diff --git a/apps/deploy-web/src/hooks/useManagedWallet.ts b/apps/deploy-web/src/hooks/useManagedWallet.ts
index 084b382f0..7eb002487 100644
--- a/apps/deploy-web/src/hooks/useManagedWallet.ts
+++ b/apps/deploy-web/src/hooks/useManagedWallet.ts
@@ -2,6 +2,7 @@ import { useEffect, useMemo } from "react";
 import { useAtom } from "jotai";
 
 import { browserEnvConfig } from "@src/config/browser-env.config";
+import { useSelectedChain } from "@src/context/CustomChainProvider";
 import { useUser } from "@src/hooks/useUser";
 import { useCreateManagedWalletMutation, useManagedWalletQuery } from "@src/queries/useManagedWalletQuery";
 import walletStore from "@src/store/walletStore";
@@ -14,7 +15,20 @@ const isBillingEnabled = NEXT_PUBLIC_BILLING_ENABLED;
 export const useManagedWallet = () => {
   const user = useUser();
   const { user: signedInUser } = useCustomUser();
-  const { data: queried, isFetched, isLoading: isFetching, refetch } = useManagedWalletQuery(isBillingEnabled ? user?.id : undefined);
+  const userWallet = useSelectedChain();
+  const [selectedWalletType, setSelectedWalletType] = useAtom(walletStore.selectedWalletType);
+  const {
+    data: queried,
+    isFetched,
+    isLoading: isFetching,
+    refetch
+  } = useManagedWalletQuery(isBillingEnabled ? user?.id : undefined, {
+    onSuccess: wallet => {
+      if (selectedWalletType === "custodial" && wallet && !userWallet.isWalletConnected) {
+        setSelectedWalletType("managed");
+      }
+    }
+  });
   const { mutate: create, data: created, isLoading: isCreating, isSuccess: isCreated } = useCreateManagedWalletMutation();
   const wallet = useMemo(() => queried || created, [queried, created]);
   const isLoading = isFetching || isCreating;
diff --git a/apps/deploy-web/src/queries/useManagedWalletQuery.ts b/apps/deploy-web/src/queries/useManagedWalletQuery.ts
index 8425be579..bafa66d14 100644
--- a/apps/deploy-web/src/queries/useManagedWalletQuery.ts
+++ b/apps/deploy-web/src/queries/useManagedWalletQuery.ts
@@ -1,10 +1,11 @@
-import { useMutation, useQuery, useQueryClient } from "react-query";
+import { QueryKey, useMutation, useQuery, useQueryClient, UseQueryOptions } from "react-query";
+import { ApiWalletOutput } from "@akashnetwork/http-sdk";
 
 import { managedWalletHttpService } from "@src/services/managed-wallet-http/managed-wallet-http.service";
 
 const MANAGED_WALLET = "MANAGED_WALLET";
 
-export function useManagedWalletQuery(userId?: string) {
+export function useManagedWalletQuery(userId?: string, options?: Omit<UseQueryOptions<ApiWalletOutput, Error, any, QueryKey>, "queryKey" | "queryFn">) {
   return useQuery(
     [MANAGED_WALLET, userId],
     async () => {
@@ -14,7 +15,8 @@ export function useManagedWalletQuery(userId?: string) {
     },
     {
       enabled: !!userId,
-      staleTime: Infinity
+      staleTime: Infinity,
+      ...options
     }
   );
 }