diff --git a/CHANGELOG.md b/CHANGELOG.md
index cf320b821..b0880ca11 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 ### 🔄 Changed
 - Propagated publish/unpublish failures from local video and screen-share capture
   sessions instead of swallowing them after logging. [#1072](https://github.com/GetStream/stream-video-swift/pull/1072)
+- The SDK will now end an outgoin call if the app moves to background while ringing. [#1078](https://github.com/GetStream/stream-video-swift/pull/1078)
 
 ### 🐞 Fixed
 - Fix call teardown ordering by posting `callEnded` only after active/ringing cleanup
diff --git a/Sources/StreamVideo/Call.swift b/Sources/StreamVideo/Call.swift
index 030850d76..80e2eb3d4 100644
--- a/Sources/StreamVideo/Call.swift
+++ b/Sources/StreamVideo/Call.swift
@@ -59,6 +59,7 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
     private let disposableBag = DisposableBag()
     internal let callController: CallController
     internal let coordinatorClient: DefaultAPIEndpoints
+    private var outgoingRingingController: OutgoingRingingController?
 
     /// This adapter is used to manage closed captions for the
     /// call.
@@ -263,6 +264,8 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
         )
         await state.update(from: response)
         if ring {
+            configureOutgoingRingingController()
+
             Task(disposableBag: disposableBag) { @MainActor [weak self] in
                 self?.streamVideo.state.ringingCall = self
             }
@@ -270,7 +273,12 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
         return response
     }
 
-    /// Rings the call (sends call notification to members).
+    /// Rings the call and marks it as `StreamVideo.State.ringingCall`.
+    ///
+    /// The call stays in the ringing state until it is accepted,
+    /// rejected, ended, or joined. If the app moves to the background
+    /// before the ring completes, the SDK ends the outgoing ringing
+    /// call automatically.
     /// - Returns: The call's data.
     @discardableResult
     public func ring() async throws -> CallResponse {
@@ -295,7 +303,10 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
     ///   - custom: An optional dictionary of custom data to include in the call request.
     ///   - startsAt: An optional `Date` indicating when the call should start.
     ///   - team: An optional string representing the team for the call.
-    ///   - ring: A boolean indicating whether to ring the call. Default is `false`.
+    ///   - ring: A boolean indicating whether to ring the call. When
+    ///     `true`, the call is exposed through
+    ///     `StreamVideo.State.ringingCall` until it is accepted,
+    ///     rejected, ended, or joined. Default is `false`.
     ///   - notify: A boolean indicating whether to send notifications. Default is `false`.
     ///   - maxDuration: An optional integer representing the maximum duration of the call in seconds.
     ///   - maxParticipants: An optional integer representing the maximum number of participants allowed in the call.
@@ -365,6 +376,7 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
         )
         await state.update(from: response)
         if ring {
+            configureOutgoingRingingController()
             await MainActor.run { streamVideo.state.ringingCall = self }
         }
 
@@ -372,7 +384,9 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
     }
     
     /// Initiates a ring action for the current call.
-    /// - Parameter request: The `RingCallRequest` containing ring configuration, such as member ids and whether it's a video call.
+    /// - Parameter request: The `RingCallRequest` containing ring
+    ///   configuration, such as member ids and whether it's a video
+    ///   call.
     /// - Returns: A `RingCallResponse` with information about the ring operation.
     /// - Throws: An error if the coordinator request fails or the call cannot be rung.
     @discardableResult
@@ -1551,6 +1565,7 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
         /// to happen on the call object (e.g. rejoin) will need to fetch a new instance from `StreamVideo`
         /// client.
         callCache.remove(for: cId)
+        outgoingRingingController = nil
 
         // Reset the activeAudioFilter
         setAudioFilter(nil)
@@ -1767,4 +1782,11 @@ public class Call: @unchecked Sendable, WSEventsSubscriber {
             }
         }
     }
+
+    private func configureOutgoingRingingController() {
+        outgoingRingingController = .init(
+            streamVideo: streamVideo,
+            callCiD: cId
+        ) { [weak self] in try await self?.end() }
+    }
 }
diff --git a/Sources/StreamVideo/Controllers/OutgoingRingingController.swift b/Sources/StreamVideo/Controllers/OutgoingRingingController.swift
new file mode 100644
index 000000000..de948b085
--- /dev/null
+++ b/Sources/StreamVideo/Controllers/OutgoingRingingController.swift
@@ -0,0 +1,84 @@
+//
+// Copyright © 2026 Stream.io Inc. All rights reserved.
+//
+
+import Combine
+import Foundation
+
+/// Observes an outgoing ringing call and ends it when the app moves to
+/// the background.
+///
+/// The controller is active only while
+/// `StreamVideo.State.ringingCall` matches the provided call CID.
+/// When ringing stops or another call becomes the ringing call, the
+/// application state observation is cancelled.
+final class OutgoingRingingController: @unchecked Sendable {
+    @Injected(\.applicationStateAdapter) private var applicationStateAdapter
+
+    private let callCiD: String
+    private let processingQueue = OperationQueue(maxConcurrentOperationCount: 1)
+    private let handler: () async throws -> Void
+    private var ringingCallCancellable: AnyCancellable?
+    private var appStateCancellable: AnyCancellable?
+    private let disposableBag = DisposableBag()
+
+    /// Creates a controller for the outgoing ringing call identified by
+    /// the provided call CID.
+    ///
+    /// - Parameters:
+    ///   - streamVideo: The active `StreamVideo` instance.
+    ///   - callCiD: The call CID to observe in `ringingCall`.
+    ///   - handler: The async operation that ends the ringing call.
+    init(
+        streamVideo: StreamVideo,
+        callCiD: String,
+        handler: @escaping () async throws -> Void
+    ) {
+        self.callCiD = callCiD
+        self.handler = handler
+        ringingCallCancellable = streamVideo
+            .state
+            .$ringingCall
+            .receive(on: processingQueue)
+            .sink { [weak self] in self?.didUpdateRingingCall($0) }
+    }
+
+    // MARK: - Private Helpers
+
+    private func didUpdateRingingCall(_ call: Call?) {
+        guard call?.cId == callCiD else {
+            deactivate()
+            return
+        }
+        activate()
+    }
+
+    private func activate() {
+        appStateCancellable = applicationStateAdapter
+            .statePublisher
+            /// We ignore .unknown on purpose to cover cases like, starting a call from the Recents app where
+            /// entering the ringing flow may happen before the AppState has been stabilised
+            .filter { $0 == .background }
+            .log(.warning) { [callCiD] in "Application moved to \($0) while ringing cid:\(callCiD). Ending now." }
+            .receive(on: processingQueue)
+            .sinkTask(storeIn: disposableBag) { [weak self] _ in await self?.endCall() }
+
+        log.debug("Call cid:\(callCiD) is ringing. Starting application state observation.")
+    }
+
+    private func deactivate() {
+        appStateCancellable?.cancel()
+        appStateCancellable = nil
+
+        log.debug("Application state observation for cid:\(callCiD) has been deactivated.")
+    }
+
+    private func endCall() async {
+        do {
+            try await handler()
+        } catch {
+            log.error(error)
+        }
+        deactivate()
+    }
+}
diff --git a/Sources/StreamVideo/StreamVideo.swift b/Sources/StreamVideo/StreamVideo.swift
index 9a3062bf6..33c94c0d4 100644
--- a/Sources/StreamVideo/StreamVideo.swift
+++ b/Sources/StreamVideo/StreamVideo.swift
@@ -28,6 +28,11 @@ public class StreamVideo: ObservableObject, @unchecked Sendable {
             didSet { didUpdateActiveCall(activeCall, oldValue: oldValue) }
         }
 
+        /// The call that is currently ringing.
+        ///
+        /// This is set for both incoming calls and outgoing calls started
+        /// with `Call.ring()`. The value is cleared after the call is
+        /// joined, rejected, ended, or promoted to `activeCall`.
         @Published public internal(set) var ringingCall: Call?
 
         private nonisolated let disposableBag = DisposableBag()
diff --git a/StreamVideoTests/Controllers/OutgoingRingingController_Tests.swift b/StreamVideoTests/Controllers/OutgoingRingingController_Tests.swift
new file mode 100644
index 000000000..5648b985b
--- /dev/null
+++ b/StreamVideoTests/Controllers/OutgoingRingingController_Tests.swift
@@ -0,0 +1,76 @@
+//
+// Copyright © 2026 Stream.io Inc. All rights reserved.
+//
+
+@testable import StreamVideo
+@preconcurrency import XCTest
+
+final class OutgoingRingingController_Tests: StreamVideoTestCase, @unchecked Sendable {
+
+    private lazy var applicationStateAdapter: MockAppStateAdapter! = .init()
+    private lazy var callType: String! = .default
+    private lazy var callId: String! = .unique
+    private lazy var otherCallId: String! = .unique
+    private var subject: OutgoingRingingController!
+
+    // MARK: - Lifecycle
+
+    override func setUp() {
+        super.setUp()
+        applicationStateAdapter.makeShared()
+    }
+
+    override func tearDown() {
+        applicationStateAdapter.dismante()
+
+        subject = nil
+        otherCallId = nil
+        callId = nil
+        callType = nil
+        applicationStateAdapter = nil
+        super.tearDown()
+    }
+
+    // MARK: - init
+
+    func test_matchingRingingCall_onBackground_handlerIsCalled() async {
+        let call = streamVideo.call(callType: callType, callId: callId)
+        let handlerWasCalled = expectation(description: "Handler was called.")
+        subject = makeSubject(for: call) {
+            handlerWasCalled.fulfill()
+        }
+
+        streamVideo.state.ringingCall = call
+        applicationStateAdapter.stubbedState = .background
+
+        await fulfillment(of: [handlerWasCalled])
+    }
+
+    func test_nonMatchingRingingCall_onBackground_handlerIsNotCalled() async {
+        let call = streamVideo.call(callType: callType, callId: callId)
+        let otherCall = streamVideo.call(callType: callType, callId: otherCallId)
+        let handlerWasCalled = expectation(description: "Handler was called.")
+        handlerWasCalled.isInverted = true
+        subject = makeSubject(for: call) {
+            handlerWasCalled.fulfill()
+        }
+
+        streamVideo.state.ringingCall = otherCall
+        applicationStateAdapter.stubbedState = .background
+
+        await fulfillment(of: [handlerWasCalled], timeout: 0.2)
+    }
+
+    // MARK: - Private Helpers
+
+    private func makeSubject(
+        for call: Call,
+        handler: @escaping () async throws -> Void
+    ) -> OutgoingRingingController {
+        .init(
+            streamVideo: streamVideo,
+            callCiD: call.cId,
+            handler: handler
+        )
+    }
+}