diff --git a/CSharpRepl.Services/Completion/AICompleteService.cs b/CSharpRepl.Services/Completion/AICompleteService.cs
index e650dcc2..1fc4e6c2 100644
--- a/CSharpRepl.Services/Completion/AICompleteService.cs
+++ b/CSharpRepl.Services/Completion/AICompleteService.cs
@@ -100,14 +100,51 @@ public async IAsyncEnumerable<string> CompleteAsync(IReadOnlyList<string> submis
         }
         messages.Add(new(ChatRole.User, code));
 
-        await foreach (var update in client.GetStreamingResponseAsync(messages, cancellationToken: cancellationToken))
+        await using var updates = client.GetStreamingResponseAsync(messages, cancellationToken: cancellationToken).GetAsyncEnumerator(cancellationToken);
+
+        while (true) // while(true) because MoveNextAsync can throw (due to API errors), and we can't have a yield return inside a try block that has a catch clause (CS1626/CS1631)
         {
-            var content = update.Text;
-            if (string.IsNullOrEmpty(content))
+            string? content;
+            string? error = null;
+            try
+            {
+                if (!await updates.MoveNextAsync())
+                {
+                    break;
+                }
+                content = updates.Current.Text;
+            }
+            catch (OperationCanceledException)
+            {
+                // The user cancelled; stop quietly without inserting anything.
+                yield break;
+            }
+            catch (Exception ex)
+            {
+                // some exception like an HTTP 429 when the AI provider's quota is exceeded
+                content = null;
+                error = FormatError(ex);
+            }
+
+            if (error is not null)
             {
-                continue;
+                yield return error;
+                yield break;
+            }
+
+            if (!string.IsNullOrEmpty(content))
+            {
+                yield return content.Replace("\t", "    ");
             }
-            yield return content.Replace("\t", "    ");
         }
     }
+
+    /// <summary>
+    /// Renders a streaming-completion failure as a C# comment so it can be safely inserted into the prompt input. 
+    /// </summary>
+    private static string FormatError(Exception ex)
+    {
+        var message = string.Join(' ', ex.Message.Split(['\r', '\n'], StringSplitOptions.RemoveEmptyEntries | StringSplitOptions.TrimEntries));
+        return $"{Environment.NewLine}// AI completion failed: {message}";
+    }
 }
diff --git a/Tests/CSharpRepl.Tests/AICompleteServiceTests.cs b/Tests/CSharpRepl.Tests/AICompleteServiceTests.cs
index 240a2b77..f33e0d3f 100644
--- a/Tests/CSharpRepl.Tests/AICompleteServiceTests.cs
+++ b/Tests/CSharpRepl.Tests/AICompleteServiceTests.cs
@@ -77,6 +77,67 @@ public async Task CompleteAsync_WithInjectedChatClient_StreamsChunksTabExpandedA
         Assert.Equal(new[] { "var x", "    = 1;" }, results);
     }
 
+    [Fact]
+    public async Task CompleteAsync_WhenProviderThrows_YieldsErrorCommentInsteadOfThrowing()
+    {
+        // A provider failure (e.g. HTTP 429 quota exceeded) must not crash the REPL: it surfaces as a C# comment.
+        var fake = new ThrowingChatClient(new InvalidOperationException("HTTP 429 (insufficient_quota)\n\nYou exceeded your current quota."));
+        var service = new AICompleteService(
+            new AICompletionConfiguration(apiKey: "key", endpoint: null, model: "any", prompt: "p", historyCount: 5),
+            fake);
+
+        var results = new List<string>();
+        await foreach (var chunk in service.CompleteAsync([], "var ", caret: 4, cancellationToken: TestContext.Current.CancellationToken))
+        {
+            results.Add(chunk);
+        }
+
+        var combined = string.Concat(results);
+        Assert.Contains("// AI completion failed:", combined);
+        Assert.Contains("HTTP 429 (insufficient_quota)", combined);
+        Assert.DoesNotContain("\n//", combined.TrimStart()); // multi-line message collapsed to a single comment line
+    }
+
+    [Fact]
+    public async Task CompleteAsync_WhenProviderThrowsMidStream_YieldsPartialOutputThenErrorComment()
+    {
+        var fake = new ThrowingChatClient(new InvalidOperationException("boom"), "var x", "= 1;");
+        var service = new AICompleteService(
+            new AICompletionConfiguration(apiKey: "key", endpoint: null, model: "any", prompt: "p", historyCount: 5),
+            fake);
+
+        var results = new List<string>();
+        await foreach (var chunk in service.CompleteAsync([], "var ", caret: 4, cancellationToken: TestContext.Current.CancellationToken))
+        {
+            results.Add(chunk);
+        }
+
+        Assert.Equal("var x", results[0]);
+        Assert.Equal("= 1;", results[1]);
+        Assert.EndsWith("// AI completion failed: boom", results[^1]);
+    }
+
+    [Fact]
+    public async Task CompleteAsync_WhenCancelled_YieldsNothing()
+    {
+        // Cancellation is a normal stop, not an error: it must not insert an error comment.
+        var fake = new FakeChatClient("var x", "= 1;");
+        var service = new AICompleteService(
+            new AICompletionConfiguration(apiKey: "key", endpoint: null, model: "any", prompt: "p", historyCount: 5),
+            fake);
+
+        using var cts = new CancellationTokenSource();
+        cts.Cancel();
+
+        var results = new List<string>();
+        await foreach (var chunk in service.CompleteAsync([], "var ", caret: 4, cancellationToken: cts.Token))
+        {
+            results.Add(chunk);
+        }
+
+        Assert.Empty(results);
+    }
+
     [Theory]
     [InlineData(null, null, null)]            // unspecified provider defaults to OpenAI's default model/endpoint
     [InlineData("openai", null, null)]
@@ -144,4 +205,29 @@ public Task<ChatResponse> GetResponseAsync(IEnumerable<ChatMessage> messages, Ch
 
         public void Dispose() { }
     }
+
+    private sealed class ThrowingChatClient(Exception toThrow, params string[] chunksBeforeThrow) : IChatClient
+    {
+        public IAsyncEnumerable<ChatResponseUpdate> GetStreamingResponseAsync(
+            IEnumerable<ChatMessage> messages, ChatOptions? options = null, CancellationToken cancellationToken = default)
+            => Stream();
+
+        private async IAsyncEnumerable<ChatResponseUpdate> Stream()
+        {
+            foreach (var chunk in chunksBeforeThrow)
+            {
+                yield return new ChatResponseUpdate(ChatRole.Assistant, chunk);
+                await Task.Yield();
+            }
+            await Task.Yield();
+            throw toThrow;
+        }
+
+        public Task<ChatResponse> GetResponseAsync(IEnumerable<ChatMessage> messages, ChatOptions? options = null, CancellationToken cancellationToken = default)
+            => throw new NotSupportedException();
+
+        public object? GetService(Type serviceType, object? serviceKey = null) => null;
+
+        public void Dispose() { }
+    }
 }