diff --git a/crates/core/src/operations/mod.rs b/crates/core/src/operations/mod.rs
index 89eb2852a..d3b686b07 100644
--- a/crates/core/src/operations/mod.rs
+++ b/crates/core/src/operations/mod.rs
@@ -308,9 +308,8 @@ impl<T> From<SendError<T>> for OpError {
 
 /// If the contract is not found, it will try to get it first if the `try_get` parameter is set.
 async fn start_subscription_request(op_manager: &OpManager, key: ContractKey) {
-    // Check if we are the optimal location for this contract
-    // If we are and no other peers are suitable, skip subscription for now
-    // TODO: In the future, still find next-best peers for redundancy (issue #1793)
+    // Phase 1 fix for issue #1848: Allow nodes at optimal location to subscribe to next-best peers
+    // This prevents isolation when a node is at the optimal network position
     let own_location = op_manager.ring.connection_manager.own_location();
     let closest = op_manager
         .ring
@@ -318,14 +317,12 @@ async fn start_subscription_request(op_manager: &OpManager, key: ContractKey) {
 
     if closest.is_none() {
         // No other peers available for caching
-        // Check if we should be caching this locally
-        if op_manager.ring.should_seed(&key) {
-            tracing::debug!(
-                %key,
-                "Skipping subscription - node is optimal location and no other peers available"
-            );
-            return;
-        }
+        tracing::warn!(
+            %key,
+            "No remote peers available for subscription - node may become isolated"
+        );
+        // Still attempt subscription in case new peers join later
+        // The subscribe operation will handle the no-peers case appropriately
     }
 
     let sub_op = subscribe::start_op(key);
diff --git a/crates/core/src/operations/subscribe.rs b/crates/core/src/operations/subscribe.rs
index 659c0d4a9..e195101f3 100644
--- a/crates/core/src/operations/subscribe.rs
+++ b/crates/core/src/operations/subscribe.rs
@@ -66,13 +66,18 @@ pub(crate) async fn request_subscribe(
     sub_op: SubscribeOp,
 ) -> Result<(), OpError> {
     if let Some(SubscribeState::PrepareRequest { id, key }) = &sub_op.state {
-        // Find a remote peer to handle the subscription
-        const EMPTY: &[PeerId] = &[];
-        let target = match op_manager.ring.closest_potentially_caching(key, EMPTY) {
+        // Phase 1 fix for issue #1848: Properly find next-best peer for subscription
+        // Exclude ourselves to ensure we find a remote peer, even if we're at optimal location
+        let own_location = op_manager.ring.connection_manager.own_location();
+        let skip_self = [own_location.peer.clone()];
+        let target = match op_manager
+            .ring
+            .closest_potentially_caching(key, &skip_self[..])
+        {
             Some(peer) => peer,
             None => {
-                // No remote peers available
-                tracing::debug!(%key, "No remote peers available for subscription");
+                // No remote peers available - this may happen when node is isolated
+                tracing::warn!(%key, "No remote peers available for subscription - node may be isolated");
                 return Err(RingError::NoCachingPeers(*key).into());
             }
         };