diff --git a/src/utils/utxo/index.ts b/src/utils/utxo/index.ts
index 7b6cf84a..18fae80b 100644
--- a/src/utils/utxo/index.ts
+++ b/src/utils/utxo/index.ts
@@ -2,7 +2,8 @@ import { postVerifyUtxoOrdinals, UtxoInfo } from "@/app/api/postFilterOrdinals";
 
 import { InscriptionIdentifier, UTXO } from "../wallet/wallet_provider";
 
-const LOW_VALUE_UTXO_THRESHOLD = 10000;
+export const LOW_VALUE_UTXO_THRESHOLD = 10000;
+export const WALLET_FETCH_INSRIPTIONS_TIMEOUT = 3000; // 3 seconds
 
 /**
  * Filters out UTXOs that contain ordinals.
@@ -34,7 +35,20 @@ export const filterOrdinals = async (
   // try to get the ordinals from the wallet first, if the wallet supports it
   // otherwise fallback to the Babylon API
   try {
-    const inscriptions = await getInscriptionsFromWalletCb();
+    const inscriptions = await Promise.race([
+      getInscriptionsFromWalletCb(),
+      new Promise<InscriptionIdentifier[]>((_, reject) =>
+        setTimeout(
+          () =>
+            reject(
+              new Error(
+                "Request timed out when fetching inscriptions from wallet",
+              ),
+            ),
+          WALLET_FETCH_INSRIPTIONS_TIMEOUT,
+        ),
+      ),
+    ]);
     // filter out the utxos that contains ordinals
     return utxos.filter(
       (utxo) =>
diff --git a/tests/utils/utox/utxo.test.ts b/tests/utils/utox/utxo.test.ts
index 04c0f950..174c4398 100644
--- a/tests/utils/utox/utxo.test.ts
+++ b/tests/utils/utox/utxo.test.ts
@@ -1,5 +1,5 @@
 import { postVerifyUtxoOrdinals } from "@/app/api/postFilterOrdinals";
-import { filterOrdinals } from "@/utils/utxo";
+import { filterOrdinals, WALLET_FETCH_INSRIPTIONS_TIMEOUT } from "@/utils/utxo";
 import { InscriptionIdentifier, UTXO } from "@/utils/wallet/wallet_provider";
 
 // Mock the dependencies
@@ -109,4 +109,29 @@ describe("filterOrdinals", () => {
 
     expect(result).toEqual(mockUtxos);
   });
+
+  it("should filter UTXOs using the API fallback when wallet callback times out", async () => {
+    const mockApiResponse = [
+      { txid: "txid1", vout: 0, inscription: true },
+      { txid: "txid2", vout: 1, inscription: false },
+      { txid: "txid3", vout: 2, inscription: false },
+    ];
+    const getInscriptionsFromWalletCb = jest.fn().mockImplementation(() => {
+      return new Promise((resolve) =>
+        setTimeout(resolve, WALLET_FETCH_INSRIPTIONS_TIMEOUT + 1000),
+      );
+    });
+
+    (postVerifyUtxoOrdinals as jest.Mock).mockResolvedValue(mockApiResponse);
+
+    const result = await filterOrdinals(
+      mockUtxos,
+      address,
+      getInscriptionsFromWalletCb,
+    );
+
+    expect(getInscriptionsFromWalletCb).toHaveBeenCalledTimes(1);
+    expect(postVerifyUtxoOrdinals).toHaveBeenCalledWith(mockUtxos, address);
+    expect(result).toEqual([mockUtxos[1], mockUtxos[2]]);
+  });
 });