diff --git a/apps/web/app/(org)/dashboard/settings/organization/components/CustomDomainDialog/CustomDomainDialog.tsx b/apps/web/app/(org)/dashboard/settings/organization/components/CustomDomainDialog/CustomDomainDialog.tsx
index cc29a590e74..477eb93b886 100644
--- a/apps/web/app/(org)/dashboard/settings/organization/components/CustomDomainDialog/CustomDomainDialog.tsx
+++ b/apps/web/app/(org)/dashboard/settings/organization/components/CustomDomainDialog/CustomDomainDialog.tsx
@@ -267,6 +267,22 @@ const CustomDomainDialog = ({
 		onClose();
 	}, [handleReset, onClose]);
 
+	const handleCloseRef = useRef(handleClose);
+	handleCloseRef.current = handleClose;
+
+	useEffect(() => {
+		if (isVerified) {
+			dispatch({ type: "GO_TO_STEP", payload: 2 });
+		}
+	}, [isVerified]);
+
+	useEffect(() => {
+		if (stepState.currentIndex !== 2) return;
+		// Read handleClose via a ref: the parent passes an inline onClose, so depending on it would restart the countdown on every parent render.
+		const timer = setTimeout(() => handleCloseRef.current(), 8000);
+		return () => clearTimeout(timer);
+	}, [stepState.currentIndex]);
+
 	const checkVerification = useCallback(
 		(showToasts = true) => {
 			if (
@@ -343,17 +359,6 @@ const CustomDomainDialog = ({
 		});
 	};
 
-	useEffect(() => {
-		//if current step is success, close dialog in 8 seconds
-		if (stepState.currentIndex === 2) {
-			setTimeout(() => {
-				handleClose();
-			}, 8000);
-		} else if (isVerified) {
-			handleNext();
-		}
-	}, [isVerified, stepState.currentIndex, handleClose, handleNext]);
-
 	return (
 		<>
 			{stepState.currentIndex === 2 && (