diff --git a/packages/shared/IpcChannel.ts b/packages/shared/IpcChannel.ts
index a8421354f..9a3866d48 100644
--- a/packages/shared/IpcChannel.ts
+++ b/packages/shared/IpcChannel.ts
@@ -322,6 +322,7 @@ export enum IpcChannel {
   ApiServer_Stop = 'api-server:stop',
   ApiServer_Restart = 'api-server:restart',
   ApiServer_GetStatus = 'api-server:get-status',
+  ApiServer_Ready = 'api-server:ready',
   // NOTE: This api is not be used.
   ApiServer_GetConfig = 'api-server:get-config',
 
diff --git a/src/main/apiServer/server.ts b/src/main/apiServer/server.ts
index 3cb81f412..9b15e56da 100644
--- a/src/main/apiServer/server.ts
+++ b/src/main/apiServer/server.ts
@@ -1,8 +1,10 @@
 import { createServer } from 'node:http'
 
 import { loggerService } from '@logger'
+import { IpcChannel } from '@shared/IpcChannel'
 
 import { agentService } from '../services/agents'
+import { windowService } from '../services/WindowService'
 import { app } from './app'
 import { config } from './config'
 
@@ -43,6 +45,13 @@ export class ApiServer {
     return new Promise((resolve, reject) => {
       this.server!.listen(port, host, () => {
         logger.info('API server started', { host, port })
+
+        // Notify renderer that API server is ready
+        const mainWindow = windowService.getMainWindow()
+        if (mainWindow && !mainWindow.isDestroyed()) {
+          mainWindow.webContents.send(IpcChannel.ApiServer_Ready)
+        }
+
         resolve()
       })
 
diff --git a/src/preload/index.ts b/src/preload/index.ts
index 12aa9fd3b..fa39ac698 100644
--- a/src/preload/index.ts
+++ b/src/preload/index.ts
@@ -525,7 +525,16 @@ const api = {
     getStatus: (): Promise<GetApiServerStatusResult> => ipcRenderer.invoke(IpcChannel.ApiServer_GetStatus),
     start: (): Promise<StartApiServerStatusResult> => ipcRenderer.invoke(IpcChannel.ApiServer_Start),
     restart: (): Promise<RestartApiServerStatusResult> => ipcRenderer.invoke(IpcChannel.ApiServer_Restart),
-    stop: (): Promise<StopApiServerStatusResult> => ipcRenderer.invoke(IpcChannel.ApiServer_Stop)
+    stop: (): Promise<StopApiServerStatusResult> => ipcRenderer.invoke(IpcChannel.ApiServer_Stop),
+    onReady: (callback: () => void): (() => void) => {
+      const listener = () => {
+        callback()
+      }
+      ipcRenderer.on(IpcChannel.ApiServer_Ready, listener)
+      return () => {
+        ipcRenderer.removeListener(IpcChannel.ApiServer_Ready, listener)
+      }
+    }
   },
   claudeCodePlugin: {
     listAvailable: (): Promise<PluginResult<ListAvailablePluginsResult>> =>
diff --git a/src/renderer/src/hooks/agents/useAgents.ts b/src/renderer/src/hooks/agents/useAgents.ts
index f14b89351..3f5dcb6e3 100644
--- a/src/renderer/src/hooks/agents/useAgents.ts
+++ b/src/renderer/src/hooks/agents/useAgents.ts
@@ -25,6 +25,10 @@ export const useAgents = () => {
   const client = useAgentClient()
   const key = client.agentPaths.base
   const { apiServerConfig, apiServerRunning } = useApiServer()
+
+  // Disable SWR fetching when server is not running by setting key to null
+  const swrKey = apiServerRunning ? key : null
+
   const fetcher = useCallback(async () => {
     // API server will start on startup if enabled OR there are agents
     if (!apiServerConfig.enabled && !apiServerRunning) {
@@ -37,7 +41,7 @@ export const useAgents = () => {
     // NOTE: We only use the array for now. useUpdateAgent depends on this behavior.
     return result.data
   }, [apiServerConfig.enabled, apiServerRunning, client, t])
-  const { data, error, isLoading, mutate } = useSWR(key, fetcher)
+  const { data, error, isLoading, mutate } = useSWR(swrKey, fetcher)
   const { chat } = useRuntime()
   const { activeAgentId } = chat
   const dispatch = useAppDispatch()
diff --git a/src/renderer/src/hooks/useApiServer.ts b/src/renderer/src/hooks/useApiServer.ts
index ae418f6cc..38f6fa64d 100644
--- a/src/renderer/src/hooks/useApiServer.ts
+++ b/src/renderer/src/hooks/useApiServer.ts
@@ -14,8 +14,8 @@ export const useApiServer = () => {
   const apiServerConfig = useAppSelector((state) => state.settings.apiServer)
   const dispatch = useAppDispatch()
 
-  // Optimistic initial state.
-  const [apiServerRunning, setApiServerRunning] = useState(apiServerConfig.enabled)
+  // Initial state - no longer optimistic, wait for actual status
+  const [apiServerRunning, setApiServerRunning] = useState(false)
   const [apiServerLoading, setApiServerLoading] = useState(true)
 
   const setApiServerEnabled = useCallback(
@@ -99,6 +99,16 @@ export const useApiServer = () => {
     checkApiServerStatus()
   }, [checkApiServerStatus])
 
+  // Listen for API server ready event
+  useEffect(() => {
+    const cleanup = window.api.apiServer.onReady(() => {
+      logger.info('API server ready event received, checking status')
+      checkApiServerStatus()
+    })
+
+    return cleanup
+  }, [checkApiServerStatus])
+
   return {
     apiServerConfig,
     apiServerRunning,
diff --git a/src/renderer/src/pages/home/Tabs/AssistantsTab.tsx b/src/renderer/src/pages/home/Tabs/AssistantsTab.tsx
index b0c901851..8fc439b7b 100644
--- a/src/renderer/src/pages/home/Tabs/AssistantsTab.tsx
+++ b/src/renderer/src/pages/home/Tabs/AssistantsTab.tsx
@@ -36,7 +36,7 @@ const AssistantsTab: FC<AssistantsTabProps> = (props) => {
   const { activeAssistant, setActiveAssistant, onCreateAssistant, onCreateDefaultAssistant } = props
   const containerRef = useRef<HTMLDivElement>(null)
   const { t } = useTranslation()
-  const { apiServerConfig, apiServerRunning } = useApiServer()
+  const { apiServerConfig, apiServerRunning, apiServerLoading } = useApiServer()
   const apiServerEnabled = apiServerConfig.enabled
   const { iknow, chat } = useRuntime()
   const dispatch = useAppDispatch()
@@ -113,8 +113,8 @@ const AssistantsTab: FC<AssistantsTabProps> = (props) => {
         />
       )}
 
-      {agentsLoading && <Spinner />}
-      {apiServerConfig.enabled && !apiServerRunning && (
+      {(agentsLoading || apiServerLoading) && <Spinner />}
+      {apiServerConfig.enabled && !apiServerLoading && !apiServerRunning && (
         <Alert color="danger" title={t('agent.server.error.not_running')} isClosable className="mb-2" />
       )}
       {apiServerRunning && agentsError && (