diff --git a/tests/unit/NetworkTest.ts b/tests/unit/NetworkTest.ts
index e482cc3261d4..0ce502c599d1 100644
--- a/tests/unit/NetworkTest.ts
+++ b/tests/unit/NetworkTest.ts
@@ -14,7 +14,7 @@ import * as MainQueue from '@src/libs/Network/MainQueue';
 import * as NetworkStore from '@src/libs/Network/NetworkStore';
 import NetworkConnection from '@src/libs/NetworkConnection';
 import ONYXKEYS from '@src/ONYXKEYS';
-import type {Session as OnyxSession} from '@src/types/onyx';
+import type {Network as OnyNetwork, Session as OnyxSession} from '@src/types/onyx';
 import type ReactNativeOnyxMock from '../../__mocks__/react-native-onyx';
 import * as TestHelper from '../utils/TestHelper';
 import waitForBatchedUpdates from '../utils/waitForBatchedUpdates';
@@ -132,81 +132,95 @@ describe('NetworkTests', () => {
                 });
         });
     });
-
     test('failing to reauthenticate while offline should not log out user', async () => {
-        const TEST_USER_LOGIN = 'test@testguy.com';
-        const TEST_USER_ACCOUNT_ID = 1;
-
-        let session: OnyxEntry<OnyxSession>;
-        Onyx.connect({
-            key: ONYXKEYS.SESSION,
-            callback: (val) => (session = val),
-        });
 
-        Onyx.connect({
-            key: ONYXKEYS.NETWORK,
+            // 1. Setup Phase - Initialize test user and state variables
+            const TEST_USER_LOGIN = 'test@testguy.com';
+            const TEST_USER_ACCOUNT_ID = 1;
+            const defaultTimeout = 1000;
+    
+            let sessionState: OnyxEntry<OnyxSession>;
+            let networkState: OnyxEntry<OnyNetwork>;
+    
+            // Set up listeners for session and network state changes
+            Onyx.connect({
+                key: ONYXKEYS.SESSION,
+                callback: (val) => (sessionState = val),
+            });
+    
+            Onyx.connect({
+                key: ONYXKEYS.NETWORK,
+                callback: (val) => (networkState = val),
+            });
+    
+            // Sign in test user and wait for updates
+            await TestHelper.signInWithTestUser(TEST_USER_ACCOUNT_ID, TEST_USER_LOGIN);
+            await waitForBatchedUpdates();
+    
+            const initialAuthToken = sessionState?.authToken;
+            expect(initialAuthToken).toBeDefined();
+    
+            // 2. Mock Setup Phase - Configure XHR mocks for the test sequence
+            const mockedXhr = jest
+                .fn()
+                // First mock: ReconnectApp will fail with NOT_AUTHENTICATED
+                .mockImplementationOnce(() =>
+                    Promise.resolve({
+                        jsonCode: CONST.JSON_CODE.NOT_AUTHENTICATED,
+                    }),
+                )
+                // Second mock: Authenticate with network check and delay
+                .mockImplementationOnce(() => {
+                    // Check network state immediately
+                    if (networkState?.isOffline) {
+                        return Promise.reject(new Error('Network request failed'));
+                    }
+    
+                    // create a delayed response. Timeout will expire after the second App.reconnectApp();
+                    return new Promise((_, reject) => {
+                        setTimeout(() => {
+                                reject(new Error('Network request failed'));
+                        }, defaultTimeout);
+                    });
+                });
+    
+            HttpUtils.xhr = mockedXhr;
+    
+            // 3. Test Execution Phase - Start with online network
+            await Onyx.set(ONYXKEYS.NETWORK, {isOffline: false});
+    
+            // Trigger reconnect which will fail due to expired token
+            App.confirmReadyToOpenApp();
+            App.reconnectApp();
+            await waitForBatchedUpdates();
+        
+            // 4. First API Call Verification - Check ReconnectApp
+            const firstCall = mockedXhr.mock.calls.at(0) as [string, Record<string, unknown>];
+            expect(firstCall[0]).toBe('ReconnectApp');
+    
+            // 5. Authentication Start - Verify authenticate was triggered
+            await waitForBatchedUpdates();
+            const secondCall = mockedXhr.mock.calls.at(1) as [string, Record<string, unknown>];
+            expect(secondCall[0]).toBe('Authenticate');
+    
+            // 6. Network State Change - Set offline and back online while authenticate is pending
+            await Onyx.set(ONYXKEYS.NETWORK, {isOffline: true});
+            await Onyx.set(ONYXKEYS.NETWORK, {isOffline: false});
+    
+            // Trigger another reconnect due to network change
+            App.confirmReadyToOpenApp();
+            App.reconnectApp();
+            await waitForBatchedUpdates();
+    
+            // 7. Wait and Verify - Wait for authenticate timeout and verify session
+            await new Promise((resolve) => {
+                setTimeout(resolve, defaultTimeout + 100);
+            });
+    
+            // Verify the session remained intact and wasn't cleared
+            expect(sessionState?.authToken).toBe(initialAuthToken);
         });
 
-        await TestHelper.signInWithTestUser(TEST_USER_ACCOUNT_ID, TEST_USER_LOGIN);
-        await waitForBatchedUpdates();
-
-        expect(session?.authToken).not.toBeUndefined();
-
-        // Turn off the network
-        await Onyx.set(ONYXKEYS.NETWORK, {isOffline: true});
-
-        const mockedXhr = jest.fn();
-        mockedXhr
-            // Call ReconnectApp with an expired token
-            .mockImplementationOnce(() =>
-                Promise.resolve({
-                    jsonCode: CONST.JSON_CODE.NOT_AUTHENTICATED,
-                }),
-            )
-            // Call Authenticate
-            .mockImplementationOnce(() =>
-                Promise.resolve({
-                    jsonCode: CONST.JSON_CODE.SUCCESS,
-                    authToken: 'newAuthToken',
-                }),
-            )
-            // Call ReconnectApp again, it should connect with a new token
-            .mockImplementationOnce(() =>
-                Promise.resolve({
-                    jsonCode: CONST.JSON_CODE.SUCCESS,
-                }),
-            );
-
-        HttpUtils.xhr = mockedXhr;
-
-        // Initiate the requests
-        App.confirmReadyToOpenApp();
-        App.reconnectApp();
-        await waitForBatchedUpdates();
-
-        // Turn the network back online
-        await Onyx.set(ONYXKEYS.NETWORK, {isOffline: false});
-
-        // Filter requests results by request name
-        const reconnectResults = (HttpUtils.xhr as Mock).mock.results.filter((_, index) => (HttpUtils.xhr as Mock)?.mock?.calls?.at(index)?.[0] === 'ReconnectApp');
-        const authenticateResults = (HttpUtils.xhr as Mock).mock.results.filter((_, index) => (HttpUtils.xhr as Mock)?.mock?.calls?.at(index)?.[0] === 'Authenticate');
-
-        // Get the response code of Authenticate call
-        const authenticateResponse = await (authenticateResults?.at(0)?.value as Promise<{jsonCode: string}>);
-
-        // Get the response code of the second Reconnect call
-        const reconnectResponse = await (reconnectResults?.at(1)?.value as Promise<{jsonCode: string}>);
-
-        // Authenticate request should return 200
-        expect(authenticateResponse.jsonCode).toBe(CONST.JSON_CODE.SUCCESS);
-
-        // The second ReconnectApp should return 200
-        expect(reconnectResponse.jsonCode).toBe(CONST.JSON_CODE.SUCCESS);
-
-        // check if the user is still logged in
-        expect(session?.authToken).not.toBeUndefined();
-    });
-
     test('consecutive API calls eventually succeed when authToken is expired', () => {
         // Given a test user login and account ID
         const TEST_USER_LOGIN = 'test@testguy.com';