diff --git a/cmd/ateapi/internal/controlapi/volumes.go b/cmd/ateapi/internal/controlapi/volumes.go
index 161c74e8c..65a5b5987 100644
--- a/cmd/ateapi/internal/controlapi/volumes.go
+++ b/cmd/ateapi/internal/controlapi/volumes.go
@@ -19,6 +19,7 @@ import (
 	"errors"
 	"fmt"
 	"log/slog"
+	"time"
 
 	"github.com/agent-substrate/substrate/cmd/ateapi/internal/store"
 	"github.com/agent-substrate/substrate/internal/volume"
@@ -52,7 +53,10 @@ func (s *Service) createActorVolumes(ctx context.Context, ref *ateapipb.ObjectRe
 			storageVolumeID, err := getVolumePlugin().CreateVolume(ctx, uniqueVolName, vol.ExternalVolumeTemplate.Capacity.String(), vol.ExternalVolumeTemplate.StorageClassName)
 			if err != nil {
 				// TODO: need better system - best effort cleanup of already created volumes
-				_ = s.deleteActorVolumes(ctx, ref, volumes)
+				// use a fresh timeout so cleanup still runs if ctx is why CreateVolume failed
+				cleanupCtx, cancel := context.WithTimeout(context.WithoutCancel(ctx), 30*time.Second)
+				_ = s.deleteActorVolumes(cleanupCtx, ref, volumes)
+				cancel()
 				return nil, status.Errorf(codes.Internal, "failed to create volume %q: %v", vol.Name, err)
 			}
 			volumes = append(volumes, &ateapipb.ExternalVolume{