diff --git a/modules/ppcp-axo-block/resources/js/hooks/useAxoSetup.js b/modules/ppcp-axo-block/resources/js/hooks/useAxoSetup.js
index 629ce05d4..2a8c4a5ff 100644
--- a/modules/ppcp-axo-block/resources/js/hooks/useAxoSetup.js
+++ b/modules/ppcp-axo-block/resources/js/hooks/useAxoSetup.js
@@ -11,6 +11,7 @@ import { snapshotFields } from '../helpers/fieldHelpers';
 import useCustomerData from './useCustomerData';
 import useShippingAddressChange from './useShippingAddressChange';
 import useCardChange from './useCardChange';
+import useSessionRestoration from './useSessionRestoration';
 
 /**
  * Custom hook to set up AXO functionality.
@@ -63,6 +64,9 @@ const useAxoSetup = (
 	// Set up phone sync handler
 	usePhoneSyncHandler( paymentComponent );
 
+	// Set up session restoration
+	useSessionRestoration( fastlaneSdk );
+
 	// Initialize class toggles on mount
 	useEffect( () => {
 		initializeClassToggles();
@@ -104,6 +108,7 @@ const useAxoSetup = (
 		setShippingAddress,
 		setCardDetails,
 		paymentComponent,
+		setCardChangeHandler,
 	] );
 
 	return paypalLoaded;
diff --git a/modules/ppcp-axo-block/resources/js/hooks/useSessionRestoration.js b/modules/ppcp-axo-block/resources/js/hooks/useSessionRestoration.js
new file mode 100644
index 000000000..9c0fa4565
--- /dev/null
+++ b/modules/ppcp-axo-block/resources/js/hooks/useSessionRestoration.js
@@ -0,0 +1,87 @@
+import { useEffect, useRef } from '@wordpress/element';
+import { useDispatch } from '@wordpress/data';
+import { setIsEmailLookupCompleted, STORE_NAME } from '../stores/axoStore';
+import { log } from '../../../../ppcp-axo/resources/js/Helper/Debug';
+
+/**
+ * Hook to restore Fastlane session after payment failures using triggerAuthenticationFlow
+ * Only runs when ppcp_fastlane_error=1 URL parameter is present
+ * @param {Object} fastlaneSdk - The Fastlane SDK instance
+ */
+const useSessionRestoration = ( fastlaneSdk ) => {
+	const { setShippingAddress, setCardDetails, setIsGuest } =
+		useDispatch( STORE_NAME );
+	const hasProcessed = useRef( false );
+
+	useEffect( () => {
+		if ( ! fastlaneSdk || hasProcessed.current ) {
+			return;
+		}
+
+		const urlParams = new URLSearchParams( window.location.search );
+		const hasErrorParam = urlParams.get( 'ppcp_fastlane_error' ) === '1';
+
+		if ( ! hasErrorParam ) {
+			return;
+		}
+
+		// Remove the error parameter from URL
+		urlParams.delete( 'ppcp_fastlane_error' );
+		const newUrl = new URL( window.location );
+		newUrl.search = urlParams.toString();
+		window.history.replaceState( {}, '', newUrl );
+
+		hasProcessed.current = true;
+
+		const restoreSession = async () => {
+			try {
+				const emailInput = document.getElementById( 'email' );
+
+				if ( emailInput?.value ) {
+					const lookupResult =
+						await fastlaneSdk.identity.lookupCustomerByEmail(
+							emailInput.value
+						);
+
+					wp.data.dispatch( STORE_NAME ).setIsEmailSubmitted( true );
+
+					if ( lookupResult?.customerContextId ) {
+						const customerContextId =
+							lookupResult.customerContextId;
+
+						const authenticatedCustomerResult =
+							await fastlaneSdk.identity.triggerAuthenticationFlow(
+								customerContextId
+							);
+
+						if (
+							authenticatedCustomerResult?.authenticationState ===
+							'succeeded'
+						) {
+							const { profileData } = authenticatedCustomerResult;
+							setIsGuest( false );
+
+							if ( profileData?.shippingAddress ) {
+								setShippingAddress(
+									profileData.shippingAddress
+								);
+							}
+
+							if ( profileData?.card ) {
+								setCardDetails( profileData.card );
+							}
+
+							setIsEmailLookupCompleted( true );
+						}
+					}
+				}
+			} catch ( error ) {
+				log( 'Failed to restore Fastlane session', 'warn' );
+			}
+		};
+
+		restoreSession();
+	}, [ fastlaneSdk, setShippingAddress, setCardDetails, setIsGuest ] );
+};
+
+export default useSessionRestoration;
diff --git a/modules/ppcp-axo/resources/js/AxoManager.js b/modules/ppcp-axo/resources/js/AxoManager.js
index e93fa9527..1ffd8fede 100644
--- a/modules/ppcp-axo/resources/js/AxoManager.js
+++ b/modules/ppcp-axo/resources/js/AxoManager.js
@@ -60,6 +60,8 @@ class AxoManager {
 		this.fastlane = new Fastlane( namespace );
 		this.$ = jQuery;
 
+		this.hasProcessedSessionRestore = false;
+
 		this.status = {
 			active: false,
 			validEmail: false,
@@ -529,7 +531,15 @@ class AxoManager {
 		log(
 			`this.lastEmailCheckedIdentity: ${ this.lastEmailCheckedIdentity }`
 		);
-		if (
+
+		const urlParams = new URLSearchParams( window.location.search );
+		const hasErrorParam = urlParams.get( 'ppcp_fastlane_error' ) === '1';
+
+		if ( hasErrorParam ) {
+			log(
+				'Payment failure detected, session restoration will be attempted'
+			);
+		} else if (
 			this.emailInput &&
 			this.lastEmailCheckedIdentity !== this.emailInput.value
 		) {
@@ -662,6 +672,8 @@ class AxoManager {
 		await this.renderWatermark();
 		this.renderEmailSubmitButton();
 		this.watchEmail();
+
+		await this.restoreSessionAfterFailure();
 	}
 
 	async connect() {
@@ -1383,6 +1395,94 @@ class AxoManager {
 		this.$( '#billing_email_field input' ).on( 'input', reEnableInput );
 		this.$( '#billing_email_field input' ).on( 'click', reEnableInput );
 	}
+
+	async restoreSessionAfterFailure() {
+		if ( ! this.fastlane || this.hasProcessedSessionRestore ) {
+			return;
+		}
+
+		const urlParams = new URLSearchParams( window.location.search );
+		const hasErrorParam = urlParams.get( 'ppcp_fastlane_error' ) === '1';
+
+		if ( ! hasErrorParam ) {
+			return;
+		}
+
+		urlParams.delete( 'ppcp_fastlane_error' );
+		const newUrl = new URL( window.location );
+		newUrl.search = urlParams.toString();
+		window.history.replaceState( {}, '', newUrl );
+
+		this.hasProcessedSessionRestore = true;
+
+		try {
+			if ( this.emailInput?.value ) {
+				log(
+					`Restoring Fastlane session for email: ${ this.emailInput.value }`
+				);
+
+				const lookupResult =
+					await this.fastlane.identity.lookupCustomerByEmail(
+						this.emailInput.value
+					);
+
+				if ( lookupResult?.customerContextId ) {
+					const authenticatedCustomerResult =
+						await this.fastlane.identity.triggerAuthenticationFlow(
+							lookupResult.customerContextId
+						);
+
+					if (
+						authenticatedCustomerResult?.authenticationState ===
+						'succeeded'
+					) {
+						const { profileData } = authenticatedCustomerResult;
+
+						if ( profileData?.shippingAddress ) {
+							this.setShipping( profileData.shippingAddress );
+						}
+
+						if ( profileData?.card ) {
+							this.setCard( profileData.card );
+							this.setStatus( 'hasCard', true );
+
+							const cardBillingAddress =
+								profileData.card?.paymentSource?.card
+									?.billingAddress;
+							if ( cardBillingAddress ) {
+								const billingData = {
+									address: cardBillingAddress,
+								};
+
+								const phoneNumber =
+									profileData.shippingAddress?.phoneNumber
+										?.nationalNumber;
+								if ( phoneNumber ) {
+									billingData.phoneNumber = phoneNumber;
+								}
+
+								this.setBilling( billingData );
+							}
+						}
+
+						this.setStatus( 'validEmail', true );
+						this.setStatus( 'hasProfile', true );
+
+						this.hideGatewaySelection = true;
+						this.$( '.wc_payment_methods label' ).hide();
+						this.$( '.wc_payment_methods input' ).hide();
+
+						await this.renderWatermark( false );
+
+						log( 'Fastlane session successfully restored' );
+					}
+				}
+			}
+		} catch ( error ) {
+			log( 'Failed to restore Fastlane session', 'warn' );
+			console.warn( 'Fastlane session restoration error:', error );
+		}
+	}
 }
 
 export default AxoManager;
diff --git a/modules/ppcp-wc-gateway/src/Endpoint/ReturnUrlEndpoint.php b/modules/ppcp-wc-gateway/src/Endpoint/ReturnUrlEndpoint.php
index 17df86b8c..08170494b 100644
--- a/modules/ppcp-wc-gateway/src/Endpoint/ReturnUrlEndpoint.php
+++ b/modules/ppcp-wc-gateway/src/Endpoint/ReturnUrlEndpoint.php
@@ -82,7 +82,7 @@ class ReturnUrlEndpoint {
 		// phpcs:disable WordPress.Security.NonceVerification.Recommended
 		if ( ! isset( $_GET['token'] ) ) {
 			wc_add_notice( __( 'Payment session expired. Please try placing your order again.', 'woocommerce-paypal-payments' ), 'error' );
-			wp_safe_redirect( wc_get_checkout_url() );
+			wp_safe_redirect( $this->get_checkout_url_with_error() );
 			exit();
 		}
 		$token = sanitize_text_field( wp_unslash( $_GET['token'] ) );
@@ -93,7 +93,7 @@ class ReturnUrlEndpoint {
 		} catch ( Exception $exception ) {
 			$this->logger->warning( "Return URL endpoint failed to fetch order $token: " . $exception->getMessage() );
 			wc_add_notice( __( 'Could not retrieve payment information. Please try again.', 'woocommerce-paypal-payments' ), 'error' );
-			wp_safe_redirect( wc_get_checkout_url() );
+			wp_safe_redirect( $this->get_checkout_url_with_error() );
 			exit();
 		}
 
@@ -104,7 +104,7 @@ class ReturnUrlEndpoint {
 			} catch ( Exception $e ) {
 				$this->logger->warning( "3DS completion failed for order $token: " . $e->getMessage() );
 				wc_add_notice( $this->get_3ds_error_message( $e ), 'error' );
-				wp_safe_redirect( wc_get_checkout_url() );
+				wp_safe_redirect( $this->get_checkout_url_with_error() );
 				exit();
 			}
 		}
@@ -128,7 +128,7 @@ class ReturnUrlEndpoint {
 
 			$this->logger->warning( "Return URL endpoint $token: no WC order ID." );
 			wc_add_notice( __( 'Order information is missing. Please try placing your order again.', 'woocommerce-paypal-payments' ), 'error' );
-			wp_safe_redirect( wc_get_checkout_url() );
+			wp_safe_redirect( $this->get_checkout_url_with_error() );
 			exit();
 		}
 
@@ -137,7 +137,7 @@ class ReturnUrlEndpoint {
 			$this->logger->warning( "Return URL endpoint $token: WC order $wc_order_id not found." );
 
 			wc_add_notice( __( 'Order not found. Please try placing your order again.', 'woocommerce-paypal-payments' ), 'error' );
-			wp_safe_redirect( wc_get_checkout_url() );
+			wp_safe_redirect( $this->get_checkout_url_with_error() );
 			exit();
 		}
 
@@ -150,7 +150,7 @@ class ReturnUrlEndpoint {
 		$payment_gateway = $this->get_payment_gateway( $wc_order->get_payment_method() );
 		if ( ! $payment_gateway ) {
 			wc_add_notice( __( 'Payment gateway is unavailable. Please try again or contact support.', 'woocommerce-paypal-payments' ), 'error' );
-			wp_safe_redirect( wc_get_checkout_url() );
+			wp_safe_redirect( $this->get_checkout_url_with_error() );
 			exit();
 		}
 
@@ -170,10 +170,19 @@ class ReturnUrlEndpoint {
 		}
 
 		wc_add_notice( __( 'Payment processing failed. Please try again or contact support.', 'woocommerce-paypal-payments' ), 'error' );
-		wp_safe_redirect( wc_get_checkout_url() );
+		wp_safe_redirect( $this->get_checkout_url_with_error() );
 		exit();
 	}
 
+	/**
+	 * Get checkout URL with Fastlane error parameter.
+	 *
+	 * @return string
+	 */
+	private function get_checkout_url_with_error(): string {
+		return add_query_arg( 'ppcp_fastlane_error', '1', wc_get_checkout_url() );
+	}
+
 	/**
 	 * Check if order needs 3DS completion.
 	 *