diff --git a/src/hooks/wallets/__tests__/useOnboard.test.ts b/src/hooks/wallets/__tests__/useOnboard.test.ts
new file mode 100644
index 0000000000..c08ad6b7fa
--- /dev/null
+++ b/src/hooks/wallets/__tests__/useOnboard.test.ts
@@ -0,0 +1,205 @@
+import { ONBOARD_MPC_MODULE_LABEL } from '@/services/mpc/SocialLoginModule'
+import { faker } from '@faker-js/faker'
+import type { EIP1193Provider, OnboardAPI, WalletState } from '@web3-onboard/core'
+import { getConnectedWallet, switchWallet } from '../useOnboard'
+
+// mock wallets
+jest.mock('@/hooks/wallets/wallets', () => ({
+  getDefaultWallets: jest.fn(() => []),
+  getRecommendedInjectedWallets: jest.fn(() => []),
+}))
+
+describe('useOnboard', () => {
+  describe('getConnectedWallet', () => {
+    it('returns the connected wallet', () => {
+      const wallets = [
+        {
+          label: 'Wallet 1',
+          icon: 'wallet1.svg',
+          provider: null as unknown as EIP1193Provider,
+          chains: [{ id: '0x4' }],
+          accounts: [
+            {
+              address: '0x1234567890123456789012345678901234567890',
+              ens: null,
+              balance: null,
+            },
+          ],
+        },
+        {
+          label: 'Wallet 2',
+          icon: 'wallet2.svg',
+          provider: null as unknown as EIP1193Provider,
+          chains: [{ id: '0x100' }],
+          accounts: [
+            {
+              address: '0x2',
+              ens: null,
+              balance: null,
+            },
+          ],
+        },
+      ] as WalletState[]
+
+      expect(getConnectedWallet(wallets)).toEqual({
+        label: 'Wallet 1',
+        icon: 'wallet1.svg',
+        address: '0x1234567890123456789012345678901234567890',
+        provider: wallets[0].provider,
+        chainId: '4',
+      })
+    })
+
+    it('should return null if the address is invalid', () => {
+      const wallets = [
+        {
+          label: 'Wallet 1',
+          icon: 'wallet1.svg',
+          provider: null as unknown as EIP1193Provider,
+          chains: [{ id: '0x4' }],
+          accounts: [
+            {
+              address: '0xinvalid',
+              ens: null,
+              balance: null,
+            },
+          ],
+        },
+      ] as WalletState[]
+
+      expect(getConnectedWallet(wallets)).toBeNull()
+    })
+  })
+
+  describe('switchWallet', () => {
+    it('should keep the previous wallet connected if connection fails', async () => {
+      const mockOnboard = {
+        state: {
+          get: jest.fn().mockReturnValue({
+            wallets: [
+              {
+                accounts: [
+                  {
+                    address: faker.finance.ethereumAddress(),
+                    ens: undefined,
+                  },
+                ],
+                chains: [
+                  {
+                    id: '5',
+                  },
+                ],
+                label: ONBOARD_MPC_MODULE_LABEL,
+              },
+            ],
+          }),
+        },
+        connectWallet: jest.fn().mockRejectedValue('Error'),
+        disconnectWallet: jest.fn(),
+      }
+
+      await switchWallet(mockOnboard as unknown as OnboardAPI)
+
+      expect(mockOnboard.connectWallet).toBeCalled()
+      expect(mockOnboard.disconnectWallet).not.toBeCalled()
+    })
+
+    it('should not disconnect the previous wallet label if the same label connects', async () => {
+      const mockNewState = [
+        {
+          accounts: [
+            {
+              address: faker.finance.ethereumAddress(),
+              ens: undefined,
+            },
+          ],
+          chains: [
+            {
+              id: '5',
+            },
+          ],
+          label: ONBOARD_MPC_MODULE_LABEL,
+        },
+      ]
+
+      const mockOnboard = {
+        state: {
+          get: jest.fn().mockReturnValue({
+            wallets: [
+              {
+                accounts: [
+                  {
+                    address: faker.finance.ethereumAddress(),
+                    ens: undefined,
+                  },
+                ],
+                chains: [
+                  {
+                    id: '5',
+                  },
+                ],
+                label: ONBOARD_MPC_MODULE_LABEL,
+              },
+            ],
+          }),
+        },
+        connectWallet: jest.fn().mockResolvedValue(mockNewState),
+        disconnectWallet: jest.fn(),
+      }
+
+      await switchWallet(mockOnboard as unknown as OnboardAPI)
+
+      expect(mockOnboard.connectWallet).toBeCalled()
+      expect(mockOnboard.disconnectWallet).not.toBeCalled()
+    })
+
+    it('should disconnect the previous wallet label if new wallet connects', async () => {
+      const mockNewState = [
+        {
+          accounts: [
+            {
+              address: faker.finance.ethereumAddress(),
+              ens: undefined,
+            },
+          ],
+          chains: [
+            {
+              id: '5',
+            },
+          ],
+          label: 'MetaMask',
+        },
+      ]
+
+      const mockOnboard = {
+        state: {
+          get: jest.fn().mockReturnValue({
+            wallets: [
+              {
+                accounts: [
+                  {
+                    address: faker.finance.ethereumAddress(),
+                    ens: undefined,
+                  },
+                ],
+                chains: [
+                  {
+                    id: '5',
+                  },
+                ],
+                label: ONBOARD_MPC_MODULE_LABEL,
+              },
+            ],
+          }),
+        },
+        connectWallet: jest.fn().mockResolvedValue(mockNewState),
+        disconnectWallet: jest.fn(),
+      }
+
+      await switchWallet(mockOnboard as unknown as OnboardAPI)
+
+      expect(mockOnboard.connectWallet).toBeCalled()
+      expect(mockOnboard.disconnectWallet).toBeCalledWith({ label: ONBOARD_MPC_MODULE_LABEL })
+    })
+  })
+})
diff --git a/src/hooks/wallets/useOnboard.test.ts b/src/hooks/wallets/useOnboard.test.ts
deleted file mode 100644
index ed9c637574..0000000000
--- a/src/hooks/wallets/useOnboard.test.ts
+++ /dev/null
@@ -1,69 +0,0 @@
-import type { EIP1193Provider, WalletState } from '@web3-onboard/core'
-import { getConnectedWallet } from './useOnboard'
-
-// mock wallets
-jest.mock('@/hooks/wallets/wallets', () => ({
-  getDefaultWallets: jest.fn(() => []),
-  getRecommendedInjectedWallets: jest.fn(() => []),
-}))
-
-describe('getConnectedWallet', () => {
-  it('returns the connected wallet', () => {
-    const wallets = [
-      {
-        label: 'Wallet 1',
-        icon: 'wallet1.svg',
-        provider: null as unknown as EIP1193Provider,
-        chains: [{ id: '0x4' }],
-        accounts: [
-          {
-            address: '0x1234567890123456789012345678901234567890',
-            ens: null,
-            balance: null,
-          },
-        ],
-      },
-      {
-        label: 'Wallet 2',
-        icon: 'wallet2.svg',
-        provider: null as unknown as EIP1193Provider,
-        chains: [{ id: '0x100' }],
-        accounts: [
-          {
-            address: '0x2',
-            ens: null,
-            balance: null,
-          },
-        ],
-      },
-    ] as WalletState[]
-
-    expect(getConnectedWallet(wallets)).toEqual({
-      label: 'Wallet 1',
-      icon: 'wallet1.svg',
-      address: '0x1234567890123456789012345678901234567890',
-      provider: wallets[0].provider,
-      chainId: '4',
-    })
-  })
-
-  it('should return null if the address is invalid', () => {
-    const wallets = [
-      {
-        label: 'Wallet 1',
-        icon: 'wallet1.svg',
-        provider: null as unknown as EIP1193Provider,
-        chains: [{ id: '0x4' }],
-        accounts: [
-          {
-            address: '0xinvalid',
-            ens: null,
-            balance: null,
-          },
-        ],
-      },
-    ] as WalletState[]
-
-    expect(getConnectedWallet(wallets)).toBeNull()
-  })
-})
diff --git a/src/hooks/wallets/useOnboard.ts b/src/hooks/wallets/useOnboard.ts
index 2781d67d86..cc5ef39ecc 100644
--- a/src/hooks/wallets/useOnboard.ts
+++ b/src/hooks/wallets/useOnboard.ts
@@ -130,8 +130,19 @@ export const connectWallet = async (
   return wallets
 }
 
-export const switchWallet = (onboard: OnboardAPI) => {
-  connectWallet(onboard)
+export const switchWallet = async (onboard: OnboardAPI) => {
+  const oldWalletLabel = getConnectedWallet(onboard.state.get().wallets)?.label
+  const newWallets = await connectWallet(onboard)
+  const newWalletLabel = newWallets ? getConnectedWallet(newWallets)?.label : undefined
+
+  // If the wallet actually changed we disconnect the old connected wallet.
+  if (!newWalletLabel || !oldWalletLabel) {
+    return
+  }
+
+  if (newWalletLabel !== oldWalletLabel) {
+    await onboard.disconnectWallet({ label: oldWalletLabel })
+  }
 }
 
 // Disable/enable wallets according to chain