diff --git a/frontend/src/app/create/create-page-client.test.tsx b/frontend/src/app/create/create-page-client.test.tsx
index 45eeb0f..0e0b6d8 100644
--- a/frontend/src/app/create/create-page-client.test.tsx
+++ b/frontend/src/app/create/create-page-client.test.tsx
@@ -2,6 +2,8 @@ import React from "react";
 import { act, fireEvent, render, screen } from "@testing-library/react";
 import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 
+import { LanguageProvider } from "@/i18n/provider";
+
 import CreatePolicyPageClient from "./create-page-client";
 
 vi.mock("@/components/wallet-provider", () => ({
@@ -61,9 +63,17 @@ vi.mock("@/components/oracle-source-selector", () => ({
       </label>
     ) : (
       <p>Loading oracle providers...</p>
-    ),
+  ),
 }));
 
+function renderCreatePolicyPageClient() {
+  return render(
+    <LanguageProvider>
+      <CreatePolicyPageClient />
+    </LanguageProvider>,
+  );
+}
+
 describe("CreatePolicyPageClient", () => {
   beforeEach(() => {
     vi.useFakeTimers();
@@ -77,14 +87,14 @@ describe("CreatePolicyPageClient", () => {
   });
 
   it("moves from policy type selection into configure step", () => {
-    render(<CreatePolicyPageClient />);
+    renderCreatePolicyPageClient();
     fireEvent.click(screen.getByRole("radio", { name: /weather protection/i }));
 
     expect(screen.getByRole("heading", { name: /configure your policy/i })).toBeInTheDocument();
   });
 
   it("applies form validation for invalid coverage values", () => {
-    render(<CreatePolicyPageClient />);
+    renderCreatePolicyPageClient();
     fireEvent.click(screen.getByRole("radio", { name: /weather protection/i }));
 
     const coverageInput = screen.getByLabelText(/coverage amount/i);
@@ -110,7 +120,7 @@ describe("CreatePolicyPageClient", () => {
         updatedAt: Date.now(),
       }),
     );
-    render(<CreatePolicyPageClient />);
+    renderCreatePolicyPageClient();
 
     expect(screen.getByRole("heading", { name: /review your policy/i })).toBeInTheDocument();
 
@@ -144,7 +154,7 @@ describe("CreatePolicyPageClient", () => {
         updatedAt: Date.now(),
       }),
     );
-    render(<CreatePolicyPageClient />);
+    renderCreatePolicyPageClient();
 
     expect(screen.getByRole("heading", { name: /review your policy/i })).toBeInTheDocument();
 
@@ -155,4 +165,40 @@ describe("CreatePolicyPageClient", () => {
     const triggerInput = screen.getByPlaceholderText("Trigger mock input") as HTMLInputElement;
     expect(triggerInput.value).toBe("temperature > 25 AND rainfall > 50");
   });
+
+  it("lets users undo an explicit draft discard", () => {
+    const savedDraft = {
+      policyType: "weather",
+      coverageAmount: "5000",
+      premium: "120",
+      triggerCondition: "rainfall > 50",
+      duration: "90",
+      oracleProvider: "weatherlink-prime",
+    };
+    localStorage.setItem(
+      "stellarinsure-policy-draft",
+      JSON.stringify({ data: savedDraft, updatedAt: 1000 }),
+    );
+
+    renderCreatePolicyPageClient();
+
+    expect(screen.getByRole("heading", { name: /review your policy/i })).toBeInTheDocument();
+
+    fireEvent.click(screen.getByRole("button", { name: /discard/i }));
+
+    expect(screen.getByText(/draft discarded/i)).toBeInTheDocument();
+    expect(screen.getByRole("heading", { name: /choose a policy type/i })).toBeInTheDocument();
+    expect(localStorage.getItem("stellarinsure-policy-draft")).toBeNull();
+
+    fireEvent.click(screen.getByRole("button", { name: /undo discard/i }));
+
+    expect(screen.getByRole("heading", { name: /review your policy/i })).toBeInTheDocument();
+    expect(screen.getByText(/rainfall > 50/i)).toBeInTheDocument();
+
+    act(() => {
+      vi.advanceTimersByTime(600);
+    });
+
+    expect(JSON.parse(localStorage.getItem("stellarinsure-policy-draft") ?? "{}").data).toEqual(savedDraft);
+  });
 });
diff --git a/frontend/src/app/create/create-page-client.tsx b/frontend/src/app/create/create-page-client.tsx
index b140a7a..f18a945 100644
--- a/frontend/src/app/create/create-page-client.tsx
+++ b/frontend/src/app/create/create-page-client.tsx
@@ -56,7 +56,11 @@ const INITIAL_DRAFT: PolicyDraft = {
   oracleProvider: "",
 };
 
-
+function getDraftStep(draft: PolicyDraft): CreateStep {
+  if (draft.policyType && draft.coverageAmount && draft.triggerCondition) return 2;
+  if (draft.policyType) return 1;
+  return 0;
+}
 
 function parseConditionString(condition: string): ConditionRule[] | undefined {
   if (!condition || condition.trim() === "") return undefined;
@@ -340,11 +344,7 @@ export default function CreatePolicyPageClient() {
     hasClearedBackup,
     isSaved,
   } = usePolicyDraftAutosave<PolicyDraft>("stellarinsure-policy-draft", INITIAL_DRAFT);
-  const [step, setStep] = useState<CreateStep>(() => {
-    if (draft.policyType && draft.coverageAmount && draft.triggerCondition) return 2;
-    if (draft.policyType) return 1;
-    return 0;
-  });
+  const [step, setStep] = useState<CreateStep>(() => getDraftStep(draft));
   const [txSteps, setTxSteps] = useState<TimelineStep[]>(DEFAULT_TX_STEPS);
   const [coverageTouched, setCoverageTouched] = useState(false);
   const [premiumTouched, setPremiumTouched] = useState(false);
@@ -369,6 +369,13 @@ export default function CreatePolicyPageClient() {
     setReceipt(null);
   }
 
+  function handleDiscardDraft() {
+    clearDraft();
+    setStep(0);
+    setReceipt(null);
+    setValidationErrors([]);
+  }
+
   useEffect(() => {
     const selectedPolicyType = draft.policyType;
 
@@ -576,13 +583,7 @@ export default function CreatePolicyPageClient() {
               if (!restored) {
                 return;
               }
-              if (restored.policyType && restored.coverageAmount && restored.triggerCondition) {
-                setStep(2);
-              } else if (restored.policyType) {
-                setStep(1);
-              } else {
-                setStep(0);
-              }
+              setStep(getDraftStep(restored));
             }}
           >
             Undo discard
@@ -800,10 +801,7 @@ export default function CreatePolicyPageClient() {
             <button
               className="cta-secondary"
               type="button"
-              onClick={() => {
-                clearDraft();
-                setStep(0);
-              }}
+              onClick={handleDiscardDraft}
             >
               {t("createPolicy.actions.discard")}
             </button>
diff --git a/frontend/src/hooks/use-autosave.ts b/frontend/src/hooks/use-autosave.ts
index 03639f9..0674a50 100644
--- a/frontend/src/hooks/use-autosave.ts
+++ b/frontend/src/hooks/use-autosave.ts
@@ -53,6 +53,7 @@ export function useAutosave<T>(key: string, initial: T): [T, (next: T) => void,
 export function usePolicyDraftAutosave<T>(key: string, initial: T): AutosaveControls<T> {
   const backupKey = `${key}-backup`;
   const editedAtRef = useRef(0);
+  const clearedAtRef = useRef<number | null>(null);
 
   const [state, setStateInternal] = useState<T>(() => {
     const stored = readStoredDraft<T>(key);
@@ -139,6 +140,7 @@ export function usePolicyDraftAutosave<T>(key: string, initial: T): AutosaveCont
   }, [key]);
 
   const clear = useCallback(() => {
+    const clearedAt = Date.now();
     try {
       const current = readStoredDraft<T>(key);
       if (current) {
@@ -149,7 +151,8 @@ export function usePolicyDraftAutosave<T>(key: string, initial: T): AutosaveCont
       // Ignore backup failures.
     }
 
-    editedAtRef.current = Date.now();
+    clearedAtRef.current = clearedAt;
+    editedAtRef.current = clearedAt;
     setStateInternal(initial);
     setIsSaved(true);
 
@@ -174,11 +177,16 @@ export function usePolicyDraftAutosave<T>(key: string, initial: T): AutosaveCont
       const backup = JSON.parse(backupRaw) as StoredDraft<T>;
       const restoredAt = backup.updatedAt ?? Date.now();
 
-      if (restoredAt <= editedAtRef.current) {
+      if (clearedAtRef.current === null && restoredAt <= editedAtRef.current) {
+        return null;
+      }
+
+      if (clearedAtRef.current !== null && editedAtRef.current > clearedAtRef.current) {
         return null;
       }
 
       editedAtRef.current = restoredAt;
+      clearedAtRef.current = null;
       setStateInternal(backup.data);
       writeStoredDraft(key, backup.data, restoredAt);
       localStorage.removeItem(backupKey);