diff --git a/packages/fluux-sdk/src/core/modules/Connection.test.ts b/packages/fluux-sdk/src/core/modules/Connection.test.ts
index ebec0300..771a04e0 100644
--- a/packages/fluux-sdk/src/core/modules/Connection.test.ts
+++ b/packages/fluux-sdk/src/core/modules/Connection.test.ts
@@ -3509,6 +3509,116 @@ describe('XMPPClient Connection', () => {
     })
   })
 
+  // Regression: SASL2 inline SM resumption (XEP-0388 + XEP-0198).
+  // When ejabberd negotiates SM resumption inline inside the SASL2 <success>
+  // element, xmpp.js does NOT emit a top-level <resumed/> nonza and does NOT
+  // emit the 'online' event. Only sm.emit("resumed") fires on the SM plugin.
+  // Before the fix, Connection.ts only listened for 'online' and nonza-based
+  // <resumed/>, so connect() would hang until the 30-second timeout.
+  describe('SASL2 inline SM resumption (XEP-0388)', () => {
+    it('should resolve connect() when sm "resumed" event fires without online or nonza', async () => {
+      const connectPromise = xmppClient.connect({
+        jid: 'user@example.com',
+        password: 'secret',
+        server: 'example.com',
+        smState: { id: 'sasl2-sm-abc', inbound: 7, outbound: 3 },
+        skipDiscovery: true,
+      })
+
+      // SASL2 inline resumption: xmpp.js sets SM state then emits 'resumed' on the
+      // SM plugin. No top-level 'online' and no <resumed/> nonza.
+      mockXmppClientInstance.streamManagement.id = 'sasl2-sm-abc'
+      mockXmppClientInstance.streamManagement.enabled = true
+      mockXmppClientInstance.streamManagement.inbound = 7
+      mockXmppClientInstance.streamManagement.outbound = 3
+
+      mockXmppClientInstance._emitSM('resumed')
+
+      // connect() must resolve — before the fix it would hang until the 30s timeout
+      await connectPromise
+    })
+
+    it('should cache SM state when resumption completes via SASL2 inline', async () => {
+      const connectPromise = xmppClient.connect({
+        jid: 'user@example.com',
+        password: 'secret',
+        server: 'example.com',
+        smState: { id: 'sasl2-sm-def', inbound: 10, outbound: 5 },
+        skipDiscovery: true,
+      })
+
+      mockXmppClientInstance.streamManagement.id = 'sasl2-sm-def'
+      mockXmppClientInstance.streamManagement.enabled = true
+      mockXmppClientInstance.streamManagement.inbound = 10
+      mockXmppClientInstance.streamManagement.outbound = 5
+
+      mockXmppClientInstance._emitSM('resumed')
+      await connectPromise
+
+      const smState = xmppClient.getStreamManagementState()
+      expect(smState).not.toBeNull()
+      expect(smState?.id).toBe('sasl2-sm-def')
+      expect(smState?.inbound).toBe(10)
+    })
+  })
+
+  // Regression: duplicate SM <enable> suppression on SASL2+bind2 connections.
+  // After bind2 negotiates SM inline, ejabberd sends a second <stream:features>
+  // that still includes <sm>. xmpp.js's setupStreamFeature handler sees it and
+  // sends a duplicate <enable>, which the server rejects with <failed>. The catch
+  // block then clears sm.enabled, silently disabling SM for the session.
+  // The fix: a prependListener on 'element' strips <sm> from the features element
+  // before the middleware sees it, gated on a bind2SmEnabling flag that is set
+  // when the credentials callback detects the SASL2 path (fast !== undefined).
+  describe('bind2 SM duplicate-enable suppression (XEP-0386 + XEP-0198)', () => {
+    it('should strip <sm> from post-auth <stream:features> when SASL2 bind2 is active', async () => {
+      const connectPromise = xmppClient.connect({
+        jid: 'user@example.com',
+        password: 'secret',
+        server: 'example.com',
+        skipDiscovery: true,
+      })
+
+      // Let createXmppClient() run so prependListener is registered
+      await vi.advanceTimersByTimeAsync(0)
+
+      expect(mockXmppClientInstance.prependListener).toHaveBeenCalledWith('element', expect.any(Function))
+      const prependCall = mockXmppClientInstance.prependListener.mock.calls.find(([event]) => event === 'element')
+      const elementHandler = prependCall?.[1] as ((el: unknown) => void)
+      expect(elementHandler).toBeDefined()
+
+      // Invoke the credentials callback with fast !== undefined to set bind2SmEnabling=true
+      const credentialsFn = (mockClientFactory.mock.calls[mockClientFactory.mock.calls.length - 1] as any)[0].credentials
+      const mockAuthenticate = vi.fn().mockResolvedValue(undefined)
+      const mockFast = { fetch: vi.fn().mockResolvedValue(null) }
+      await credentialsFn(mockAuthenticate, ['SCRAM-SHA-256'], mockFast, { isSecure: () => true })
+
+      // Build a <stream:features> element with an <sm> child — what ejabberd sends post-auth
+      const featuresEl = createMockElement('features', { xmlns: 'http://etherx.jabber.org/streams' }, [
+        { name: 'sm', attrs: { xmlns: 'urn:xmpp:sm:3' } },
+      ])
+      const smBefore = (featuresEl as any).children.find((c: any) => c.name === 'sm')
+      expect(smBefore).toBeDefined()
+
+      // Call the interceptor — <sm> must be removed since bind2SmEnabling=true
+      elementHandler(featuresEl)
+      const smAfter = (featuresEl as any).children.find((c: any) => c.name === 'sm')
+      expect(smAfter).toBeUndefined()
+
+      // bind2SmEnabling is now reset to false — a second <stream:features> must not be modified
+      const featuresEl2 = createMockElement('features', { xmlns: 'http://etherx.jabber.org/streams' }, [
+        { name: 'sm', attrs: { xmlns: 'urn:xmpp:sm:3' } },
+      ])
+      elementHandler(featuresEl2)
+      const smAfter2 = (featuresEl2 as any).children.find((c: any) => c.name === 'sm')
+      expect(smAfter2).toBeDefined()
+
+      // Finish the connection
+      mockXmppClientInstance._emit('online')
+      await connectPromise
+    })
+  })
+
   describe('FAST token authentication (XEP-0484)', () => {
     /**
      * Helper to extract the credentials callback passed to the xmpp.js client factory.
diff --git a/packages/fluux-sdk/src/core/modules/Connection.ts b/packages/fluux-sdk/src/core/modules/Connection.ts
index aaf8be95..39293e8b 100644
--- a/packages/fluux-sdk/src/core/modules/Connection.ts
+++ b/packages/fluux-sdk/src/core/modules/Connection.ts
@@ -1421,6 +1421,13 @@ export class Connection extends BaseModule {
     const domain = getDomain(jid)
     const username = getLocalPart(jid)
 
+    // When SASL2+bind2 is used, SM is enabled inline inside <authenticate>/<success>.
+    // ejabberd then sends a post-auth <stream:features> that still contains <sm>,
+    // causing xmpp.js's setupStreamFeature to send a duplicate <enable> (server rejects
+    // it with <failed> and the catch block disables sm.enabled). We suppress this by
+    // removing <sm> from the features stanza before the middleware sees it.
+    let bind2SmEnabling = false
+
     const xmppClient = client({
       service: wsUrl,
       domain,
@@ -1490,6 +1497,11 @@ export class Connection extends BaseModule {
         const userAgent = buildUserAgentElement()
         const saslStart = Date.now()
         let saslTimeoutId: ReturnType<typeof setTimeout> | undefined
+        // SASL2 path: bind2 will negotiate SM inline. Mark that the post-auth
+        // <stream:features> with <sm> should be suppressed.
+        if (fast !== undefined) {
+          bind2SmEnabling = true
+        }
         await Promise.race([
           Promise.resolve(authenticate(creds, mechanism, userAgent)).then(() => {
             clearTimeout(saslTimeoutId)
@@ -1550,6 +1562,23 @@ export class Connection extends BaseModule {
       patchSmAckQueue(sm)
     }
 
+    // Intercept <stream:features> before middleware to strip <sm> when bind2 inline
+    // SM negotiation is in flight. Without this, setupStreamFeature sends a duplicate
+    // <enable>, the server rejects it, and the catch block clears sm.enabled.
+    const NS_JABBER_STREAM = 'http://etherx.jabber.org/streams'
+    const NS_SM = 'urn:xmpp:sm:3'
+    if (typeof (xmppClient as any).prependListener === 'function') {
+      ;(xmppClient as any).prependListener('element', (element: Element) => {
+        if (bind2SmEnabling && element.is('features', NS_JABBER_STREAM)) {
+          bind2SmEnabling = false
+          const smFeature = element.getChild('sm', NS_SM)
+          if (smFeature) {
+            ;(element as any).children = (element as any).children.filter((c: unknown) => c !== smFeature)
+          }
+        }
+      })
+    }
+
     return xmppClient
   }
 
@@ -1635,6 +1664,42 @@ export class Connection extends BaseModule {
         }
         // Note: xmpp.js will fall back to new session and emit 'online'
       })
+
+      // SASL2 inline SM resumption: the <resumed> is embedded inside <success> so xmpp.js
+      // never emits a top-level 'nonza' for it. The SM module fires sm.emit("resumed") instead.
+      // For traditional stream-feature resumption, the nonza handler fires first (registered
+      // earlier) and sets resolved=true, making this a no-op there.
+      sm.on('resumed', () => {
+        if (resolved) return
+        const smLive = this.xmpp?.streamManagement as any
+        const previd = smLive?.id || ''
+        const inbound = smLive ? (smLive.inbound || 0) : 0
+        const outbound = smLive
+          ? (smLive.outbound || 0) + (Array.isArray(smLive.outbound_q) ? smLive.outbound_q.length : 0)
+          : 0
+        if (previd) {
+          this.stores.console.addEvent(
+            `Stream Management session resumed via SASL2 inline (id: ${previd.slice(0, 8)}...)`,
+            'sm'
+          )
+          logInfo(`SM session resumed via SASL2 inline (id: ${previd.slice(0, 8)}..., h: ${inbound}, out: ${outbound})`)
+          this.smResumeCompleted = true
+          this.smPersistence.updateCache(previd, inbound, outbound)
+          if (this.credentials?.jid) {
+            void this.smPersistence.persist(this.credentials.jid, this.credentials.resource || '')
+          }
+          setTimeout(() => {
+            const smObj = this.xmpp?.streamManagement as any
+            if (smObj) {
+              smObj.id = previd
+              smObj.enabled = true
+              smObj.inbound = inbound
+            }
+          }, 0)
+        }
+        logInfo(`Connection handshake complete: SM resumed via SASL2 inline (resolved=${resolved})`)
+        handleResult(true)
+      })
     }
 
     // Listen for SM nonzas directly (<enabled/> and <resumed/>).
diff --git a/packages/fluux-sdk/src/core/test-utils.ts b/packages/fluux-sdk/src/core/test-utils.ts
index 6507ecca..eaa79a2b 100644
--- a/packages/fluux-sdk/src/core/test-utils.ts
+++ b/packages/fluux-sdk/src/core/test-utils.ts
@@ -248,6 +248,10 @@ export const createMockXmppClient = () => {
         }
       }),
     },
+    // prependListener support — captures handlers for tests that verify the
+    // element interceptor used to strip <sm> from post-auth <stream:features>.
+    // The real xmpp.js client inherits this from Node's EventEmitter.
+    prependListener: vi.fn(),
     // Remove all event listeners — called by forceDestroyClient() during cleanup.
     // Must actually clear handlers so destroyed clients cannot emit stale events
     // into the Connection module (e.g., a belated 'online' after timeout).