diff --git a/src/OpenClaw.Shared/Mxc/DirectAppContainerExecutor.cs b/src/OpenClaw.Shared/Mxc/DirectAppContainerExecutor.cs
index 1f89e4540..bfef13c64 100644
--- a/src/OpenClaw.Shared/Mxc/DirectAppContainerExecutor.cs
+++ b/src/OpenClaw.Shared/Mxc/DirectAppContainerExecutor.cs
@@ -154,9 +154,10 @@ public async Task<SandboxExecutionResult> ExecuteAsync(
             if (ct.IsCancellationRequested)
                 ct.ThrowIfCancellationRequested();
 
-            // If our linked token tripped (timeout) and the caller's didn't, surface
-            // as a TimedOut result rather than throwing.
-            var timedOut = result.TimedOut || linked.IsCancellationRequested;
+            // The grace token can trip while stdout is drained after wxc-exec
+            // has already exited. Only the executor's TimedOut flag means the
+            // command itself did not finish.
+            var timedOut = CompletedResultIsTimeout(result, linked.Token);
             if (timedOut)
             {
                 return new SandboxExecutionResult(
@@ -185,6 +186,12 @@ public async Task<SandboxExecutionResult> ExecuteAsync(
         }
     }
 
+    internal static bool CompletedResultIsTimeout(MxcResult result, CancellationToken graceToken)
+    {
+        _ = graceToken;
+        return result.TimedOut;
+    }
+
     private static string CreateScratchDir()
     {
         var dir = Path.Combine(Path.GetTempPath(), "openclaw-mxc-" + Guid.NewGuid().ToString("N").Substring(0, 12));
diff --git a/tests/OpenClaw.Shared.Tests/Mxc/DirectAppContainerExecutorTests.cs b/tests/OpenClaw.Shared.Tests/Mxc/DirectAppContainerExecutorTests.cs
index 8808a2d03..f3bd4bad3 100644
--- a/tests/OpenClaw.Shared.Tests/Mxc/DirectAppContainerExecutorTests.cs
+++ b/tests/OpenClaw.Shared.Tests/Mxc/DirectAppContainerExecutorTests.cs
@@ -27,6 +27,26 @@ public class DirectAppContainerExecutorTests
             TimeoutMs: 30_000),
         TimeoutMs: 30_000);
 
+    [Fact]
+    public void CompletedResult_IsNotATimeoutWhenTheGraceTokenIsCancelled()
+    {
+        using var grace = new CancellationTokenSource();
+        grace.Cancel();
+        var finished = new MxcResult
+        {
+            Success = true,
+            ExitCode = 7,
+            Output = "done",
+            TimedOut = false,
+        };
+
+        Assert.False(DirectAppContainerExecutor.CompletedResultIsTimeout(finished, grace.Token));
+        Assert.True(grace.IsCancellationRequested);
+
+        var timedOut = new MxcResult { ExitCode = -1, TimedOut = true };
+        Assert.True(DirectAppContainerExecutor.CompletedResultIsTimeout(timedOut, grace.Token));
+    }
+
     [Fact]
     public async Task ExecuteAsync_AppContainerUnavailable_Throws()
     {
diff --git a/tests/OpenClaw.Shared.Tests/Mxc/MxcCommandRunnerIntegrationTests.cs b/tests/OpenClaw.Shared.Tests/Mxc/MxcCommandRunnerIntegrationTests.cs
index 8cc306f5a..597501ddb 100644
--- a/tests/OpenClaw.Shared.Tests/Mxc/MxcCommandRunnerIntegrationTests.cs
+++ b/tests/OpenClaw.Shared.Tests/Mxc/MxcCommandRunnerIntegrationTests.cs
@@ -306,6 +306,67 @@ public async Task SystemRun_CustomEnv_DeniesBeforeMxcUnavailableHostFallback()
         Assert.Equal(0, executor.CallCount);
     }
 
+    [IntegrationFact]
+    public async Task DirectWxcExec_HostTokenCancelsBeforeSandboxDeadline_ReportsTimeout()
+    {
+        var availability = MxcAvailability.Probe(NullLogger.Instance);
+        if (!availability.CanRunSystemRunSandbox || string.IsNullOrWhiteSpace(availability.WxcExecPath))
+        {
+            Console.WriteLine(
+                "[mxc-integration] SKIPPING host-token: " +
+                string.Join("; ", availability.SystemRunSandboxUnsupportedReasons));
+            return;
+        }
+
+        if (!HasSupportedSandboxPath(AppContext.BaseDirectory)
+            || !HasSupportedSandboxPath(availability.WxcExecPath))
+        {
+            Console.WriteLine("[mxc-integration] SKIPPING host-token: unsupported sandbox path.");
+            return;
+        }
+
+        var scratch = Path.Combine(Path.GetTempPath(), "openclaw-mxc-host-token-" + Guid.NewGuid().ToString("N"));
+        Directory.CreateDirectory(scratch);
+        try
+        {
+            var settings = new SettingsData
+            {
+                SystemRunSandboxEnabled = true,
+                SystemRunAllowOutbound = false,
+            };
+            var policy = MxcPolicyBuilder.ForSystemRun(settings, scratch);
+            using var argsDoc = JsonDocument.Parse(
+                """
+                {"command":"for /L %i in (1,1,8000000) do @rem","shell":"cmd","args":[],"timeoutMs":60000}
+                """);
+            var request = new SandboxExecutionRequest(
+                "system.run",
+                argsDoc.RootElement.Clone(),
+                policy,
+                TimeoutMs: 60_000,
+                Cwd: scratch);
+            var built = MxcConfigBuilder.Build(request, scratch);
+            var config = built with
+            {
+                Process = built.Process with { TimeoutMs = 60_000 },
+            };
+
+            var executor = new MxcExecutor(availability.WxcExecPath!);
+            using var hostToken = new CancellationTokenSource(TimeSpan.FromMilliseconds(2_000));
+            var result = await executor.RunAsync(config, hostToken.Token);
+            Console.WriteLine(
+                "[mxc-integration] host-token " +
+                $"exitCode={result.ExitCode}; timedOut={result.TimedOut}; durationMs={result.DurationMs}; error={result.Error}");
+            Assert.True(result.TimedOut, result.Error);
+            Assert.Contains("cancelled", result.Error ?? "", StringComparison.OrdinalIgnoreCase);
+            Assert.InRange(result.DurationMs, 1_500, 5_000);
+        }
+        finally
+        {
+            try { Directory.Delete(scratch, recursive: true); } catch { }
+        }
+    }
+
     private static bool HasSupportedSandboxPath(string path)
     {
         try