diff --git a/frontend/src/components/annotation/shared/DrawingCanvas.tsx b/frontend/src/components/annotation/shared/DrawingCanvas.tsx
index d4ae74ad0..2baecbf19 100644
--- a/frontend/src/components/annotation/shared/DrawingCanvas.tsx
+++ b/frontend/src/components/annotation/shared/DrawingCanvas.tsx
@@ -11,6 +11,7 @@ interface DrawingCanvasProps {
   onPenSizeChange: (size: number) => void;
   onPenSizeInputChange: (input: string) => void;
   onSignatureDataChange: (data: string | null) => void;
+  onDrawingComplete?: () => void;  // Called when user finishes drawing
   disabled?: boolean;
   width?: number;
   height?: number;
@@ -27,6 +28,7 @@ export const DrawingCanvas: React.FC<DrawingCanvasProps> = ({
   onPenSizeChange,
   onPenSizeInputChange,
   onSignatureDataChange,
+  onDrawingComplete,
   disabled = false,
   width = 400,
   height = 150,
@@ -89,8 +91,15 @@ export const DrawingCanvas: React.FC<DrawingCanvasProps> = ({
     if (canvasRef.current) {
       const dataURL = canvasRef.current.toDataURL('image/png');
       onSignatureDataChange(dataURL);
+
+      // Trigger drawing complete callback after a brief delay to ensure signature data is processed
+      if (onDrawingComplete) {
+        setTimeout(() => {
+          onDrawingComplete();
+        }, 100);
+      }
     }
-  }, [isDrawing, disabled, onSignatureDataChange]);
+  }, [isDrawing, disabled, onSignatureDataChange, onDrawingComplete]);
 
   // Modal canvas drawing functions
   const startModalDrawing = useCallback((e: React.MouseEvent<HTMLCanvasElement>) => {
@@ -161,8 +170,15 @@ export const DrawingCanvas: React.FC<DrawingCanvasProps> = ({
           img.src = dataURL;
         }
       }
+
+      // Trigger drawing complete callback after a brief delay to ensure signature data is processed
+      if (onDrawingComplete) {
+        setTimeout(() => {
+          onDrawingComplete();
+        }, 100);
+      }
     }
-  }, [isModalDrawing]);
+  }, [isModalDrawing, onSignatureDataChange, onDrawingComplete]);
 
   // Clear canvas functions
   const clearCanvas = useCallback(() => {
@@ -231,7 +247,14 @@ export const DrawingCanvas: React.FC<DrawingCanvasProps> = ({
     }
 
     setIsModalOpen(false);
-  }, []);
+
+    // Trigger drawing complete callback after closing modal
+    if (onDrawingComplete) {
+      setTimeout(() => {
+        onDrawingComplete();
+      }, 100);
+    }
+  }, [onSignatureDataChange, onDrawingComplete]);
 
   const openModal = useCallback(() => {
     setIsModalOpen(true);
diff --git a/frontend/src/components/tools/sign/SignSettings.tsx b/frontend/src/components/tools/sign/SignSettings.tsx
index 74dc83d39..9a7e50dc4 100644
--- a/frontend/src/components/tools/sign/SignSettings.tsx
+++ b/frontend/src/components/tools/sign/SignSettings.tsx
@@ -183,21 +183,13 @@ const SignSettings = ({
           onPenSizeChange={setPenSize}
           onPenSizeInputChange={setPenSizeInput}
           onSignatureDataChange={handleCanvasSignatureChange}
+          onDrawingComplete={() => {
+            // Automatically activate placement mode when drawing is complete
+            if (onActivateSignaturePlacement) {
+              onActivateSignaturePlacement();
+            }
+          }}
           disabled={disabled}
-          additionalButtons={
-            <Button
-              onClick={() => {
-                if (onActivateSignaturePlacement) {
-                  onActivateSignaturePlacement();
-                }
-              }}
-              color="blue"
-              variant="filled"
-              disabled={disabled || !canvasSignatureData}
-            >
-              Update and Place
-            </Button>
-          }
         />
       )}
 
@@ -224,7 +216,7 @@ const SignSettings = ({
       {/* Instructions for placing signature */}
       <Alert color="blue" title={t('sign.instructions.title', 'How to add signature')}>
         <Text size="sm">
-          {parameters.signatureType === 'canvas' && 'After drawing your signature in the canvas above, click "Update and Place" then click anywhere on the PDF to place it.'}
+          {parameters.signatureType === 'canvas' && 'After drawing your signature in the canvas above, click anywhere on the PDF to place it.'}
           {parameters.signatureType === 'image' && 'After uploading your signature image above, click anywhere on the PDF to place it.'}
           {parameters.signatureType === 'text' && 'After entering your name above, click anywhere on the PDF to place your signature.'}
         </Text>