diff --git a/studio/backend/core/inference/sd_cpp_engine.py b/studio/backend/core/inference/sd_cpp_engine.py
index b3b921419b..16b3207256 100644
--- a/studio/backend/core/inference/sd_cpp_engine.py
+++ b/studio/backend/core/inference/sd_cpp_engine.py
@@ -27,6 +27,7 @@ import os
 import shutil
 import subprocess
 import sys
+import threading
 import time
 from pathlib import Path
 from typing import Callable, Optional
@@ -232,8 +233,14 @@ class SdCppEngine:
             errors = "replace",
             env = run_env,
         )
+        # Drain stdout on a background thread and wait on the PROCESS, not the stream:
+        # iterating proc.stdout directly blocks until the stream closes, so a sd-cli that
+        # hangs without producing output (or closing stdout) would never reach proc.wait
+        # and the timeout would be silently bypassed. With the reader on its own thread the
+        # main thread always enforces the wall-clock timeout and kills a hung process.
         tail: list[str] = []
-        try:
+
+        def _drain() -> None:
             assert proc.stdout is not None
             for line in proc.stdout:
                 line = line.rstrip("\n")
@@ -242,13 +249,20 @@ class SdCppEngine:
                     tail.pop(0)
                 if on_log is not None:
                     on_log(line)
+
+        reader = threading.Thread(target = _drain, daemon = True)
+        reader.start()
+        try:
             ret = proc.wait(timeout = timeout)
         except subprocess.TimeoutExpired:
             proc.kill()
+            reader.join(timeout = 5.0)
             raise RuntimeError(f"sd-cli timed out after {timeout}s")
         finally:
             if proc.poll() is None:
                 proc.kill()
+        # The process has exited; let the reader finish draining the buffered output.
+        reader.join(timeout = 5.0)
 
         if ret != 0:
             raise RuntimeError(f"sd-cli exited {ret}. Last output:\n" + "\n".join(tail[-12:]))
diff --git a/studio/backend/tests/test_sd_cpp_engine.py b/studio/backend/tests/test_sd_cpp_engine.py
index 25dd19cec6..ac63596a97 100644
--- a/studio/backend/tests/test_sd_cpp_engine.py
+++ b/studio/backend/tests/test_sd_cpp_engine.py
@@ -77,7 +77,10 @@ def test_find_returns_none_when_absent(tmp_path, monkeypatch):
 # ── availability / version ──────────────────────────────────────────────────
 
 
-def test_engine_unavailable_when_no_binary():
+def test_engine_unavailable_when_no_binary(monkeypatch):
+    # Hermetic: force discovery to find nothing so a real sd-cli installed on the host
+    # (e.g. ~/.unsloth) can't leak in and make binary=None resolve to a real binary.
+    monkeypatch.setattr(eng, "find_sd_cpp_binary", lambda: None)
     e = SdCppEngine(binary = None)
     assert e.is_available() is False
     assert e.version() is None
@@ -242,6 +245,62 @@ def test_generate_raises_when_binary_missing():
         )
 
 
+def test_generate_times_out_even_when_stdout_blocks(tmp_path, monkeypatch):
+    # A sd-cli that hangs WITHOUT closing stdout must still hit the wall-clock timeout:
+    # the reader drains on a thread while the main thread waits on the PROCESS, so the
+    # timeout can no longer be bypassed by an unending stdout stream.
+    import subprocess as _sp
+    import threading as _threading
+
+    released = _threading.Event()
+
+    class _Block:
+        def __iter__(self):
+            return self
+
+        def __next__(self):
+            # Models a hung stream that only ends once the process is killed.
+            if not released.wait(5.0):
+                raise AssertionError("stdout was never released by kill()")
+            raise StopIteration
+
+    class _HangingPopen:
+        def __init__(self, cmd, **kw):
+            self.killed = False
+
+        @property
+        def stdout(self):
+            return _Block()
+
+        def wait(self, timeout = None):
+            raise _sp.TimeoutExpired(cmd = "sd-cli", timeout = timeout)
+
+        def poll(self):
+            return 0 if self.killed else None
+
+        def kill(self):
+            self.killed = True
+            released.set()  # killing closes the pipe, so the reader unblocks
+
+    holder: dict = {}
+
+    def _factory(cmd, **kw):
+        holder["proc"] = _HangingPopen(cmd, **kw)
+        return holder["proc"]
+
+    monkeypatch.setattr(eng.subprocess, "Popen", _factory)
+
+    e = _engine(tmp_path)
+    with pytest.raises(RuntimeError, match = "timed out"):
+        e.generate(
+            SdCppModelFiles(diffusion_model = "/m/z.gguf"),
+            SdCppGenParams(prompt = "x"),
+            output_path = str(tmp_path / "o.png"),
+            timeout = 0.01,
+        )
+    assert holder["proc"].killed is True
+
+
 # ── engine routing ──────────────────────────────────────────────────────────