diff --git a/api/core/virtual_environment/providers/docker_daemon_sandbox.py b/api/core/virtual_environment/providers/docker_daemon_sandbox.py
index fd390649ed..14020064ce 100644
--- a/api/core/virtual_environment/providers/docker_daemon_sandbox.py
+++ b/api/core/virtual_environment/providers/docker_daemon_sandbox.py
@@ -7,7 +7,7 @@ from enum import IntEnum, StrEnum
 from functools import lru_cache
 from io import BytesIO
 from pathlib import PurePosixPath
-from queue import Queue
+from queue import Empty, Queue
 from typing import Any, cast
 from uuid import uuid4
 
@@ -65,9 +65,15 @@ class DockerDemuxer:
     to thread-safe queues. This avoids race conditions where multiple threads
     calling _read_next_frame() simultaneously caused frame header/body corruption,
     resulting in incomplete stdout/stderr output.
+
+    TIMEOUT HANDLING:
+    Queue.get() uses a timeout to prevent indefinite blocking when the socket is
+    closed unexpectedly (e.g., container removed). This allows periodic checks for
+    error conditions and closed state.
     """
 
     _HEADER_SIZE = 8
+    _QUEUE_GET_TIMEOUT = 5.0  # seconds
 
     def __init__(self, sock: socket.SocketIO):
         self._sock = sock
@@ -132,15 +138,31 @@ class DockerDemuxer:
         return self._read_from_queue(self._stderr_queue)
 
     def _read_from_queue(self, queue: Queue[bytes | None]) -> bytes:
+        """
+        Read from queue with timeout to prevent indefinite blocking.
+
+        When the Docker container is removed or the socket is closed unexpectedly,
+        the demux thread may be stuck in socket.read(). Using a timeout allows us
+        to periodically check for errors and closed state instead of blocking forever.
+        """
         if self._error:
             raise TransportEOFError(f"Demuxer error: {self._error}") from self._error
 
-        chunk = queue.get()
-        if chunk is None:
-            if self._error:
-                raise TransportEOFError(f"Demuxer error: {str(self._error)}")
-            raise TransportEOFError("End of demuxed stream")
-        return chunk
+        while True:
+            try:
+                chunk = queue.get(timeout=self._QUEUE_GET_TIMEOUT)
+                if chunk is None:
+                    if self._error:
+                        raise TransportEOFError(f"Demuxer error: {str(self._error)}")
+                    raise TransportEOFError("End of demuxed stream")
+                return chunk
+            except Empty:
+                # Timeout - check if we should continue waiting
+                if self._closed:
+                    raise TransportEOFError("Demuxer closed")
+                if self._error:
+                    raise TransportEOFError(f"Demuxer error: {self._error}") from self._error
+                # No error, continue waiting
 
     def close(self) -> None:
         if not self._closed: