diff --git a/app/src/libs/combat/process.ts b/app/src/libs/combat/process.ts
index 5d9c5e89..59347752 100644
--- a/app/src/libs/combat/process.ts
+++ b/app/src/libs/combat/process.ts
@@ -477,12 +477,18 @@ export const applyEffects = (battle: CompleteBattle, actorId: string) => {
           if (damage > 0) {
             target.curHealth -= damage;
             target.curHealth = Math.max(0, target.curHealth);
-            // If residual damage reduces health to 0, mark player as having left battle
+            // If residual damage reduces health to 0, mark player as having left battle and died
             if (target.curHealth <= 0) {
               target.leftBattle = true;
+              // Also mark them as having died (not fled) to properly end combat
+              target.fledBattle = false;
+              // If this is a Kage challenge and the defender dies from residual damage, they should lose Kage status
+              if (battle.battleType === "KAGE_CHALLENGE" && target.isAggressor === false) {
+                target.isKage = false;
+              }
             }
             actionEffects.push({
-              txt: `${target.username} takes ${damage.toFixed(2)} residual damage`,
+              txt: `${target.username} takes ${damage.toFixed(2)} residual damage${target.curHealth <= 0 ? " and dies" : ""}`,
               color: "red",
               types: c.types,
             });