diff --git a/nemo_skills/code_execution/local_sandbox/local_sandbox_server.py b/nemo_skills/code_execution/local_sandbox/local_sandbox_server.py
index 4f5fa570cd..d6ae4283e6 100644
--- a/nemo_skills/code_execution/local_sandbox/local_sandbox_server.py
+++ b/nemo_skills/code_execution/local_sandbox/local_sandbox_server.py
@@ -101,6 +101,11 @@ def __init__(self, family=-1, type=-1, proto=-1, fileno=None):
         socket_module.socket = BlockedSocket  # Blocks: import socket; socket.socket()
 
     shell = TerminalInteractiveShell()
+    # TerminalInteractiveShell installs a SIGINT handler that calls sys.exit(0)
+    # instead of raising KeyboardInterrupt when _executing is False (which is
+    # the case when run_cell is called programmatically). Restore the default
+    # handler so SIGINT raises KeyboardInterrupt and our except clause catches it.
+    signal.signal(signal.SIGINT, signal.SIG_DFL)
     try:
         while True:
             try:
@@ -203,7 +208,7 @@ def stop_shell(self, shell_id):
         proc.terminate()
         proc.join(timeout=2.0)
 
-    def run_cell(self, shell_id, code, timeout=1.0, grace=0.5, traceback_verbosity="Plain"):
+    def run_cell(self, shell_id, code, timeout=1.0, grace=2.0, traceback_verbosity="Plain"):
         """
         Execute `code` on shell `shell_id`.
         - timeout: seconds to wait for normal completion
@@ -427,7 +432,7 @@ def execute_ipython_session(generated_code, session_id, timeout=30, traceback_ve
 
         # Execute code using ShellManager with proper timeout and cancellation
         result = shell_manager.run_cell(
-            session_id, generated_code, timeout=timeout, grace=0.5, traceback_verbosity=traceback_verbosity
+            session_id, generated_code, timeout=timeout, grace=2.0, traceback_verbosity=traceback_verbosity
         )
 
         # Determine if this is effectively a new session