diff --git a/lib/core/backup_service.dart b/lib/core/backup_service.dart
index 6a0f668792..1c24f6c115 100644
--- a/lib/core/backup_service.dart
+++ b/lib/core/backup_service.dart
@@ -22,6 +22,7 @@ import 'package:cw_core/wallet_info.dart';
 import 'package:cake_wallet/.secrets.g.dart' as secrets;
 import 'package:cake_wallet/wallet_types.g.dart';
 import 'package:cake_backup/backup.dart' as cake_backup;
+import 'package:path/path.dart' as path;
 
 class $BackupService {
   $BackupService(this._secureStorage, this.transactionDescriptionBox,
@@ -338,4 +339,11 @@ class $BackupService {
 
   Future<Uint8List> decryptV2(Uint8List data, String passphrase) async =>
       cake_backup.decrypt(passphrase, data);
+
+  Future<Directory> getRestoreTempDir() async {
+    final appDir = await getAppDir();
+    final dir = Directory(path.join(appDir.path, '~_RESTORE_TMP'));
+    if (!dir.existsSync()) dir.createSync(recursive: true);
+    return dir;
+  }
 }
diff --git a/lib/core/backup_service_v3.dart b/lib/core/backup_service_v3.dart
index ac73f9b3ad..cf1c5685a3 100644
--- a/lib/core/backup_service_v3.dart
+++ b/lib/core/backup_service_v3.dart
@@ -236,11 +236,16 @@ class BackupServiceV3 extends $BackupService {
       throw Exception('Invalid v3 backup: missing data.bin');
     }
     final dataStream = dataFile.rawContent!.getStream();
-    
-    final decryptedData = File('${file.path}_decrypted'); // decrypted zip file
-    if (decryptedData.existsSync()) {
-      decryptedData.deleteSync();
-    }
+
+    final tmpDir = await getRestoreTempDir();
+    if (!tmpDir.existsSync()) tmpDir.createSync(recursive: true);
+
+    final decryptedData = File('${tmpDir.path}/data_decrypted.zip');
+
+    // pre-clean
+    if (decryptedData.existsSync()) decryptedData.deleteSync();
+
+    try {
     decryptedData.createSync(recursive: true);
     decryptedData.writeAsBytesSync(Uint8List(0), mode: FileMode.write, flush: true);
     
@@ -314,6 +319,12 @@ class BackupServiceV3 extends $BackupService {
 
     // Delete decrypted data file
     decryptedData.deleteSync();
+  } finally {
+      // always clean, even on exception
+      if (decryptedData.existsSync()) {
+        decryptedData.deleteSync();
+      }
+    }
   }
 
   Future<void> verifyHardwareWallets(String password,