diff --git a/src/components/ConnectWalletButton/ConnectWalletButton.tsx b/src/components/ConnectWalletButton/ConnectWalletButton.tsx
index 110f91f..10903f9 100644
--- a/src/components/ConnectWalletButton/ConnectWalletButton.tsx
+++ b/src/components/ConnectWalletButton/ConnectWalletButton.tsx
@@ -30,7 +30,11 @@ export default function ConnectWalletButton({
       await connect();
       toast.success("Wallet connected", "Freighter is now linked to SmartDrop");
     } catch (error) {
-      toast.handleError(error, "Wallet Connection");
+      // Issue #250: offer a Retry action right on the error toast, so a
+      // failed connect (wrong network, rejected prompt, timeout) doesn't
+      // force the user to dismiss the toast and click Connect all over
+      // again from scratch.
+      toast.handleError(error, "Wallet Connection", () => void handleConnect());
     } finally {
       setIsConnecting(false);
     }
diff --git a/src/components/UnlockModal/UnlockModal.tsx b/src/components/UnlockModal/UnlockModal.tsx
index 75bc247..7818dba 100644
--- a/src/components/UnlockModal/UnlockModal.tsx
+++ b/src/components/UnlockModal/UnlockModal.tsx
@@ -261,7 +261,10 @@ export default function UnlockModal() {
         queryClient.setQueryData<UserPosition>(positionKey, previousPosition);
       }
 
-      const normalizedError = toast.handleError(err, "Unlock Transaction");
+      // Issue #250: let the user retry the same unlock straight from the
+      // error toast instead of having to reopen the modal and re-enter
+      // the amount.
+      const normalizedError = toast.handleError(err, "Unlock Transaction", () => void handleUnlock());
       setError(normalizedError.userMessage);
       setStep("error");
       trackEvent("unlock_failed", {
diff --git a/src/hooks/useToast.ts b/src/hooks/useToast.tsx
similarity index 75%
rename from src/hooks/useToast.ts
rename to src/hooks/useToast.tsx
index db25709..eef87fc 100644
--- a/src/hooks/useToast.ts
+++ b/src/hooks/useToast.tsx
@@ -11,7 +11,7 @@ import {
     normalizeError,
     withRetry
 } from "@/lib/error-handler";
-import { useToast as useChakraToast } from "@chakra-ui/react";
+import { Box, Button, Text, useToast as useChakraToast } from "@chakra-ui/react";
 import { useCallback } from "react";
 
 export type NotificationType = "success" | "error" | "info" | "warning";
@@ -98,20 +98,52 @@ export function useToast() {
   /**
    * Handle and display an error to the user.
    * Automatically logs the error and shows a user-friendly message.
+   *
+   * Pass `onRetry` (issue #250) to render a "Retry" action inside the toast
+   * itself, so the user can re-attempt the same operation without manually
+   * dismissing the toast and re-triggering the flow from scratch. Omit it
+   * for errors that genuinely aren't retryable (e.g. validation failures).
    */
   const handleError = useCallback(
-    (error: unknown, context?: string) => {
+    (error: unknown, context?: string, onRetry?: () => void) => {
       const normalized = normalizeError(error, context);
       errorLogger.log(normalized, context);
 
-      // Show user-friendly message
-      chakraToast({
-        title: "Error",
-        description: normalized.userMessage,
-        status: "error",
-        ...DEFAULT_TOAST_OPTIONS,
-        duration: 6000, // Slightly longer for errors
-      });
+      if (onRetry) {
+        chakraToast({
+          title: "Error",
+          status: "error",
+          ...DEFAULT_TOAST_OPTIONS,
+          duration: 8000,
+          description: (
+            <Box>
+              <Text>{normalized.userMessage}</Text>
+              <Button
+                size="sm"
+                mt={2}
+                variant="outline"
+                borderColor="whiteAlpha.600"
+                color="inherit"
+                _hover={{ bg: "whiteAlpha.200" }}
+                onClick={() => {
+                  chakraToast.closeAll();
+                  onRetry();
+                }}
+              >
+                Retry
+              </Button>
+            </Box>
+          ),
+        });
+      } else {
+        chakraToast({
+          title: "Error",
+          description: normalized.userMessage,
+          status: "error",
+          ...DEFAULT_TOAST_OPTIONS,
+          duration: 6000, // Slightly longer for errors
+        });
+      }
 
       return normalized;
     },