diff --git a/composeApp/src/androidMain/kotlin/su/reya/coop/screens/HomeScreen.kt b/composeApp/src/androidMain/kotlin/su/reya/coop/screens/HomeScreen.kt
index f1e75b6..0eeb362 100644
--- a/composeApp/src/androidMain/kotlin/su/reya/coop/screens/HomeScreen.kt
+++ b/composeApp/src/androidMain/kotlin/su/reya/coop/screens/HomeScreen.kt
@@ -781,7 +781,7 @@ fun BottomMenuList(
         }
         Spacer(modifier = Modifier.size(16.dp))
         FilledTonalButton(
-            onClick = { viewModel.logout() },
+            onClick = { onDismiss { viewModel.logout() } },
             colors = ButtonDefaults.filledTonalButtonColors(
                 containerColor = MaterialTheme.colorScheme.error,
                 contentColor = MaterialTheme.colorScheme.onError
diff --git a/shared/src/commonMain/kotlin/su/reya/coop/NostrViewModel.kt b/shared/src/commonMain/kotlin/su/reya/coop/NostrViewModel.kt
index dd1aced..0e7e915 100644
--- a/shared/src/commonMain/kotlin/su/reya/coop/NostrViewModel.kt
+++ b/shared/src/commonMain/kotlin/su/reya/coop/NostrViewModel.kt
@@ -325,15 +325,34 @@ class NostrViewModel(
 
     fun logout() {
         viewModelScope.launch {
-            // Reset the nostr state and wipe database
-            nostr.signer.switch(Keys.generate())
-            nostr.prune()
-            // Clear credential
-            secretStore.clear("user_signer")
-            _signerRequired.value = true
+            try {
+                _isBusy.value = true
+                // Reset the nostr signer and prune the database
+                nostr.signer.switch(Keys.generate())
+                nostr.prune()
+            } catch (e: Exception) {
+                showError("Logout encountered an error: ${e.message}")
+            } finally {
+                // Clear credentials from persistent storage
+                secretStore.clear("user_signer")
+
+                // Reset all UI states
+                resetInternalState()
+
+                _isBusy.value = false
+                _signerRequired.value = true
+            }
         }
     }
 
+    private fun resetInternalState() {
+        _chatRooms.value = emptySet()
+        _contactList.value = emptySet()
+        _isPartialProcessedGiftWrap.value = false
+        _isRelayListEmpty.value = false
+        _isNotificationBannerDismissed.value = false
+    }
+
     fun dismissNotificationBanner() {
         viewModelScope.launch {
             secretStore.set("notification_banner_dismissed", "true")