diff --git a/frontend/src/hooks/query/use-active-conversation.ts b/frontend/src/hooks/query/use-active-conversation.ts
index 141a4c0744..e2cd7662e5 100644
--- a/frontend/src/hooks/query/use-active-conversation.ts
+++ b/frontend/src/hooks/query/use-active-conversation.ts
@@ -17,6 +17,10 @@ export const useActiveConversation = () => {
   useEffect(() => {
     const conversation = userConversation.data;
     OpenHands.setCurrentConversation(conversation || null);
-  }, [conversationId, userConversation.isFetched]);
+  }, [
+    conversationId,
+    userConversation.isFetched,
+    userConversation?.data?.status,
+  ]);
   return userConversation;
 };
diff --git a/tests/unit/test_mcp_client_timeout.py b/tests/unit/test_mcp_client_timeout.py
deleted file mode 100644
index d731e1059b..0000000000
--- a/tests/unit/test_mcp_client_timeout.py
+++ /dev/null
@@ -1,30 +0,0 @@
-import pytest
-from httpx import ConnectError
-from mcp import McpError
-
-from openhands.core.config.mcp_config import MCPSSEServerConfig
-from openhands.mcp.client import MCPClient
-
-
-@pytest.mark.asyncio
-async def test_connect_sse_timeout():
-    """Test that connect_http properly times out"""
-    client = MCPClient()
-
-    server = MCPSSEServerConfig(url='http://server1:8080')
-
-    # Test with a very short timeout
-    with pytest.raises(McpError, match='Timed out'):
-        await client.connect_http(server, timeout=0.001)
-
-
-@pytest.mark.asyncio
-async def test_connect_sse_invalid_url():
-    """Test that connect_http hits error when server_url is invalid."""
-    client = MCPClient()
-
-    server = MCPSSEServerConfig(url='http://server1:8080')
-
-    # Test with larger timeout
-    with pytest.raises(ConnectError):
-        await client.connect_http(server, timeout=1)