diff --git a/src/context/WalletProvider/WalletProvider.tsx b/src/context/WalletProvider/WalletProvider.tsx
index 2235841d614..83997e88df2 100644
--- a/src/context/WalletProvider/WalletProvider.tsx
+++ b/src/context/WalletProvider/WalletProvider.tsx
@@ -674,32 +674,46 @@ export const WalletProvider = ({ children }: { children: React.ReactNode }): JSX
               })
             }
 
-            const localMetaMaskWallet = await metamaskAdapter?.pairDevice()
-            if (localMetaMaskWallet) {
-              const { name, icon } = SUPPORTED_WALLETS[KeyManager.MetaMask]
-              try {
+            try {
+              const localMetaMaskWallet = await metamaskAdapter?.pairDevice()
+              if (localMetaMaskWallet) {
+                const { name, icon } = SUPPORTED_WALLETS[KeyManager.MetaMask]
                 await localMetaMaskWallet.initialize()
                 const deviceId = await localMetaMaskWallet.getDeviceID()
-                dispatch({
-                  type: WalletActions.SET_WALLET,
-                  payload: {
-                    wallet: localMetaMaskWallet,
-                    name,
-                    icon,
-                    deviceId,
-                    connectedType: KeyManager.MetaMask,
-                  },
-                })
-                dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
-                dispatch({
-                  type: WalletActions.SET_IS_CONNECTED,
-                  payload: true,
-                })
-              } catch (e) {
+
+                // Check if wallet is actually unlocked by verifying ethAddress is available
+                // If ethAddress is empty, the wallet is locked - don't claim it's connected
+                const ethAddress = (localMetaMaskWallet as MetaMaskMultiChainHDWallet).ethAddress
+
+                if (!ethAddress) {
+                  // Wallet is locked - set locked state and disconnect
+                  dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+                  dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
+                } else {
+                  dispatch({
+                    type: WalletActions.SET_WALLET,
+                    payload: {
+                      wallet: localMetaMaskWallet,
+                      name,
+                      icon,
+                      deviceId,
+                      connectedType: KeyManager.MetaMask,
+                    },
+                  })
+                  dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
+                  dispatch({
+                    type: WalletActions.SET_IS_CONNECTED,
+                    payload: true,
+                  })
+                }
+              } else {
                 disconnect()
               }
-            } else {
-              disconnect()
+            } catch (e) {
+              // pairDevice/initialize/getDeviceID failed - wallet is likely locked or disconnected
+              console.error('MetaMask: Failed to reconnect wallet on app load:', e)
+              dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+              dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
             }
             dispatch({ type: WalletActions.SET_LOCAL_WALLET_LOADING, payload: false })
             break
@@ -717,32 +731,42 @@ export const WalletProvider = ({ children }: { children: React.ReactNode }): JSX
               })
             }
 
-            const localPhantomWallet = await phantomAdapter?.pairDevice()
-            if (localPhantomWallet) {
-              const { name, icon } = SUPPORTED_WALLETS[KeyManager.Phantom]
-              try {
+            try {
+              const localPhantomWallet = await phantomAdapter?.pairDevice()
+              if (localPhantomWallet) {
+                const { name, icon } = SUPPORTED_WALLETS[KeyManager.Phantom]
                 await localPhantomWallet.initialize()
                 const deviceId = await localPhantomWallet.getDeviceID()
-                dispatch({
-                  type: WalletActions.SET_WALLET,
-                  payload: {
-                    wallet: localPhantomWallet,
-                    name,
-                    icon,
-                    deviceId,
-                    connectedType: KeyManager.Phantom,
-                  },
-                })
-                dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
-                dispatch({
-                  type: WalletActions.SET_IS_CONNECTED,
-                  payload: true,
-                })
-              } catch (e) {
+
+                if (!deviceId) {
+                  // Wallet is locked - set locked state
+                  dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+                  dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
+                } else {
+                  dispatch({
+                    type: WalletActions.SET_WALLET,
+                    payload: {
+                      wallet: localPhantomWallet,
+                      name,
+                      icon,
+                      deviceId,
+                      connectedType: KeyManager.Phantom,
+                    },
+                  })
+                  dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
+                  dispatch({
+                    type: WalletActions.SET_IS_CONNECTED,
+                    payload: true,
+                  })
+                }
+              } else {
                 disconnect()
               }
-            } else {
-              disconnect()
+            } catch (e) {
+              // pairDevice/initialize/getDeviceID failed - wallet is likely locked or disconnected
+              console.error('Phantom: Failed to reconnect wallet on app load:', e)
+              dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+              dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
             }
             dispatch({ type: WalletActions.SET_LOCAL_WALLET_LOADING, payload: false })
             break
@@ -760,32 +784,42 @@ export const WalletProvider = ({ children }: { children: React.ReactNode }): JSX
               })
             }
 
-            const localCoinbaseWallet = await coinbaseAdapter?.pairDevice()
-            if (localCoinbaseWallet) {
-              const { name, icon } = SUPPORTED_WALLETS[KeyManager.Coinbase]
-              try {
+            try {
+              const localCoinbaseWallet = await coinbaseAdapter?.pairDevice()
+              if (localCoinbaseWallet) {
+                const { name, icon } = SUPPORTED_WALLETS[KeyManager.Coinbase]
                 await localCoinbaseWallet.initialize()
                 const deviceId = await localCoinbaseWallet.getDeviceID()
-                dispatch({
-                  type: WalletActions.SET_WALLET,
-                  payload: {
-                    wallet: localCoinbaseWallet,
-                    name,
-                    icon,
-                    deviceId,
-                    connectedType: KeyManager.Coinbase,
-                  },
-                })
-                dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
-                dispatch({
-                  type: WalletActions.SET_IS_CONNECTED,
-                  payload: true,
-                })
-              } catch (e) {
+
+                if (!deviceId) {
+                  // Wallet is locked - set locked state
+                  dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+                  dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
+                } else {
+                  dispatch({
+                    type: WalletActions.SET_WALLET,
+                    payload: {
+                      wallet: localCoinbaseWallet,
+                      name,
+                      icon,
+                      deviceId,
+                      connectedType: KeyManager.Coinbase,
+                    },
+                  })
+                  dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
+                  dispatch({
+                    type: WalletActions.SET_IS_CONNECTED,
+                    payload: true,
+                  })
+                }
+              } else {
                 disconnect()
               }
-            } else {
-              disconnect()
+            } catch (e) {
+              // pairDevice/initialize/getDeviceID failed - wallet is likely locked or disconnected
+              console.error('Coinbase: Failed to reconnect wallet on app load:', e)
+              dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+              dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
             }
             dispatch({ type: WalletActions.SET_LOCAL_WALLET_LOADING, payload: false })
             break
diff --git a/src/context/WalletProvider/useEip1993EventHandler.ts b/src/context/WalletProvider/useEip1993EventHandler.ts
index af68d09d4fa..b69e89ea612 100644
--- a/src/context/WalletProvider/useEip1993EventHandler.ts
+++ b/src/context/WalletProvider/useEip1993EventHandler.ts
@@ -63,38 +63,50 @@ export const useEip1993EventHandler = ({
       const _isLocked = Array.isArray(accountsOrChains) && accountsOrChains.length === 0
 
       if (_isLocked) {
+        // Wallet is locked - set both locked state AND disconnected state
+        // This prevents the wallet drawer overlay from blocking interaction
         dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
-      } else {
-        // Either a chain change or a wallet unlock - ensure we set isLocked to false before continuing to avoid bad states
-        dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
+        dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
+        // Return early - don't try to re-pair when wallet is locked
+        return
       }
 
+      // Either a chain change or a wallet unlock - ensure we set isLocked to false before continuing to avoid bad states
+      dispatch({ type: WalletActions.SET_IS_LOCKED, payload: false })
+
       const adapter = (await getAdapter(localWalletType)) as MetaMaskAdapter | PhantomAdapter | null
 
       // Re-pair - which in case of accounts changed means the user will be prompted to connect their current account if they didn't do so
       // Note, this isn't guaranteed to work, not all wallets are the same, some (i.e MM) have this weird flow where connecting to an unconnected account
       // from a connected account can only be done from the wallet itself and not programmatically
-      const localWallet = await adapter?.pairDevice()
-
-      if (!localWallet) return
-
-      await localWallet.initialize()
-      const deviceId = await localWallet?.getDeviceID()
-
-      if (!deviceId) return
-
-      const { icon, name } = SUPPORTED_WALLETS[localWalletType]
-
-      dispatch({
-        type: WalletActions.SET_WALLET,
-        payload: {
-          wallet: localWallet,
-          name,
-          icon,
-          deviceId,
-          connectedType: localWalletType,
-        },
-      })
+      try {
+        const localWallet = await adapter?.pairDevice()
+
+        if (!localWallet) return
+
+        await localWallet.initialize()
+        const deviceId = await localWallet?.getDeviceID()
+
+        if (!deviceId) return
+
+        const { icon, name } = SUPPORTED_WALLETS[localWalletType]
+
+        dispatch({
+          type: WalletActions.SET_WALLET,
+          payload: {
+            wallet: localWallet,
+            name,
+            icon,
+            deviceId,
+            connectedType: localWalletType,
+          },
+        })
+      } catch (e) {
+        // If pairDevice/initialize/getDeviceID fails, wallet is likely locked or disconnected
+        console.error('Failed to re-pair wallet after account/chain change:', e)
+        dispatch({ type: WalletActions.SET_IS_LOCKED, payload: true })
+        dispatch({ type: WalletActions.SET_IS_CONNECTED, payload: false })
+      }
     },
     [dispatch, getAdapter, localWalletType, state.adapters],
   )