diff --git a/src/modules/commander/failsafe/failsafe.cpp b/src/modules/commander/failsafe/failsafe.cpp
index 037572cb9763..b2927e5703bf 100644
--- a/src/modules/commander/failsafe/failsafe.cpp
+++ b/src/modules/commander/failsafe/failsafe.cpp
@@ -40,6 +40,13 @@
 
 using namespace time_literals;
 
+static bool manualControlFallbackAction(FailsafeBase::Action action)
+{
+	return action == FailsafeBase::Action::FallbackPosCtrl
+	       || action == FailsafeBase::Action::FallbackAltCtrl
+	       || action == FailsafeBase::Action::FallbackStab;
+}
+
 FailsafeBase::ActionOptions Failsafe::fromNavDllOrRclActParam(int param_value)
 {
 	ActionOptions options{};
@@ -729,14 +736,6 @@ FailsafeBase::Action Failsafe::checkModeFallback(const failsafe_flags_s &status_
 			return action;
 		}
 
-		if (action == Action::FallbackPosCtrl || action == Action::FallbackAltCtrl || action == Action::FallbackStab) {
-			// Check if RC is available, if not use the mode specified in NAV_RCL_ACT
-			if (status_flags.manual_control_signal_lost) {
-				ActionOptions rc_loss_action = fromNavDllOrRclActParam(_param_nav_rcl_act.get());
-				action = rc_loss_action.action;
-			}
-
-		}
 	}
 
 	// PosCtrl/PositionSlow -> AltCtrl
@@ -754,6 +753,10 @@ FailsafeBase::Action Failsafe::checkModeFallback(const failsafe_flags_s &status_
 		user_intended_mode = vehicle_status_s::NAVIGATION_STATE_STAB;
 	}
 
+	if (status_flags.manual_control_signal_lost && manualControlFallbackAction(action)) {
+		action = manualControlLossFallbackAction();
+	}
+
 	// Last, check can_run for intended mode
 	if (!modeCanRun(status_flags, user_intended_mode)) {
 		action = Action::RTL;
diff --git a/src/modules/commander/failsafe/failsafe.h b/src/modules/commander/failsafe/failsafe.h
index f17cd2c1510c..8a0e506e50fe 100644
--- a/src/modules/commander/failsafe/failsafe.h
+++ b/src/modules/commander/failsafe/failsafe.h
@@ -189,6 +189,8 @@ class Failsafe : public FailsafeBase
 
 	static bool isFailsafeIgnored(uint8_t user_intended_mode, int32_t exception_mask_parameter);
 
+	Action manualControlLossFallbackAction() const { return fromNavDllOrRclActParam(_param_nav_rcl_act.get()).action; }
+
 	const int _caller_id_mode_fallback{genCallerId()};
 	bool _last_state_mode_fallback{false};
 	const int _caller_id_mission_control_lost{genCallerId()};
diff --git a/src/modules/commander/failsafe/failsafe_test.cpp b/src/modules/commander/failsafe/failsafe_test.cpp
index 81eba458ae81..19854641309f 100644
--- a/src/modules/commander/failsafe/failsafe_test.cpp
+++ b/src/modules/commander/failsafe/failsafe_test.cpp
@@ -33,6 +33,7 @@
 
 #include <gtest/gtest.h>
 
+#include "failsafe.h"
 #include "framework.h"
 #include <uORB/topics/vehicle_status.h>
 #include "../ModeUtil/mode_requirements.hpp"
@@ -562,3 +563,98 @@ TEST_F(FailsafeTest, user_termination)
 	EXPECT_EQ(updated_user_intented_mode, state.user_intended_mode);
 	EXPECT_EQ(failsafe.selectedAction(), FailsafeBase::Action::Terminate);
 }
+
+TEST_F(FailsafeTest, fallback_altitude_requires_manual_control)
+{
+	int nav_rcl_act = 2;
+	param_set(param_handle(px4::params::NAV_RCL_ACT), &nav_rcl_act);
+
+	Failsafe failsafe(nullptr);
+
+	failsafe_flags_s failsafe_flags{};
+	mode_util::getModeRequirements(vehicle_status_s::VEHICLE_TYPE_ROTARY_WING, failsafe_flags);
+	failsafe_flags.manual_control_signal_lost = true;
+
+	FailsafeBase::State state{};
+	state.user_intended_mode = vehicle_status_s::NAVIGATION_STATE_POSCTL;
+	state.vehicle_type = vehicle_status_s::VEHICLE_TYPE_ROTARY_WING;
+	hrt_abstime time = 5_s;
+
+	// If arming was allowed without manual control, RC loss is ignored until manual control returns.
+	failsafe.update(time, state, false, false, failsafe_flags);
+
+	state.armed = true;
+	time += 10_ms;
+	failsafe.update(time, state, false, false, failsafe_flags);
+	ASSERT_EQ(failsafe.selectedAction(), FailsafeBase::Action::None);
+
+	// Losing position in PosCtl would normally fall back to AltCtl, but AltCtl needs manual control.
+	failsafe_flags.local_position_invalid_relaxed = true;
+	time += 10_ms;
+	failsafe.update(time, state, false, false, failsafe_flags);
+	EXPECT_EQ(failsafe.selectedAction(), FailsafeBase::Action::RTL);
+}
+
+TEST_F(FailsafeTest, fallback_altitude_uses_nav_rcl_act_param)
+{
+	int nav_rcl_act = 5;
+	param_set(param_handle(px4::params::NAV_RCL_ACT), &nav_rcl_act);
+
+	Failsafe failsafe(nullptr);
+
+	failsafe_flags_s failsafe_flags{};
+	mode_util::getModeRequirements(vehicle_status_s::VEHICLE_TYPE_ROTARY_WING, failsafe_flags);
+	failsafe_flags.manual_control_signal_lost = true;
+
+	FailsafeBase::State state{};
+	state.user_intended_mode = vehicle_status_s::NAVIGATION_STATE_POSCTL;
+	state.vehicle_type = vehicle_status_s::VEHICLE_TYPE_ROTARY_WING;
+	hrt_abstime time = 5_s;
+
+	// If arming was allowed without manual control, RC loss is ignored until manual control returns.
+	failsafe.update(time, state, false, false, failsafe_flags);
+
+	state.armed = true;
+	time += 10_ms;
+	failsafe.update(time, state, false, false, failsafe_flags);
+	ASSERT_EQ(failsafe.selectedAction(), FailsafeBase::Action::None);
+
+	// Losing position in PosCtl triggers the manual-control fallback, which should use NAV_RCL_ACT.
+	failsafe_flags.local_position_invalid_relaxed = true;
+	time += 10_ms;
+	failsafe.update(time, state, false, false, failsafe_flags);
+	EXPECT_EQ(failsafe.selectedAction(), FailsafeBase::Action::Terminate);
+}
+
+TEST_F(FailsafeTest, fallback_stabilized_requires_manual_control)
+{
+	int nav_rcl_act = 2;
+	param_set(param_handle(px4::params::NAV_RCL_ACT), &nav_rcl_act);
+
+	Failsafe failsafe(nullptr);
+
+	failsafe_flags_s failsafe_flags{};
+	mode_util::getModeRequirements(vehicle_status_s::VEHICLE_TYPE_ROTARY_WING, failsafe_flags);
+	failsafe_flags.manual_control_signal_lost = true;
+
+	FailsafeBase::State state{};
+	state.user_intended_mode = vehicle_status_s::NAVIGATION_STATE_ALTCTL;
+	state.vehicle_type = vehicle_status_s::VEHICLE_TYPE_ROTARY_WING;
+	hrt_abstime time = 5_s;
+
+	// If arming was allowed without manual control, RC loss is ignored until manual control returns.
+	failsafe.update(time, state, false, false, failsafe_flags);
+
+	state.armed = true;
+	time += 10_ms;
+	failsafe.update(time, state, false, false, failsafe_flags);
+	ASSERT_EQ(failsafe.selectedAction(), FailsafeBase::Action::None);
+
+	// Losing altitude in AltCtl would normally fall back to Stabilized, but Stabilized needs manual control.
+	failsafe_flags.local_altitude_invalid = true;
+	time += 10_ms;
+	failsafe.update(time, state, false, false, failsafe_flags);
+	// checkModeFallback returns RTL from NAV_RCL_ACT. The framework then cascades RTL -> Land -> Descend
+	// because local altitude loss blocks both AUTO_RTL and AUTO_LAND.
+	EXPECT_EQ(failsafe.selectedAction(), FailsafeBase::Action::Descend);
+}