diff --git a/Cargo.lock b/Cargo.lock
index 3e9b3f309..62d42714d 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -8604,7 +8604,6 @@ dependencies = [
  "sp-runtime 24.0.0 (git+https://github.com/pendulum-chain/polkadot-sdk?rev=22dd6dee5148a0879306337bd8619c16224cc07b)",
  "sp-std 8.0.0 (git+https://github.com/pendulum-chain/polkadot-sdk?rev=22dd6dee5148a0879306337bd8619c16224cc07b)",
  "staging-xcm",
- "staging-xcm-executor",
 ]
 
 [[package]]
diff --git a/pallets/xcm-teleport/Cargo.toml b/pallets/xcm-teleport/Cargo.toml
index c5b4ad131..ddcddefec 100644
--- a/pallets/xcm-teleport/Cargo.toml
+++ b/pallets/xcm-teleport/Cargo.toml
@@ -16,7 +16,6 @@ sp-runtime = { workspace = true }
 sp-std = { workspace = true }
 
 xcm = { workspace = true }
-staging-xcm-executor = { workspace = true }
 
 # benchmarking
 frame-benchmarking = { workspace = true, optional = true }
@@ -29,7 +28,6 @@ runtime-benchmarks = [
 	"frame-support/runtime-benchmarks",
 	"frame-system/runtime-benchmarks",
 	"sp-runtime/runtime-benchmarks",
-	"staging-xcm-executor/runtime-benchmarks",
 ]
 std = [
 	"frame-support/std",
@@ -40,7 +38,6 @@ std = [
 	"sp-runtime/std",
 	"sp-std/std",
 	"xcm/std",
-	"staging-xcm-executor/std",
 	"frame-benchmarking?/std",
 ]
 try-runtime = [
diff --git a/pallets/xcm-teleport/src/lib.rs b/pallets/xcm-teleport/src/lib.rs
index 1545398cf..28f12cec0 100644
--- a/pallets/xcm-teleport/src/lib.rs
+++ b/pallets/xcm-teleport/src/lib.rs
@@ -47,7 +47,6 @@ pub mod pallet {
 		traits::{Currency, ExistenceRequirement, WithdrawReasons},
 	};
 	use frame_system::pallet_prelude::*;
-	use sp_std::vec;
 	use xcm::v3::{
 		prelude::*, Instruction, Junction, Junctions, MultiAsset, MultiAssetFilter, MultiAssets,
 		MultiLocation, SendXcm, WeightLimit, WildFungibility, WildMultiAsset, Xcm,
@@ -172,15 +171,17 @@ pub mod pallet {
 				.try_into()
 				.map_err(|_| Error::<T>::AmountConversionFailed)?;
 
-			// 1. Withdraw and burn native tokens from the sender's account.
-			//    Dropping the NegativeImbalance burns the tokens (reduces total issuance).
-			let _imbalance = T::Currency::withdraw(
+			// 1. Withdraw native tokens from the sender's account.
+			//    We keep the imbalance and only burn it after successful XCM delivery.
+			//    If validation or delivery fails locally, we refund the tokens back to the sender.
+			//    Note: If the message is delivered but fails during execution on AssetHub,
+			//    the tokens are still burned (remote execution failures cannot be detected here).
+			let imbalance = T::Currency::withdraw(
 				&sender,
 				amount,
 				WithdrawReasons::TRANSFER,
 				ExistenceRequirement::AllowDeath,
 			)?;
-			// _imbalance is dropped here → tokens are burned
 
 			// 2. Construct the remote XCM message for AssetHub.
 			let fee_asset_location = T::FeeAssetOnDest::get();
@@ -245,22 +246,31 @@ pub mod pallet {
 				asset_hub, amount_u128, fee_amount,
 			);
 
-			let (ticket, _price) = T::XcmRouter::validate(&mut Some(asset_hub), &mut Some(message))
-				.map_err(|e| {
+			let (ticket, _price) = match T::XcmRouter::validate(&mut Some(asset_hub), &mut Some(message)) {
+				Ok(result) => result,
+				Err(e) => {
 					log::error!(
 						target: "xcm-teleport",
 						"Failed to validate XCM message: {:?}", e
 					);
-					Error::<T>::XcmSendFailed
-				})?;
+					// Refund the withdrawn tokens back to the sender
+					T::Currency::resolve_creating(&sender, imbalance);
+					return Err(Error::<T>::XcmSendFailed.into());
+				},
+			};
 
-			T::XcmRouter::deliver(ticket).map_err(|e| {
+			if let Err(e) = T::XcmRouter::deliver(ticket) {
 				log::error!(
 					target: "xcm-teleport",
 					"Failed to deliver XCM message: {:?}", e
 				);
-				Error::<T>::XcmSendFailed
-			})?;
+				// Refund the withdrawn tokens back to the sender
+				T::Currency::resolve_creating(&sender, imbalance);
+				return Err(Error::<T>::XcmSendFailed.into());
+			}
+
+			// Drop the imbalance to burn the tokens (successful teleport)
+			drop(imbalance);
 
 			// 4. Emit event
 			Self::deposit_event(Event::NativeTeleportedToAssetHub {
diff --git a/runtime/pendulum/src/xcm_config.rs b/runtime/pendulum/src/xcm_config.rs
index 93693a974..c323fa10d 100644
--- a/runtime/pendulum/src/xcm_config.rs
+++ b/runtime/pendulum/src/xcm_config.rs
@@ -335,7 +335,7 @@ impl staging_xcm_executor::Config for XcmConfig {
 	type AssetTransactor = LocalAssetTransactor;
 	type OriginConverter = XcmOriginToTransactDispatchOrigin;
 	type IsReserve = MultiNativeAsset<RelativeReserveProvider>;
-	// Teleporting is disabled.
+	// Teleporting is restricted to assets/origins defined in TrustedTeleporters.
 	type IsTeleporter = TrustedTeleporters;
 	type UniversalLocation = UniversalLocation;
 	type Barrier = Barrier;