diff --git a/codegen/src/lib.rs b/codegen/src/lib.rs
index a9bfc6e004..33161ae850 100644
--- a/codegen/src/lib.rs
+++ b/codegen/src/lib.rs
@@ -312,9 +312,8 @@ fn subxt_type_gen_settings(
     crate_path: &syn::Path,
     should_gen_docs: bool,
 ) -> TypeGeneratorSettings {
-    // If we're using codec::Encode or codec::Decode derives, then we want to
-    // output #[codec(index = N)] and #[codec(compact)] attrs, else we don't.
-    let insert_codec_attributes = derives.default_derives().derives().iter().any(|path| {
+    // Are we using codec::Encode or codec::Decode derives?
+    let are_codec_derives_used = derives.default_derives().derives().iter().any(|path| {
         let mut segments_backwards = path.segments.iter().rev();
         let ident = segments_backwards.next();
         let module = segments_backwards.next();
@@ -325,12 +324,9 @@ fn subxt_type_gen_settings(
         is_ident_match && is_module_match
     });
 
-    // If we're inserting the codec attributes, we also should use `CompactAs` where necessary.
-    let compact_as_type_path = if insert_codec_attributes {
-        Some(parse_quote!(#crate_path::ext::codec::CompactAs))
-    } else {
-        None
-    };
+    // If we're inserting the codec derives, we also should use `CompactAs` where necessary.
+    let compact_as_type_path =
+        are_codec_derives_used.then(|| parse_quote!(#crate_path::ext::codec::CompactAs));
 
     TypeGeneratorSettings {
         types_mod_ident: parse_quote!(runtime_types),
@@ -340,8 +336,10 @@ fn subxt_type_gen_settings(
         decoded_bits_type_path: Some(parse_quote!(#crate_path::utils::bits::DecodedBits)),
         compact_as_type_path,
         compact_type_path: Some(parse_quote!(#crate_path::ext::codec::Compact)),
-        insert_codec_attributes,
         alloc_crate_path: AllocCratePath::Custom(parse_quote!(#crate_path::alloc)),
+        // Note: even when we don't use codec::Encode and codec::Decode, we need to keep #[codec(...)]
+        // attributes because `#[codec(skip)]` is still used/important with `EncodeAsType` and `DecodeAsType`.
+        insert_codec_attributes: true,
     }
 }
 
diff --git a/testing/substrate-runner/src/lib.rs b/testing/substrate-runner/src/lib.rs
index cce1131ca1..cb305fc14a 100644
--- a/testing/substrate-runner/src/lib.rs
+++ b/testing/substrate-runner/src/lib.rs
@@ -123,7 +123,7 @@ impl SubstrateNodeBuilder {
     ) -> Result<Child, std::io::Error> {
         let mut cmd = Command::new(binary_path);
 
-        cmd.env("RUST_LOG", "info,libp2p_tcp=debug")
+        cmd.env("RUST_LOG", "info,libp2p_tcp=debug,litep2p::tcp=debug")
             .stdout(process::Stdio::piped())
             .stderr(process::Stdio::piped())
             .arg("--dev")
@@ -295,6 +295,14 @@ fn try_find_substrate_port_from_output(r: impl Read + Send + 'static) -> Substra
             .rsplit_once("New listen address: /ip4/127.0.0.1/tcp/")
             // slightly newer message:
             .or_else(|| line.rsplit_once("New listen address address=/ip4/127.0.0.1/tcp/"))
+            // Newest message using the litep2p backend:
+            .or_else(|| {
+                // The line looks like:
+                // `start tcp transport listen_addresses=["/ip6/::/tcp/30333", "/ip4/0.0.0.0/tcp/30333"]`
+                // we'll split once to find the line itself and then again to find the ipv4 port.
+                line.rsplit_once("start tcp transport listen_addresses=")
+                    .and_then(|(_, after)| after.split_once("/ip4/0.0.0.0/tcp/"))
+            })
             .map(|(_, address_str)| address_str);
 
         if let Some(line_port) = p2p_port_line {