diff --git a/commands/cc_statusline.go b/commands/cc_statusline.go
index 12dd721..668f84b 100644
--- a/commands/cc_statusline.go
+++ b/commands/cc_statusline.go
@@ -37,6 +37,7 @@ type ccStatuslineResult struct {
 	GitDirty            bool
 	FiveHourUtilization *float64
 	SevenDayUtilization *float64
+	QuotaError          string
 	UserLogin           string
 	WebEndpoint         string
 }
@@ -99,6 +100,7 @@ func commandCCStatusline(c *cli.Context) error {
 		GitDirty:       result.GitDirty,
 		FiveHourUtil:   result.FiveHourUtilization,
 		SevenDayUtil:   result.SevenDayUtilization,
+		QuotaError:     result.QuotaError,
 		UserLogin:      result.UserLogin,
 		WebEndpoint:    result.WebEndpoint,
 		SessionID:      data.SessionID,
@@ -168,6 +170,7 @@ type statuslineParams struct {
 	GitDirty       bool
 	FiveHourUtil   *float64
 	SevenDayUtil   *float64
+	QuotaError     string
 	UserLogin      string
 	WebEndpoint    string
 	SessionID      string
@@ -213,7 +216,7 @@ func formatStatuslineOutput(p statuslineParams) string {
 
 	// Quota utilization (macOS only - requires Keychain for OAuth token)
 	if runtime.GOOS == "darwin" {
-		parts = append(parts, formatQuotaPart(p.FiveHourUtil, p.SevenDayUtil))
+		parts = append(parts, formatQuotaPart(p.FiveHourUtil, p.SevenDayUtil, p.QuotaError))
 	}
 
 	// AI agent time (magenta) - clickable link to user profile
@@ -245,8 +248,11 @@ func formatStatuslineOutput(p statuslineParams) string {
 
 // formatQuotaPart formats the rate limit quota section of the statusline.
 // Color is based on the max utilization of both buckets.
-func formatQuotaPart(fiveHourUtil, sevenDayUtil *float64) string {
+func formatQuotaPart(fiveHourUtil, sevenDayUtil *float64, quotaError string) string {
 	if fiveHourUtil == nil || sevenDayUtil == nil {
+		if quotaError != "" {
+			return wrapOSC8Link(claudeUsageURL, color.Red.Sprintf("🚦 err:%s", quotaError))
+		}
 		return wrapOSC8Link(claudeUsageURL, color.Gray.Sprint("🚦 -"))
 	}
 
@@ -315,6 +321,7 @@ func getDaemonInfoWithFallback(ctx context.Context, config model.ShellTimeConfig
 				GitDirty:            resp.GitDirty,
 				FiveHourUtilization: resp.FiveHourUtilization,
 				SevenDayUtilization: resp.SevenDayUtilization,
+				QuotaError:          resp.QuotaError,
 				UserLogin:           resp.UserLogin,
 				WebEndpoint:         config.WebEndpoint,
 			}
diff --git a/commands/cc_statusline_test.go b/commands/cc_statusline_test.go
index 5758ed1..a9376e5 100644
--- a/commands/cc_statusline_test.go
+++ b/commands/cc_statusline_test.go
@@ -326,20 +326,20 @@ func (s *CCStatuslineTestSuite) TestCalculateContextPercent_WithoutCurrentUsage(
 // formatQuotaPart Tests
 
 func (s *CCStatuslineTestSuite) TestFormatQuotaPart_NilValues() {
-	result := formatQuotaPart(nil, nil)
+	result := formatQuotaPart(nil, nil, "")
 	assert.Contains(s.T(), result, "🚦 -")
 }
 
 func (s *CCStatuslineTestSuite) TestFormatQuotaPart_OnlyFiveHourNil() {
 	sd := 0.23
-	result := formatQuotaPart(nil, &sd)
+	result := formatQuotaPart(nil, &sd, "")
 	assert.Contains(s.T(), result, "🚦 -")
 }
 
 func (s *CCStatuslineTestSuite) TestFormatQuotaPart_LowUtilization() {
 	fh := 10.0
 	sd := 20.0
-	result := formatQuotaPart(&fh, &sd)
+	result := formatQuotaPart(&fh, &sd, "")
 	assert.Contains(s.T(), result, "5h:10%")
 	assert.Contains(s.T(), result, "7d:20%")
 }
@@ -347,7 +347,7 @@ func (s *CCStatuslineTestSuite) TestFormatQuotaPart_LowUtilization() {
 func (s *CCStatuslineTestSuite) TestFormatQuotaPart_MediumUtilization() {
 	fh := 55.0
 	sd := 30.0
-	result := formatQuotaPart(&fh, &sd)
+	result := formatQuotaPart(&fh, &sd, "")
 	assert.Contains(s.T(), result, "5h:55%")
 	assert.Contains(s.T(), result, "7d:30%")
 }
@@ -355,27 +355,47 @@ func (s *CCStatuslineTestSuite) TestFormatQuotaPart_MediumUtilization() {
 func (s *CCStatuslineTestSuite) TestFormatQuotaPart_HighUtilization() {
 	fh := 45.0
 	sd := 85.0
-	result := formatQuotaPart(&fh, &sd)
+	result := formatQuotaPart(&fh, &sd, "")
 	assert.Contains(s.T(), result, "5h:45%")
 	assert.Contains(s.T(), result, "7d:85%")
 }
 
 func (s *CCStatuslineTestSuite) TestFormatQuotaPart_ContainsLink() {
 	// Nil case
-	result := formatQuotaPart(nil, nil)
+	result := formatQuotaPart(nil, nil, "")
 	assert.Contains(s.T(), result, "claude.ai/settings/usage")
 	assert.Contains(s.T(), result, "\033]8;;")
 
 	// With values
 	fh := 45.0
 	sd := 23.0
-	result = formatQuotaPart(&fh, &sd)
+	result = formatQuotaPart(&fh, &sd, "")
 	assert.Contains(s.T(), result, "claude.ai/settings/usage")
 	assert.Contains(s.T(), result, "\033]8;;")
 	assert.Contains(s.T(), result, "5h:45%")
 	assert.Contains(s.T(), result, "7d:23%")
 }
 
+func (s *CCStatuslineTestSuite) TestFormatQuotaPart_WithError() {
+	result := formatQuotaPart(nil, nil, "oauth")
+	assert.Contains(s.T(), result, "🚦 err:oauth")
+	assert.Contains(s.T(), result, "claude.ai/settings/usage")
+}
+
+func (s *CCStatuslineTestSuite) TestFormatQuotaPart_WithAPIError() {
+	result := formatQuotaPart(nil, nil, "api:403")
+	assert.Contains(s.T(), result, "🚦 err:api:403")
+}
+
+func (s *CCStatuslineTestSuite) TestFormatQuotaPart_ErrorIgnoredWhenDataPresent() {
+	fh := 10.0
+	sd := 20.0
+	// When data is present, error should not appear (data takes priority)
+	result := formatQuotaPart(&fh, &sd, "oauth")
+	assert.Contains(s.T(), result, "5h:10%")
+	assert.NotContains(s.T(), result, "err:")
+}
+
 func (s *CCStatuslineTestSuite) TestFormatStatuslineOutput_SessionCostWithLink() {
 	output := formatStatuslineOutput(statuslineParams{
 		ModelName:      "claude-opus-4",
diff --git a/daemon/anthropic_ratelimit.go b/daemon/anthropic_ratelimit.go
index 730e9bf..88ef051 100644
--- a/daemon/anthropic_ratelimit.go
+++ b/daemon/anthropic_ratelimit.go
@@ -26,6 +26,7 @@ type anthropicRateLimitCache struct {
 	usage         *AnthropicRateLimitData
 	fetchedAt     time.Time
 	lastAttemptAt time.Time
+	lastError     string // short error description for statusline display
 }
 
 // anthropicUsageResponse maps the Anthropic API response
diff --git a/daemon/anthropic_ratelimit_test.go b/daemon/anthropic_ratelimit_test.go
index 18b6a3d..1f9564d 100644
--- a/daemon/anthropic_ratelimit_test.go
+++ b/daemon/anthropic_ratelimit_test.go
@@ -3,6 +3,7 @@ package daemon
 import (
 	"context"
 	"encoding/json"
+	"fmt"
 	"net/http"
 	"net/http/httptest"
 	"testing"
@@ -101,6 +102,38 @@ func TestParseKeychainJSON_EmptyAccessToken(t *testing.T) {
 	assert.Empty(t, creds.ClaudeAiOauth.AccessToken)
 }
 
+func TestShortenAPIError_HTTPStatus(t *testing.T) {
+	err := fmt.Errorf("anthropic usage API returned status %d", 403)
+	assert.Equal(t, "api:403", shortenAPIError(err))
+}
+
+func TestShortenAPIError_DecodeError(t *testing.T) {
+	err := fmt.Errorf("failed to decode usage response: unexpected EOF")
+	assert.Equal(t, "api:decode", shortenAPIError(err))
+}
+
+func TestShortenAPIError_NetworkError(t *testing.T) {
+	err := fmt.Errorf("dial tcp: connection refused")
+	assert.Equal(t, "network", shortenAPIError(err))
+}
+
+func TestGetCachedRateLimitError_Empty(t *testing.T) {
+	config := &model.ShellTimeConfig{}
+	service := NewCCInfoTimerService(config)
+	assert.Empty(t, service.GetCachedRateLimitError())
+}
+
+func TestGetCachedRateLimitError_WithError(t *testing.T) {
+	config := &model.ShellTimeConfig{}
+	service := NewCCInfoTimerService(config)
+
+	service.rateLimitCache.mu.Lock()
+	service.rateLimitCache.lastError = "oauth"
+	service.rateLimitCache.mu.Unlock()
+
+	assert.Equal(t, "oauth", service.GetCachedRateLimitError())
+}
+
 func TestAnthropicRateLimitCache_GetCachedRateLimit_Nil(t *testing.T) {
 	config := &model.ShellTimeConfig{}
 	service := NewCCInfoTimerService(config)
diff --git a/daemon/cc_info_timer.go b/daemon/cc_info_timer.go
index a9f866e..29448e9 100644
--- a/daemon/cc_info_timer.go
+++ b/daemon/cc_info_timer.go
@@ -2,6 +2,7 @@ package daemon
 
 import (
 	"context"
+	"fmt"
 	"log/slog"
 	"path/filepath"
 	"runtime"
@@ -417,18 +418,25 @@ func (s *CCInfoTimerService) fetchRateLimit(ctx context.Context) {
 	token, err := fetchClaudeCodeOAuthToken()
 	if err != nil || token == "" {
 		slog.Debug("Failed to get Claude Code OAuth token", slog.Any("err", err))
+		s.rateLimitCache.mu.Lock()
+		s.rateLimitCache.lastError = "oauth"
+		s.rateLimitCache.mu.Unlock()
 		return
 	}
 
 	usage, err := fetchAnthropicUsage(ctx, token)
 	if err != nil {
 		slog.Warn("Failed to fetch Anthropic usage", slog.Any("err", err))
+		s.rateLimitCache.mu.Lock()
+		s.rateLimitCache.lastError = shortenAPIError(err)
+		s.rateLimitCache.mu.Unlock()
 		return
 	}
 
 	s.rateLimitCache.mu.Lock()
 	s.rateLimitCache.usage = usage
 	s.rateLimitCache.fetchedAt = time.Now()
+	s.rateLimitCache.lastError = ""
 	s.rateLimitCache.mu.Unlock()
 
 	// Send usage data to server for push notification scheduling (fire-and-forget)
@@ -535,3 +543,28 @@ func (s *CCInfoTimerService) GetCachedRateLimit() *AnthropicRateLimitData {
 	copy := *s.rateLimitCache.usage
 	return &copy
 }
+
+// GetCachedRateLimitError returns the last error from rate limit fetching, or empty string if none.
+func (s *CCInfoTimerService) GetCachedRateLimitError() string {
+	s.rateLimitCache.mu.RLock()
+	defer s.rateLimitCache.mu.RUnlock()
+	return s.rateLimitCache.lastError
+}
+
+// shortenAPIError converts an Anthropic usage API error into a short string for statusline display.
+func shortenAPIError(err error) string {
+	msg := err.Error()
+
+	// Check for HTTP status code pattern
+	var status int
+	if _, scanErr := fmt.Sscanf(msg, "anthropic usage API returned status %d", &status); scanErr == nil {
+		return fmt.Sprintf("api:%d", status)
+	}
+
+	// Decode errors
+	if len(msg) >= 6 && msg[:6] == "failed" {
+		return "api:decode"
+	}
+
+	return "network"
+}
diff --git a/daemon/socket.go b/daemon/socket.go
index 25874f8..132ddb7 100644
--- a/daemon/socket.go
+++ b/daemon/socket.go
@@ -52,6 +52,7 @@ type CCInfoResponse struct {
 	GitDirty            bool      `json:"gitDirty"`
 	FiveHourUtilization *float64  `json:"fiveHourUtilization,omitempty"`
 	SevenDayUtilization *float64  `json:"sevenDayUtilization,omitempty"`
+	QuotaError          string    `json:"quotaError,omitempty"`
 	UserLogin           string    `json:"userLogin,omitempty"`
 }
 
@@ -249,10 +250,12 @@ func (p *SocketHandler) handleCCInfo(conn net.Conn, msg SocketMessage) {
 		UserLogin:           p.ccInfoTimer.GetCachedUserLogin(),
 	}
 
-	// Populate rate limit fields if available
+	// Populate rate limit fields if available, otherwise surface error
 	if rl := p.ccInfoTimer.GetCachedRateLimit(); rl != nil {
 		response.FiveHourUtilization = &rl.FiveHourUtilization
 		response.SevenDayUtilization = &rl.SevenDayUtilization
+	} else {
+		response.QuotaError = p.ccInfoTimer.GetCachedRateLimitError()
 	}
 
 	encoder := json.NewEncoder(conn)