Abstract: A method and system for managing a telephony connection on hold to reduce the use of resources within the telephony network and/or to allow the user on hold to place their telephony device into an on-hook state after they have been placed on hold. In two embodiments, a user of a telephony device who has been placed on hold can initiate a Smart Hold whereby their telephony device can be placed in an on-hook state while on hold and the user will be signaled when the call is to be removed from hold. This allows the user to perform other activities while a Smart Hold has been implemented, without the need to keep a telephone handset to their car, for example. The freeing up of local loop resources can also be achieved. In another embodiment, the Smart Hold can be initiated by either party to a connection without requiring cooperation of the other party. In some embodiments, no toll charges or the like will be incurred while the Smart Hold is in effect.