diff --git a/browser/components/loop/content/shared/js/models.js b/browser/components/loop/content/shared/js/models.js
index 77cd825be068..a48ce0f270e6 100644
--- a/browser/components/loop/content/shared/js/models.js
+++ b/browser/components/loop/content/shared/js/models.js
@@ -14,6 +14,7 @@ loop.shared.models = (function() {
    */
   var ConversationModel = Backbone.Model.extend({
     defaults: {
+      connected:    false,     // Session connected flag
       ongoing:      false,     // Ongoing call flag
       callerId:     undefined, // Loop caller id
       loopToken:    undefined, // Loop conversation token
@@ -38,11 +39,29 @@ loop.shared.models = (function() {
      */
     session: undefined,
 
+    /**
+     * Pending call timeout value.
+     * @type {Number}
+     */
+    pendingCallTimeout: undefined,
+
+    /**
+     * Pending call timer.
+     * @type {Number}
+     */
+    _pendingCallTimer: undefined,
+
     /**
      * Constructor.
      *
-     * Required options:
-     * - {OT} sdk: SDK object.
+     * Options:
+     *
+     * Required:
+     * - {OT} sdk: OT SDK object.
+     *
+     * Optional:
+     * - {Number} pendingCallTimeout: Pending call timeout in milliseconds
+     *                                (default: 20000).
      *
      * @param  {Object} attributes Attributes object.
      * @param  {Object} options    Options object.
@@ -53,6 +72,10 @@ loop.shared.models = (function() {
         throw new Error("missing required sdk");
       }
       this.sdk = options.sdk;
+      this.pendingCallTimeout = options.pendingCallTimeout || 20000;
+
+      // Ensure that any pending call timer is cleared on disconnect/error
+      this.on("session:ended session:error", this._clearPendingCallTimer, this);
     },
 
     /**
@@ -79,21 +102,38 @@ loop.shared.models = (function() {
      * @param {Object} options Options object
      */
     initiate: function(options) {
+      options = options || {};
+
+      // Outgoing call has never reached destination, closing - see bug 1020448
+      function handleOutgoingCallTimeout() {
+        /*jshint validthis:true */
+        if (!this.get("ongoing")) {
+          this.trigger("timeout").endSession();
+        }
+      }
+
       function handleResult(err, sessionData) {
         /*jshint validthis:true */
+        this._clearPendingCallTimer();
+
         if (err) {
           this.trigger("session:error", new Error(
             "Retrieval of session information failed: HTTP " + err));
           return;
         }
 
-        // XXX For incoming calls we might have more than one call queued.
-        // For now, we'll just assume the first call is the right information.
-        // We'll probably really want to be getting this data from the
-        // background worker on the desktop client.
-        // Bug 990714 should fix this.
-        if (!options.outgoing)
+        if (options.outgoing) {
+          // Setup pending call timeout.
+          this._pendingCallTimer = setTimeout(
+            handleOutgoingCallTimeout.bind(this), this.pendingCallTimeout);
+        } else {
+          // XXX For incoming calls we might have more than one call queued.
+          // For now, we'll just assume the first call is the right information.
+          // We'll probably really want to be getting this data from the
+          // background worker on the desktop client.
+          // Bug 990714 should fix this.
           sessionData = sessionData[0];
+        }
 
         this.setReady(sessionData);
       }
@@ -156,8 +196,17 @@ loop.shared.models = (function() {
      */
     endSession: function() {
       this.session.disconnect();
-      this.once("session:ended", this.stopListening, this);
-      this.set("ongoing", false);
+      this.set("ongoing", false)
+          .once("session:ended", this.stopListening, this);
+    },
+
+    /**
+     * Clears current pending call timer, if any.
+     */
+    _clearPendingCallTimer: function() {
+      if (this._pendingCallTimer) {
+        clearTimeout(this._pendingCallTimer);
+      }
     },
 
     /**
@@ -175,7 +224,7 @@ loop.shared.models = (function() {
         this.endSession();
       } else {
         this.trigger("session:connected");
-        this.set("ongoing", true);
+        this.set("connected", true);
       }
     },
 
@@ -186,7 +235,8 @@ loop.shared.models = (function() {
      * @param  {StreamEvent} event
      */
     _streamCreated: function(event) {
-      this.trigger("session:stream-created", event);
+      this.set("ongoing", true)
+          .trigger("session:stream-created", event);
     },
 
     /**
@@ -196,8 +246,9 @@ loop.shared.models = (function() {
      * @param  {SessionDisconnectEvent} event
      */
     _sessionDisconnected: function(event) {
-      this.trigger("session:ended");
-      this.set("ongoing", false);
+      this.set("connected", false)
+          .set("ongoing", false)
+          .trigger("session:ended");
     },
 
     /**
@@ -207,9 +258,11 @@ loop.shared.models = (function() {
      * @param  {ConnectionEvent} event
      */
     _connectionDestroyed: function(event) {
-      this.trigger("session:peer-hungup", {
-        connectionId: event.connection.connectionId
-      });
+      this.set("connected", false)
+          .set("ongoing", false)
+          .trigger("session:peer-hungup", {
+            connectionId: event.connection.connectionId
+          });
       this.endSession();
     },
 
@@ -220,7 +273,9 @@ loop.shared.models = (function() {
      * @param {ConnectionEvent} event
      */
     _networkDisconnected: function(event) {
-      this.trigger("session:network-disconnected");
+      this.set("connected", false)
+          .set("ongoing", false)
+          .trigger("session:network-disconnected");
       this.endSession();
     },
   });
diff --git a/browser/components/loop/standalone/Makefile b/browser/components/loop/standalone/Makefile
index f6d5e043083c..bc207e125c42 100644
--- a/browser/components/loop/standalone/Makefile
+++ b/browser/components/loop/standalone/Makefile
@@ -3,6 +3,7 @@
 # file, You can obtain one at http://mozilla.org/MPL/2.0/.
 
 LOOP_SERVER_URL := $(shell echo $${LOOP_SERVER_URL-http://localhost:5000})
+LOOP_PENDING_CALL_TIMEOUT := $(shell echo $${LOOP_PENDING_CALL_TIMEOUT-20000})
 NODE_LOCAL_BIN=./node_modules/.bin
 
 install:
@@ -21,4 +22,7 @@ frontend:
 	@echo "Not implemented yet."
 
 config:
-	@echo "var loop = loop || {};\nloop.config = {serverUrl: '`echo $(LOOP_SERVER_URL)`'};" > content/config.js
+	@echo "var loop = loop || {};" > content/config.js
+	@echo "loop.config = loop.config || {};" >> content/config.js
+	@echo "loop.config.serverUrl          = '`echo $(LOOP_SERVER_URL)`';" >> content/config.js
+	@echo "loop.config.pendingCallTimeout = `echo $(LOOP_PENDING_CALL_TIMEOUT)`;" >> content/config.js
diff --git a/browser/components/loop/standalone/README.md b/browser/components/loop/standalone/README.md
index ca378d659c2d..15750f779ce2 100644
--- a/browser/components/loop/standalone/README.md
+++ b/browser/components/loop/standalone/README.md
@@ -16,11 +16,15 @@ Configuration
 
 You will need to generate a configuration file, you can do so with:
 
-	$ make config
+    $ make config
 
-It will read the configuration from the `LOOP_SERVER_URL` env variable and
-generate the appropriate configuration file. This setting defines the root url
-of the loop server, without trailing slash.
+It will read the configuration from the following env variables and generate the
+appropriate configuration file:
+
+- `LOOP_SERVER_URL` defines the root url of the loop server, without trailing
+  slash (default: `http://localhost:5000`).
+- `LOOP_PENDING_CALL_TIMEOUT` defines the amount of time a pending outgoing call
+  should be considered timed out, in milliseconds (default: `20000`).
 
 Usage
 -----
diff --git a/browser/components/loop/standalone/content/js/webapp.js b/browser/components/loop/standalone/content/js/webapp.js
index 435124ddf465..28a16bf8677f 100644
--- a/browser/components/loop/standalone/content/js/webapp.js
+++ b/browser/components/loop/standalone/content/js/webapp.js
@@ -119,6 +119,8 @@ loop.webapp = (function($, _, OT) {
     initialize: function() {
       // Load default view
       this.loadView(new HomeView());
+
+      this.listenTo(this._conversation, "timeout", this._onTimeout);
     },
 
     /**
@@ -146,6 +148,10 @@ loop.webapp = (function($, _, OT) {
       this.navigate(route, {trigger: true});
     },
 
+    _onTimeout: function() {
+      this._notifier.errorL10n("call_timeout_notification_text");
+    },
+
     /**
      * Default entry point.
      */
@@ -213,8 +219,11 @@ loop.webapp = (function($, _, OT) {
   function init() {
     var helper = new WebappHelper();
     router = new WebappRouter({
-      conversation: new sharedModels.ConversationModel({}, {sdk: OT}),
-      notifier: new sharedViews.NotificationListView({el: "#messages"})
+      notifier: new sharedViews.NotificationListView({el: "#messages"}),
+      conversation: new sharedModels.ConversationModel({}, {
+        sdk: OT,
+        pendingCallTimeout: loop.config.pendingCallTimeout
+      })
     });
     Backbone.history.start();
     if (helper.isIOS(navigator.platform)) {
diff --git a/browser/components/loop/standalone/content/l10n/data.ini b/browser/components/loop/standalone/content/l10n/data.ini
index f77fe38dbf78..f8b89364d2b5 100644
--- a/browser/components/loop/standalone/content/l10n/data.ini
+++ b/browser/components/loop/standalone/content/l10n/data.ini
@@ -1,5 +1,6 @@
 [en]
 call_has_ended=Your call has ended.
+call_timeout_notification_text=Your call did not go through.
 missing_conversation_info=Missing conversation information.
 network_disconnected=The network connection terminated abruptly.
 peer_ended_conversation=Your peer ended the conversation.
@@ -21,6 +22,7 @@ connection_error_see_console_notification=Call failed; see console for details.
 
 [fr]
 call_has_ended=L'appel est terminé.
+call_timeout_notification_text=Votre appel n'a pas abouti.
 missing_conversation_info=Informations de communication manquantes.
 network_disconnected=La connexion réseau semble avoir été interrompue.
 peer_ended_conversation=Votre correspondant a mis fin à la communication.
diff --git a/browser/components/loop/test/desktop-local/conversation_test.js b/browser/components/loop/test/desktop-local/conversation_test.js
index 5510796fccf8..a92c72da26dc 100644
--- a/browser/components/loop/test/desktop-local/conversation_test.js
+++ b/browser/components/loop/test/desktop-local/conversation_test.js
@@ -96,7 +96,10 @@ describe("loop.conversation", function() {
     var conversation;
 
     beforeEach(function() {
-      conversation = new loop.shared.models.ConversationModel({}, {sdk: {}});
+      conversation = new loop.shared.models.ConversationModel({}, {
+        sdk: {},
+        pendingCallTimeout: 1000
+      });
       sandbox.stub(conversation, "initiate");
     });
 
@@ -285,7 +288,10 @@ describe("loop.conversation", function() {
     var conversation, view;
 
     beforeEach(function() {
-      conversation = new loop.shared.models.ConversationModel({}, {sdk: {}});
+      conversation = new loop.shared.models.ConversationModel({}, {
+        sdk: {},
+        pendingCallTimeout: 1000
+      });
       view = new loop.conversation.IncomingCallView({model: conversation});
     });
 
diff --git a/browser/components/loop/test/shared/models_test.js b/browser/components/loop/test/shared/models_test.js
index b1c5978f751a..618dd4f884cb 100644
--- a/browser/components/loop/test/shared/models_test.js
+++ b/browser/components/loop/test/shared/models_test.js
@@ -14,6 +14,7 @@ describe("loop.shared.models", function() {
 
   beforeEach(function() {
     sandbox = sinon.sandbox.create();
+    sandbox.useFakeTimers();
     fakeXHR = sandbox.useFakeXMLHttpRequest();
     requests = [];
     // https://github.com/cjohansen/Sinon.JS/issues/393
@@ -46,9 +47,16 @@ describe("loop.shared.models", function() {
     describe("#initialize", function() {
       it("should require a sdk option", function() {
         expect(function() {
-          new sharedModels.ConversationModel();
+          new sharedModels.ConversationModel({}, {});
         }).to.Throw(Error, /missing required sdk/);
       });
+
+      it("should accept a pendingCallTimeout option", function() {
+        expect(new sharedModels.ConversationModel({}, {
+          sdk: {},
+          pendingCallTimeout: 1000
+        }).pendingCallTimeout).eql(1000);
+      });
     });
 
     describe("constructed", function() {
@@ -56,7 +64,10 @@ describe("loop.shared.models", function() {
           requestCallInfoStub, requestCallsInfoStub;
 
       beforeEach(function() {
-        conversation = new sharedModels.ConversationModel({}, {sdk: fakeSDK});
+        conversation = new sharedModels.ConversationModel({}, {
+          sdk: fakeSDK,
+          pendingCallTimeout: 1000
+        });
         conversation.set("loopToken", "fakeToken");
         fakeBaseServerUrl = "http://fakeBaseServerUrl";
         fakeClient = {
@@ -68,6 +79,10 @@ describe("loop.shared.models", function() {
       });
 
       describe("#initiate", function() {
+        beforeEach(function() {
+          sandbox.stub(conversation, "endSession");
+        });
+
         it("call requestCallInfo on the client for outgoing calls",
           function() {
             conversation.initiate({
@@ -139,6 +154,35 @@ describe("loop.shared.models", function() {
             outgoing: true
           });
         });
+
+        it("should end the session on outgoing call timeout", function() {
+          requestCallInfoStub.callsArgWith(2, null, fakeSessionData);
+
+          conversation.initiate({
+            client: fakeClient,
+            outgoing: true
+          });
+
+          sandbox.clock.tick(1001);
+
+          sinon.assert.calledOnce(conversation.endSession);
+        });
+
+        it("should trigger a `timeout` event on outgoing call timeout",
+          function(done) {
+            requestCallInfoStub.callsArgWith(2, null, fakeSessionData);
+
+            conversation.once("timeout", function() {
+              done();
+            });
+
+            conversation.initiate({
+              client: fakeClient,
+              outgoing: true
+            });
+
+            sandbox.clock.tick(1001);
+          });
       });
 
       describe("#setReady", function() {
@@ -161,8 +205,11 @@ describe("loop.shared.models", function() {
         var model;
 
         beforeEach(function() {
+          sandbox.stub(sharedModels.ConversationModel.prototype,
+                       "_clearPendingCallTimer");
           model = new sharedModels.ConversationModel(fakeSessionData, {
-            sdk: fakeSDK
+            sdk: fakeSDK,
+            pendingCallTimeout: 1000
           });
           model.startSession();
         });
@@ -182,16 +229,16 @@ describe("loop.shared.models", function() {
                         sinon.match.func);
         });
 
-        it("should set ongoing to true when no error is called back",
+        it("should set connected to true when no error is called back",
             function() {
               fakeSession.connect = function(key, token, cb) {
                 cb(null);
               };
-              sinon.stub(model, "set");
+              sandbox.stub(model, "set");
 
               model.startSession();
 
-              sinon.assert.calledWith(model.set, "ongoing", true);
+              sinon.assert.calledWith(model.set, "connected", true);
             });
 
         it("should trigger session:connected when no error is called back",
@@ -215,7 +262,7 @@ describe("loop.shared.models", function() {
                   error: true
                 });
               };
-              sinon.stub(model, "endSession");
+              sandbox.stub(model, "endSession");
 
               model.startSession();
 
@@ -239,6 +286,17 @@ describe("loop.shared.models", function() {
                           "session:connection-error", sinon.match.object);
             });
 
+          it("should set the connected attr to true on connection completed",
+            function() {
+              fakeSession.connect = function(key, token, cb) {
+                cb();
+              };
+
+              model.startSession();
+
+              expect(model.get("connected")).eql(true);
+            });
+
           it("should trigger a session:ended event on sessionDisconnected",
             function(done) {
               model.once("session:ended", function(){ done(); });
@@ -246,16 +304,32 @@ describe("loop.shared.models", function() {
               fakeSession.trigger("sessionDisconnected", {reason: "ko"});
             });
 
-          it("should set the ongoing attribute to false on sessionDisconnected",
-            function(done) {
-              model.once("session:ended", function() {
-                expect(model.get("ongoing")).eql(false);
-                done();
-              });
-
+          it("should set the connected attribute to false on sessionDisconnected",
+            function() {
               fakeSession.trigger("sessionDisconnected", {reason: "ko"});
+
+              expect(model.get("connected")).eql(false);
             });
 
+          it("should set the ongoing attribute to false on sessionDisconnected",
+            function() {
+              fakeSession.trigger("sessionDisconnected", {reason: "ko"});
+
+              expect(model.get("ongoing")).eql(false);
+            });
+
+          it("should clear a pending timer on session:ended", function() {
+            model.trigger("session:ended");
+
+            sinon.assert.calledOnce(model._clearPendingCallTimer);
+          });
+
+          it("should clear a pending timer on session:error", function() {
+            model.trigger("session:error");
+
+            sinon.assert.calledOnce(model._clearPendingCallTimer);
+          });
+
           describe("connectionDestroyed event received", function() {
             var fakeEvent = {reason: "ko", connection: {connectionId: 42}};
 
@@ -304,7 +378,8 @@ describe("loop.shared.models", function() {
 
         beforeEach(function() {
           model = new sharedModels.ConversationModel(fakeSessionData, {
-            sdk: fakeSDK
+            sdk: fakeSDK,
+            pendingCallTimeout: 1000
           });
           model.startSession();
         });
@@ -315,6 +390,12 @@ describe("loop.shared.models", function() {
           sinon.assert.calledOnce(fakeSession.disconnect);
         });
 
+        it("should set the connected attribute to false", function() {
+          model.endSession();
+
+          expect(model.get("connected")).eql(false);
+        });
+
         it("should set the ongoing attribute to false", function() {
           model.endSession();
 
diff --git a/browser/components/loop/test/shared/router_test.js b/browser/components/loop/test/shared/router_test.js
index 1ec21c276d38..7d2437fcd7c4 100644
--- a/browser/components/loop/test/shared/router_test.js
+++ b/browser/components/loop/test/shared/router_test.js
@@ -102,7 +102,10 @@ describe("loop.shared.router", function() {
       });
       conversation = new loop.shared.models.ConversationModel({
         loopToken: "fakeToken"
-      }, {sdk: {}});
+      }, {
+        sdk: {},
+        pendingCallTimeout: 1000
+      });
     });
 
     describe("#constructor", function() {
diff --git a/browser/components/loop/test/shared/views_test.js b/browser/components/loop/test/shared/views_test.js
index a75bc9bf942d..a07a2e87b3c9 100644
--- a/browser/components/loop/test/shared/views_test.js
+++ b/browser/components/loop/test/shared/views_test.js
@@ -205,7 +205,8 @@ describe("loop.shared.views", function() {
         initSession: sandbox.stub().returns(fakeSession)
       };
       model = new sharedModels.ConversationModel(fakeSessionData, {
-        sdk: fakeSDK
+        sdk: fakeSDK,
+        pendingCallTimeout: 1000
       });
     });
 
diff --git a/browser/components/loop/test/standalone/webapp_test.js b/browser/components/loop/test/standalone/webapp_test.js
index 5765f0bb166e..ac2aac33ac3f 100644
--- a/browser/components/loop/test/standalone/webapp_test.js
+++ b/browser/components/loop/test/standalone/webapp_test.js
@@ -23,10 +23,12 @@ describe("loop.webapp", function() {
       error: sandbox.spy(),
       errorL10n: sandbox.spy(),
     };
+    loop.config.pendingCallTimeout = 1000;
   });
 
   afterEach(function() {
     sandbox.restore();
+    delete loop.config.pendingCallTimeout;
   });
 
   describe("#init", function() {
@@ -69,7 +71,10 @@ describe("loop.webapp", function() {
     var router, conversation;
 
     beforeEach(function() {
-      conversation = new sharedModels.ConversationModel({}, {sdk: {}});
+      conversation = new sharedModels.ConversationModel({}, {
+        sdk: {},
+        pendingCallTimeout: 1000
+      });
       router = new loop.webapp.WebappRouter({
         conversation: conversation,
         notifier: notifier
@@ -253,7 +258,9 @@ describe("loop.webapp", function() {
     var conversation;
 
     beforeEach(function() {
-      conversation = new sharedModels.ConversationModel({}, {sdk: {}});
+      conversation = new sharedModels.ConversationModel({}, {
+        sdk: {},
+        pendingCallTimeout: 1000});
     });
 
     describe("#initialize", function() {
@@ -268,7 +275,10 @@ describe("loop.webapp", function() {
       var conversation, initiate, view, fakeSubmitEvent;
 
       beforeEach(function() {
-        conversation = new sharedModels.ConversationModel({}, {sdk: {}});
+        conversation = new sharedModels.ConversationModel({}, {
+          sdk: {},
+          pendingCallTimeout: 1000
+        });
         view = new loop.webapp.ConversationFormView({
           model: conversation,
           notifier: notifier
@@ -307,7 +317,10 @@ describe("loop.webapp", function() {
       beforeEach(function() {
         conversation = new sharedModels.ConversationModel({
           loopToken: "fake"
-        }, {sdk: {}});
+        }, {
+          sdk: {},
+          pendingCallTimeout: 1000
+        });
         view = new loop.webapp.ConversationFormView({
           model: conversation,
           notifier: notifier