diff --git a/client/src/lib/hooks/useConnection.ts b/client/src/lib/hooks/useConnection.ts
index cd90d7f..0e843b8 100644
--- a/client/src/lib/hooks/useConnection.ts
+++ b/client/src/lib/hooks/useConnection.ts
@@ -225,12 +225,6 @@ export function useConnection({
         if (shouldRetry) {
           return connect(undefined, retryCount + 1);
         }
-
-        if (error instanceof SseError && error.code === 401) {
-          // Don't set error state if we're about to redirect for auth
-          return;
-        }
-        setConnectionStatus("error");
         return;
       }