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

shared/src/commonMain/kotlin/su/reya/coop/NostrViewModel.kt

@@ -325,14 +325,33 @@ class NostrViewModel(
 
     fun logout() {
         viewModelScope.launch {
-            // Reset the nostr state and wipe database
+            try {
+                _isBusy.value = true
+                // Reset the nostr signer and prune the database
                 nostr.signer.switch(Keys.generate())
                 nostr.prune()
-            // Clear credential
+            } 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 {