diff --git a/bitchat/Noise/NoiseHandshakeCoordinator.swift b/bitchat/Noise/NoiseHandshakeCoordinator.swift
index 5a2d5d9d..c205cfa5 100644
--- a/bitchat/Noise/NoiseHandshakeCoordinator.swift
+++ b/bitchat/Noise/NoiseHandshakeCoordinator.swift
@@ -254,4 +254,13 @@ class NoiseHandshakeCoordinator {
             SecureLogger.log("========================", category: SecureLogger.handshake, level: .debug)
         }
     }
+    
+    /// Clear all handshake states - used during panic mode
+    func clearAllHandshakeStates() {
+        handshakeQueue.async(flags: .barrier) {
+            SecureLogger.log("Clearing all handshake states for panic mode", category: SecureLogger.handshake, level: .warning)
+            self.handshakeStates.removeAll()
+            self.processedHandshakeMessages.removeAll()
+        }
+    }
 }
\ No newline at end of file
diff --git a/bitchat/Services/BluetoothMeshService.swift b/bitchat/Services/BluetoothMeshService.swift
index 38f03ec9..61e0a366 100644
--- a/bitchat/Services/BluetoothMeshService.swift
+++ b/bitchat/Services/BluetoothMeshService.swift
@@ -1159,6 +1159,16 @@ class BluetoothMeshService: NSObject {
         // Clear persistent identity
         noiseService.clearPersistentIdentity()
         
+        // Clear all handshake coordinator states
+        handshakeCoordinator.clearAllHandshakeStates()
+        
+        // Clear handshake attempt times
+        handshakeAttemptTimes.removeAll()
+        
+        // Notify UI that all peers are disconnected
+        DispatchQueue.main.async { [weak self] in
+            self?.delegate?.didUpdatePeerList([])
+        }
     }
     
     private func getAllConnectedPeerIDs() -> [String] {