diff --git a/examples/examples-catalog.json b/examples/examples-catalog.json
index ae9a8de..9bc3014 100644
--- a/examples/examples-catalog.json
+++ b/examples/examples-catalog.json
@@ -188,6 +188,17 @@
       },
       "path": "./src/wait_for_callback/wait_for_callback_serdes.py"
     },
+    {
+      "name": "Wait For Callback Timeout",
+      "description": "Usage of context.wait_for_callback() to wait for external system responses",
+      "handler": "wait_for_callback_timeout.handler",
+      "integration": true,
+      "durableConfig": {
+        "RetentionPeriodInDays": 7,
+        "ExecutionTimeout": 300
+      },
+      "path": "./src/wait_for_callback/wait_for_callback_timeout.py"
+    },
     {
       "name": "Wait For Callback Nested",
       "description": "Usage of context.wait_for_callback() to wait for external system responses",
diff --git a/examples/src/wait_for_callback/wait_for_callback_timeout.py b/examples/src/wait_for_callback/wait_for_callback_timeout.py
new file mode 100644
index 0000000..0423dad
--- /dev/null
+++ b/examples/src/wait_for_callback/wait_for_callback_timeout.py
@@ -0,0 +1,37 @@
+"""Demonstrates waitForCallback timeout scenarios."""
+
+from typing import Any
+
+from aws_durable_execution_sdk_python.context import DurableContext
+from aws_durable_execution_sdk_python.execution import durable_execution
+from aws_durable_execution_sdk_python.config import Duration
+from aws_durable_execution_sdk_python.config import WaitForCallbackConfig
+
+
+@durable_execution
+def handler(_event: Any, context: DurableContext) -> dict[str, Any]:
+    """Handler demonstrating waitForCallback timeout."""
+
+    config = WaitForCallbackConfig(
+        timeout=Duration.from_seconds(1), heartbeat_timeout=Duration.from_seconds(2)
+    )
+
+    def submitter(_) -> None:
+        """Submitter succeeds but callback never completes."""
+        return None
+
+    try:
+        result: str = context.wait_for_callback(
+            submitter,
+            config=config,
+        )
+
+        return {
+            "callbackResult": result,
+            "success": True,
+        }
+    except Exception as error:
+        return {
+            "success": False,
+            "error": str(error),
+        }
diff --git a/examples/template.yaml b/examples/template.yaml
index 67d4c29..b323cb5 100644
--- a/examples/template.yaml
+++ b/examples/template.yaml
@@ -254,6 +254,20 @@ Resources:
       DurableConfig:
         RetentionPeriodInDays: 7
         ExecutionTimeout: 300
+  WaitForCallbackTimeout:
+    Type: AWS::Serverless::Function
+    Properties:
+      CodeUri: build/
+      Handler: wait_for_callback_timeout.handler
+      Description: Usage of context.wait_for_callback() to wait for external system
+        responses
+      Role:
+        Fn::GetAtt:
+        - DurableFunctionRole
+        - Arn
+      DurableConfig:
+        RetentionPeriodInDays: 7
+        ExecutionTimeout: 300
   WaitForCallbackNested:
     Type: AWS::Serverless::Function
     Properties:
diff --git a/examples/test/wait_for_callback/test_wait_for_callback_timeout.py b/examples/test/wait_for_callback/test_wait_for_callback_timeout.py
new file mode 100644
index 0000000..e330272
--- /dev/null
+++ b/examples/test/wait_for_callback/test_wait_for_callback_timeout.py
@@ -0,0 +1,32 @@
+"""Tests for wait_for_callback_timeout."""
+
+import pytest
+from aws_durable_execution_sdk_python.execution import InvocationStatus
+
+from src.wait_for_callback import wait_for_callback_timeout
+from test.conftest import deserialize_operation_payload
+
+
+@pytest.mark.example
+@pytest.mark.durable_execution(
+    handler=wait_for_callback_timeout.handler,
+    lambda_function_name="Wait For Callback Timeout",
+)
+def test_handle_wait_for_callback_timeout_scenarios(durable_runner):
+    """Test waitForCallback timeout scenarios."""
+    test_payload = {"test": "timeout-scenario"}
+
+    with durable_runner:
+        execution_arn = durable_runner.run_async(input=test_payload, timeout=30)
+        # Don't send callback - let it timeout
+        result = durable_runner.wait_for_result(execution_arn=execution_arn)
+
+    # Handler catches the timeout error, so execution succeeds with error in result
+    assert result.status is InvocationStatus.SUCCEEDED
+
+    result_data = deserialize_operation_payload(result.result)
+
+    assert result_data["success"] is False
+    assert isinstance(result_data["error"], str)
+    assert len(result_data["error"]) > 0
+    assert "Callback timed out" == result_data["error"]