diff --git a/system/inc/system_task.h b/system/inc/system_task.h
index ca37f55cac..c15a273df1 100644
--- a/system/inc/system_task.h
+++ b/system/inc/system_task.h
@@ -57,6 +57,7 @@ extern volatile uint32_t TimingFlashUpdateTimeout;
 
 extern volatile uint8_t SPARK_WLAN_RESET;
 extern volatile uint8_t SPARK_WLAN_SLEEP;
+extern volatile uint8_t SPARK_WLAN_CONNECT_RESTORE;
 extern volatile uint8_t SPARK_WLAN_STARTED;
 extern volatile uint8_t SPARK_CLOUD_SOCKETED;
 extern volatile uint8_t SPARK_CLOUD_CONNECTED;
diff --git a/system/src/system_network_compat.cpp b/system/src/system_network_compat.cpp
index f26ecc33c3..a5f570f461 100644
--- a/system/src/system_network_compat.cpp
+++ b/system/src/system_network_compat.cpp
@@ -40,6 +40,7 @@ uint32_t wlan_watchdog_duration = 0;
 
 volatile uint8_t SPARK_WLAN_RESET = 0;
 volatile uint8_t SPARK_WLAN_SLEEP = 0;
+volatile uint8_t SPARK_WLAN_CONNECT_RESTORE = 0;
 volatile uint8_t SPARK_WLAN_STARTED = 0;
 
 
@@ -248,6 +249,7 @@ void manage_network_connection()
         {
             WARN("Resetting WLAN due to %s", (WLAN_WD_TO()) ? "WLAN_WD_TO()":((SPARK_WLAN_RESET) ? "SPARK_WLAN_RESET" : "SPARK_WLAN_SLEEP"));
             auto was_sleeping = SPARK_WLAN_SLEEP;
+            SPARK_WLAN_CONNECT_RESTORE = network_ready(0, 0, 0) || network_connecting(0, 0, 0);
             //auto was_disconnected = network.manual_disconnect();
             // Note: The cloud connectivity layer may "detect" an unanticipated network disconnection
             // before the networking layer, and due to current recovery logic, which resets the network,
@@ -264,9 +266,18 @@ void manage_network_connection()
     }
     else
     {
-        if (!SPARK_WLAN_STARTED || (spark_cloud_flag_auto_connect() && !network_ready(0, 0, 0)))
-        {
-            // INFO("Network Connect: %s", (!SPARK_WLAN_STARTED) ? "!SPARK_WLAN_STARTED" : "SPARK_CLOUD_CONNECT && !network.ready()");
+        if (!SPARK_WLAN_STARTED) {
+            // INFO("Network On: !SPARK_WLAN_STARTED");
+            network_on(0, 0, 0, 0);
+        }
+
+        if ((SPARK_WLAN_CONNECT_RESTORE || spark_cloud_flag_auto_connect()) && !network_ready(0, 0, 0)) {
+            // INFO("Network Connect:%s%s", (SPARK_WLAN_CONNECT_RESTORE ? " SPARK_WLAN_CONNECT_RESTORE" : " "),
+            //                              (spark_cloud_flag_auto_connect() ? " spark_cloud_flag_auto_connect()" : " "));
+
+            // XXX: If the auto-connect flag is not set, we used to only call network_connect() once here,
+            // even if it failed to connect to network for whatever reason. So we should clear the flag here.
+            SPARK_WLAN_CONNECT_RESTORE = 0;
             network_connect(0, 0, 0, 0);
         } else {
             nif(0).process();
diff --git a/system/src/system_network_internal.h b/system/src/system_network_internal.h
index a2a0c516d9..b33827cf89 100644
--- a/system/src/system_network_internal.h
+++ b/system/src/system_network_internal.h
@@ -43,6 +43,7 @@ enum eWanTimings
 
 extern volatile uint8_t SPARK_WLAN_RESET;
 extern volatile uint8_t SPARK_WLAN_SLEEP;
+extern volatile uint8_t SPARK_WLAN_CONNECT_RESTORE;
 extern volatile uint8_t SPARK_WLAN_STARTED;
 
 extern uint32_t wlan_watchdog_duration;
diff --git a/system/src/system_network_manager_api.cpp b/system/src/system_network_manager_api.cpp
index 3adb6c38ac..3f33a6fb27 100644
--- a/system/src/system_network_manager_api.cpp
+++ b/system/src/system_network_manager_api.cpp
@@ -48,6 +48,7 @@ uint32_t wlan_watchdog_duration;
 /* FIXME */
 volatile uint8_t SPARK_WLAN_RESET;
 volatile uint8_t SPARK_WLAN_SLEEP;
+volatile uint8_t SPARK_WLAN_CONNECT_RESTORE;
 volatile uint8_t SPARK_WLAN_STARTED;
 extern int cfod_count;
 
diff --git a/system/src/system_sleep.cpp b/system/src/system_sleep.cpp
index 1ab0eae4bc..1827aa47ae 100644
--- a/system/src/system_sleep.cpp
+++ b/system/src/system_sleep.cpp
@@ -60,11 +60,11 @@ network_status_t system_sleep_network_suspend(network_interface_index index) {
     status.suspended = true;
 
     // Disconnect from network
-    if (network_connecting(index, 0, NULL) || network_ready(index, 0, NULL)) {
-        if (network_connecting(index, 0, NULL)) {
+    if (network_connecting(index, 0, nullptr) || network_ready(index, 0, nullptr)) {
+        if (network_connecting(index, 0, nullptr)) {
             network_connect_cancel(index, 1, 0, 0);
         }
-        network_disconnect(index, NETWORK_DISCONNECT_REASON_SLEEP, NULL);
+        network_disconnect(index, NETWORK_DISCONNECT_REASON_SLEEP, nullptr);
         status.connected = true;
     }
 
@@ -101,9 +101,12 @@ int system_sleep_network_resume(network_interface_index index, network_status_t
      * if single threaded, or this function is invoked synchronously by the system thread if system threading
      * is enabled. In both case, that would block the user application. Setting a flag here to unblock the user
      * application and restore the connection later. */
-    if (status.on || status.connected) {
+    if (status.on) {
         SPARK_WLAN_SLEEP = 0;
     }
+    if (status.connected) {
+        SPARK_WLAN_CONNECT_RESTORE = 1;
+    }
 #else
     if (status.on) {
         network_on(index, 0, 0, nullptr);
@@ -254,7 +257,7 @@ int system_sleep_ext(const hal_sleep_config_t* config, hal_wakeup_source_base_t*
 #if HAL_PLATFORM_GEN == 2
     // Cancel current connection attempt to unblock the system thread
     // on Gen 2 platforms
-    if (network_connecting(NETWORK_INTERFACE_ALL, 0, NULL)) {
+    if (network_connecting(NETWORK_INTERFACE_ALL, 0, nullptr)) {
         network_connect_cancel(NETWORK_INTERFACE_ALL, 1, 0, 0);
     }
 #endif // HAL_PLATFORM_GEN == 2
diff --git a/system/src/system_sleep_compat.cpp b/system/src/system_sleep_compat.cpp
index cb136557b0..5f02ec3d54 100644
--- a/system/src/system_sleep_compat.cpp
+++ b/system/src/system_sleep_compat.cpp
@@ -52,20 +52,27 @@ static void network_suspend() {
 
     wakeupState.cloud = spark_cloud_flag_auto_connect();
     wakeupState.wifi = !SPARK_WLAN_SLEEP;
-    wakeupState.wifiConnected = wakeupState.cloud || network_ready(0, 0, NULL) || network_connecting(0, 0, NULL);
+    wakeupState.wifiConnected = wakeupState.cloud || network_ready(0, 0, nullptr) || network_connecting(0, 0, nullptr);
     // Disconnect the cloud and the network
-    network_disconnect(0, NETWORK_DISCONNECT_REASON_SLEEP, NULL);
+    network_disconnect(0, NETWORK_DISCONNECT_REASON_SLEEP, nullptr);
     // Clear the auto connect status
     spark_cloud_flag_disconnect();
-    network_off(0, 0, 0, NULL);
+    network_off(0, 0, 0, nullptr);
 }
 
 static void network_resume() {
-    // Set the system flags that triggers the wifi/cloud reconnection in the background loop
-    if (wakeupState.wifiConnected || wakeupState.wifi)  // at present, no way to get the background loop to only turn on wifi.
+    if (wakeupState.wifi) {
         SPARK_WLAN_SLEEP = 0;
-    if (wakeupState.cloud)
+    }
+    // Gen2-only: Set the system flags that triggers the wifi/cloud reconnection in the background loop
+    // FIXME: Gen3 won't automatically restore the modem state and network connection if cloud auto-connect flag is not set.
+    // See manage_network_connection() in system_network_manager_api.cpp.
+    if (wakeupState.wifiConnected) {
+        SPARK_WLAN_CONNECT_RESTORE = 1;
+    }
+    if (wakeupState.cloud) {
         spark_cloud_flag_connect();
+    }
 }
 
 /*******************************************************************************
@@ -205,8 +212,8 @@ int system_sleep_impl(Spark_Sleep_TypeDef sleepMode, long seconds, uint32_t para
 #if HAL_PLATFORM_SETUP_BUTTON_UX
         case SLEEP_MODE_SOFTPOWEROFF:
             if (!networkTurnedOff) {
-                network_disconnect(0, NETWORK_DISCONNECT_REASON_SLEEP, NULL);
-                network_off(0, 0, 0, NULL);
+                network_disconnect(0, NETWORK_DISCONNECT_REASON_SLEEP, nullptr);
+                network_off(0, 0, 0, nullptr);
             }
             return system_sleep_enter_standby_compat(seconds, param);
 #endif