diff --git a/.changeset/silent-sign-in-state.md b/.changeset/silent-sign-in-state.md
new file mode 100644
index 000000000..f5f39fba6
--- /dev/null
+++ b/.changeset/silent-sign-in-state.md
@@ -0,0 +1,10 @@
+---
+'@asgardeo/javascript': patch
+'@asgardeo/react': patch
+---
+
+Fix `signInSilently()` always resolving `false`.
+
+The authorize request replaced the caller's `state` with the `instance_<id>` prefix, so the `sign-in-silently` marker never reached the hidden iframe and the identity provider's response was never handed back to the parent window. The state now keeps both parts (for example `instance_0_sign-in-silently_request_0`).
+
+`AsgardeoProvider` also hands that response back to the parent before resuming a session. The iframe shares the parent's session storage, so it previously saw an active session and returned early, leaving the parent waiting until its silent sign-in timed out.
diff --git a/packages/javascript/src/utils/__tests__/getAuthorizeRequestUrlParams.test.ts b/packages/javascript/src/utils/__tests__/getAuthorizeRequestUrlParams.test.ts
index 2e57e1288..e1d22af6d 100644
--- a/packages/javascript/src/utils/__tests__/getAuthorizeRequestUrlParams.test.ts
+++ b/packages/javascript/src/utils/__tests__/getAuthorizeRequestUrlParams.test.ts
@@ -147,6 +147,35 @@ describe('getAuthorizeRequestUrlParams', (): void => {
     expect(params.get(OIDCRequestConstants.Params.STATE)).toBe('customState_request_1');
   });
 
+  it('should prefix the state with the instance ID', (): void => {
+    const params: Map<string, string> = getAuthorizeRequestUrlParams(
+      {
+        clientId: 'client123',
+        instanceId: '0',
+        redirectUri: 'https://app/callback',
+      },
+      {key: pkceKey},
+      {},
+    );
+
+    expect(params.get(OIDCRequestConstants.Params.STATE)).toBe('instance_0_request_1');
+  });
+
+  it('should keep the custom state when an instance ID is also provided', (): void => {
+    const params: Map<string, string> = getAuthorizeRequestUrlParams(
+      {
+        clientId: 'client123',
+        instanceId: '0',
+        prompt: 'none',
+        redirectUri: 'https://app/callback',
+      },
+      {key: pkceKey},
+      {[OIDCRequestConstants.Params.STATE]: 'sign-in-silently'},
+    );
+
+    expect(params.get(OIDCRequestConstants.Params.STATE)).toBe('instance_0_sign-in-silently_request_1');
+  });
+
   it('should set scope to undefined if none provided', (): void => {
     const params: Map<string, string> = getAuthorizeRequestUrlParams(
       {
diff --git a/packages/javascript/src/utils/getAuthorizeRequestUrlParams.ts b/packages/javascript/src/utils/getAuthorizeRequestUrlParams.ts
index cf846655a..f026a54b7 100644
--- a/packages/javascript/src/utils/getAuthorizeRequestUrlParams.ts
+++ b/packages/javascript/src/utils/getAuthorizeRequestUrlParams.ts
@@ -107,14 +107,22 @@ const getAuthorizeRequestUrlParams = (
   }
 
   const AUTH_INSTANCE_PREFIX: string = 'instance_';
-  let customStateValue: string = '';
+  // Keep the caller's state alongside the instance prefix rather than replacing it: silent sign-in and
+  // check-session recognise their own responses by a marker in the state (e.g. `sign-in-silently`).
+  const stateParts: string[] = [];
 
   if (options.instanceId) {
-    customStateValue = AUTH_INSTANCE_PREFIX + options.instanceId;
-  } else if (customParams) {
-    customStateValue = customParams[OIDCRequestConstants.Params.STATE]?.toString() ?? '';
+    stateParts.push(AUTH_INSTANCE_PREFIX + options.instanceId);
   }
 
+  const callerState: string = customParams?.[OIDCRequestConstants.Params.STATE]?.toString() ?? '';
+
+  if (callerState) {
+    stateParts.push(callerState);
+  }
+
+  const customStateValue: string = stateParts.join('_');
+
   authorizeRequestParams.set(
     OIDCRequestConstants.Params.STATE,
     generateStateParamForRequestCorrelation(pkceKey, customStateValue),
diff --git a/packages/react/src/contexts/Asgardeo/AsgardeoProvider.tsx b/packages/react/src/contexts/Asgardeo/AsgardeoProvider.tsx
index 761b99ac2..b8f6b4839 100644
--- a/packages/react/src/contexts/Asgardeo/AsgardeoProvider.tsx
+++ b/packages/react/src/contexts/Asgardeo/AsgardeoProvider.tsx
@@ -35,6 +35,7 @@ import {
   EmbeddedSignInFlowResponseV2,
   TokenResponse,
   createPackageComponentLogger,
+  SPAUtils,
 } from '@asgardeo/browser';
 import {FC, RefObject, PropsWithChildren, ReactElement, useEffect, useMemo, useRef, useState, useCallback} from 'react';
 import AsgardeoContext from './AsgardeoContext';
@@ -275,6 +276,19 @@ const AsgardeoProvider: FC<PropsWithChildren<AsgardeoProviderProps>> = ({
     reRenderCheckRef.current = true;
 
     (async (): Promise<void> => {
+      // Inside the hidden iframe opened by `signInSilently()`, hand the authorization response back to the
+      // parent window before anything else. This iframe shares the parent's session storage, so the
+      // `isSignedIn()` short-circuit below would otherwise resume the session and leave the parent waiting
+      // until its silent sign-in times out.
+      if (
+        SPAUtils.isInitializedSilentSignIn() &&
+        hasCalledForThisInstance(new URL(window.location.href), instanceId ?? 0)
+      ) {
+        await asgardeo.signInSilently();
+
+        return;
+      }
+
       // User is already authenticated. Skip...
       const isAlreadySignedIn: boolean = await asgardeo.isSignedIn();