diff --git a/.changeset/empty-needles-reply.md b/.changeset/empty-needles-reply.md
new file mode 100644
index 00000000000..85dbed9f532
--- /dev/null
+++ b/.changeset/empty-needles-reply.md
@@ -0,0 +1,5 @@
+---
+"thirdweb": patch
+---
+
+Automatically migrate in-app wallets to the new enclave system
diff --git a/packages/thirdweb/src/react/web/wallets/shared/PassKeyLogin.tsx b/packages/thirdweb/src/react/web/wallets/shared/PassKeyLogin.tsx
index 4b732d73eec..e39a1b3dcdf 100644
--- a/packages/thirdweb/src/react/web/wallets/shared/PassKeyLogin.tsx
+++ b/packages/thirdweb/src/react/web/wallets/shared/PassKeyLogin.tsx
@@ -160,7 +160,8 @@ function LoginScreen(props: {
         await setLastAuthProvider("passkey", webLocalStorage);
       }
       done();
-    } catch {
+    } catch (e) {
+      console.error("Failed to login with passkey", e);
       setStatus("error");
     }
   }
diff --git a/packages/thirdweb/src/wallets/in-app/core/actions/generate-wallet.enclave.ts b/packages/thirdweb/src/wallets/in-app/core/actions/generate-wallet.enclave.ts
index 118e70431a7..a136f37763f 100644
--- a/packages/thirdweb/src/wallets/in-app/core/actions/generate-wallet.enclave.ts
+++ b/packages/thirdweb/src/wallets/in-app/core/actions/generate-wallet.enclave.ts
@@ -9,13 +9,13 @@ import type { Ecosystem } from "../wallet/types.js";
  * @internal
  */
 export async function generateWallet({
-  authToken,
   client,
   ecosystem,
+  authToken,
 }: {
   client: ThirdwebClient;
-  ecosystem: Ecosystem;
   authToken: string;
+  ecosystem?: Ecosystem;
 }) {
   const clientFetch = getClientFetch(client, ecosystem);
   const response = await clientFetch(
diff --git a/packages/thirdweb/src/wallets/in-app/native/native-connector.ts b/packages/thirdweb/src/wallets/in-app/native/native-connector.ts
index 57db63615cf..c9ba843949c 100644
--- a/packages/thirdweb/src/wallets/in-app/native/native-connector.ts
+++ b/packages/thirdweb/src/wallets/in-app/native/native-connector.ts
@@ -80,27 +80,26 @@ export class InAppNativeConnector implements InAppConnector {
     }
     let wallet = user.wallets[0];
 
-    // TODO (enclaves): Migration to enclave wallet for in-app wallets as well
-    if (
-      authResult &&
-      this.storage.ecosystem &&
-      wallet &&
-      wallet.type === "sharded"
-    ) {
-      const { migrateToEnclaveWallet } = await import(
-        "./helpers/wallet/migration.js"
-      );
-      wallet = await migrateToEnclaveWallet({
-        client: this.client,
-        storage: this.storage,
-        storedToken: authResult.storedToken,
-        encryptionKey,
-      });
+    if (authResult && wallet && wallet.type === "sharded") {
+      try {
+        const { migrateToEnclaveWallet } = await import(
+          "./helpers/wallet/migration.js"
+        );
+        wallet = await migrateToEnclaveWallet({
+          client: this.client,
+          storage: this.storage,
+          storedToken: authResult.storedToken,
+          encryptionKey,
+        });
+      } catch {
+        console.warn(
+          "Failed to migrate from sharded to enclave wallet, continuing with sharded wallet",
+        );
+      }
     }
 
-    if (authResult && this.ecosystem && !wallet) {
-      // new ecosystem user, generate enclave wallet
-      // TODO (enclaves): same flow for in-app wallets
+    if (authResult && !wallet) {
+      // new user, generate enclave wallet
       const { generateWallet } = await import(
         "../core/actions/generate-wallet.enclave.js"
       );
diff --git a/packages/thirdweb/src/wallets/in-app/web/lib/auth/iframe-auth.ts b/packages/thirdweb/src/wallets/in-app/web/lib/auth/iframe-auth.ts
index 8681c562cd4..d7d09c7abc8 100644
--- a/packages/thirdweb/src/wallets/in-app/web/lib/auth/iframe-auth.ts
+++ b/packages/thirdweb/src/wallets/in-app/web/lib/auth/iframe-auth.ts
@@ -128,7 +128,7 @@ export class Auth {
       });
     }
 
-    if (user.wallets.length === 0 && this.ecosystem) {
+    if (user.wallets.length === 0) {
       // If this is a new ecosystem wallet without an enclave yet, we'll generate an enclave
       const result = await generateWallet({
         authToken: authToken.storedToken.cookieString,
diff --git a/packages/thirdweb/src/wallets/in-app/web/lib/web-connector.ts b/packages/thirdweb/src/wallets/in-app/web/lib/web-connector.ts
index 69bc50c88fc..7b6227ea11c 100644
--- a/packages/thirdweb/src/wallets/in-app/web/lib/web-connector.ts
+++ b/packages/thirdweb/src/wallets/in-app/web/lib/web-connector.ts
@@ -101,10 +101,7 @@ export class InAppWebConnector implements InAppConnector {
       onAuthSuccess: async (authResult) => {
         onAuthSuccess?.(authResult);
 
-        if (
-          this.ecosystem &&
-          authResult.storedToken.authDetails.walletType === "sharded"
-        ) {
+        if (authResult.storedToken.authDetails.walletType === "sharded") {
           // If this is an existing sharded ecosystem wallet, we'll need to migrate
           const result = await this.querier.call<boolean>({
             procedureName: "migrateFromShardToEnclave",
@@ -113,11 +110,15 @@ export class InAppWebConnector implements InAppConnector {
             },
           });
           if (!result) {
-            throw new Error("Failed to migrate from sharded to enclave wallet");
+            console.warn(
+              "Failed to migrate from sharded to enclave wallet, continuing with sharded wallet",
+            );
           }
         }
 
-        await this.initializeWallet(authResult.storedToken.cookieString);
+        this.wallet = await this.initializeWallet(
+          authResult.storedToken.cookieString,
+        );
 
         if (!this.wallet) {
           throw new Error("Failed to initialize wallet");
@@ -133,7 +134,7 @@ export class InAppWebConnector implements InAppConnector {
           deviceShareStored,
         });
 
-        if (authResult.storedToken.authDetails.walletType !== "enclave") {
+        if (this.wallet instanceof IFrameWallet) {
           await this.querier.call({
             procedureName: "initIframe",
             params: {
@@ -163,7 +164,7 @@ export class InAppWebConnector implements InAppConnector {
     });
   }
 
-  async initializeWallet(authToken?: string) {
+  async initializeWallet(authToken?: string): Promise<IWebWallet> {
     const storedAuthToken = await this.storage.getAuthCookie();
     if (!authToken && storedAuthToken === null) {
       throw new Error(
@@ -176,6 +177,7 @@ export class InAppWebConnector implements InAppConnector {
       client: this.client,
       ecosystem: this.ecosystem,
     });
+
     if (!user) {
       throw new Error("Cannot initialize wallet, no user logged in");
     }
@@ -186,16 +188,15 @@ export class InAppWebConnector implements InAppConnector {
     }
 
     if (user.wallets[0]?.type === "enclave") {
-      this.wallet = new EnclaveWallet({
+      return new EnclaveWallet({
         client: this.client,
         ecosystem: this.ecosystem,
         address: user.wallets[0].address,
         storage: this.storage,
       });
-      return;
     }
 
-    this.wallet = new IFrameWallet({
+    return new IFrameWallet({
       client: this.client,
       ecosystem: this.ecosystem,
       querier: this.querier,
@@ -233,7 +234,7 @@ export class InAppWebConnector implements InAppConnector {
       if (!localAuthToken) {
         return { status: "Logged Out" };
       }
-      await this.initializeWallet(localAuthToken);
+      this.wallet = await this.initializeWallet(localAuthToken);
     }
     if (!this.wallet) {
       throw new Error("Wallet not initialized");
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 6979b9523eb..85e7b89a8c1 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -23652,8 +23652,8 @@ snapshots:
       '@typescript-eslint/parser': 7.14.1(eslint@8.57.0)(typescript@5.6.3)
       eslint: 8.57.0
       eslint-import-resolver-node: 0.3.9
-      eslint-import-resolver-typescript: 3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0)(eslint@8.57.0)
-      eslint-plugin-import: 2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-typescript@3.6.3)(eslint@8.57.0)
+      eslint-import-resolver-typescript: 3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0)
+      eslint-plugin-import: 2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0))(eslint@8.57.0)
       eslint-plugin-jsx-a11y: 6.10.0(eslint@8.57.0)
       eslint-plugin-react: 7.37.1(eslint@8.57.0)
       eslint-plugin-react-hooks: 5.0.0(eslint@8.57.0)
@@ -23672,19 +23672,19 @@ snapshots:
     transitivePeerDependencies:
       - supports-color
 
-  eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0)(eslint@8.57.0):
+  eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0):
     dependencies:
       '@nolyfill/is-core-module': 1.0.39
       debug: 4.3.7(supports-color@8.1.1)
       enhanced-resolve: 5.17.1
       eslint: 8.57.0
-      eslint-module-utils: 2.12.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0)(eslint@8.57.0))(eslint@8.57.0)
+      eslint-module-utils: 2.12.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0))(eslint@8.57.0)
       fast-glob: 3.3.2
       get-tsconfig: 4.8.1
       is-bun-module: 1.2.1
       is-glob: 4.0.3
     optionalDependencies:
-      eslint-plugin-import: 2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-typescript@3.6.3)(eslint@8.57.0)
+      eslint-plugin-import: 2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0))(eslint@8.57.0)
     transitivePeerDependencies:
       - '@typescript-eslint/parser'
       - eslint-import-resolver-node
@@ -23712,18 +23712,18 @@ snapshots:
       - bluebird
       - supports-color
 
-  eslint-module-utils@2.12.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0)(eslint@8.57.0))(eslint@8.57.0):
+  eslint-module-utils@2.12.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0))(eslint@8.57.0):
     dependencies:
       debug: 3.2.7
     optionalDependencies:
       '@typescript-eslint/parser': 7.14.1(eslint@8.57.0)(typescript@5.6.3)
       eslint: 8.57.0
       eslint-import-resolver-node: 0.3.9
-      eslint-import-resolver-typescript: 3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0)(eslint@8.57.0)
+      eslint-import-resolver-typescript: 3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0)
     transitivePeerDependencies:
       - supports-color
 
-  eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-typescript@3.6.3)(eslint@8.57.0):
+  eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0))(eslint@8.57.0):
     dependencies:
       '@rtsao/scc': 1.1.0
       array-includes: 3.1.8
@@ -23734,7 +23734,7 @@ snapshots:
       doctrine: 2.1.0
       eslint: 8.57.0
       eslint-import-resolver-node: 0.3.9
-      eslint-module-utils: 2.12.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0)(eslint@8.57.0))(eslint@8.57.0)
+      eslint-module-utils: 2.12.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.3(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint-import-resolver-node@0.3.9)(eslint-plugin-import@2.31.0(@typescript-eslint/parser@7.14.1(eslint@8.57.0)(typescript@5.6.3))(eslint@8.57.0))(eslint@8.57.0))(eslint@8.57.0)
       hasown: 2.0.2
       is-core-module: 2.15.1
       is-glob: 4.0.3