diff --git a/app/src/hooks/__tests__/useDaemonLifecycle.test.ts b/app/src/hooks/__tests__/useDaemonLifecycle.test.ts
index d41b46e82..a7ba40c55 100644
--- a/app/src/hooks/__tests__/useDaemonLifecycle.test.ts
+++ b/app/src/hooks/__tests__/useDaemonLifecycle.test.ts
@@ -135,7 +135,84 @@ describe('useDaemonLifecycle', () => {
     });
   });
 
+  describe('retry scheduling', () => {
+    it('runs a scheduled retry using the latest daemon action', async () => {
+      const { useDaemonLifecycle } = await import('../useDaemonLifecycle');
+      const uid = freshUser('retry');
+      resetUser(uid);
+      setAutoStartEnabled(uid, true);
+      setDaemonStatus(uid, 'error');
+      incrementConnectionAttempts(uid);
+      mockStartDaemon.mockResolvedValue({ result: { state: 'Running' }, logs: [] });
+
+      const { result } = renderHook(() => useDaemonLifecycle(uid));
+
+      expect(result.current.connectionAttempts).toBe(1);
+      await act(async () => {
+        await vi.advanceTimersByTimeAsync(2000);
+      });
+
+      expect(mockStartDaemon).toHaveBeenCalledTimes(1);
+      expect(result.current.connectionAttempts).toBe(0);
+    });
+  });
+
   describe('background / foreground pause-resume', () => {
+    it('keeps lifecycle setup stable across daemon state updates', async () => {
+      const { useDaemonLifecycle } = await import('../useDaemonLifecycle');
+      const uid = freshUser('stable-effect');
+      resetUser(uid);
+      setAutoStartEnabled(uid, true);
+      const logSpy = vi.spyOn(console, 'log').mockImplementation(() => {});
+      const addEventListenerSpy = vi.spyOn(document, 'addEventListener');
+      const removeEventListenerSpy = vi.spyOn(document, 'removeEventListener');
+
+      try {
+        const { unmount } = renderHook(() => useDaemonLifecycle(uid));
+
+        const lifecycleLogCount = (message: string) =>
+          logSpy.mock.calls.filter(([logged]) => logged === message).length;
+        const visibilityAddCount = () =>
+          addEventListenerSpy.mock.calls.filter(([event]) => event === 'visibilitychange').length;
+        const visibilityRemoveCount = () =>
+          removeEventListenerSpy.mock.calls.filter(([event]) => event === 'visibilitychange')
+            .length;
+
+        expect(lifecycleLogCount('[DaemonLifecycle] Setting up daemon lifecycle management')).toBe(
+          1
+        );
+        expect(visibilityAddCount()).toBe(1);
+
+        act(() => {
+          setDaemonStatus(uid, 'starting');
+          setIsRecovering(uid, true);
+          incrementConnectionAttempts(uid);
+          setDaemonStatus(uid, 'running');
+          setIsRecovering(uid, false);
+        });
+
+        expect(lifecycleLogCount('[DaemonLifecycle] Setting up daemon lifecycle management')).toBe(
+          1
+        );
+        expect(lifecycleLogCount('[DaemonLifecycle] Cleaning up daemon lifecycle management')).toBe(
+          0
+        );
+        expect(visibilityAddCount()).toBe(1);
+        expect(visibilityRemoveCount()).toBe(0);
+
+        unmount();
+
+        expect(lifecycleLogCount('[DaemonLifecycle] Cleaning up daemon lifecycle management')).toBe(
+          1
+        );
+        expect(visibilityRemoveCount()).toBe(1);
+      } finally {
+        logSpy.mockRestore();
+        addEventListenerSpy.mockRestore();
+        removeEventListenerSpy.mockRestore();
+      }
+    });
+
     it('does not invoke startDaemon while hidden, resumes auto-start on visible', async () => {
       const { useDaemonLifecycle } = await import('../useDaemonLifecycle');
       const uid = freshUser('vis');
diff --git a/app/src/hooks/useDaemonLifecycle.ts b/app/src/hooks/useDaemonLifecycle.ts
index 1419dc2e9..eac5ff5df 100644
--- a/app/src/hooks/useDaemonLifecycle.ts
+++ b/app/src/hooks/useDaemonLifecycle.ts
@@ -25,7 +25,7 @@ const MAX_RETRY_DELAY_MS = 30000; // 30 seconds
 const AUTO_START_DELAY_MS = 3000; // 3 seconds after app start
 
 export const useDaemonLifecycle = (userId?: string) => {
-  const daemonHealth = useDaemonHealth(userId);
+  const { startDaemon } = useDaemonHealth(userId);
   const daemonState = useDaemonUserState(userId);
 
   const status = daemonState.status;
@@ -38,6 +38,23 @@ export const useDaemonLifecycle = (userId?: string) => {
   const autoStartTimeoutRef = useRef<ReturnType<typeof setTimeout> | null>(null);
   const retryTimeoutRef = useRef<ReturnType<typeof setTimeout> | null>(null);
   const isMountedRef = useRef(true);
+  const latestLifecycleRef = useRef({
+    isAutoStartEnabled,
+    status,
+    isRecovering,
+    connectionAttempts,
+    uid,
+    startDaemon,
+  });
+
+  latestLifecycleRef.current = {
+    isAutoStartEnabled,
+    status,
+    isRecovering,
+    connectionAttempts,
+    uid,
+    startDaemon,
+  };
 
   // Calculate exponential backoff delay
   const calculateRetryDelay = useCallback((attempt: number): number => {
@@ -47,6 +64,9 @@ export const useDaemonLifecycle = (userId?: string) => {
 
   // Auto-start daemon if enabled and conditions are met
   const attemptAutoStart = useCallback(async () => {
+    const { isAutoStartEnabled, status, isRecovering, connectionAttempts, uid, startDaemon } =
+      latestLifecycleRef.current;
+
     if (!isTauri() || !isAutoStartEnabled || !isMountedRef.current) {
       return;
     }
@@ -57,7 +77,7 @@ export const useDaemonLifecycle = (userId?: string) => {
 
       try {
         setIsRecovering(uid, true);
-        const result = await daemonHealth.startDaemon();
+        const result = await startDaemon();
 
         if (result?.result && result.result.state === 'Running') {
           console.log('[DaemonLifecycle] Auto-start successful');
@@ -73,10 +93,12 @@ export const useDaemonLifecycle = (userId?: string) => {
         setIsRecovering(uid, false);
       }
     }
-  }, [isAutoStartEnabled, status, isRecovering, connectionAttempts, uid, daemonHealth]);
+  }, []);
 
   // Retry connection with exponential backoff
   const scheduleRetry = useCallback(() => {
+    const { connectionAttempts, status, isRecovering } = latestLifecycleRef.current;
+
     if (!isTauri() || !isMountedRef.current || isRecovering) {
       return;
     }
@@ -105,11 +127,13 @@ export const useDaemonLifecycle = (userId?: string) => {
     retryTimeoutRef.current = setTimeout(async () => {
       if (!isMountedRef.current) return;
 
+      const { uid, startDaemon } = latestLifecycleRef.current;
+
       try {
         setIsRecovering(uid, true);
         incrementConnectionAttempts(uid);
 
-        const result = await daemonHealth.startDaemon();
+        const result = await startDaemon();
 
         if (result?.result && result.result.state === 'Running') {
           console.log('[DaemonLifecycle] Retry successful');
@@ -125,12 +149,14 @@ export const useDaemonLifecycle = (userId?: string) => {
         setIsRecovering(uid, false);
       }
     }, retryDelay);
-  }, [connectionAttempts, status, isRecovering, calculateRetryDelay, uid, daemonHealth]);
+  }, [calculateRetryDelay]);
 
   // Handle visibility change (background/foreground)
   const handleVisibilityChange = useCallback(() => {
     if (!isTauri() || !isMountedRef.current) return;
 
+    const { isAutoStartEnabled, status, isRecovering } = latestLifecycleRef.current;
+
     if (document.visibilityState === 'visible') {
       console.log('[DaemonLifecycle] App became visible - checking daemon status');
 
@@ -144,12 +170,13 @@ export const useDaemonLifecycle = (userId?: string) => {
         }, 1000);
       }
     }
-  }, [isAutoStartEnabled, status, isRecovering, attemptAutoStart]);
+  }, [attemptAutoStart]);
 
   // Main lifecycle effect
   useEffect(() => {
     if (!isTauri()) return;
 
+    isMountedRef.current = true;
     console.log('[DaemonLifecycle] Setting up daemon lifecycle management');
 
     // Setup auto-start with delay on mount
@@ -181,7 +208,7 @@ export const useDaemonLifecycle = (userId?: string) => {
       // Remove event listeners
       document.removeEventListener('visibilitychange', handleVisibilityChange);
     };
-  }, [isAutoStartEnabled, attemptAutoStart, handleVisibilityChange]);
+  }, [isAutoStartEnabled, uid, attemptAutoStart, handleVisibilityChange]);
 
   // Retry effect - triggers when daemon goes into error state or connection fails
   useEffect(() => {