diff --git a/skyvern/webeye/persistent_sessions_manager.py b/skyvern/webeye/persistent_sessions_manager.py
index bc262d828..e87bff3aa 100644
--- a/skyvern/webeye/persistent_sessions_manager.py
+++ b/skyvern/webeye/persistent_sessions_manager.py
@@ -53,7 +53,13 @@ async def create_session(
             organization_id=organization_id,
         )
 
-        browser_context.on("close", lambda: self.sessions[organization_id].pop(session_id))
+        def on_context_close():
+            if organization_id in self.sessions:
+                self.sessions[organization_id].pop(session_id, None)
+                if not self.sessions[organization_id]:
+                    self.sessions.pop(organization_id, None)
+
+        browser_context.on("close", on_context_close)
         
         browser_state = BrowserState(
             pw=pw,
diff --git a/skyvern/webeye/test_persistent_sessions_manager.py b/skyvern/webeye/test_persistent_sessions_manager.py
index dbb060954..96900519d 100644
--- a/skyvern/webeye/test_persistent_sessions_manager.py
+++ b/skyvern/webeye/test_persistent_sessions_manager.py
@@ -18,8 +18,21 @@ class MockBrowserContext(AsyncMock):
     def __init__(self, *args, **kwargs):
         super().__init__(*args, **kwargs)
         self.new_page = AsyncMock(return_value=MockPage())
-        self.close = AsyncMock()
         self.tracing = MagicMock(stop=AsyncMock())
+        self._close_callbacks = []
+        
+        async def close_with_event():
+            for callback in self._close_callbacks:
+                try:
+                    callback()
+                except Exception as e:
+                    print(f"Error in close callback: {e}")
+        self.close = AsyncMock(side_effect=close_with_event)
+
+    def on(self, event_name, callback):
+        if event_name == "close":
+            print(f"Registering close callback: {callback}")
+            self._close_callbacks.append(callback)
 
 
 class MockPlaywright(AsyncMock):
@@ -38,10 +51,11 @@ def __init__(self, *args, **kwargs):
 def mock_browser_factory():
     """Mock the entire BrowserContextFactory class to prevent any real browser operations"""
     with patch("skyvern.webeye.persistent_sessions_manager.BrowserContextFactory") as mock:
-        # Mock the static method
+        browser_context = MockBrowserContext()
+        
         mock.create_browser_context = AsyncMock(
             return_value=(
-                MockBrowserContext(),
+                browser_context,
                 MagicMock(
                     video_artifacts=[],
                     har_path=None,
@@ -62,14 +76,18 @@ def mock_playwright():
 
 
 @pytest.fixture
-def mock_browser_state_class():
+def mock_browser_state_class(mock_browser_factory):
     """Mock the BrowserState class itself"""
     with patch("skyvern.webeye.persistent_sessions_manager.BrowserState") as mock:
-        mock.return_value = MagicMock(spec=BrowserState)
-        mock.return_value.get_or_create_page = AsyncMock(return_value=MockPage())
-        mock.return_value.get_working_page = AsyncMock(return_value=MockPage())
-        mock.return_value.close = AsyncMock()
-        mock.return_value.page = MockPage()
+        mock_instance = MagicMock(spec=BrowserState)
+        mock_instance.get_or_create_page = AsyncMock(return_value=MockPage())
+        mock_instance.get_working_page = AsyncMock(return_value=MockPage())
+        mock_instance.close = AsyncMock()
+        mock_instance.page = MockPage()
+        mock_instance.browser_context = mock_browser_factory.create_browser_context.return_value[0]
+        
+        # Make the mock class return our configured instance
+        mock.return_value = mock_instance
         yield mock
 
 
@@ -165,4 +183,23 @@ async def test_multiple_organizations(sessions_manager):
     assert session_id1 in sessions_manager.get_active_session_ids(org_id1)
     assert session_id2 in sessions_manager.get_active_session_ids(org_id2)
     assert session_id1 not in sessions_manager.get_active_session_ids(org_id2)
-    assert session_id2 not in sessions_manager.get_active_session_ids(org_id1) 
\ No newline at end of file
+    assert session_id2 not in sessions_manager.get_active_session_ids(org_id1) 
+
+
+async def test_browser_context_close_removes_session(sessions_manager):
+    org_id = "test_org"
+    session_id, browser_state = await sessions_manager.create_session(
+        organization_id=org_id,
+        url="https://example.com"
+    )
+    
+    # Verify session exists
+    assert session_id in sessions_manager.get_active_session_ids(org_id)
+    
+    # Simulate browser context close event
+    await browser_state.browser_context.close()
+    
+    # Verify the session was removed
+    assert session_id not in sessions_manager.get_active_session_ids(org_id)
+    assert org_id not in sessions_manager.sessions
+