diff --git a/browser/components/loop/content/js/conversation.js b/browser/components/loop/content/js/conversation.js
index 7875c430fb6f..ec9eab2278e6 100644
--- a/browser/components/loop/content/js/conversation.js
+++ b/browser/components/loop/content/js/conversation.js
@@ -400,9 +400,12 @@ loop.conversation = (function(mozL10n) {
         return;
       }
 
-      if (progressData.reason === "timeout" &&
-          (previousState === "init" || previousState === "alerting")) {
-        this._abortIncomingCall();
+      if (progressData.reason === "timeout") {
+        if (previousState === "init" || previousState === "alerting") {
+          this._abortIncomingCall();
+        } else {
+          this.setState({callFailed: true, callStatus: "end"});
+        }
       }
     },
 
diff --git a/browser/components/loop/content/js/conversation.jsx b/browser/components/loop/content/js/conversation.jsx
index 4ba0840f8a91..54e913042dca 100644
--- a/browser/components/loop/content/js/conversation.jsx
+++ b/browser/components/loop/content/js/conversation.jsx
@@ -400,9 +400,12 @@ loop.conversation = (function(mozL10n) {
         return;
       }
 
-      if (progressData.reason === "timeout" &&
-          (previousState === "init" || previousState === "alerting")) {
-        this._abortIncomingCall();
+      if (progressData.reason === "timeout") {
+        if (previousState === "init" || previousState === "alerting") {
+          this._abortIncomingCall();
+        } else {
+          this.setState({callFailed: true, callStatus: "end"});
+        }
       }
     },
 
diff --git a/browser/components/loop/standalone/content/js/webapp.js b/browser/components/loop/standalone/content/js/webapp.js
index fca7986f1f7e..3dc44757a2b5 100644
--- a/browser/components/loop/standalone/content/js/webapp.js
+++ b/browser/components/loop/standalone/content/js/webapp.js
@@ -833,7 +833,9 @@ loop.webapp = (function($, _, OT, mozL10n) {
      * Handles ending a call by resetting the view to the start state.
      */
     _endCall: function() {
-      this.setState({callStatus: "end"});
+      if (this.state.callStatus !== "failure") {
+        this.setState({callStatus: "end"});
+      }
     },
   });
 
diff --git a/browser/components/loop/standalone/content/js/webapp.jsx b/browser/components/loop/standalone/content/js/webapp.jsx
index 9a5523ee0e05..ca683dd98195 100644
--- a/browser/components/loop/standalone/content/js/webapp.jsx
+++ b/browser/components/loop/standalone/content/js/webapp.jsx
@@ -833,7 +833,9 @@ loop.webapp = (function($, _, OT, mozL10n) {
      * Handles ending a call by resetting the view to the start state.
      */
     _endCall: function() {
-      this.setState({callStatus: "end"});
+      if (this.state.callStatus !== "failure") {
+        this.setState({callStatus: "end"});
+      }
     },
   });
 
diff --git a/browser/components/loop/test/desktop-local/conversation_test.js b/browser/components/loop/test/desktop-local/conversation_test.js
index cab1bd455356..f22cc229d86a 100644
--- a/browser/components/loop/test/desktop-local/conversation_test.js
+++ b/browser/components/loop/test/desktop-local/conversation_test.js
@@ -39,7 +39,7 @@ describe("loop.conversation", function() {
         return "en-US";
       },
       setLoopCharPref: sinon.stub(),
-      getLoopCharPref: sinon.stub().returns(null),
+      getLoopCharPref: sinon.stub().returns("http://fakeurl"),
       getLoopBoolPref: sinon.stub(),
       getCallData: sinon.stub(),
       releaseCallData: sinon.stub(),
@@ -410,6 +410,8 @@ describe("loop.conversation", function() {
         describe("WebSocket Events", function() {
           describe("Call cancelled or timed out before acceptance", function() {
             beforeEach(function() {
+              // Mounting the test component automatically calls the required
+              // setup functions
               icView = mountTestComponent();
               promise = new Promise(function(resolve, reject) {
                 resolve();
@@ -539,6 +541,22 @@ describe("loop.conversation", function() {
                 });
               });
             });
+
+            describe("progress - terminated - timeout (previousState not init" +
+                     " nor alerting)",
+              function() {
+                it("should set the state to end", function(done) {
+                  promise.then(function() {
+                    icView._websocket.trigger("progress", {
+                      state: "terminated",
+                      reason: "timeout"
+                    }, "connecting");
+
+                    expect(icView.state.callStatus).eql("end");
+                    done();
+                  });
+                });
+              });
           });
         });
       });
diff --git a/browser/components/loop/test/standalone/webapp_test.js b/browser/components/loop/test/standalone/webapp_test.js
index 2c33bca17dc4..dab16d448b46 100644
--- a/browser/components/loop/test/standalone/webapp_test.js
+++ b/browser/components/loop/test/standalone/webapp_test.js
@@ -308,12 +308,24 @@ describe("loop.webapp", function() {
       });
 
       describe("session:ended", function() {
-        it("should set display the StartConversationView", function() {
+        it("should display the StartConversationView", function() {
           conversation.trigger("session:ended");
 
           TestUtils.findRenderedComponentWithType(ocView,
             loop.webapp.EndedConversationView);
         });
+
+        it("should display the FailedConversationView if callStatus is failure",
+          function() {
+            ocView.setState({
+              callStatus: "failure"
+            });
+            conversation.trigger("session:ended");
+
+            var failedView = TestUtils.findRenderedComponentWithType(ocView,
+                loop.webapp.FailedConversationView);
+            expect(failedView).to.not.equal(null);
+          });
       });
 
       describe("session:peer-hungup", function() {