diff --git a/__tests__/signerStore.cancelled.test.ts b/__tests__/signerStore.cancelled.test.ts
new file mode 100644
index 0000000..1d5f1cb
--- /dev/null
+++ b/__tests__/signerStore.cancelled.test.ts
@@ -0,0 +1,36 @@
+import { useSignerStore } from '../src/store/signerStore';
+
+describe('signer store cancellation state', () => {
+  beforeEach(() => {
+    useSignerStore.getState().reset();
+  });
+
+  it('keeps cancellation separate from failure and clears review state safely', () => {
+    const store = useSignerStore.getState();
+
+    store.startReview({
+      requestId: 'req-1',
+      sourcePublicKey: 'GSOURCE',
+      destinationPublicKey: 'GDEST',
+      amount: '10',
+      assetCode: 'XLM',
+      network: 'Testnet',
+      createdAt: new Date().toISOString(),
+      timeoutSeconds: 30,
+    });
+
+    store.completeSigning({
+      hash: 'abc123',
+      review: useSignerStore.getState().currentReview!,
+      signerType: 'local',
+      completedAt: new Date().toISOString(),
+    });
+
+    store.cancelSigning();
+
+    expect(useSignerStore.getState().phase).toBe('cancelled');
+    expect(useSignerStore.getState().error).toBeNull();
+    expect(useSignerStore.getState().currentReview).toBeNull();
+    expect(useSignerStore.getState().lastResult).toBeNull();
+  });
+});
diff --git a/src/hooks/useSignerHandoff.ts b/src/hooks/useSignerHandoff.ts
index 13cd44e..97850d1 100644
--- a/src/hooks/useSignerHandoff.ts
+++ b/src/hooks/useSignerHandoff.ts
@@ -107,18 +107,16 @@ export function useSignerHandoff() {
 
         // Check cancellation before signing
         if (cancelledRef.current) {
-          const error = createSignerError('user_cancelled', 'Signing was cancelled.');
-          store.failSigning(error);
-          return { success: false, error };
+          store.cancelSigning();
+          return { success: false, cancelled: true };
         }
 
         const signedTx = await localSigner.sign(review, buildTransaction);
 
         // Check cancellation before submission
         if (cancelledRef.current) {
-          const error = createSignerError('user_cancelled', 'Signing was cancelled.');
-          store.failSigning(error);
-          return { success: false, error };
+          store.cancelSigning();
+          return { success: false, cancelled: true };
         }
 
         // Phase: submitting
@@ -138,6 +136,11 @@ export function useSignerHandoff() {
         return { success: true, result };
       } catch (err: any) {
         const error = classifySigningError(err);
+        if (error.type === 'user_cancelled') {
+          store.cancelSigning();
+          return { success: false, cancelled: true, error };
+        }
+
         store.failSigning(error);
         return { success: false, error };
       }
diff --git a/src/store/signerStore.ts b/src/store/signerStore.ts
index 95b290f..3383e09 100644
--- a/src/store/signerStore.ts
+++ b/src/store/signerStore.ts
@@ -81,15 +81,10 @@ export const useSignerStore = create<SignerState>((set, get) => ({
   cancelSigning: () =>
     set({
       phase: 'cancelled',
-      error: createCancelledError(),
+      currentReview: null,
+      lastResult: null,
+      error: null,
     }),
 
   reset: () => set({ ...initialState }),
 }));
-
-function createCancelledError(): SignerError {
-  return {
-    type: 'user_cancelled',
-    message: 'Signing was cancelled.',
-  };
-}