attempts[destination] = now
 
diff --git a/synapse/federation/transaction_queue.py b/synapse/federation/transaction_queue.py
index 9d39f46583..a141ec9953 100644
--- a/synapse/federation/transaction_queue.py
+++ b/synapse/federation/transaction_queue.py
@@ -19,7 +19,7 @@ from twisted.internet import defer
 from .persistence import TransactionActions
 from .units import Transaction, Edu
 
-from synapse.api.errors import HttpResponseException
+from synapse.api.errors import HttpResponseException, FederationDeniedError
 from synapse.util import logcontext, PreserveLoggingContext
 from synapse.util.async import run_on_reactor
 from synapse.util.retryutils import NotRetryingDestination, get_retry_limiter
@@ -490,6 +490,8 @@ class TransactionQueue(object):
                     (e.retry_last_ts + e.retry_interval) / 1000.0
                 ),
             )
+        except FederationDeniedError as e:
+            logger.info(e)
         except Exception as e:
             logger.warn(
                 "TX [%s] Failed to send transaction: %s",
diff --git a/synapse/federation/transport/client.py b/synapse/federation/transport/client.py
index 1f3ce238f6..5488e82985 100644
--- a/synapse/federation/transport/client.py
+++ b/synapse/federation/transport/client.py
@@ -212,6 +212,9 @@ class TransportLayerClient(object):
 
             Fails with ``NotRetryingDestination`` if we are not yet ready
             to retry this server.
+
+            Fails with ``FederationDeniedError`` if the remote destination
+            is not in our federation whitelist
         """
         valid_memberships = {Membership.JOIN, Membership.LEAVE}
         if membership not in valid_memberships:
diff --git a/synapse/federation/transport/server.py b/synapse/federation/transport/server.py
index 2b02b021ec..06c16ba4fa 100644
--- a/synapse/federation/transport/server.py
+++ b/synapse/federation/transport/server.py
@@ -16,7 +16,7 @@
 from twisted.internet import defer
 
 from synapse.api.urls import FEDERATION_PREFIX as PREFIX
-from synapse.api.errors import Codes, SynapseError
+from synapse.api.errors import Codes, SynapseError, FederationDeniedError
 from synapse.http.server import JsonResource
 from synapse.http.servlet import (
     parse_json_object_from_request, parse_integer_from_args, parse_string_from_args,
@@ -81,6 +81,7 @@ class Authenticator(object):
         self.keyring = hs.get_keyring()
         self.server_name = hs.hostname
         self.store = hs.get_datastore()
+        self.federation_domain_whitelist = hs.config.federation_domain_whitelist
 
     # A method just so we can pass 'self' as the authenticator to the Servlets
     @defer.inlineCallbacks
@@ -92,6 +93,12 @@ class Authenticator(object):
             "signatures": {},
         }
 
+        if (
+            self.federation_domain_whitelist is not None and
+            self.server_name not in self.federation_domain_whitelist
+        ):
+            raise FederationDeniedError(self.server_name)
+
         if content is not None:
             json_request["content"] = content
 
diff --git a/synapse/handlers/device.py b/synapse/handlers/device.py
index 2152efc692..0e83453851 100644
--- a/synapse/handlers/device.py
+++ b/synapse/handlers/device.py
@@ -14,6 +14,7 @@
 # limitations under the License.
 from synapse.api import errors
 from synapse.api.constants import EventTypes
+from synapse.api.errors import FederationDeniedError
 from synapse.util import stringutils
 from synapse.util.async import Linearizer
 from synapse.util.caches.expiringcache import ExpiringCache
@@ -513,6 +514,9 @@ class DeviceListEduUpdater(object):
                     # This makes it more likely that the device lists will
                     # eventually become consistent.
                     return
+                except FederationDeniedError as e:
+                    logger.info(e)
+                    return
                 except Exception:
                     # TODO: Remember that we are now out of sync and try again
                     # later
diff --git a/synapse/handlers/e2e_keys.py b/synapse/handlers/e2e_keys.py
index 5af8abf66b..9aa95f89e6 100644
--- a/synapse/handlers/e2e_keys.py
+++ b/synapse/handlers/e2e_keys.py
@@ -19,7 +19,9 @@ import logging
 from canonicaljson import encode_canonical_json
 from twisted.internet import defer
 
-from synapse.api.errors import SynapseError, CodeMessageException
+from synapse.api.errors import (
+    SynapseError, CodeMessageException, FederationDeniedError,
+)
 from synapse.types import get_domain_from_id, UserID
 from synapse.util.logcontext import preserve_fn, make_deferred_yieldable
 from synapse.util.retryutils import NotRetryingDestination
@@ -140,6 +142,10 @@ class E2eKeysHandler(object):
                 failures[destination] = {
                     "status": 503, "message": "Not ready for retry",
                 }
+            except FederationDeniedError as e:
+                failures[destination] = {
+                    "status": 403, "message": "Federation Denied",
+                }
             except Exception as e:
                 # include ConnectionRefused and other errors
                 failures[destination] = {
diff --git a/synapse/handlers/federation.py b/synapse/handlers/federation.py
index ac70730885..677532c87b 100644
--- a/synapse/handlers/federation.py
+++ b/synapse/handlers/federation.py
@@ -22,6 +22,7 @@ from ._base import BaseHandler
 
 from synapse.api.errors import (
     AuthError, FederationError, StoreError, CodeMessageException, SynapseError,
+    FederationDeniedError,
 )
 from synapse.api.constants import EventTypes, Membership, RejectedReason
 from synapse.events.validator import EventValidator
@@ -782,6 +783,9 @@ class FederationHandler(BaseHandler):
                 except NotRetryingDestination as e:
                     logger.info(e.message)
                     continue
+                except FederationDeniedError as e:
+                    logger.info(e)
+                    continue
                 except Exception as e:
                     logger.exception(
                         "Failed to backfill from %s because %s",
diff --git a/synapse/http/matrixfederationclient.py b/synapse/http/matrixfederationclient.py
index 833496b72d..9145405cb0 100644
--- a/synapse/http/matrixfederationclient.py
+++ b/synapse/http/matrixfederationclient.py
@@ -27,7 +27,7 @@ import synapse.metrics
 from canonicaljson import encode_canonical_json
 
 from synapse.api.errors import (
-    SynapseError, Codes, HttpResponseException,
+    SynapseError, Codes, HttpResponseException, FederationDeniedError,
 )
 
 from signedjson.sign import sign_json
@@ -123,11 +123,22 @@ class MatrixFederationHttpClient(object):
 
             Fails with ``HTTPRequestException``: if we get an HTTP response
                 code >= 300.
+
             Fails with ``NotRetryingDestination`` if we are not yet ready
                 to retry this server.
+
+            Fails with ``FederationDeniedError`` if this destination
+                is not on our federation whitelist
+
             (May also fail with plenty of other Exceptions for things like DNS
                 failures, connection failures, SSL failures.)
         """
+        if (
+            self.hs.config.federation_domain_whitelist and
+            destination not in self.hs.config.federation_domain_whitelist
+        ):
+            raise FederationDeniedError(destination)
+
         limiter = yield synapse.util.retryutils.get_retry_limiter(
             destination,
             self.clock,
@@ -308,6 +319,9 @@ class MatrixFederationHttpClient(object):
 
             Fails with ``NotRetryingDestination`` if we are not yet ready
             to retry this server.
+
+            Fails with ``FederationDeniedError`` if this destination
+            is not on our federation whitelist
         """
 
         if not json_data_callback:
@@ -368,6 +382,9 @@ class MatrixFederationHttpClient(object):
 
             Fails with ``NotRetryingDestination`` if we are not yet ready
             to retry this server.
+
+            Fails with ``FederationDeniedError`` if this destination
+            is not on our federation whitelist
         """
 
         def body_callback(method, url_bytes, headers_dict):
@@ -422,6 +439,9 @@ class MatrixFederationHttpClient(object):
 
             Fails with ``NotRetryingDestination`` if we are not yet ready
             to retry this server.
+
+            Fails with ``FederationDeniedError`` if this destination
+            is not on our federation whitelist
         """
         logger.debug("get_json args: %s", args)
 
@@ -475,6 +495,9 @@ class MatrixFederationHttpClient(object):
 
             Fails with ``NotRetryingDestination`` if we are not yet ready
             to retry this server.
+
+            Fails with ``FederationDeniedError`` if this destination
+            is not on our federation whitelist
         """
 
         response = yield self._request(
@@ -518,6 +541,9 @@ class MatrixFederationHttpClient(object):
 
             Fails with ``NotRetryingDestination`` if we are not yet ready
             to retry this server.
+
+            Fails with ``FederationDeniedError`` if this destination
+            is not on our federation whitelist
         """
 
         encoded_args = {}
diff --git a/synapse/rest/key/v2/remote_key_resource.py b/synapse/rest/key/v2/remote_key_resource.py
index cc2842aa72..17e6079cba 100644
--- a/synapse/rest/key/v2/remote_key_resource.py
+++ b/synapse/rest/key/v2/remote_key_resource.py
@@ -93,6 +93,7 @@ class RemoteKey(Resource):
         self.store = hs.get_datastore()
         self.version_string = hs.version_string
         self.clock = hs.get_clock()
+        self.federation_domain_whitelist = hs.config.federation_domain_whitelist
 
     def render_GET(self, request):
         self.async_render_GET(request)
@@ -137,6 +138,13 @@ class RemoteKey(Resource):
         logger.info("Handling query for keys %r", query)
         store_queries = []
         for server_name, key_ids in query.items():
+            if (
+                self.federation_domain_whitelist is not None and
+                server_name not in self.federation_domain_whitelist
+            ):
+                logger.debug("Federation denied with %s", server_name)
+                continue
+
             if not key_ids:
                 key_ids = (None,)
             for key_id in key_ids:
diff --git a/synapse/rest/media/v1/media_repository.py b/synapse/rest/media/v1/media_repository.py
index 4f56bcf577..485db8577a 100644
--- a/synapse/rest/media/v1/media_repository.py
+++ b/synapse/rest/media/v1/media_repository.py
@@ -32,8 +32,9 @@ from .media_storage import MediaStorage
 
 from synapse.http.matrixfederationclient import MatrixFederationHttpClient
 from synapse.util.stringutils import random_string
-from synapse.api.errors import SynapseError, HttpResponseException, \
-    NotFoundError
+from synapse.api.errors import (
+    SynapseError, HttpResponseException, NotFoundError, FederationDeniedError,
+)
 
 from synapse.util.async import Linearizer
 from synapse.util.stringutils import is_ascii
@@ -75,6 +76,8 @@ class MediaRepository(object):
         self.recently_accessed_remotes = set()
         self.recently_accessed_locals = set()
 
+        self.federation_domain_whitelist = hs.config.federation_domain_whitelist
+
         # List of StorageProviders where we should search for media and
         # potentially upload to.
         storage_providers = []
@@ -216,6 +219,12 @@ class MediaRepository(object):
             Deferred: Resolves once a response has successfully been written
                 to request
         """
+        if (
+            self.federation_domain_whitelist is not None and
+            server_name not in self.federation_domain_whitelist
+        ):
+            raise FederationDeniedError(server_name)
+
         self.mark_recently_accessed(server_name, media_id)
 
         # We linearize here to ensure that we don't try and download remote
@@ -250,6 +259,12 @@ class MediaRepository(object):
         Returns:
             Deferred[dict]: The media_info of the file
         """
+        if (
+            self.federation_domain_whitelist is not None and
+            server_name not in self.federation_domain_whitelist
+        ):
+            raise FederationDeniedError(server_name)
+
         # We linearize here to ensure that we don't try and download remote
         # media multiple times concurrently
         key = (server_name, media_id)
diff --git a/synapse/util/retryutils.py b/synapse/util/retryutils.py
index 1adedbb361..47b0bb5eb3 100644
--- a/synapse/util/retryutils.py
+++ b/synapse/util/retryutils.py
@@ -26,6 +26,18 @@ logger = logging.getLogger(__name__)
 
 class NotRetryingDestination(Exception):
     def __init__(self, retry_last_ts, retry_interval, destination):
+        """Raised by the limiter (and federation client) to indicate that we are
+        are deliberately not attempting to contact a given server.
+
+        Args:
+            retry_last_ts (int): the unix ts in milliseconds of our last attempt
+                to contact the server.  0 indicates that the last attempt was
+                successful or that we've never actually attempted to connect.
+            retry_interval (int): the time in milliseconds to wait until the next
+                attempt.
+            destination (str): the domain in question
+        """
+
         msg = "Not retrying server %s." % (destination,)
         super(NotRetryingDestination, self).__init__(msg)
 
diff --git a/tests/utils.py b/tests/utils.py
index 44e5f75093..3116047892 100644
--- a/tests/utils.py
+++ b/tests/utils.py
@@ -57,6 +57,7 @@ def setup_test_homeserver(name="test", datastore=None, config=None, **kargs):
         config.worker_app = None
         config.email_enable_notifs = False
         config.block_non_admin_invites = False
+        config.federation_domain_whitelist = None
 
         # disable user directory updates, because they get done in the
         # background, which upsets the test runner.