diff --git a/apps/web/src/App.tsx b/apps/web/src/App.tsx
index fc21f0b..f7978ee 100644
--- a/apps/web/src/App.tsx
+++ b/apps/web/src/App.tsx
@@ -7,7 +7,7 @@ import { InviteGateScreen } from '@/components/game/InviteGateScreen';
 import { useGameLoop } from '@/hooks/useGameLoop';
 import { useAuthGate } from '@/hooks/useAuthGate';
 import { TICK_INTERVAL_MS } from '@ai-tycoon/shared';
-import { Sparkles } from 'lucide-react';
+import { Sparkles, RefreshCw, WifiOff } from 'lucide-react';
 
 function LoadingScreen() {
   return (
@@ -25,8 +25,35 @@ function LoadingScreen() {
   );
 }
 
+function BackendErrorScreen({ error, onRetry }: { error: string; onRetry: () => void }) {
+  return (
+    <div className="min-h-screen flex items-center justify-center bg-gradient-to-b from-surface-950 to-surface-900">
+      <div className="max-w-md w-full mx-4 text-center">
+        <div className="inline-flex items-center gap-2 mb-6">
+          <Sparkles className="text-accent-light" size={32} />
+          <h1 className="text-4xl font-bold bg-gradient-to-r from-accent-light to-accent bg-clip-text text-transparent">
+            AI Tycoon
+          </h1>
+        </div>
+
+        <div className="bg-surface-900 border border-surface-700 rounded-xl p-6 space-y-4">
+          <WifiOff className="mx-auto text-danger" size={40} />
+          <h2 className="text-lg font-semibold text-surface-100">Cannot Connect to Server</h2>
+          <p className="text-sm text-surface-400">{error}</p>
+          <button
+            onClick={onRetry}
+            className="inline-flex items-center gap-2 px-5 py-2.5 rounded-lg bg-accent hover:bg-accent-dark text-white font-medium text-sm transition-colors"
+          >
+            <RefreshCw size={16} /> Retry
+          </button>
+        </div>
+      </div>
+    </div>
+  );
+}
+
 export function App() {
-  const { loading: authLoading, needsInvite, needsPasswordReset, setRegistered, setNeedsPasswordReset } = useAuthGate();
+  const { loading: authLoading, backendError, needsInvite, needsPasswordReset, setRegistered, setNeedsPasswordReset, retry } = useAuthGate();
   const companyName = useGameStore((s) => s.meta.companyName);
   const lastTickTimestamp = useGameStore((s) => s.meta.lastTickTimestamp);
   const [catchUpTicks, setCatchUpTicks] = useState<number | null>(null);
@@ -43,12 +70,16 @@ export function App() {
     }
   }, [companyName, lastTickTimestamp, catchUpDone]);
 
-  useGameLoop(!catchUpDone || authLoading || needsInvite || needsPasswordReset);
+  useGameLoop(!catchUpDone || authLoading || !!backendError || needsInvite || needsPasswordReset);
 
   if (authLoading) {
     return <LoadingScreen />;
   }
 
+  if (backendError) {
+    return <BackendErrorScreen error={backendError} onRetry={retry} />;
+  }
+
   if (needsInvite || needsPasswordReset) {
     return (
       <InviteGateScreen
diff --git a/apps/web/src/hooks/useAuthGate.ts b/apps/web/src/hooks/useAuthGate.ts
index 816a59c..9065263 100644
--- a/apps/web/src/hooks/useAuthGate.ts
+++ b/apps/web/src/hooks/useAuthGate.ts
@@ -1,9 +1,10 @@
-import { useState, useEffect, useCallback } from 'react';
-import { api, getTokenPayload, isRegistered as checkRegistered, needsPasswordReset as checkNeedsReset, setAuthToken } from '@/lib/api';
+import { useState, useCallback } from 'react';
+import { api, getTokenPayload, isRegistered as checkRegistered, needsPasswordReset as checkNeedsReset, validateStoredToken } from '@/lib/api';
 import { ensureAuth } from './useCloudSave';
 
 interface AuthGateState {
   loading: boolean;
+  backendError: string | null;
   needsInvite: boolean;
   needsPasswordReset: boolean;
   registered: boolean;
@@ -11,46 +12,60 @@ interface AuthGateState {
   config: { requireInvite: boolean; userInvitations: number } | null;
   setRegistered: (value: boolean) => void;
   setNeedsPasswordReset: (value: boolean) => void;
+  retry: () => void;
 }
 
 export function useAuthGate(): AuthGateState {
   const [config, setConfig] = useState<{ requireInvite: boolean; userInvitations: number } | null>(null);
   const [loading, setLoading] = useState(true);
+  const [backendError, setBackendError] = useState<string | null>(null);
   const [registered, setRegistered] = useState(false);
   const [passwordReset, setPasswordReset] = useState(false);
   const [admin, setAdmin] = useState(false);
+  const [initCount, setInitCount] = useState(0);
 
-  useEffect(() => {
-    let cancelled = false;
+  const init = useCallback(async () => {
+    setLoading(true);
+    setBackendError(null);
 
-    async function init() {
-      try {
-        const [cfg] = await Promise.all([
-          api.config.get(),
-          ensureAuth(),
-        ]);
+    validateStoredToken();
 
-        if (cancelled) return;
-
-        setConfig(cfg);
-
-        const payload = getTokenPayload();
-        const reg = checkRegistered();
-        setRegistered(reg);
-        setPasswordReset(checkNeedsReset());
-        setAdmin(payload?.role === 'admin');
-      } catch {
-        // Config fetch failed — allow game to load (fail open)
-        setConfig({ requireInvite: false, userInvitations: 0 });
-      } finally {
-        if (!cancelled) setLoading(false);
-      }
+    try {
+      await api.health();
+    } catch (e) {
+      setBackendError(e instanceof Error ? e.message : 'Cannot connect to server');
+      setLoading(false);
+      return;
     }
 
-    init();
-    return () => { cancelled = true; };
+    try {
+      const cfg = await api.config.get();
+      setConfig(cfg);
+    } catch {
+      setConfig({ requireInvite: false, userInvitations: 0 });
+    }
+
+    try {
+      await ensureAuth();
+    } catch {
+      // auth failed — will show as unregistered
+    }
+
+    const payload = getTokenPayload();
+    setRegistered(checkRegistered());
+    setPasswordReset(checkNeedsReset());
+    setAdmin(payload?.role === 'admin');
+    setLoading(false);
   }, []);
 
+  // Run init on mount and on retry
+  useState(() => { init(); });
+
+  const retry = useCallback(() => {
+    setInitCount(c => c + 1);
+    init();
+  }, [init]);
+
   const handleSetRegistered = useCallback((value: boolean) => {
     setRegistered(value);
     const payload = getTokenPayload();
@@ -68,6 +83,7 @@ export function useAuthGate(): AuthGateState {
 
   return {
     loading,
+    backendError,
     needsInvite,
     needsPasswordReset: passwordReset,
     registered,
@@ -75,5 +91,6 @@ export function useAuthGate(): AuthGateState {
     config,
     setRegistered: handleSetRegistered,
     setNeedsPasswordReset: handleSetPasswordReset,
+    retry,
   };
 }
diff --git a/apps/web/src/hooks/useCloudSave.ts b/apps/web/src/hooks/useCloudSave.ts
index efebe08..bf0a38b 100644
--- a/apps/web/src/hooks/useCloudSave.ts
+++ b/apps/web/src/hooks/useCloudSave.ts
@@ -1,6 +1,6 @@
 import { useEffect, useRef } from 'react';
 import { useGameStore } from '@/store';
-import { api, getAuthToken, setAuthToken } from '@/lib/api';
+import { api, getAuthToken, setAuthToken, clearAuthToken, decodeTokenPayload } from '@/lib/api';
 import { AUTO_SAVE_INTERVAL_TICKS } from '@ai-tycoon/shared';
 
 export function useCloudSave() {
@@ -31,8 +31,11 @@ export function useCloudSave() {
 }
 
 export async function ensureAuth(): Promise<string | null> {
-  let token = getAuthToken();
-  if (token) return token;
+  const token = getAuthToken();
+  if (token) {
+    if (decodeTokenPayload(token)) return token;
+    clearAuthToken();
+  }
 
   try {
     const result = await api.auth.anonymous();
diff --git a/apps/web/src/lib/api.ts b/apps/web/src/lib/api.ts
index 926352c..d1c7bdb 100644
--- a/apps/web/src/lib/api.ts
+++ b/apps/web/src/lib/api.ts
@@ -63,30 +63,53 @@ export function needsPasswordReset(): boolean {
   return payload?.mustResetPassword === true;
 }
 
-async function request<T>(path: string, options: RequestInit = {}): Promise<T> {
+async function request<T>(path: string, options: RequestInit & { timeoutMs?: number } = {}): Promise<T> {
+  const { timeoutMs = 10_000, ...fetchOptions } = options;
+
   const headers: Record<string, string> = {
     'Content-Type': 'application/json',
-    ...(options.headers as Record<string, string>),
+    ...(fetchOptions.headers as Record<string, string>),
   };
 
   if (authToken) {
     headers['Authorization'] = `Bearer ${authToken}`;
   }
 
-  const res = await fetch(`${API_BASE}${path}`, {
-    ...options,
-    headers,
-  });
+  const controller = new AbortController();
+  const timeout = setTimeout(() => controller.abort(), timeoutMs);
 
-  if (!res.ok) {
-    const body = await res.json().catch(() => ({ error: 'Unknown error' }));
-    throw new Error(body.error || `HTTP ${res.status}`);
+  try {
+    const res = await fetch(`${API_BASE}${path}`, {
+      ...fetchOptions,
+      headers,
+      signal: controller.signal,
+    });
+
+    if (!res.ok) {
+      const body = await res.json().catch(() => ({ error: 'Unknown error' }));
+      throw new Error(body.error || `HTTP ${res.status}`);
+    }
+
+    return res.json();
+  } catch (e) {
+    if (e instanceof DOMException && e.name === 'AbortError') {
+      throw new Error('Request timed out — server may be unreachable');
+    }
+    throw e;
+  } finally {
+    clearTimeout(timeout);
   }
+}
 
-  return res.json();
+export function validateStoredToken(): void {
+  const token = getAuthToken();
+  if (token && !decodeTokenPayload(token)) {
+    clearAuthToken();
+  }
 }
 
 export const api = {
+  health: () => request<{ status: string }>('/health', { timeoutMs: 5_000 }),
   auth: {
     anonymous: () => request<{ userId: string; token: string }>('/api/auth/anonymous', { method: 'POST' }),
     login: (login: string, password: string) =>