diff --git a/openfeature/context_aware_test.go b/openfeature/context_aware_test.go
index fb507782..f7174142 100644
--- a/openfeature/context_aware_test.go
+++ b/openfeature/context_aware_test.go
@@ -134,6 +134,20 @@ func TestContextAwareInitialization(t *testing.T) {
 		}
 	})
 
+	t.Run("cancelled context does not fail async setup", func(t *testing.T) {
+		// The non-blocking variants hand the context to the background
+		// initialization; they do not return an error when it is cancelled.
+		ctx, cancel := context.WithCancel(t.Context())
+		cancel()
+
+		if err := SetProviderWithContext(ctx, &testContextAwareProvider{}); err != nil {
+			t.Errorf("SetProviderWithContext with cancelled context: got %v, want nil", err)
+		}
+		if err := SetNamedProviderWithContext(ctx, "cancelled-domain", &testContextAwareProvider{}); err != nil {
+			t.Errorf("SetNamedProviderWithContext with cancelled context: got %v, want nil", err)
+		}
+	})
+
 	t.Run("named provider with context works", func(t *testing.T) {
 		namedProvider := &testContextAwareProvider{initDelay: 50 * time.Millisecond}
 
diff --git a/openfeature/openfeature.go b/openfeature/openfeature.go
index fa6ab5dd..be2ff517 100644
--- a/openfeature/openfeature.go
+++ b/openfeature/openfeature.go
@@ -70,7 +70,10 @@ func SetProviderAndWait(provider FeatureProvider) error {
 // SetProviderWithContext sets the default [FeatureProvider] with context-aware initialization.
 // If the provider implements ContextAwareStateHandler, InitWithContext will be called with the provided context.
 // Provider initialization is asynchronous and status can be checked from provider status.
-// Returns an error immediately if provider is nil, or if context is cancelled during setup.
+// Returns an error immediately if the provider is nil or is already bound to a different
+// API instance. Initialization runs in the background, so a cancelled context does not make
+// this function return an error; the context is passed to that background initialization,
+// whose outcome is reported through provider status.
 //
 // Use this function for non-blocking provider setup with timeout control where you want
 // to continue application startup while the provider initializes in background.
@@ -111,7 +114,10 @@ func SetNamedProviderAndWait(domain string, provider FeatureProvider) error {
 // SetNamedProviderWithContext sets a [FeatureProvider] mapped to the given [Client] domain with context-aware initialization.
 // If the provider implements ContextAwareStateHandler, InitWithContext will be called with the provided context.
 // Provider initialization is asynchronous and status can be checked from provider status.
-// Returns an error immediately if provider is nil, or if context is cancelled during setup.
+// Returns an error immediately if the provider is nil or is already bound to a different
+// API instance. Initialization runs in the background, so a cancelled context does not make
+// this function return an error; the context is passed to that background initialization,
+// whose outcome is reported through provider status.
 //
 // Named providers allow different domains to use different feature flag providers,
 // enabling multi-tenant applications or microservice architectures.