diff --git a/components/wallet/ui/OfflineBanner.tsx b/components/wallet/ui/OfflineBanner.tsx
index 60f3979..462e5ab 100644
--- a/components/wallet/ui/OfflineBanner.tsx
+++ b/components/wallet/ui/OfflineBanner.tsx
@@ -1,25 +1,35 @@
 'use client';
 
 import useOffline from '@/hooks/useOffline';
-import { WifiOff } from 'lucide-react';
+import { WifiOff, Wifi } from 'lucide-react';
 
 /**
  * OfflineBanner — Component to display network status fallback.
  */
 const OfflineBanner = () => {
-  const { isOnline } = useOffline();
+  const { isOnline, showBackOnline } = useOffline();
 
-  if (isOnline) return null;
+  if (isOnline && !showBackOnline) return null;
 
   return (
     <div className="fixed top-0 left-0 right-0 z-[9999] animate-in fade-in slide-in-from-top duration-300">
-      <div className="bg-gradient-to-r from-red-600 to-red-500 text-white px-6 py-2.5 flex items-center justify-center gap-3 shadow-lg backdrop-blur-md bg-opacity-95">
-        <WifiOff className="w-4 h-4 animate-pulse" />
+      <div className={`px-6 py-2.5 flex items-center justify-center gap-3 shadow-lg backdrop-blur-md bg-opacity-95 ${showBackOnline ? 'bg-gradient-to-r from-green-600 to-green-500' : 'bg-gradient-to-r from-red-600 to-red-500'} text-white`}>
+        {showBackOnline ? (
+          <Wifi className="w-4 h-4 animate-pulse" />
+        ) : (
+          <WifiOff className="w-4 h-4 animate-pulse" />
+        )}
         <p className="text-sm font-semibold tracking-wide">
-          You are currently offline.{' '}
-          <span className="font-normal opacity-90 ml-1.5">
-            Transactions are disabled until connection is restored.
-          </span>
+          {showBackOnline ? (
+            'Back Online!'
+          ) : (
+            <>
+              You are currently offline.{' '}
+              <span className="font-normal opacity-90 ml-1.5">
+                Transactions are disabled until connection is restored.
+              </span>
+            </>
+          )}
         </p>
       </div>
     </div>
diff --git a/hooks/__tests__/useOffline.test.ts b/hooks/__tests__/useOffline.test.ts
index c639163..e80018e 100644
--- a/hooks/__tests__/useOffline.test.ts
+++ b/hooks/__tests__/useOffline.test.ts
@@ -2,6 +2,8 @@ import { renderHook, act } from '@testing-library/react';
 import useOffline from '@/hooks/useOffline';
 import { networkService } from '@/services/networkService';
 
+jest.useFakeTimers();
+
 jest.mock('@/services/networkService', () => ({
   networkService: {
     getIsOnline: jest.fn(),
@@ -14,12 +16,17 @@ describe('useOffline', () => {
 
   beforeEach(() => {
     jest.clearAllMocks();
+    jest.useFakeTimers();
     (networkService.subscribe as jest.Mock).mockImplementation((cb) => {
       subscribeCallback = cb;
       return jest.fn(); // Unsubscribe mock
     });
   });
 
+  afterEach(() => {
+    jest.useRealTimers();
+  });
+
   it('should initialize with the current network status', () => {
     (networkService.getIsOnline as jest.Mock).mockReturnValue(true);
     const { result } = renderHook(() => useOffline());
@@ -38,12 +45,21 @@ describe('useOffline', () => {
     });
 
     expect(result.current.isOnline).toBe(false);
+    expect(result.current.showBackOnline).toBe(false);
 
     act(() => {
       subscribeCallback(true);
     });
 
+    expect(result.current.isOnline).toBe(false);
+    expect(result.current.showBackOnline).toBe(true);
+
+    act(() => {
+      jest.advanceTimersByTime(2000);
+    });
+
     expect(result.current.isOnline).toBe(true);
+    expect(result.current.showBackOnline).toBe(false);
   });
 
   it('should cleanup subscription on unmount', () => {
diff --git a/hooks/useOffline.tsx b/hooks/useOffline.tsx
index 3a1e0b6..22638cc 100644
--- a/hooks/useOffline.tsx
+++ b/hooks/useOffline.tsx
@@ -1,4 +1,4 @@
-import { useEffect, useState } from 'react';
+import { useEffect, useState, useRef } from 'react';
 import { networkService } from '@/services/networkService';
 
 /**
@@ -8,20 +8,43 @@ const useOffline = () => {
   const [isOnline, setIsOnline] = useState<boolean>(
     networkService.getIsOnline()
   );
+  const [showBackOnline, setShowBackOnline] = useState<boolean>(false);
+  const timeoutRef = useRef<NodeJS.Timeout | null>(null);
 
   useEffect(() => {
-    // eslint-disable-next-line react-hooks/set-state-in-effect
     setIsOnline(networkService.getIsOnline());
 
     const unsubscribe = networkService.subscribe((status) => {
-      setIsOnline(status);
+      if (status) {
+        setShowBackOnline(true);
+        if (timeoutRef.current) {
+          clearTimeout(timeoutRef.current);
+        }
+        timeoutRef.current = setTimeout(() => {
+          setShowBackOnline(false);
+          setIsOnline(true);
+        }, 2000);
+      } else {
+        if (timeoutRef.current) {
+          clearTimeout(timeoutRef.current);
+          timeoutRef.current = null;
+        }
+        setShowBackOnline(false);
+        setIsOnline(false);
+      }
     });
 
-    return () => unsubscribe();
+    return () => {
+      unsubscribe();
+      if (timeoutRef.current) {
+        clearTimeout(timeoutRef.current);
+      }
+    };
   }, []);
 
   return {
     isOnline,
+    showBackOnline,
   };
 };
 
diff --git a/jest.config.ts b/jest.config.ts
index b33a0fa..d061a79 100644
--- a/jest.config.ts
+++ b/jest.config.ts
@@ -10,7 +10,11 @@ const config: Config = {
     '^.+\\.(ts|tsx)$': [
       'ts-jest',
       {
-        tsconfig: '<rootDir>/tsconfig.jest.json',
+        tsconfig: {
+          jsx: 'react-jsx',
+          moduleResolution: 'node',
+          ignoreDeprecations: '5.0',
+        },
       },
     ],
   },