diff --git a/apps/mobile-app/app/(tabs)/settings/vault-unlock.tsx b/apps/mobile-app/app/(tabs)/settings/vault-unlock.tsx
index 6d215e7a4..f284754b7 100644
--- a/apps/mobile-app/app/(tabs)/settings/vault-unlock.tsx
+++ b/apps/mobile-app/app/(tabs)/settings/vault-unlock.tsx
@@ -133,16 +133,10 @@ export default function VaultUnlockSettingsScreen() : React.ReactNode {
       return;
     }
 
-    // If enabling biometrics and PIN is enabled, disable PIN first
-    if (value && pinEnabled) {
-      try {
-        await NativeVaultManager.removeAndDisablePin();
-        setPinEnabled(false);
-      } catch (error) {
-        console.error('Failed to disable PIN:', error);
-      }
-    }
-
+    /*
+     * Biometrics and PIN can now both be enabled simultaneously.
+     * Biometrics takes priority during unlock, PIN serves as fallback.
+     */
     setIsBiometricsEnabled(value);
     setAuthMethods(value ? ['faceid', 'password'] : ['password']);
 
@@ -155,7 +149,7 @@ export default function VaultUnlockSettingsScreen() : React.ReactNode {
         visibilityTime: 1200,
       });
     }
-  }, [hasBiometrics, pinEnabled, setAuthMethods, biometricDisplayName, showDialog, t]);
+  }, [hasBiometrics, setAuthMethods, biometricDisplayName, showDialog, t]);
 
   /**
    * Handle enable PIN - launches native PIN setup UI.
@@ -165,12 +159,10 @@ export default function VaultUnlockSettingsScreen() : React.ReactNode {
       // Launch native PIN setup UI
       await NativeVaultManager.showPinSetup();
 
-      // PIN setup successful - now disable biometrics if it was enabled
-      if (isBiometricsEnabled) {
-        setIsBiometricsEnabled(false);
-        await setAuthMethods(['password']);
-      }
-
+      /*
+       * PIN and biometrics can now both be enabled simultaneously.
+       * Biometrics takes priority during unlock, PIN serves as fallback.
+       */
       setPinEnabled(true);
       Toast.show({
         type: 'success',
@@ -188,7 +180,7 @@ export default function VaultUnlockSettingsScreen() : React.ReactNode {
       console.error('Failed to enable PIN:', error);
       showAlert(t('common.error'), t('common.errors.unknownErrorTryAgain'));
     }
-  }, [isBiometricsEnabled, setAuthMethods, showAlert, t]);
+  }, [showAlert, t]);
 
   /**
    * Handle disable PIN.
diff --git a/apps/mobile-app/app/unlock.tsx b/apps/mobile-app/app/unlock.tsx
index 352a65889..094c7d227 100644
--- a/apps/mobile-app/app/unlock.tsx
+++ b/apps/mobile-app/app/unlock.tsx
@@ -168,10 +168,78 @@ export default function UnlockScreen() : React.ReactNode {
   };
 
   /**
-   * Handle the biometrics retry.
+   * Internal PIN unlock handler - performs PIN unlock and navigates on success.
+   * Returns true if unlock succeeded, false otherwise.
    */
-  const handleUnlockRetry = async () : Promise<void> => {
-    router.replace('/reinitialize');
+  const performPinUnlock = async () : Promise<boolean> => {
+    try {
+      await NativeVaultManager.showPinUnlock();
+
+      // Check if vault is now unlocked
+      const isNowUnlocked = await NativeVaultManager.isVaultUnlocked();
+      if (isNowUnlocked) {
+        // Check if the vault is up to date
+        if (await dbContext.hasPendingMigrations()) {
+          router.replace('/upgrade');
+          return true;
+        }
+        router.replace('/reinitialize');
+        return true;
+      }
+      // Not unlocked means user cancelled - return false but don't show error
+      return false;
+    } catch (err) {
+      // User cancelled or PIN unlock failed
+      const errorMessage = err instanceof Error ? err.message : '';
+      if (!errorMessage.includes('cancelled') && !errorMessage.includes('canceled')) {
+        console.error('PIN unlock error:', err);
+        setError(t('auth.errors.pinFailed'));
+      }
+      return false;
+    }
+  };
+
+  /**
+   * Handle the biometrics retry - directly triggers biometric unlock.
+   * If biometric fails and PIN is available, automatically falls back to PIN.
+   */
+  const handleBiometricRetry = async () : Promise<void> => {
+    setIsLoading(true);
+    setError(null);
+    try {
+      const unlocked = await dbContext.unlockVault();
+      if (unlocked) {
+        // Check if the vault is up to date
+        if (await dbContext.hasPendingMigrations()) {
+          router.replace('/upgrade');
+          return;
+        }
+        router.replace('/reinitialize');
+      } else {
+        // Biometric failed - try PIN fallback if available
+        if (pinAvailable) {
+          await performPinUnlock();
+        }
+      }
+    } catch (err) {
+      console.error('Biometric retry error:', err);
+      // Biometric failed - try PIN fallback if available
+      if (pinAvailable) {
+        await performPinUnlock();
+      }
+    } finally {
+      setIsLoading(false);
+    }
+  };
+
+  /**
+   * Handle the PIN retry button - directly triggers PIN unlock flow.
+   */
+  const handlePinRetry = async () : Promise<void> => {
+    setIsLoading(true);
+    setError(null);
+    await performPinUnlock();
+    setIsLoading(false);
   };
 
   const styles = StyleSheet.create({
@@ -396,7 +464,7 @@ export default function UnlockScreen() : React.ReactNode {
               {isBiometricsAvailable && (
                 <RobustPressable
                   style={styles.faceIdButton}
-                  onPress={handleUnlockRetry}
+                  onPress={handleBiometricRetry}
                 >
                   <ThemedText style={styles.faceIdButtonText}>{t('auth.tryBiometricAgain', { biometric: biometricDisplayName })}</ThemedText>
                 </RobustPressable>
@@ -406,7 +474,7 @@ export default function UnlockScreen() : React.ReactNode {
               {pinAvailable && (
                 <RobustPressable
                   style={styles.faceIdButton}
-                  onPress={handleUnlockRetry}
+                  onPress={handlePinRetry}
                 >
                   <ThemedText style={styles.faceIdButtonText}>{t('auth.tryPinAgain')}</ThemedText>
                 </RobustPressable>
diff --git a/apps/mobile-app/utils/VaultUnlockHelper.ts b/apps/mobile-app/utils/VaultUnlockHelper.ts
index 46e38a56f..489be787e 100644
--- a/apps/mobile-app/utils/VaultUnlockHelper.ts
+++ b/apps/mobile-app/utils/VaultUnlockHelper.ts
@@ -15,7 +15,8 @@ export type UnlockResult = {
 export class VaultUnlockHelper {
   /**
    * Attempt to unlock the vault using available authentication methods.
-   * Tries biometric first (if available), then PIN (if enabled), otherwise indicates manual unlock needed.
+   * Priority: Biometric -> PIN -> Manual unlock
+   * If biometric fails/is cancelled and PIN is enabled, automatically falls back to PIN.
    *
    * @param params Configuration for unlock attempt
    * @returns Promise<UnlockResult> indicating success/failure and any actions needed
@@ -34,52 +35,32 @@ export class VaultUnlockHelper {
     if (isFaceIDEnabled) {
       try {
         const isUnlocked = await unlockVault();
-        if (!isUnlocked) {
-          return {
-            success: false,
-            error: 'Biometric unlock failed',
-            redirectToUnlock: true,
-          };
+        if (isUnlocked) {
+          return { success: true };
         }
-        return { success: true };
+        // Biometric failed - fall through to PIN fallback below
+        console.log('Biometric unlock returned false, trying PIN fallback if available');
       } catch (error) {
+        // Biometric error - fall through to PIN fallback below
         console.error('Biometric unlock error:', error);
-        return {
-          success: false,
-          error: error instanceof Error ? error.message : 'Biometric unlock failed',
-          redirectToUnlock: true,
-        };
       }
+
+      // Biometric failed or was cancelled - try PIN fallback if available
+      if (isPinEnabled) {
+        return this.attemptPinUnlock();
+      }
+
+      // No PIN fallback available
+      return {
+        success: false,
+        error: 'Biometric unlock failed',
+        redirectToUnlock: true,
+      };
     }
 
-    // Try PIN unlock if biometric is not available
+    // Biometric not enabled - try PIN unlock directly
     if (isPinEnabled) {
-      try {
-        await NativeVaultManager.showPinUnlock();
-
-        // Verify vault is now unlocked
-        const isNowUnlocked = await NativeVaultManager.isVaultUnlocked();
-        if (!isNowUnlocked) {
-          return {
-            success: false,
-            error: 'PIN unlock failed',
-            redirectToUnlock: true,
-          };
-        }
-        return { success: true };
-      } catch (error) {
-        // User cancelled or PIN unlock failed
-        // Only log non-cancellation errors to reduce noise
-        const errorMessage = error instanceof Error ? error.message : 'PIN unlock failed or cancelled';
-        if (!errorMessage.includes('cancelled')) {
-          console.error('PIN unlock error:', error);
-        }
-        return {
-          success: false,
-          error: errorMessage,
-          redirectToUnlock: true,
-        };
-      }
+      return this.attemptPinUnlock();
     }
 
     // No automatic unlock method available - manual unlock required
@@ -90,6 +71,38 @@ export class VaultUnlockHelper {
     };
   }
 
+  /**
+   * Attempt PIN unlock.
+   * @returns Promise<UnlockResult> indicating success/failure
+   */
+  private static async attemptPinUnlock(): Promise<UnlockResult> {
+    try {
+      await NativeVaultManager.showPinUnlock();
+
+      // Verify vault is now unlocked
+      const isNowUnlocked = await NativeVaultManager.isVaultUnlocked();
+      if (!isNowUnlocked) {
+        return {
+          success: false,
+          error: 'PIN unlock failed',
+          redirectToUnlock: true,
+        };
+      }
+      return { success: true };
+    } catch (error) {
+      // User cancelled or PIN unlock failed
+      const errorMessage = error instanceof Error ? error.message : 'PIN unlock failed or cancelled';
+      if (!errorMessage.includes('cancelled') && !errorMessage.includes('canceled')) {
+        console.error('PIN unlock error:', error);
+      }
+      return {
+        success: false,
+        error: errorMessage,
+        redirectToUnlock: true,
+      };
+    }
+  }
+
   /**
    * Authenticate user for a specific action (e.g., mobile unlock confirmation).
    * Uses the native authenticateUser which automatically detects and uses the appropriate method.