diff --git a/dashcaddy-api/__tests__/credential-manager.test.js b/dashcaddy-api/__tests__/credential-manager.test.js
index de42924..b3faf8b 100644
--- a/dashcaddy-api/__tests__/credential-manager.test.js
+++ b/dashcaddy-api/__tests__/credential-manager.test.js
@@ -15,6 +15,8 @@ jest.mock('../src/security/crypto-utils', () => ({
   isEncrypted: jest.fn(data => typeof data === 'string' && data.startsWith('enc:')),
   loadOrCreateKey: jest.fn(() => Buffer.alloc(32, 'k')),
   rotateKey: jest.fn(() => ({ oldKey: Buffer.alloc(32, 'k'), newKey: Buffer.alloc(32, 'n') })),
+  // DC-107 rollback support – restore old key in-process after a failed write
+  restoreKey: jest.fn(() => true),
 }));
 
 jest.mock('proper-lockfile', () => ({
@@ -357,6 +359,44 @@ describe('CredentialManager', () => {
       lockfile.lock.mockRejectedValue(new Error('nope'));
       const result = await credentialManager.rotateEncryptionKey();
       expect(result).toBe(false);
+      // DC-107: failure before rotateKey() must NOT trigger a rollback
+      expect(cryptoUtils.restoreKey).not.toHaveBeenCalled();
+    });
+
+    it('rolls back the encryption key when the rotated write fails (DC-107)', async () => {
+      const releaseFn = jest.fn().mockResolvedValue();
+      lockfile.lock.mockResolvedValue(releaseFn);
+      fs.readFileSync.mockReturnValue(JSON.stringify({
+        'key1': { value: 'enc:tag:' + Buffer.from('secret1').toString('base64'), metadata: {} }
+      }));
+      // atomicWriteJSON fails at the rename step, AFTER rotateKey() already
+      // swapped the on-disk key and in-memory cache
+      fs.renameSync.mockImplementationOnce(() => { throw new Error('EIO: rename'); });
+
+      const result = await credentialManager.rotateEncryptionKey();
+
+      expect(result).toBe(false);
+      expect(cryptoUtils.rotateKey).toHaveBeenCalled();
+      const expectedOldHex = Buffer.alloc(32, 'k').toString('hex');
+      expect(cryptoUtils.restoreKey).toHaveBeenCalledTimes(1);
+      expect(cryptoUtils.restoreKey).toHaveBeenCalledWith(expectedOldHex);
+      expect(releaseFn).toHaveBeenCalled(); // lock still released
+    });
+
+    it('returns false without crashing when the rollback itself fails (DC-107)', async () => {
+      const releaseFn = jest.fn().mockResolvedValue();
+      lockfile.lock.mockResolvedValue(releaseFn);
+      fs.readFileSync.mockReturnValue(JSON.stringify({
+        'key1': { value: 'enc:tag:' + Buffer.from('secret1').toString('base64'), metadata: {} }
+      }));
+      fs.renameSync.mockImplementationOnce(() => { throw new Error('EIO: rename'); });
+      cryptoUtils.restoreKey.mockImplementationOnce(() => { throw new Error('rollback ENOSPC'); });
+
+      const result = await credentialManager.rotateEncryptionKey();
+
+      expect(result).toBe(false);
+      expect(cryptoUtils.restoreKey).toHaveBeenCalledTimes(1);
+      expect(releaseFn).toHaveBeenCalled(); // lock released even on double failure
     });
   });
 
diff --git a/dashcaddy-api/src/managers/credential-manager.js b/dashcaddy-api/src/managers/credential-manager.js
index d4f9e45..0a5719f 100644
--- a/dashcaddy-api/src/managers/credential-manager.js
+++ b/dashcaddy-api/src/managers/credential-manager.js
@@ -176,6 +176,7 @@ class CredentialManager {
    */
   async rotateEncryptionKey() {
     let release;
+    let oldKey = null; // DC-107: hoisted so the catch can roll back
     try {
       log.info('cred', 'Starting encryption key rotation');
 
@@ -203,7 +204,7 @@ class CredentialManager {
       }
 
       // Generate new key (this replaces the cached key and saves to disk)
-      const { oldKey } = cryptoUtils.rotateKey();
+      ({ oldKey } = cryptoUtils.rotateKey());
 
       // Re-encrypt all credentials with the new key
       const rotated = {};
@@ -225,6 +226,24 @@ class CredentialManager {
       log.info('cred', 'Rotated credentials', { count: keys.length });
       return true;
     } catch (error) {
+      // DC-107: in-process rollback — the write above failed after rotateKey()
+      // already swapped the on-disk key and in-memory cache. Restore the old
+      // key so this process keeps running with a key that can still read the
+      // on-disk credentials.json. (Hard-crash window between rotateKey() and
+      // the atomic write is covered separately by the startup .bak fallback
+      // in crypto-utils.loadOrCreateKey.)
+      if (oldKey) {
+        try {
+          cryptoUtils.restoreKey(oldKey.toString('hex'));
+          log.warn('cred', 'Rolled back encryption key after write failure');
+        } catch (rollbackError) {
+          // If THIS write fails too (or we hard-crash mid-rollback), restart
+          // recovery is covered by the startup .bak fallback in
+          // crypto-utils.loadOrCreateKey (KEY_FILE+.bak still holds the old
+          // key from rotateKey's pre-swap save).
+          log.error('cred', rollbackError, { operation: 'rotate-rollback' });
+        }
+      }
       log.error('cred', error, { operation: 'rotate' });
       return false;
     } finally {
diff --git a/dashcaddy-api/src/security/crypto-utils.js b/dashcaddy-api/src/security/crypto-utils.js
index e27df30..a370a68 100644
--- a/dashcaddy-api/src/security/crypto-utils.js
+++ b/dashcaddy-api/src/security/crypto-utils.js
@@ -424,6 +424,27 @@ function clearCachedKey() {
   encryptionKey = null;
 }
 
+/**
+ * Restore the encryption key to a previous value (in-process rollback).
+ * Writes `oldKeyHex` back to KEY_FILE atomically (DC-107: same canonical
+ * atomic-write path as every other state file — tmp + fsync + rename, mode
+ * 0600) and clears the cached key so the next operation reloads from disk.
+ * Used when a write (e.g. atomicWriteJSON of rotated credentials) fails
+ * after rotateKey() has already swapped the on-disk key and in-memory cache.
+ * @param {string} oldKeyHex - Previous key as hex string (32 bytes = 64 hex chars)
+ * @returns {string} the final path (KEY_FILE)
+ * @throws {Error} If oldKeyHex is not a 64-char hex string or the write fails
+ */
+function restoreKey(oldKeyHex) {
+  if (typeof oldKeyHex !== 'string' || !/^[0-9a-fA-F]{64}$/.test(oldKeyHex)) {
+    throw new Error('restoreKey: expected 64-char hex string (32-byte key)');
+  }
+  const { atomicWriteFile } = require('../utils/atomic-write');
+  atomicWriteFile(KEY_FILE, oldKeyHex, { mode: 0o600 });
+  clearCachedKey();
+  return KEY_FILE;
+}
+
 module.exports = {
   encrypt,
   decrypt,
@@ -437,5 +458,6 @@ module.exports = {
   deriveKey,
   rotateKey,
   decryptWithKey,
-  clearCachedKey
+  clearCachedKey,
+  restoreKey
 };