diff --git a/.changeset/thin-rockets-walk.md b/.changeset/thin-rockets-walk.md
new file mode 100644
index 00000000000..bde5e20d8f2
--- /dev/null
+++ b/.changeset/thin-rockets-walk.md
@@ -0,0 +1,5 @@
+---
+"thirdweb": patch
+---
+
+Default to in-memory storage when creating inapp wallets outside the browser
diff --git a/packages/thirdweb/src/wallets/in-app/web/in-app.ts b/packages/thirdweb/src/wallets/in-app/web/in-app.ts
index 11597f42ff8..1e60d716543 100644
--- a/packages/thirdweb/src/wallets/in-app/web/in-app.ts
+++ b/packages/thirdweb/src/wallets/in-app/web/in-app.ts
@@ -23,7 +23,7 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  * const account = await wallet.connect({
  *   client,
  *   chain,
- *   strategy: "google",
+ *   strategy: "google", // or "apple", "facebook","discord", "github", "twitch", "x", "telegram", "line", "coinbase", etc
  * });
  * ```
  *
@@ -31,15 +31,21 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  *
  * ### Enable smart accounts and sponsor gas for your users:
  *
+ * With the `executionMode` option, you can enable smart accounts and sponsor gas for your users.
+ *
+ * **Using EIP-7702** (recommended):
+ *
+ * On chains with EIP-7702 enabled, you can upgrade the inapp wallet to a smart account, keeping the same address and performance as the regular EOA.
+ *
  * ```ts
  * import { inAppWallet } from "thirdweb/wallets";
  * import { sepolia } from "thirdweb/chains";
  *
  * const wallet = inAppWallet({
- *  smartAccount: {
- *   chain: sepolia,
+ *  executionMode: {
+ *   mode: "EIP7702",
  *   sponsorGas: true,
- * },
+ *  },
  * });
  *
  * // account will be a smart account with sponsored gas enabled
@@ -49,8 +55,28 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  * });
  * ```
  *
+ * **Using EIP-4337**:
+ *
+ * On chains without EIP-7702 enabled, you can still use smart accounts using EIP-4337, this will return a different address (the smart contract address) than the regular EOA.
+ *
+ * ```ts
+ * import { inAppWallet } from "thirdweb/wallets/in-app";
+ *
+ * const wallet = inAppWallet({
+ *  executionMode: {
+ *   mode: "EIP4337",
+ *   smartAccount: {
+ *    chain: sepolia, // chain required for EIP-4337
+ *    sponsorGas: true,
+ *   }
+ *  },
+ * });
+ * ```
+ *
  * ### Login with email
  *
+ * To login with email, you can use the `preAuthenticate` function to first send a verification code to the user's email, then login with the verification code.
+ *
  * ```ts
  * import { inAppWallet, preAuthenticate } from "thirdweb/wallets/in-app";
  *
@@ -73,22 +99,10 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  * });
  * ```
  *
- * ### Login with SIWE
- * ```ts
- * import { inAppWallet, createWallet } from "thirdweb/wallets";
- *
- * const rabby = createWallet("io.rabby");
- * const inAppWallet = inAppWallet();
+ * ### Login with phone number
  *
- * const account = await inAppWallet.connect({
- *    strategy: "wallet",
- *    chain: mainnet,
- *    wallet: rabby,
- *    client: MY_CLIENT
- * });
- * ```
+ * Similar to email, you can login with a phone number by first sending a verification code to the user's phone number, then login with the verification code.
  *
- * ### Login with phone number
  * ```ts
  * import { inAppWallet, preAuthenticate } from "thirdweb/wallets/in-app";
  *
@@ -111,8 +125,28 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  * });
  * ```
  *
+ * ### Login with another wallet (SIWE)
+ *
+ * You can also login to the in-app wallet with another existing wallet by signing a standard Sign in with Ethereum (SIWE) message.
+ *
+ * ```ts
+ * import { inAppWallet, createWallet } from "thirdweb/wallets";
+ *
+ * const rabby = createWallet("io.rabby");
+ * const inAppWallet = inAppWallet();
+ *
+ * const account = await inAppWallet.connect({
+ *    strategy: "wallet",
+ *    chain: mainnet,
+ *    wallet: rabby,
+ *    client: MY_CLIENT
+ * });
+ * ```
+ *
  * ### Login with passkey
  *
+ * You can also login with a passkey. This mode requires specifying whether it should create a new passkey, or sign in with an existing passkey. We recommend checking if the user has a passkey stored in their browser to automatically login with it.
+ *
  * ```ts
  * import { inAppWallet, hasStoredPasskey } from "thirdweb/wallets/in-app";
  *
@@ -128,6 +162,11 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  * ```
  *
  * ### Connect to a guest account
+ *
+ * You can also connect to a guest account, this will create a new account for the user instantly and store it in the browser's local storage.
+ *
+ * You can later "upgrade" this account by linking another auth method, like email or phone for example. This will preserve the account's address and history.
+ *
  * ```ts
  * import { inAppWallet } from "thirdweb/wallets";
  *
@@ -141,19 +180,19 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  *
  * ### Connect to a backend account
  *
- * for usage in backends, you might also need to provide a 'storage' to store auth tokens. In-memory usually works for most purposes.
+ * For usage in backends, you can create wallets with the `backend` strategy and a stable walletSecret.
+ *
+ * Make sure to keep that walletSecret safe as it is the key to access that wallet, never expose it to the client.
  *
  * ```ts
  * import { inAppWallet } from "thirdweb/wallets";
  *
- * const wallet = inAppWallet({
- *   storage: inMemoryStorage, // for usage in backends/scripts
- * });
+ * const wallet = inAppWallet();
  *
  * const account = await wallet.connect({
  *   client,
  *   strategy: "backend",
- *   walletSecret: "...", // Provided by your app
+ *   walletSecret: "...", // Your own secret, keep it safe
  * });
  * ```
  *
@@ -189,16 +228,21 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  * });
  * ```
  *
- * ### Specify a logo for your login page (Connect UI)
+ * ### Specify a logo, icon and name for your login page (Connect UI)
+ *
+ * You can specify a logo, icon and name for your login page to customize how in-app wallets are displayed in the Connect UI components (ConnectButton and ConnectEmbed).
+ *
  * ```ts
  * import { inAppWallet } from "thirdweb/wallets";
  * const wallet = inAppWallet({
  *  metadata: {
- *   image: {
- *    src: "https://example.com/logo.png",
- *    alt: "My logo",
- *    width: 100,
- *    height: 100,
+ *    name: "My App",
+ *    icon: "https://example.com/icon.png",
+ *    image: {
+ *      src: "https://example.com/logo.png",
+ *      alt: "My logo",
+ *      width: 100,
+ *      height: 100,
  *   },
  *  },
  * });
@@ -206,6 +250,8 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  *
  * ### Hide the ability to export the private key within the Connect Modal UI
  *
+ * By default, the Connect Modal will show a button to export the private key of the wallet. You can hide this button by setting the `hidePrivateKeyExport` option to `true`.
+ *
  * ```ts
  * import { inAppWallet } from "thirdweb/wallets";
  * const wallet = inAppWallet({
@@ -228,7 +274,7 @@ import type { InAppWalletCreationOptions } from "../core/wallet/types.js";
  *
  * ### Override storage for the wallet state
  *
- * By default, wallet state is stored in the browser's local storage. You can override this behavior by providing a custom storage object, useful for server side integrations.
+ * By default, wallet state is stored in the browser's local storage if in the browser, or in-memory storage if not in the browser. You can override this behavior by providing a custom storage object, useful for server side and CLI integrations.
  *
  * ```ts
  * import { inAppWallet } from "thirdweb/wallets";
diff --git a/packages/thirdweb/src/wallets/in-app/web/lib/in-app-backend.test.ts b/packages/thirdweb/src/wallets/in-app/web/lib/in-app-backend.test.ts
deleted file mode 100644
index 8da74d7c2eb..00000000000
--- a/packages/thirdweb/src/wallets/in-app/web/lib/in-app-backend.test.ts
+++ /dev/null
@@ -1,27 +0,0 @@
-import { describe, expect, it } from "vitest";
-import { TEST_CLIENT } from "~test/test-clients.js";
-import { sepolia } from "../../../../chains/chain-definitions/sepolia.js";
-import { inMemoryStorage } from "../../../../utils/storage/inMemoryStorage.js";
-import { inAppWallet } from "../in-app.js";
-
-describe("InAppWallet", () => {
-  it("should sign a message with backend strategy", async () => {
-    const wallet = inAppWallet({
-      smartAccount: {
-        chain: sepolia,
-        sponsorGas: true,
-      },
-      storage: inMemoryStorage,
-    });
-    const account = await wallet.connect({
-      client: TEST_CLIENT,
-      strategy: "backend",
-      walletSecret: "test-secret",
-    });
-    expect(account.address).toBeDefined();
-    const message = await account.signMessage({
-      message: "Hello, world!",
-    });
-    expect(message).toBeDefined();
-  });
-});
diff --git a/packages/thirdweb/src/wallets/in-app/web/lib/in-app-integration.test.ts b/packages/thirdweb/src/wallets/in-app/web/lib/in-app-integration.test.ts
new file mode 100644
index 00000000000..97fd4eea3f5
--- /dev/null
+++ b/packages/thirdweb/src/wallets/in-app/web/lib/in-app-integration.test.ts
@@ -0,0 +1,112 @@
+import { describe, expect, it } from "vitest";
+import { TEST_CLIENT } from "~test/test-clients.js";
+import { sepolia } from "../../../../chains/chain-definitions/sepolia.js";
+import { parseEventLogs } from "../../../../event/actions/parse-logs.js";
+import { userOperationEventEvent } from "../../../../extensions/erc4337/__generated__/IEntryPoint/events/UserOperationEvent.js";
+import { executedEvent } from "../../../../extensions/erc7702/__generated__/MinimalAccount/events/Executed.js";
+import { sendAndConfirmTransaction } from "../../../../transaction/actions/send-and-confirm-transaction.js";
+import { prepareTransaction } from "../../../../transaction/prepare-transaction.js";
+import { inAppWallet } from "../in-app.js";
+describe("InAppWallet Integration Tests", () => {
+  it("should sign a message with backend strategy", async () => {
+    const wallet = inAppWallet();
+    const account = await wallet.connect({
+      client: TEST_CLIENT,
+      strategy: "backend",
+      walletSecret: "test-secret",
+    });
+    expect(account.address).toBeDefined();
+    const message = await account.signMessage({
+      message: "Hello, world!",
+    });
+    expect(message).toBeDefined();
+  });
+
+  it("should sign a message with guest strategy", async () => {
+    const wallet = inAppWallet();
+    const account = await wallet.connect({
+      client: TEST_CLIENT,
+      strategy: "guest",
+    });
+    expect(account.address).toBeDefined();
+    const message = await account.signMessage({
+      message: "Hello, world!",
+    });
+    expect(message).toBeDefined();
+  });
+
+  it("should sponsor gas for a 7702 smart account", async () => {
+    const chain = sepolia;
+    const wallet = inAppWallet({
+      executionMode: {
+        mode: "EIP7702",
+        sponsorGas: true,
+      },
+    });
+    const account = await wallet.connect({
+      client: TEST_CLIENT,
+      strategy: "guest",
+      chain,
+    });
+    expect(account.address).toBeDefined();
+    const tx = await sendAndConfirmTransaction({
+      transaction: prepareTransaction({
+        chain,
+        client: TEST_CLIENT,
+        to: account.address,
+        value: 0n,
+      }),
+      account,
+    });
+    expect(tx.transactionHash).toBeDefined();
+    const logs = parseEventLogs({
+      logs: tx.logs,
+      events: [executedEvent()],
+    });
+    const executedLog = logs[0];
+    if (!executedLog) {
+      throw new Error("No executed log found");
+    }
+    expect(executedLog.args.to).toBe(account.address);
+    expect(executedLog.args.value).toBe(0n);
+  });
+
+  it("should sponsor gas for a 4337 smart account", async () => {
+    const chain = sepolia;
+    const wallet = inAppWallet({
+      executionMode: {
+        mode: "EIP4337",
+        smartAccount: {
+          chain,
+          sponsorGas: true,
+        },
+      },
+    });
+    const account = await wallet.connect({
+      client: TEST_CLIENT,
+      strategy: "guest",
+      chain,
+    });
+    expect(account.address).toBeDefined();
+    const tx = await sendAndConfirmTransaction({
+      transaction: prepareTransaction({
+        chain,
+        client: TEST_CLIENT,
+        to: account.address,
+        value: 0n,
+      }),
+      account,
+    });
+    expect(tx.transactionHash).toBeDefined();
+    const logs = parseEventLogs({
+      logs: tx.logs,
+      events: [userOperationEventEvent()],
+    });
+    const executedLog = logs[0];
+    if (!executedLog) {
+      throw new Error("No executed log found");
+    }
+    expect(executedLog.args.sender).toBe(account.address);
+    expect(executedLog.args.success).toBe(true);
+  });
+});
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 2b8b1b07028..db7ab3124b8 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
@@ -1,5 +1,7 @@
 import type { ThirdwebClient } from "../../../../client/client.js";
 import { getThirdwebBaseUrl } from "../../../../utils/domains.js";
+import type { AsyncStorage } from "../../../../utils/storage/AsyncStorage.js";
+import { inMemoryStorage } from "../../../../utils/storage/inMemoryStorage.js";
 import { webLocalStorage } from "../../../../utils/storage/webStorage.js";
 import type { SocialAuthOption } from "../../../../wallets/types.js";
 import type { Account } from "../../../interfaces/wallet.js";
@@ -86,7 +88,7 @@ export class InAppWebConnector implements InAppConnector {
     this.ecosystem = ecosystem;
     this.passkeyDomain = passkeyDomain;
     this.storage = new ClientScopedStorage({
-      storage: storage ?? webLocalStorage,
+      storage: storage ?? getDefaultStorage(),
       clientId: client.clientId,
       ecosystem: ecosystem,
     });
@@ -489,3 +491,11 @@ export class InAppWebConnector implements InAppConnector {
 function assertUnreachable(x: never, message?: string): never {
   throw new Error(message ?? `Invalid param: ${x}`);
 }
+
+function getDefaultStorage(): AsyncStorage {
+  if (typeof window !== "undefined" && window.localStorage) {
+    return webLocalStorage;
+  }
+  // default to in-memory storage if we're not in the browser
+  return inMemoryStorage;
+}