diff --git a/discord/state.py b/discord/state.py
index b4b72d3a2..7d4acbb9d 100644
--- a/discord/state.py
+++ b/discord/state.py
@@ -347,6 +347,7 @@ class ConnectionState:
         try:
             # only real bots wait for GUILD_CREATE streaming
             if self.is_bot:
+                states = []
                 while True:
                     # this snippet of code is basically waiting N seconds
                     # until the last GUILD_CREATE was sent
@@ -355,17 +356,26 @@ class ConnectionState:
                     except asyncio.TimeoutError:
                         break
                     else:
-                        try:
-                            if self._fetch_offline:
-                                await asyncio.wait_for(self.chunk_guild(guild), timeout=60.0)
-                        except asyncio.TimeoutError:
-                            log.info('Timed out waiting for chunks while launching ready event.')
-                        finally:
+                        if self._fetch_offline:
+                            future = await self.chunk_guild(guild, wait=False)
+                            states.append((guild, future))
+                        else:
                             if guild.unavailable is False:
                                 self.dispatch('guild_available', guild)
                             else:
                                 self.dispatch('guild_join', guild)
 
+                for guild, future in states:
+                    try:
+                        await asyncio.wait_for(future, timeout=5.0)
+                    except asyncio.TimeoutError:
+                        log.warning('Shard ID %s timed out waiting for chunks for guild_id %s.', guild.shard_id, guild.id)
+
+                    if guild.unavailable is False:
+                        self.dispatch('guild_available', guild)
+                    else:
+                        self.dispatch('guild_join', guild)
+
             # remove the state
             try:
                 del self._ready_state
@@ -733,12 +743,14 @@ class ConnectionState:
 
         return self._add_guild_from_data(data)
 
-    async def chunk_guild(self, guild):
+    async def chunk_guild(self, guild, *, wait=True):
         future = self.loop.create_future()
         request = ChunkRequest(guild.id, future)
         self._chunk_requests.append(request)
         await self.chunker(guild.id, nonce=request.nonce)
-        await request.future
+        if wait:
+            await request.future
+        return request.future
 
     async def _chunk_and_dispatch(self, guild, unavailable):
         try:
@@ -1041,20 +1053,32 @@ class AutoShardedConnectionState(ConnectionState):
             except asyncio.TimeoutError:
                 break
             else:
-                try:
-                    if self._fetch_offline:
-                        await asyncio.wait_for(self.chunk_guild(guild), timeout=60.0)
-                except asyncio.TimeoutError:
-                    log.info('Timed out waiting for chunks while launching ready event.')
-                finally:
-                    processed.append(guild)
-                    if guild.unavailable is False:
-                        self.dispatch('guild_available', guild)
-                    else:
-                        self.dispatch('guild_join', guild)
+                if self._fetch_offline:
+                    # Chunk the guild in the background while we wait for GUILD_CREATE streaming
+                    future = asyncio.ensure_future(self.chunk_guild(guild))
+                else:
+                    future = self.loop.create_future()
+                    future.set_result(True)
+
+                processed.append((guild, future))
+
+        guilds = sorted(processed, key=lambda g: g[0].shard_id)
+        for shard_id, info in itertools.groupby(guilds, key=lambda g: g[0].shard_id):
+            children, futures = zip(*info)
+            # 110 reqs/minute w/ 1 req/guild plus some buffer
+            timeout = 61 * (len(children) / 110)
+            try:
+                await utils.sane_wait_for(futures, timeout=timeout)
+            except asyncio.TimeoutError:
+                log.warning('Shard ID %s failed to wait for chunks (timeout=%.2f) for %d guilds', self.shard_id,
+                                                                                                  timeout,
+                                                                                                  len(guilds))
+            for guild in children:
+                if guild.unavailable is False:
+                    self.dispatch('guild_available', guild)
+                else:
+                    self.dispatch('guild_join', guild)
 
-        guilds = sorted(processed, key=lambda g: g.shard_id)
-        for shard_id, _ in itertools.groupby(guilds, key=lambda g: g.shard_id):
             self.dispatch('shard_ready', shard_id)
 
         # remove the state