diff --git a/CHANGELOG.md b/CHANGELOG.md
index 95088e06ba..a7cbc7480d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -25,6 +25,7 @@ Docs: https://docs.openclaw.ai
 - Telegram: restore draft streaming partials. (#5543) Thanks @obviyus.
 - Onboarding: friendlier Windows onboarding message. (#6242) Thanks @shanselman.
 - TUI: prevent crash when searching with digits in the model selector.
+- Tlon: clear SSE connection timeout on failed connect. (#5926) Thanks @hclsys.
 - Agents: wire before_tool_call plugin hook into tool execution. (#6570) Thanks @ryancnelson.
 - Browser: secure Chrome extension relay CDP sessions.
 - Docker: use container port for gateway command instead of host port. (#5110) Thanks @mise42.
diff --git a/extensions/tlon/src/urbit/sse-client.test.ts b/extensions/tlon/src/urbit/sse-client.test.ts
index f194aafc2f..6eea1592ef 100644
--- a/extensions/tlon/src/urbit/sse-client.test.ts
+++ b/extensions/tlon/src/urbit/sse-client.test.ts
@@ -37,4 +37,23 @@ describe("UrbitSSEClient", () => {
       path: "/dm/~zod",
     });
   });
+
+  it("clears the connection timeout when fetch fails", async () => {
+    const timeoutId = 123 as unknown as NodeJS.Timeout;
+    const setTimeoutSpy = vi.spyOn(global, "setTimeout").mockReturnValue(timeoutId);
+    const clearTimeoutSpy = vi.spyOn(global, "clearTimeout");
+
+    mockFetch.mockRejectedValue(new Error("network down"));
+
+    const client = new UrbitSSEClient("https://example.com", "urbauth-~zod=123");
+
+    try {
+      await expect(client.openStream()).rejects.toThrow("network down");
+      expect(setTimeoutSpy).toHaveBeenCalled();
+      expect(clearTimeoutSpy).toHaveBeenCalledWith(timeoutId);
+    } finally {
+      setTimeoutSpy.mockRestore();
+      clearTimeoutSpy.mockRestore();
+    }
+  });
 });
diff --git a/extensions/tlon/src/urbit/sse-client.ts b/extensions/tlon/src/urbit/sse-client.ts
index c985cf9f1d..9dbe495c77 100644
--- a/extensions/tlon/src/urbit/sse-client.ts
+++ b/extensions/tlon/src/urbit/sse-client.ts
@@ -179,11 +179,11 @@ export class UrbitSSEClient {
         Cookie: this.cookie,
       },
       signal: controller.signal,
+    }).finally(() => {
+      // Clear timeout once connection established (headers received) or on failure.
+      clearTimeout(timeoutId);
     });
 
-    // Clear timeout once connection established (headers received)
-    clearTimeout(timeoutId);
-
     if (!response.ok) {
       throw new Error(`Stream connection failed: ${response.status}`);
     }