diff --git a/internal/auth/streaming/pool_hook.go b/internal/auth/streaming/pool_hook.go
index b29d7905..f9b9dd2c 100644
--- a/internal/auth/streaming/pool_hook.go
+++ b/internal/auth/streaming/pool_hook.go
@@ -200,7 +200,7 @@ func (r *ReAuthPoolHook) OnPut(_ context.Context, conn *pool.Conn) (bool, bool,
 					// This ensures we only acquire connections that are not actively in use
 					stateMachine := conn.GetStateMachine()
 					if stateMachine != nil {
-						err := stateMachine.TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
+						_, err := stateMachine.TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
 						if err == nil {
 							// Successfully acquired: connection was IDLE, now UNUSABLE
 							acquired = true
diff --git a/internal/auth/streaming/pool_hook_state_test.go b/internal/auth/streaming/pool_hook_state_test.go
index 3160f0f5..a4cfc328 100644
--- a/internal/auth/streaming/pool_hook_state_test.go
+++ b/internal/auth/streaming/pool_hook_state_test.go
@@ -30,7 +30,7 @@ func TestReAuthOnlyWhenIdle(t *testing.T) {
 	}
 	
 	// Try to transition to UNUSABLE (for reauth) - should fail
-	err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
+	_, err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
 	if err == nil {
 		t.Error("Expected error when trying to transition IN_USE → UNUSABLE, but got none")
 	}
@@ -51,7 +51,7 @@ func TestReAuthOnlyWhenIdle(t *testing.T) {
 	}
 	
 	// Now try to transition to UNUSABLE - should succeed
-	err = cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
+	_, err = cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
 	if err != nil {
 		t.Errorf("Failed to transition IDLE → UNUSABLE: %v", err)
 	}
@@ -99,7 +99,7 @@ func TestReAuthWaitsForConnectionToBeIdle(t *testing.T) {
 			default:
 				reAuthAttempts.Add(1)
 				// Try to atomically transition from IDLE to UNUSABLE
-				err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
+				_, err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
 				if err == nil {
 					// Successfully acquired
 					acquired = true
@@ -185,7 +185,7 @@ func TestConcurrentReAuthAndUsage(t *testing.T) {
 		defer wg.Done()
 		for i := 0; i < 50; i++ {
 			// Try to acquire for re-auth
-			err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
+			_, err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
 			if err == nil {
 				reAuthCount.Add(1)
 				// Simulate re-auth work
@@ -228,7 +228,7 @@ func TestReAuthRespectsClosed(t *testing.T) {
 	cn.GetStateMachine().Transition(pool.StateClosed)
 	
 	// Try to transition to UNUSABLE - should fail
-	err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
+	_, err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateIdle}, pool.StateUnusable)
 	if err == nil {
 		t.Error("Expected error when trying to transition CLOSED → UNUSABLE, but got none")
 	}
diff --git a/internal/pool/conn.go b/internal/pool/conn.go
index cd3503d5..6755eda3 100644
--- a/internal/pool/conn.go
+++ b/internal/pool/conn.go
@@ -167,7 +167,7 @@ func (cn *Conn) CompareAndSwapUsable(old, new bool) bool {
 	if new {
 		// Trying to make usable - transition from UNUSABLE to IDLE
 		// This should only work from UNUSABLE or INITIALIZING states
-		err := cn.stateMachine.TryTransition(
+		_, err := cn.stateMachine.TryTransition(
 			[]ConnState{StateInitializing, StateUnusable},
 			StateIdle,
 		)
@@ -175,7 +175,7 @@ func (cn *Conn) CompareAndSwapUsable(old, new bool) bool {
 	} else {
 		// Trying to make unusable - transition from IDLE to UNUSABLE
 		// This is typically for acquiring the connection for background operations
-		err := cn.stateMachine.TryTransition(
+		_, err := cn.stateMachine.TryTransition(
 			[]ConnState{StateIdle},
 			StateUnusable,
 		)
@@ -200,10 +200,13 @@ func (cn *Conn) IsUsable() bool {
 
 // SetUsable sets the usable flag for the connection (lock-free).
 //
+// Deprecated: Use GetStateMachine().Transition() directly for better state management.
+// This method is kept for backwards compatibility.
+//
 // This should be called to mark a connection as usable after initialization or
 // to release it after a background operation completes.
 //
-// Prefer CompareAndSwapUsable() when acquiring exclusive access to avoid race conditions.
+// Prefer CompareAndSwapUsed() when acquiring exclusive access to avoid race conditions.
 func (cn *Conn) SetUsable(usable bool) {
 	if usable {
 		// Transition to IDLE state (ready to be acquired)
@@ -226,6 +229,9 @@ func (cn *Conn) IsInited() bool {
 
 // CompareAndSwapUsed atomically compares and swaps the used flag (lock-free).
 //
+// Deprecated: Use GetStateMachine().TryTransition() directly for better state management.
+// This method is kept for backwards compatibility.
+//
 // This is the preferred method for acquiring a connection from the pool, as it
 // ensures that only one goroutine marks the connection as used.
 //
@@ -242,17 +248,20 @@ func (cn *Conn) CompareAndSwapUsed(old, new bool) bool {
 
 	if !old && new {
 		// Acquiring: IDLE → IN_USE
-		err := cn.stateMachine.TryTransition([]ConnState{StateIdle}, StateInUse)
+		_, err := cn.stateMachine.TryTransition([]ConnState{StateIdle}, StateInUse)
 		return err == nil
 	} else {
 		// Releasing: IN_USE → IDLE
-		err := cn.stateMachine.TryTransition([]ConnState{StateInUse}, StateIdle)
+		_, err := cn.stateMachine.TryTransition([]ConnState{StateInUse}, StateIdle)
 		return err == nil
 	}
 }
 
 // IsUsed returns true if the connection is currently in use (lock-free).
 //
+// Deprecated: Use GetStateMachine().GetState() == StateInUse directly for better clarity.
+// This method is kept for backwards compatibility.
+//
 // A connection is "used" when it has been retrieved from the pool and is
 // actively processing a command. Background operations (like re-auth) should
 // wait until the connection is not used before executing commands.
@@ -526,28 +535,32 @@ func (cn *Conn) SetNetConnAndInitConn(ctx context.Context, netConn net.Conn) err
 	// Wait for and transition to INITIALIZING state - this prevents concurrent initializations
 	// Valid from states: CREATED (first init), IDLE (reconnect), UNUSABLE (handoff/reauth)
 	// If another goroutine is initializing, we'll wait for it to finish
-	err := cn.stateMachine.AwaitAndTransition(
-		ctx,
+	// Add 1ms timeout to prevent indefinite blocking
+	waitCtx, cancel := context.WithTimeout(ctx, time.Millisecond)
+	defer cancel()
+
+	finalState, err := cn.stateMachine.AwaitAndTransition(
+		waitCtx,
 		[]ConnState{StateCreated, StateIdle, StateUnusable},
 		StateInitializing,
 	)
 	if err != nil {
-		return fmt.Errorf("cannot initialize connection from state %s: %w", cn.stateMachine.GetState(), err)
+		return fmt.Errorf("cannot initialize connection from state %s: %w", finalState, err)
 	}
 
 	// Replace the underlying connection
 	cn.SetNetConn(netConn)
 
 	// Execute initialization
+	// NOTE: ExecuteInitConn (via baseClient.initConn) will transition to IDLE on success
+	// or CLOSED on failure. We don't need to do it here.
 	initErr := cn.ExecuteInitConn(ctx)
 	if initErr != nil {
-		// Initialization failed - transition to closed
-		cn.stateMachine.Transition(StateClosed)
+		// ExecuteInitConn already transitioned to CLOSED, just return the error
 		return initErr
 	}
 
-	// Initialization succeeded - transition to IDLE (ready to be acquired)
-	cn.stateMachine.Transition(StateIdle)
+	// ExecuteInitConn already transitioned to IDLE
 	return nil
 }
 
@@ -577,7 +590,8 @@ func (cn *Conn) MarkQueuedForHandoff() error {
 	}
 
 	// Mark connection as unusable while queued for handoff
-	cn.SetUsable(false)
+	// Use state machine directly instead of deprecated SetUsable
+	cn.stateMachine.Transition(StateUnusable)
 	return nil
 }
 
@@ -606,7 +620,8 @@ func (cn *Conn) ClearHandoffState() {
 	cn.handoffRetriesAtomic.Store(0)
 
 	// Mark connection as usable again
-	cn.SetUsable(true)
+	// Use state machine directly instead of deprecated SetUsable
+	cn.stateMachine.Transition(StateIdle)
 }
 
 // HasBufferedData safely checks if the connection has buffered data.
diff --git a/internal/pool/conn_state.go b/internal/pool/conn_state.go
index 89fac85f..7e29fcdd 100644
--- a/internal/pool/conn_state.go
+++ b/internal/pool/conn_state.go
@@ -113,19 +113,20 @@ func (sm *ConnStateMachine) GetState() ConnState {
 }
 
 // TryTransition attempts an immediate state transition without waiting.
-// Returns ErrInvalidStateTransition if current state is not in validFromStates.
+// Returns the current state after the transition attempt and an error if the transition failed.
+// The returned state is the CURRENT state (after the attempt), not the previous state.
 // This is faster than AwaitAndTransition when you don't need to wait.
 // Uses compare-and-swap to atomically transition, preventing concurrent transitions.
 // This method does NOT wait - it fails immediately if the transition cannot be performed.
 //
 // Performance: Zero allocations on success path (hot path).
-func (sm *ConnStateMachine) TryTransition(validFromStates []ConnState, targetState ConnState) error {
+func (sm *ConnStateMachine) TryTransition(validFromStates []ConnState, targetState ConnState) (ConnState, error) {
 	// Try each valid from state with CAS
 	// This ensures only ONE goroutine can successfully transition at a time
 	for _, fromState := range validFromStates {
 		// Fast path: check if we're already in target state
 		if fromState == targetState && sm.GetState() == targetState {
-			return nil
+			return targetState, nil
 		}
 
 		// Try to atomically swap from fromState to targetState
@@ -134,14 +135,15 @@ func (sm *ConnStateMachine) TryTransition(validFromStates []ConnState, targetSta
 			// Success! We transitioned atomically
 			// Notify any waiters
 			sm.notifyWaiters()
-			return nil
+			return targetState, nil
 		}
 	}
 
 	// All CAS attempts failed - state is not valid for this transition
+	// Return the current state so caller can decide what to do
 	// Note: This error path allocates, but it's the exceptional case
 	currentState := sm.GetState()
-	return fmt.Errorf("%w: cannot transition from %s to %s (valid from: %v)",
+	return currentState, fmt.Errorf("%w: cannot transition from %s to %s (valid from: %v)",
 		ErrInvalidStateTransition, currentState, targetState, validFromStates)
 }
 
@@ -155,6 +157,8 @@ func (sm *ConnStateMachine) Transition(targetState ConnState) {
 
 // AwaitAndTransition waits for the connection to reach one of the valid states,
 // then atomically transitions to the target state.
+// Returns the current state after the transition attempt and an error if the operation failed.
+// The returned state is the CURRENT state (after the attempt), not the previous state.
 // Returns error if timeout expires or context is cancelled.
 //
 // This method implements FIFO fairness - the first caller to wait gets priority
@@ -167,19 +171,19 @@ func (sm *ConnStateMachine) AwaitAndTransition(
 	ctx context.Context,
 	validFromStates []ConnState,
 	targetState ConnState,
-) error {
+) (ConnState, error) {
 	// Fast path: try immediate transition with CAS to prevent race conditions
 	for _, fromState := range validFromStates {
 		// Check if we're already in target state
 		if fromState == targetState && sm.GetState() == targetState {
-			return nil
+			return targetState, nil
 		}
 
 		// Try to atomically swap from fromState to targetState
 		if sm.state.CompareAndSwap(uint32(fromState), uint32(targetState)) {
 			// Success! We transitioned atomically
 			sm.notifyWaiters()
-			return nil
+			return targetState, nil
 		}
 	}
 
@@ -188,7 +192,7 @@ func (sm *ConnStateMachine) AwaitAndTransition(
 
 	// Check if closed
 	if currentState == StateClosed {
-		return ErrStateMachineClosed
+		return currentState, ErrStateMachineClosed
 	}
 
 	// Slow path: need to wait for state change
@@ -216,9 +220,10 @@ func (sm *ConnStateMachine) AwaitAndTransition(
 		sm.mu.Lock()
 		sm.waiters.Remove(elem)
 		sm.mu.Unlock()
-		return ctx.Err()
+		return sm.GetState(), ctx.Err()
 	case err := <-w.done:
-		return err
+		// Transition completed (or failed)
+		return sm.GetState(), err
 	}
 }
 
@@ -235,27 +240,35 @@ func (sm *ConnStateMachine) notifyWaiters() {
 	// Process waiters in FIFO order until no more can be processed
 	// We loop instead of recursing to avoid stack overflow and mutex issues
 	for {
-		currentState := sm.GetState()
 		processed := false
 
 		// Find the first waiter that can proceed
 		for elem := sm.waiters.Front(); elem != nil; elem = elem.Next() {
 			w := elem.Value.(*waiter)
 
+			// Read current state inside the loop to get the latest value
+			currentState := sm.GetState()
+
 			// Check if current state is valid for this waiter
 			if _, valid := w.validStates[currentState]; valid {
-				// Remove from queue
+				// Remove from queue first
 				sm.waiters.Remove(elem)
 
-				// Perform transition
-				sm.state.Store(uint32(w.targetState))
-
-				// Notify waiter (non-blocking due to buffered channel)
-				w.done <- nil
-
-				// Mark that we processed a waiter and break to check for more
-				processed = true
-				break
+				// Use CAS to ensure state hasn't changed since we checked
+				// This prevents race condition where another thread changes state
+				// between our check and our transition
+				if sm.state.CompareAndSwap(uint32(currentState), uint32(w.targetState)) {
+					// Successfully transitioned - notify waiter
+					w.done <- nil
+					processed = true
+					break
+				} else {
+					// State changed - re-add waiter to front of queue and retry
+					sm.waiters.PushFront(w)
+					// Continue to next iteration to re-read state
+					processed = true
+					break
+				}
 			}
 		}
 
diff --git a/internal/pool/conn_state_test.go b/internal/pool/conn_state_test.go
index 1f2e23a7..40d83155 100644
--- a/internal/pool/conn_state_test.go
+++ b/internal/pool/conn_state_test.go
@@ -74,7 +74,7 @@ func TestConnStateMachine_TryTransition(t *testing.T) {
 			sm := NewConnStateMachine()
 			sm.Transition(tt.initialState)
 
-			err := sm.TryTransition(tt.validStates, tt.targetState)
+			_, err := sm.TryTransition(tt.validStates, tt.targetState)
 
 			if tt.expectError && err == nil {
 				t.Error("expected error but got none")
@@ -99,7 +99,7 @@ func TestConnStateMachine_AwaitAndTransition_FastPath(t *testing.T) {
 	ctx := context.Background()
 
 	// Fast path: already in valid state
-	err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateUnusable)
+	_, err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateUnusable)
 	if err != nil {
 		t.Errorf("unexpected error: %v", err)
 	}
@@ -117,7 +117,7 @@ func TestConnStateMachine_AwaitAndTransition_Timeout(t *testing.T) {
 	defer cancel()
 
 	// Wait for a state that will never come
-	err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateUnusable)
+	_, err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateUnusable)
 	if err == nil {
 		t.Error("expected timeout error but got none")
 	}
@@ -150,7 +150,7 @@ func TestConnStateMachine_AwaitAndTransition_FIFO(t *testing.T) {
 			startBarrier.Wait()
 
 			ctx := context.Background()
-			err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateIdle)
+			_, err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateIdle)
 			if err != nil {
 				t.Errorf("waiter %d got error: %v", waiterID, err)
 				return
@@ -206,7 +206,7 @@ func TestConnStateMachine_ConcurrentAccess(t *testing.T) {
 
 			for j := 0; j < numIterations; j++ {
 				// Try to transition from READY to REAUTH_IN_PROGRESS
-				err := sm.TryTransition([]ConnState{StateIdle}, StateUnusable)
+				_, err := sm.TryTransition([]ConnState{StateIdle}, StateUnusable)
 				if err == nil {
 					successCount.Add(1)
 					// Transition back to READY
@@ -287,7 +287,7 @@ func TestConnStateMachine_PreventsConcurrentInitialization(t *testing.T) {
 			startBarrier.Wait()
 
 			// Try to transition to INITIALIZING
-			err := sm.TryTransition([]ConnState{StateIdle}, StateInitializing)
+			_, err := sm.TryTransition([]ConnState{StateIdle}, StateInitializing)
 			if err == nil {
 				successCount.Add(1)
 
@@ -353,7 +353,7 @@ func TestConnStateMachine_AwaitAndTransitionWaitsForInitialization(t *testing.T)
 			ctx := context.Background()
 
 			// Try to transition to INITIALIZING - should wait if another is initializing
-			err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateInitializing)
+			_, err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateInitializing)
 			if err != nil {
 				t.Errorf("Goroutine %d: failed to transition: %v", id, err)
 				return
@@ -419,7 +419,7 @@ func TestConnStateMachine_FIFOOrdering(t *testing.T) {
 			ctx := context.Background()
 
 			// This should queue in FIFO order
-			err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateInitializing)
+			_, err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateInitializing)
 			if err != nil {
 				t.Errorf("Goroutine %d: failed to transition: %v", id, err)
 				return
@@ -482,7 +482,7 @@ func TestConnStateMachine_FIFOWithFastPath(t *testing.T) {
 			ctx := context.Background()
 
 			// This might use fast path (CAS) or slow path (queue)
-			err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateInitializing)
+			_, err := sm.AwaitAndTransition(ctx, []ConnState{StateIdle}, StateInitializing)
 			if err != nil {
 				t.Errorf("Goroutine %d: failed to transition: %v", id, err)
 				return
@@ -528,7 +528,7 @@ func BenchmarkConnStateMachine_TryTransition(b *testing.B) {
 
 	b.ResetTimer()
 	for i := 0; i < b.N; i++ {
-		_ = sm.TryTransition([]ConnState{StateIdle}, StateUnusable)
+		_, _ = sm.TryTransition([]ConnState{StateIdle}, StateUnusable)
 		sm.Transition(StateIdle)
 	}
 }
@@ -543,7 +543,7 @@ func TestConnStateMachine_IdleInUseTransitions(t *testing.T) {
 	sm.Transition(StateIdle)
 
 	// Test IDLE → IN_USE transition
-	err := sm.TryTransition([]ConnState{StateIdle}, StateInUse)
+	_, err := sm.TryTransition([]ConnState{StateIdle}, StateInUse)
 	if err != nil {
 		t.Errorf("failed to transition from IDLE to IN_USE: %v", err)
 	}
@@ -552,7 +552,7 @@ func TestConnStateMachine_IdleInUseTransitions(t *testing.T) {
 	}
 
 	// Test IN_USE → IDLE transition
-	err = sm.TryTransition([]ConnState{StateInUse}, StateIdle)
+	_, err = sm.TryTransition([]ConnState{StateInUse}, StateIdle)
 	if err != nil {
 		t.Errorf("failed to transition from IN_USE to IDLE: %v", err)
 	}
@@ -570,7 +570,7 @@ func TestConnStateMachine_IdleInUseTransitions(t *testing.T) {
 		wg.Add(1)
 		go func() {
 			defer wg.Done()
-			err := sm.TryTransition([]ConnState{StateIdle}, StateInUse)
+			_, err := sm.TryTransition([]ConnState{StateIdle}, StateInUse)
 			if err == nil {
 				successCount.Add(1)
 			}
@@ -641,7 +641,7 @@ func TestConnStateMachine_UnusableState(t *testing.T) {
 	sm.Transition(StateIdle)
 
 	// Test IDLE → UNUSABLE transition (for background operations)
-	err := sm.TryTransition([]ConnState{StateIdle}, StateUnusable)
+	_, err := sm.TryTransition([]ConnState{StateIdle}, StateUnusable)
 	if err != nil {
 		t.Errorf("failed to transition from IDLE to UNUSABLE: %v", err)
 	}
@@ -650,7 +650,7 @@ func TestConnStateMachine_UnusableState(t *testing.T) {
 	}
 
 	// Test UNUSABLE → IDLE transition (after background operation completes)
-	err = sm.TryTransition([]ConnState{StateUnusable}, StateIdle)
+	_, err = sm.TryTransition([]ConnState{StateUnusable}, StateIdle)
 	if err != nil {
 		t.Errorf("failed to transition from UNUSABLE to IDLE: %v", err)
 	}
@@ -661,7 +661,7 @@ func TestConnStateMachine_UnusableState(t *testing.T) {
 	// Test that we can transition from IN_USE to UNUSABLE if needed
 	// (e.g., for urgent handoff while connection is in use)
 	sm.Transition(StateInUse)
-	err = sm.TryTransition([]ConnState{StateInUse}, StateUnusable)
+	_, err = sm.TryTransition([]ConnState{StateInUse}, StateUnusable)
 	if err != nil {
 		t.Errorf("failed to transition from IN_USE to UNUSABLE: %v", err)
 	}
@@ -672,7 +672,7 @@ func TestConnStateMachine_UnusableState(t *testing.T) {
 	// Test UNUSABLE → INITIALIZING transition (for handoff)
 	sm.Transition(StateIdle)
 	sm.Transition(StateUnusable)
-	err = sm.TryTransition([]ConnState{StateUnusable}, StateInitializing)
+	_, err = sm.TryTransition([]ConnState{StateUnusable}, StateInitializing)
 	if err != nil {
 		t.Errorf("failed to transition from UNUSABLE to INITIALIZING: %v", err)
 	}
diff --git a/internal/pool/pool.go b/internal/pool/pool.go
index 4915bf62..7ee02999 100644
--- a/internal/pool/pool.go
+++ b/internal/pool/pool.go
@@ -244,9 +244,9 @@ func (p *ConnPool) addIdleConn() error {
 		return err
 	}
 
-	// Mark connection as usable after successful creation
-	// This is essential for normal pool operations
-	cn.SetUsable(true)
+	// NOTE: Connection is in CREATED state and will be initialized by redis.go:initConn()
+	// when first acquired from the pool. Do NOT transition to IDLE here - that happens
+	// after initialization completes.
 
 	p.connsMu.Lock()
 	defer p.connsMu.Unlock()
@@ -286,9 +286,9 @@ func (p *ConnPool) newConn(ctx context.Context, pooled bool) (*Conn, error) {
 		return nil, err
 	}
 
-	// Mark connection as usable after successful creation
-	// This is essential for normal pool operations
-	cn.SetUsable(true)
+	// NOTE: Connection is in CREATED state and will be initialized by redis.go:initConn()
+	// when first used. Do NOT transition to IDLE here - that happens after initialization completes.
+	// The state machine flow is: CREATED → INITIALIZING (in initConn) → IDLE (after init success)
 
 	if p.cfg.MaxActiveConns > 0 && p.poolSize.Load() > int32(p.cfg.MaxActiveConns) {
 		_ = cn.Close()
@@ -584,15 +584,17 @@ func (p *ConnPool) popIdle() (*Conn, error) {
 		}
 		attempts++
 
-		if cn.CompareAndSwapUsed(false, true) {
-			if cn.IsUsable() {
-				p.idleConnsLen.Add(-1)
-				break
-			}
-			cn.SetUsed(false)
+		// Try to atomically transition to IN_USE using state machine
+		// Accept both CREATED (uninitialized) and IDLE (initialized) states
+		_, err := cn.GetStateMachine().TryTransition([]ConnState{StateCreated, StateIdle}, StateInUse)
+		if err == nil {
+			// Successfully acquired the connection
+			p.idleConnsLen.Add(-1)
+			break
 		}
 
-		// Connection is not usable, put it back in the pool
+		// Connection is not in a valid state (might be UNUSABLE for re-auth, INITIALIZING, etc.)
+		// Put it back in the pool
 		if p.cfg.PoolFIFO {
 			// FIFO: put at end (will be picked up last since we pop from front)
 			p.idleConns = append(p.idleConns, cn)
@@ -661,6 +663,11 @@ func (p *ConnPool) Put(ctx context.Context, cn *Conn) {
 	var shouldCloseConn bool
 
 	if p.cfg.MaxIdleConns == 0 || p.idleConnsLen.Load() < p.cfg.MaxIdleConns {
+		// Transition to IDLE state BEFORE adding to pool
+		// This prevents race condition where another goroutine could acquire
+		// a connection that's still in IN_USE state
+		cn.GetStateMachine().Transition(StateIdle)
+
 		// unusable conns are expected to become usable at some point (background process is reconnecting them)
 		// put them at the opposite end of the queue
 		if !cn.IsUsable() {
@@ -684,11 +691,6 @@ func (p *ConnPool) Put(ctx context.Context, cn *Conn) {
 		shouldCloseConn = true
 	}
 
-	// if the connection is not going to be closed, mark it as not used
-	if !shouldCloseConn {
-		cn.SetUsed(false)
-	}
-
 	p.freeTurn()
 
 	if shouldCloseConn {
diff --git a/internal/pool/pool_single.go b/internal/pool/pool_single.go
index 712d482d..648e5ae4 100644
--- a/internal/pool/pool_single.go
+++ b/internal/pool/pool_single.go
@@ -44,6 +44,13 @@ func (p *SingleConnPool) Get(_ context.Context) (*Conn, error) {
 	if p.cn == nil {
 		return nil, ErrClosed
 	}
+
+	// NOTE: SingleConnPool is NOT thread-safe by design and is used in special scenarios:
+	// - During initialization (connection is in INITIALIZING state)
+	// - During re-authentication (connection is in UNUSABLE state)
+	// - For transactions (connection might be in various states)
+	// We use SetUsed() which forces the transition, rather than TryTransition() which
+	// would fail if the connection is not in IDLE/CREATED state.
 	p.cn.SetUsed(true)
 	p.cn.SetUsedAt(time.Now())
 	return p.cn, nil
diff --git a/redis.go b/redis.go
index dcd7b59a..9a1c8773 100644
--- a/redis.go
+++ b/redis.go
@@ -366,28 +366,82 @@ func (c *baseClient) wrappedOnClose(newOnClose func() error) func() error {
 }
 
 func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
-	if !cn.Inited.CompareAndSwap(false, true) {
+	// This function is called in two scenarios:
+	// 1. First-time init: Connection is in CREATED state (from pool.Get())
+	//    - We need to transition CREATED → INITIALIZING and do the initialization
+	//    - If another goroutine is already initializing, we WAIT for it to finish
+	// 2. Re-initialization: Connection is in INITIALIZING state (from SetNetConnAndInitConn())
+	//    - We're already in INITIALIZING, so just proceed with initialization
+
+	currentState := cn.GetStateMachine().GetState()
+
+	// Fast path: Check if already initialized (IDLE or IN_USE)
+	if currentState == pool.StateIdle || currentState == pool.StateInUse {
 		return nil
 	}
-	var err error
+
+	// If in CREATED state, try to transition to INITIALIZING
+	if currentState == pool.StateCreated {
+		finalState, err := cn.GetStateMachine().TryTransition([]pool.ConnState{pool.StateCreated}, pool.StateInitializing)
+		if err != nil {
+			// Another goroutine is initializing or connection is in unexpected state
+			// Check what state we're in now
+			if finalState == pool.StateIdle || finalState == pool.StateInUse {
+				// Already initialized by another goroutine
+				return nil
+			}
+
+			if finalState == pool.StateInitializing {
+				// Another goroutine is initializing - WAIT for it to complete
+				// Use AwaitAndTransition to wait for IDLE or IN_USE state
+				// Add 1ms timeout to prevent indefinite blocking
+				waitCtx, cancel := context.WithTimeout(ctx, time.Millisecond)
+				defer cancel()
+
+				finalState, err := cn.GetStateMachine().AwaitAndTransition(
+					waitCtx,
+					[]pool.ConnState{pool.StateIdle, pool.StateInUse},
+					pool.StateIdle, // Target is IDLE (but we're already there, so this is a no-op)
+				)
+				if err != nil {
+					return err
+				}
+				// Verify we're now initialized
+				if finalState == pool.StateIdle || finalState == pool.StateInUse {
+					return nil
+				}
+				// Unexpected state after waiting
+				return fmt.Errorf("connection in unexpected state after initialization: %s", finalState)
+			}
+
+			// Unexpected state (CLOSED, UNUSABLE, etc.)
+			return err
+		}
+	}
+
+	// At this point, we're in INITIALIZING state and we own the initialization
+	// If we fail, we must transition to CLOSED
+	var initErr error
 	connPool := pool.NewSingleConnPool(c.connPool, cn)
 	conn := newConn(c.opt, connPool, &c.hooksMixin)
 
 	username, password := "", ""
 	if c.opt.StreamingCredentialsProvider != nil {
-		credListener, err := c.streamingCredentialsManager.Listener(
+		credListener, initErr := c.streamingCredentialsManager.Listener(
 			cn,
 			c.reAuthConnection(),
 			c.onAuthenticationErr(),
 		)
-		if err != nil {
-			return fmt.Errorf("failed to create credentials listener: %w", err)
+		if initErr != nil {
+			cn.GetStateMachine().Transition(pool.StateClosed)
+			return fmt.Errorf("failed to create credentials listener: %w", initErr)
 		}
 
-		credentials, unsubscribeFromCredentialsProvider, err := c.opt.StreamingCredentialsProvider.
+		credentials, unsubscribeFromCredentialsProvider, initErr := c.opt.StreamingCredentialsProvider.
 			Subscribe(credListener)
-		if err != nil {
-			return fmt.Errorf("failed to subscribe to streaming credentials: %w", err)
+		if initErr != nil {
+			cn.GetStateMachine().Transition(pool.StateClosed)
+			return fmt.Errorf("failed to subscribe to streaming credentials: %w", initErr)
 		}
 
 		c.onClose = c.wrappedOnClose(unsubscribeFromCredentialsProvider)
@@ -395,9 +449,10 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 
 		username, password = credentials.BasicAuth()
 	} else if c.opt.CredentialsProviderContext != nil {
-		username, password, err = c.opt.CredentialsProviderContext(ctx)
-		if err != nil {
-			return fmt.Errorf("failed to get credentials from context provider: %w", err)
+		username, password, initErr = c.opt.CredentialsProviderContext(ctx)
+		if initErr != nil {
+			cn.GetStateMachine().Transition(pool.StateClosed)
+			return fmt.Errorf("failed to get credentials from context provider: %w", initErr)
 		}
 	} else if c.opt.CredentialsProvider != nil {
 		username, password = c.opt.CredentialsProvider()
@@ -407,9 +462,9 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 
 	// for redis-server versions that do not support the HELLO command,
 	// RESP2 will continue to be used.
-	if err = conn.Hello(ctx, c.opt.Protocol, username, password, c.opt.ClientName).Err(); err == nil {
+	if initErr = conn.Hello(ctx, c.opt.Protocol, username, password, c.opt.ClientName).Err(); initErr == nil {
 		// Authentication successful with HELLO command
-	} else if !isRedisError(err) {
+	} else if !isRedisError(initErr) {
 		// When the server responds with the RESP protocol and the result is not a normal
 		// execution result of the HELLO command, we consider it to be an indication that
 		// the server does not support the HELLO command.
@@ -417,20 +472,22 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 		// or it could be DragonflyDB or a third-party redis-proxy. They all respond
 		// with different error string results for unsupported commands, making it
 		// difficult to rely on error strings to determine all results.
-		return err
+		cn.GetStateMachine().Transition(pool.StateClosed)
+		return initErr
 	} else if password != "" {
 		// Try legacy AUTH command if HELLO failed
 		if username != "" {
-			err = conn.AuthACL(ctx, username, password).Err()
+			initErr = conn.AuthACL(ctx, username, password).Err()
 		} else {
-			err = conn.Auth(ctx, password).Err()
+			initErr = conn.Auth(ctx, password).Err()
 		}
-		if err != nil {
-			return fmt.Errorf("failed to authenticate: %w", err)
+		if initErr != nil {
+			cn.GetStateMachine().Transition(pool.StateClosed)
+			return fmt.Errorf("failed to authenticate: %w", initErr)
 		}
 	}
 
-	_, err = conn.Pipelined(ctx, func(pipe Pipeliner) error {
+	_, initErr = conn.Pipelined(ctx, func(pipe Pipeliner) error {
 		if c.opt.DB > 0 {
 			pipe.Select(ctx, c.opt.DB)
 		}
@@ -445,8 +502,9 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 
 		return nil
 	})
-	if err != nil {
-		return fmt.Errorf("failed to initialize connection options: %w", err)
+	if initErr != nil {
+		cn.GetStateMachine().Transition(pool.StateClosed)
+		return fmt.Errorf("failed to initialize connection options: %w", initErr)
 	}
 
 	// Enable maintnotifications if maintnotifications are configured
@@ -465,6 +523,7 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 		if maintNotifHandshakeErr != nil {
 			if !isRedisError(maintNotifHandshakeErr) {
 				// if not redis error, fail the connection
+				cn.GetStateMachine().Transition(pool.StateClosed)
 				return maintNotifHandshakeErr
 			}
 			c.optLock.Lock()
@@ -473,15 +532,16 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 			case maintnotifications.ModeEnabled:
 				// enabled mode, fail the connection
 				c.optLock.Unlock()
+				cn.GetStateMachine().Transition(pool.StateClosed)
 				return fmt.Errorf("failed to enable maintnotifications: %w", maintNotifHandshakeErr)
 			default: // will handle auto and any other
 				internal.Logger.Printf(ctx, "auto mode fallback: maintnotifications disabled due to handshake error: %v", maintNotifHandshakeErr)
 				c.opt.MaintNotificationsConfig.Mode = maintnotifications.ModeDisabled
 				c.optLock.Unlock()
 				// auto mode, disable maintnotifications and continue
-				if err := c.disableMaintNotificationsUpgrades(); err != nil {
+				if initErr := c.disableMaintNotificationsUpgrades(); initErr != nil {
 					// Log error but continue - auto mode should be resilient
-					internal.Logger.Printf(ctx, "failed to disable maintnotifications in auto mode: %v", err)
+					internal.Logger.Printf(ctx, "failed to disable maintnotifications in auto mode: %v", initErr)
 				}
 			}
 		} else {
@@ -505,22 +565,31 @@ func (c *baseClient) initConn(ctx context.Context, cn *pool.Conn) error {
 		p.ClientSetInfo(ctx, WithLibraryVersion(libVer))
 		// Handle network errors (e.g. timeouts) in CLIENT SETINFO to avoid
 		// out of order responses later on.
-		if _, err = p.Exec(ctx); err != nil && !isRedisError(err) {
-			return err
+		if _, initErr = p.Exec(ctx); initErr != nil && !isRedisError(initErr) {
+			cn.GetStateMachine().Transition(pool.StateClosed)
+			return initErr
 		}
 	}
 
-	// mark the connection as usable and inited
-	// once returned to the pool as idle, this connection can be used by other clients
-	cn.SetUsable(true)
-	cn.SetUsed(false)
-	cn.Inited.Store(true)
-
 	// Set the connection initialization function for potential reconnections
+	// This must be set before transitioning to IDLE so that handoff/reauth can use it
 	cn.SetInitConnFunc(c.createInitConnFunc())
 
+	// Initialization succeeded - transition to IDLE state
+	// This marks the connection as initialized and ready for use
+	// NOTE: The connection is still owned by the calling goroutine at this point
+	// and won't be available to other goroutines until it's Put() back into the pool
+	cn.GetStateMachine().Transition(pool.StateIdle)
+
+	// Call OnConnect hook if configured
+	// The connection is in IDLE state but still owned by this goroutine
+	// If OnConnect needs to send commands, it can use the connection safely
 	if c.opt.OnConnect != nil {
-		return c.opt.OnConnect(ctx, conn)
+		if initErr = c.opt.OnConnect(ctx, conn); initErr != nil {
+			// OnConnect failed - transition to closed
+			cn.GetStateMachine().Transition(pool.StateClosed)
+			return initErr
+		}
 	}
 
 	return nil