diff --git a/client/src/components/SidePanel/Agents/AgentGrid.tsx b/client/src/components/SidePanel/Agents/AgentGrid.tsx
index 3ed09d8037..93626f177f 100644
--- a/client/src/components/SidePanel/Agents/AgentGrid.tsx
+++ b/client/src/components/SidePanel/Agents/AgentGrid.tsx
@@ -278,9 +278,7 @@ const AgentGrid: React.FC<AgentGridProps> = ({ category, searchQuery, onSelectAg
       )}
     </div>
   );
-  console.log('isLoading', isLoading);
-  console.log('isFetching', isFetching);
-  console.log('isFetchingNextPage', isFetchingNextPage);
+
   if (isLoading || (isFetching && !isFetchingNextPage)) {
     return loadingSkeleton;
   }
diff --git a/client/src/components/SidePanel/Agents/ErrorDisplay.tsx b/client/src/components/SidePanel/Agents/ErrorDisplay.tsx
index f19c4648dc..be60fea0c9 100644
--- a/client/src/components/SidePanel/Agents/ErrorDisplay.tsx
+++ b/client/src/components/SidePanel/Agents/ErrorDisplay.tsx
@@ -67,23 +67,25 @@ export const ErrorDisplay: React.FC<ErrorDisplayProps> = ({ error, onRetry, cont
       errorData = error;
     }
 
-    // Use user-friendly message from backend if available
-    if (errorData && typeof errorData === 'object' && (errorData as any)?.userMessage) {
+    // Handle network errors first
+    let errorMessage = '';
+    if (isErrorInstance(error)) {
+      errorMessage = error.message;
+    } else if (isErrorObject(error) && (error as any)?.message) {
+      errorMessage = (error as any).message;
+    }
+
+    const errorCode = isErrorObject(error) ? (error as any)?.code : '';
+
+    // Handle timeout errors specifically
+    if (errorCode === 'ECONNABORTED' || errorMessage?.includes('timeout')) {
       return {
-        title: getContextualTitle(),
-        message: (errorData as any).userMessage,
-        suggestion:
-          (errorData as any).suggestion || localize('com_agents_error_suggestion_generic'),
+        title: localize('com_agents_error_timeout_title'),
+        message: localize('com_agents_error_timeout_message'),
+        suggestion: localize('com_agents_error_timeout_suggestion'),
       };
     }
 
-    // Handle network errors
-    const errorMessage = isErrorInstance(error)
-      ? error.message
-      : isErrorObject(error) && (error as any)?.message
-        ? (error as any).message
-        : '';
-    const errorCode = isErrorObject(error) ? (error as any)?.code : '';
     if (errorCode === 'NETWORK_ERROR' || errorMessage?.includes('Network Error')) {
       return {
         title: localize('com_agents_error_network_title'),
@@ -92,7 +94,7 @@ export const ErrorDisplay: React.FC<ErrorDisplayProps> = ({ error, onRetry, cont
       };
     }
 
-    // Handle specific HTTP status codes
+    // Handle specific HTTP status codes before generic userMessage
     const status = isErrorObject(error) ? (error as any)?.response?.status : null;
     if (status) {
       if (status === 404) {
@@ -108,7 +110,8 @@ export const ErrorDisplay: React.FC<ErrorDisplayProps> = ({ error, onRetry, cont
           title: localize('com_agents_error_invalid_request'),
           message:
             (errorData as any)?.userMessage || localize('com_agents_error_bad_request_message'),
-          suggestion: localize('com_agents_error_bad_request_suggestion'),
+          suggestion:
+            (errorData as any)?.suggestion || localize('com_agents_error_bad_request_suggestion'),
         };
       }
 
@@ -121,9 +124,19 @@ export const ErrorDisplay: React.FC<ErrorDisplayProps> = ({ error, onRetry, cont
       }
     }
 
-    // Fallback to generic error
+    // Use user-friendly message from backend if available (after specific status code handling)
+    if (errorData && typeof errorData === 'object' && (errorData as any)?.userMessage) {
+      return {
+        title: getContextualTitle(),
+        message: (errorData as any).userMessage,
+        suggestion:
+          (errorData as any).suggestion || localize('com_agents_error_suggestion_generic'),
+      };
+    }
+
+    // Fallback to generic error with contextual title
     return {
-      title: localize('com_agents_error_title'),
+      title: getContextualTitle(),
       message: localize('com_agents_error_generic'),
       suggestion: localize('com_agents_error_suggestion_generic'),
     };
@@ -193,9 +206,9 @@ export const ErrorDisplay: React.FC<ErrorDisplayProps> = ({ error, onRetry, cont
 
         {/* Error content with proper headings and structure */}
         <div className="space-y-3">
-          <h2 className="text-lg font-semibold text-gray-900 dark:text-white" id="error-title">
+          <h3 className="text-lg font-semibold text-gray-900 dark:text-white" id="error-title">
             {title}
-          </h2>
+          </h3>
           <p
             className="text-gray-600 dark:text-gray-400"
             id="error-message"
diff --git a/client/src/components/SidePanel/Agents/__tests__/Accessibility.spec.tsx b/client/src/components/SidePanel/Agents/__tests__/Accessibility.spec.tsx
index 2272fb1532..21d6cc4b83 100644
--- a/client/src/components/SidePanel/Agents/__tests__/Accessibility.spec.tsx
+++ b/client/src/components/SidePanel/Agents/__tests__/Accessibility.spec.tsx
@@ -6,6 +6,7 @@ import AgentGrid from '../AgentGrid';
 import AgentCard from '../AgentCard';
 import SearchBar from '../SearchBar';
 import ErrorDisplay from '../ErrorDisplay';
+import * as t from 'librechat-data-provider';
 
 // Mock matchMedia
 Object.defineProperty(window, 'matchMedia', {
@@ -22,31 +23,110 @@ Object.defineProperty(window, 'matchMedia', {
   })),
 });
 
+// Mock Recoil
+jest.mock('recoil', () => ({
+  useRecoilValue: jest.fn(() => 'en'),
+  RecoilRoot: ({ children }: any) => children,
+  atom: jest.fn(() => ({})),
+  atomFamily: jest.fn(() => ({})),
+  selector: jest.fn(() => ({})),
+  selectorFamily: jest.fn(() => ({})),
+  useRecoilState: jest.fn(() => ['en', jest.fn()]),
+  useSetRecoilState: jest.fn(() => jest.fn()),
+}));
+
+// Mock react-i18next
+jest.mock('react-i18next', () => ({
+  useTranslation: () => ({
+    t: (key: string) => key,
+    i18n: { changeLanguage: jest.fn() },
+  }),
+}));
+
+// Create the localize function once to be reused
+const mockLocalize = jest.fn((key: string, options?: any) => {
+  const translations: Record<string, string> = {
+    com_agents_category_tabs_label: 'Agent Categories',
+    com_agents_category_tab_label: `${options?.category} category, ${options?.position} of ${options?.total}`,
+    com_agents_search_instructions: 'Type to search agents by name or description',
+    com_agents_search_aria: 'Search agents',
+    com_agents_search_placeholder: 'Search agents...',
+    com_agents_clear_search: 'Clear search',
+    com_agents_agent_card_label: `${options?.name} agent. ${options?.description}`,
+    com_agents_no_description: 'No description available',
+    com_agents_grid_announcement: `Showing ${options?.count} agents in ${options?.category} category`,
+    com_agents_load_more_label: `Load more agents from ${options?.category} category`,
+    com_agents_error_retry: 'Try Again',
+    com_agents_loading: 'Loading...',
+    com_agents_empty_state_heading: 'No agents found',
+    com_agents_search_empty_heading: 'No search results',
+    com_agents_created_by: 'by',
+    com_agents_top_picks: 'Top Picks',
+    // ErrorDisplay translations
+    com_agents_error_suggestion_generic: 'Try refreshing the page or check your network connection',
+    com_agents_error_network_title: 'Network Error',
+    com_agents_error_network_message: 'Unable to connect to the server',
+    com_agents_error_network_suggestion: 'Check your internet connection and try again',
+    com_agents_error_not_found_title: 'Not Found',
+    com_agents_error_not_found_suggestion: 'The requested resource could not be found',
+    com_agents_error_invalid_request: 'Invalid Request',
+    com_agents_error_bad_request_message: 'The request was invalid',
+    com_agents_error_bad_request_suggestion: 'Please check your input and try again',
+    com_agents_error_server_title: 'Server Error',
+    com_agents_error_server_message: 'An internal server error occurred',
+    com_agents_error_server_suggestion: 'Please try again later',
+    com_agents_error_title: 'Error',
+    com_agents_error_generic: 'An unexpected error occurred',
+    com_agents_error_search_title: 'Search Error',
+    com_agents_error_category_title: 'Category Error',
+    com_agents_search_no_results: `No results found for "${options?.query}"`,
+    com_agents_category_empty: `No agents found in ${options?.category} category`,
+    com_agents_error_not_found_message: 'The requested resource could not be found',
+  };
+  return translations[key] || key;
+});
+
+// Mock useLocalize specifically
+jest.mock('~/hooks/useLocalize', () => ({
+  __esModule: true,
+  default: () => mockLocalize,
+}));
+
 // Mock hooks
-jest.mock(
-  '~/hooks/useLocalize',
-  () => () =>
-    jest.fn((key: string, options?: any) => {
-      const translations: Record<string, string> = {
-        com_agents_category_tabs_label: 'Agent Categories',
-        com_agents_category_tab_label: `${options?.category} category, ${options?.position} of ${options?.total}`,
-        com_agents_search_instructions: 'Type to search agents by name or description',
-        com_agents_search_aria: 'Search agents',
-        com_agents_search_placeholder: 'Search agents...',
-        com_agents_clear_search: 'Clear search',
-        com_agents_agent_card_label: `${options?.name} agent. ${options?.description}`,
-        com_agents_no_description: 'No description available',
-        com_agents_grid_announcement: `Showing ${options?.count} agents in ${options?.category} category`,
-        com_agents_load_more_label: `Load more agents from ${options?.category} category`,
-        com_agents_error_retry: 'Try Again',
-        com_agents_loading: 'Loading...',
-        com_agents_empty_state_heading: 'No agents found',
-        com_agents_search_empty_heading: 'No search results',
-      };
-      return translations[key] || key;
-    }),
-);
-const useDynamicAgentQuery = jest.fn();
+jest.mock('~/hooks', () => ({
+  useLocalize: () => mockLocalize,
+  useDebounce: jest.fn(),
+}));
+
+jest.mock('~/data-provider/Agents', () => ({
+  useMarketplaceAgentsInfiniteQuery: jest.fn(),
+}));
+
+jest.mock('~/hooks/Agents', () => ({
+  useAgentCategories: jest.fn(),
+}));
+
+// Mock utility functions
+jest.mock('~/utils/agents', () => ({
+  renderAgentAvatar: jest.fn(() => <div data-testid="agent-avatar" />),
+  getContactDisplayName: jest.fn((agent) => agent.authorName),
+}));
+
+// Mock SmartLoader
+jest.mock('../SmartLoader', () => ({
+  SmartLoader: ({ children, isLoading }: any) => (isLoading ? <div>Loading...</div> : children),
+  useHasData: jest.fn(() => true),
+}));
+
+// Import the actual modules to get the mocked functions
+import { useMarketplaceAgentsInfiniteQuery } from '~/data-provider/Agents';
+import { useAgentCategories } from '~/hooks/Agents';
+import { useDebounce } from '~/hooks';
+
+// Get typed mock functions
+const mockUseMarketplaceAgentsInfiniteQuery = jest.mocked(useMarketplaceAgentsInfiniteQuery);
+const mockUseAgentCategories = jest.mocked(useAgentCategories);
+const mockUseDebounce = jest.mocked(useDebounce);
 
 // Create wrapper with QueryClient
 const createWrapper = () => {
@@ -61,14 +141,29 @@ const createWrapper = () => {
 
 describe('Accessibility Improvements', () => {
   beforeEach(() => {
-    useDynamicAgentQuery.mockClear();
+    mockUseMarketplaceAgentsInfiniteQuery.mockClear();
+    mockUseAgentCategories.mockClear();
+    mockUseDebounce.mockClear();
+
+    // Default mock implementations
+    mockUseDebounce.mockImplementation((value) => value);
+    mockUseAgentCategories.mockReturnValue({
+      categories: [
+        { value: 'promoted', label: 'Top Picks' },
+        { value: 'all', label: 'All' },
+        { value: 'productivity', label: 'Productivity' },
+      ],
+      emptyCategory: { value: 'all', label: 'All' },
+      isLoading: false,
+      error: null,
+    });
   });
 
   describe('CategoryTabs Accessibility', () => {
     const categories = [
-      { name: 'promoted', count: 5 },
-      { name: 'all', count: 20 },
-      { name: 'productivity', count: 8 },
+      { value: 'promoted', label: 'Top Picks', count: 5 },
+      { value: 'all', label: 'All', count: 20 },
+      { value: 'productivity', label: 'Productivity', count: 8 },
     ];
 
     it('implements proper tablist role and ARIA attributes', () => {
@@ -91,7 +186,7 @@ describe('Accessibility Improvements', () => {
       const tabs = screen.getAllByRole('tab');
       expect(tabs).toHaveLength(3);
 
-      tabs.forEach((tab, index) => {
+      tabs.forEach((tab) => {
         expect(tab).toHaveAttribute('aria-selected');
         expect(tab).toHaveAttribute('aria-controls');
         expect(tab).toHaveAttribute('id');
@@ -109,7 +204,7 @@ describe('Accessibility Improvements', () => {
         />,
       );
 
-      const promotedTab = screen.getByRole('tab', { name: /promoted category/ });
+      const promotedTab = screen.getByRole('tab', { name: /Top Picks tab/ });
 
       // Test arrow key navigation
       fireEvent.keyDown(promotedTab, { key: 'ArrowRight' });
@@ -136,8 +231,8 @@ describe('Accessibility Improvements', () => {
         />,
       );
 
-      const promotedTab = screen.getByRole('tab', { name: /promoted category/ });
-      const allTab = screen.getByRole('tab', { name: /all category/ });
+      const promotedTab = screen.getByRole('tab', { name: /Top Picks tab/ });
+      const allTab = screen.getByRole('tab', { name: /All tab/ });
 
       // Active tab should be focusable
       expect(promotedTab).toHaveAttribute('tabIndex', '0');
@@ -154,7 +249,7 @@ describe('Accessibility Improvements', () => {
       expect(searchRegion).toBeInTheDocument();
 
       // Check input accessibility
-      const searchInput = screen.getByRole('searchbox');
+      const searchInput = screen.getByRole('textbox');
       expect(searchInput).toHaveAttribute('id', 'agent-search');
       expect(searchInput).toHaveAttribute('aria-label', 'Search agents');
       expect(searchInput).toHaveAttribute(
@@ -162,10 +257,9 @@ describe('Accessibility Improvements', () => {
         'search-instructions search-results-count',
       );
 
-      // Check hidden label
-      expect(screen.getByText('Type to search agents by name or description')).toHaveClass(
-        'sr-only',
-      );
+      // Check hidden label exists
+      const hiddenLabel = screen.getByLabelText('Search agents');
+      expect(hiddenLabel).toBeInTheDocument();
     });
 
     it('provides accessible clear button', () => {
@@ -192,10 +286,24 @@ describe('Accessibility Improvements', () => {
       name: 'Test Agent',
       description: 'A test agent for testing',
       authorName: 'Test Author',
+      created_at: 1704067200000,
+      avatar: null,
+      instructions: 'Test instructions',
+      provider: 'openai' as const,
+      model: 'gpt-4',
+      model_parameters: {
+        temperature: 0.7,
+        maxContextTokens: 4096,
+        max_context_tokens: 4096,
+        max_output_tokens: 1024,
+        top_p: 1,
+        frequency_penalty: 0,
+        presence_penalty: 0,
+      },
     };
 
     it('provides comprehensive ARIA labels', () => {
-      render(<AgentCard agent={mockAgent} onClick={jest.fn()} />);
+      render(<AgentCard agent={mockAgent as t.Agent} onClick={jest.fn()} />);
 
       const card = screen.getByRole('button');
       expect(card).toHaveAttribute('aria-label', 'Test Agent agent. A test agent for testing');
@@ -205,14 +313,14 @@ describe('Accessibility Improvements', () => {
 
     it('handles agents without descriptions', () => {
       const agentWithoutDesc = { ...mockAgent, description: undefined };
-      render(<AgentCard agent={agentWithoutDesc} onClick={jest.fn()} />);
+      render(<AgentCard agent={agentWithoutDesc as any as t.Agent} onClick={jest.fn()} />);
 
       expect(screen.getByText('No description available')).toBeInTheDocument();
     });
 
     it('supports keyboard interaction', () => {
       const onClick = jest.fn();
-      render(<AgentCard agent={mockAgent} onClick={onClick} />);
+      render(<AgentCard agent={mockAgent as t.Agent} onClick={onClick} />);
 
       const card = screen.getByRole('button');
 
@@ -226,19 +334,20 @@ describe('Accessibility Improvements', () => {
 
   describe('AgentGrid Accessibility', () => {
     beforeEach(() => {
-      useDynamicAgentQuery.mockReturnValue({
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
         data: {
-          agents: [
-            { id: '1', name: 'Agent 1', description: 'First agent' },
-            { id: '2', name: 'Agent 2', description: 'Second agent' },
+          pages: [
+            {
+              data: [
+                { id: '1', name: 'Agent 1', description: 'First agent' },
+                { id: '2', name: 'Agent 2', description: 'Second agent' },
+              ],
+            },
           ],
-          pagination: { hasMore: false, total: 2, current: 1 },
         },
         isLoading: false,
-        isFetching: false,
         error: null,
-        refetch: jest.fn(),
-      });
+      } as any);
     });
 
     it('implements proper tabpanel structure', () => {
@@ -267,7 +376,7 @@ describe('Accessibility Improvements', () => {
       // Check grid role
       const grid = screen.getByRole('grid');
       expect(grid).toBeInTheDocument();
-      expect(grid).toHaveAttribute('aria-label', 'Showing 2 agents in all category');
+      expect(grid).toHaveAttribute('aria-label', 'Showing 2 agents in All category');
 
       // Check gridcells
       const gridcells = screen.getAllByRole('gridcell');
@@ -275,13 +384,16 @@ describe('Accessibility Improvements', () => {
     });
 
     it('announces loading states to screen readers', () => {
-      useDynamicAgentQuery.mockReturnValue({
-        data: { agents: [{ id: '1', name: 'Agent 1' }] },
-        isLoading: false,
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
+        data: {
+          pages: [{ data: [{ id: '1', name: 'Agent 1' }] }],
+        },
         isFetching: true,
+        hasNextPage: true,
+        isFetchingNextPage: true,
+        isLoading: false,
         error: null,
-        refetch: jest.fn(),
-      });
+      } as any);
 
       const Wrapper = createWrapper();
       render(
@@ -290,20 +402,26 @@ describe('Accessibility Improvements', () => {
         </Wrapper>,
       );
 
-      // Check for loading announcement
-      const loadingStatus = screen.getByRole('status', { name: 'Loading...' });
+      // Check for loading announcement when fetching more data
+      const loadingStatus = screen.getByRole('status');
       expect(loadingStatus).toBeInTheDocument();
       expect(loadingStatus).toHaveAttribute('aria-live', 'polite');
+      expect(loadingStatus).toHaveAttribute('aria-label', 'Loading...');
+
+      // Check for screen reader text
+      const srText = screen.getByText('Loading...');
+      expect(srText).toHaveClass('sr-only');
     });
 
     it('provides accessible empty states', () => {
-      useDynamicAgentQuery.mockReturnValue({
-        data: { agents: [], pagination: { hasMore: false, total: 0, current: 1 } },
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
+        data: {
+          pages: [{ data: [] }],
+        },
         isLoading: false,
         isFetching: false,
         error: null,
-        refetch: jest.fn(),
-      });
+      } as any);
 
       const Wrapper = createWrapper();
       render(
@@ -377,7 +495,7 @@ describe('Accessibility Improvements', () => {
     it('provides visible focus indicators on interactive elements', () => {
       render(
         <CategoryTabs
-          categories={[{ name: 'test', count: 1 }]}
+          categories={[{ value: 'test', label: 'Test', count: 1 }]}
           activeTab="test"
           isLoading={false}
           onChange={jest.fn()}
@@ -386,7 +504,7 @@ describe('Accessibility Improvements', () => {
 
       const tab = screen.getByRole('tab');
       expect(tab.className).toContain('focus:outline-none');
-      expect(tab.className).toContain('focus:ring-2');
+      expect(tab.className).toContain('focus:bg-gray-100');
     });
   });
 
diff --git a/client/src/components/SidePanel/Agents/__tests__/AgentCard.spec.tsx b/client/src/components/SidePanel/Agents/__tests__/AgentCard.spec.tsx
index e319bca6d9..15e95bc1a6 100644
--- a/client/src/components/SidePanel/Agents/__tests__/AgentCard.spec.tsx
+++ b/client/src/components/SidePanel/Agents/__tests__/AgentCard.spec.tsx
@@ -21,8 +21,21 @@ describe('AgentCard', () => {
       name: 'Test Support',
       email: 'test@example.com',
     },
-    avatar: '/test-avatar.png',
-  } as t.Agent;
+    avatar: { filepath: '/test-avatar.png', source: 'local' },
+    created_at: 1672531200000,
+    instructions: 'Test instructions',
+    provider: 'openai' as const,
+    model: 'gpt-4',
+    model_parameters: {
+      temperature: 0.7,
+      maxContextTokens: 4096,
+      max_context_tokens: 4096,
+      max_output_tokens: 1024,
+      top_p: 1,
+      frequency_penalty: 0,
+      presence_penalty: 0,
+    },
+  };
 
   const mockOnClick = jest.fn();
 
@@ -39,7 +52,7 @@ describe('AgentCard', () => {
     expect(screen.getByText('Test Support')).toBeInTheDocument();
   });
 
-  it('displays avatar when provided as string', () => {
+  it('displays avatar when provided as object', () => {
     render(<AgentCard agent={mockAgent} onClick={mockOnClick} />);
 
     const avatarImg = screen.getByAltText('Test Agent avatar');
@@ -47,17 +60,17 @@ describe('AgentCard', () => {
     expect(avatarImg).toHaveAttribute('src', '/test-avatar.png');
   });
 
-  it('displays avatar when provided as object with filepath', () => {
-    const agentWithObjectAvatar = {
+  it('displays avatar when provided as string', () => {
+    const agentWithStringAvatar = {
       ...mockAgent,
-      avatar: { filepath: '/object-avatar.png' },
+      avatar: '/string-avatar.png' as any, // Legacy support for string avatars
     };
 
-    render(<AgentCard agent={agentWithObjectAvatar} onClick={mockOnClick} />);
+    render(<AgentCard agent={agentWithStringAvatar} onClick={mockOnClick} />);
 
     const avatarImg = screen.getByAltText('Test Agent avatar');
     expect(avatarImg).toBeInTheDocument();
-    expect(avatarImg).toHaveAttribute('src', '/object-avatar.png');
+    expect(avatarImg).toHaveAttribute('src', '/string-avatar.png');
   });
 
   it('displays Bot icon fallback when no avatar is provided', () => {
@@ -66,7 +79,7 @@ describe('AgentCard', () => {
       avatar: undefined,
     };
 
-    render(<AgentCard agent={agentWithoutAvatar} onClick={mockOnClick} />);
+    render(<AgentCard agent={agentWithoutAvatar as any as t.Agent} onClick={mockOnClick} />);
 
     // Check for Bot icon presence by looking for the svg with lucide-bot class
     const botIcon = document.querySelector('.lucide-bot');
diff --git a/client/src/components/SidePanel/Agents/__tests__/AgentGrid.integration.spec.tsx b/client/src/components/SidePanel/Agents/__tests__/AgentGrid.integration.spec.tsx
index a91bf70f05..722c6edfb7 100644
--- a/client/src/components/SidePanel/Agents/__tests__/AgentGrid.integration.spec.tsx
+++ b/client/src/components/SidePanel/Agents/__tests__/AgentGrid.integration.spec.tsx
@@ -1,13 +1,16 @@
 import React from 'react';
-import { render, screen, fireEvent, waitFor } from '@testing-library/react';
+import { render, screen, fireEvent } from '@testing-library/react';
 import '@testing-library/jest-dom';
 import AgentGrid from '../AgentGrid';
-import { useGetMarketplaceAgentsQuery } from 'librechat-data-provider/react-query';
 import type t from 'librechat-data-provider';
+import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
 
 // Mock the marketplace agent query hook
+jest.mock('~/data-provider/Agents', () => ({
+  useMarketplaceAgentsInfiniteQuery: jest.fn(),
+}));
+
 jest.mock('~/hooks/Agents', () => ({
-  useGetMarketplaceAgentsQuery: jest.fn(),
   useAgentCategories: jest.fn(() => ({
     categories: [],
     isLoading: false,
@@ -15,8 +18,13 @@ jest.mock('~/hooks/Agents', () => ({
   })),
 }));
 
+// Mock SmartLoader
+jest.mock('../SmartLoader', () => ({
+  useHasData: jest.fn(() => true),
+}));
+
 // Mock useLocalize hook
-jest.mock('~/hooks/useLocalize', () => () => (key: string) => {
+jest.mock('~/hooks/useLocalize', () => () => (key: string, options?: any) => {
   const mockTranslations: Record<string, string> = {
     com_agents_top_picks: 'Top Picks',
     com_agents_all: 'All Agents',
@@ -33,23 +41,28 @@ jest.mock('~/hooks/useLocalize', () => () => (key: string) => {
     com_agents_grid_announcement: '{{count}} agents in {{category}}',
     com_agents_load_more_label: 'Load more agents from {{category}}',
   };
-  return mockTranslations[key] || key.replace(/{{(\w+)}}/g, (match, key) => `[${key}]`);
-});
 
-// Mock SmartLoader components
-jest.mock('../SmartLoader', () => ({
-  SmartLoader: ({ children, isLoading }: { children: React.ReactNode; isLoading: boolean }) =>
-    isLoading ? <div>Loading...</div> : <div>{children}</div>,
-  useHasData: (data: any) => !!data?.agents?.length,
-}));
+  let translation = mockTranslations[key] || key;
+
+  if (options) {
+    Object.keys(options).forEach((optionKey) => {
+      translation = translation.replace(new RegExp(`{{${optionKey}}}`, 'g'), options[optionKey]);
+    });
+  }
+
+  return translation;
+});
 
 // Mock ErrorDisplay component
 jest.mock('../ErrorDisplay', () => ({
   __esModule: true,
-  default: ({ error, onRetry }: { error: string; onRetry: () => void }) => (
+  default: ({ error, onRetry }: { error: any; onRetry: () => void }) => (
     <div>
-      <div>Error: {error}</div>
-      <button onClick={onRetry}>Retry</button>
+      <div>
+        {`Error: `}
+        {typeof error === 'string' ? error : error?.message || 'Unknown error'}
+      </div>
+      <button onClick={onRetry}>{`Retry`}</button>
     </div>
   ),
 }));
@@ -65,9 +78,10 @@ jest.mock('../AgentCard', () => ({
   ),
 }));
 
-const mockUseGetMarketplaceAgentsQuery = useGetMarketplaceAgentsQuery as jest.MockedFunction<
-  typeof useGetMarketplaceAgentsQuery
->;
+// Import the actual modules to get the mocked functions
+import { useMarketplaceAgentsInfiniteQuery } from '~/data-provider/Agents';
+
+const mockUseMarketplaceAgentsInfiniteQuery = jest.mocked(useMarketplaceAgentsInfiniteQuery);
 
 describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
   const mockOnSelectAgent = jest.fn();
@@ -84,7 +98,15 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
       instructions: null,
       provider: 'custom',
       model: 'gpt-4',
-      model_parameters: {},
+      model_parameters: {
+        temperature: null,
+        maxContextTokens: null,
+        max_context_tokens: null,
+        max_output_tokens: null,
+        top_p: null,
+        frequency_penalty: null,
+        presence_penalty: null,
+      },
     },
     {
       id: '2',
@@ -97,31 +119,37 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
       instructions: null,
       provider: 'custom',
       model: 'gpt-4',
-      model_parameters: {},
+      model_parameters: {
+        temperature: 0.7,
+        top_p: 0.9,
+        frequency_penalty: 0,
+        maxContextTokens: null,
+        max_context_tokens: null,
+        max_output_tokens: null,
+        presence_penalty: null,
+      },
     },
   ];
-
   const defaultMockQueryResult = {
     data: {
-      data: mockAgents,
-      pagination: {
-        current: 1,
-        hasMore: true,
-        total: 10,
-      },
+      pages: [
+        {
+          data: mockAgents,
+        },
+      ],
     },
     isLoading: false,
     error: null,
     isFetching: false,
+    isFetchingNextPage: false,
+    hasNextPage: true,
+    fetchNextPage: jest.fn(),
     refetch: jest.fn(),
-    isSuccess: true,
-    isError: false,
-    status: 'success' as const,
-  };
+  } as any;
 
   beforeEach(() => {
     jest.clearAllMocks();
-    mockUseGetMarketplaceAgentsQuery.mockReturnValue(defaultMockQueryResult);
+    mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue(defaultMockQueryResult);
   });
 
   describe('Query Integration', () => {
@@ -130,7 +158,7 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
         <AgentGrid category="finance" searchQuery="test query" onSelectAgent={mockOnSelectAgent} />,
       );
 
-      expect(mockUseGetMarketplaceAgentsQuery).toHaveBeenCalledWith({
+      expect(mockUseMarketplaceAgentsInfiniteQuery).toHaveBeenCalledWith({
         requiredPermission: 1,
         category: 'finance',
         search: 'test query',
@@ -141,7 +169,7 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
     it('should call useGetMarketplaceAgentsQuery with promoted=1 for promoted category', () => {
       render(<AgentGrid category="promoted" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
 
-      expect(mockUseGetMarketplaceAgentsQuery).toHaveBeenCalledWith({
+      expect(mockUseMarketplaceAgentsInfiniteQuery).toHaveBeenCalledWith({
         requiredPermission: 1,
         promoted: 1,
         limit: 6,
@@ -151,7 +179,7 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
     it('should call useGetMarketplaceAgentsQuery without category filter for "all" category', () => {
       render(<AgentGrid category="all" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
 
-      expect(mockUseGetMarketplaceAgentsQuery).toHaveBeenCalledWith({
+      expect(mockUseMarketplaceAgentsInfiniteQuery).toHaveBeenCalledWith({
         requiredPermission: 1,
         limit: 6,
       });
@@ -160,7 +188,7 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
     it('should not include category in search when category is "all" or "promoted"', () => {
       render(<AgentGrid category="all" searchQuery="test" onSelectAgent={mockOnSelectAgent} />);
 
-      expect(mockUseGetMarketplaceAgentsQuery).toHaveBeenCalledWith({
+      expect(mockUseMarketplaceAgentsInfiniteQuery).toHaveBeenCalledWith({
         requiredPermission: 1,
         search: 'test',
         limit: 6,
@@ -168,9 +196,25 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
     });
   });
 
+  // Create wrapper with QueryClient
+  const createWrapper = () => {
+    const queryClient = new QueryClient({
+      defaultOptions: { queries: { retry: false } },
+    });
+
+    return ({ children }: { children: React.ReactNode }) => (
+      <QueryClientProvider client={queryClient}>{children}</QueryClientProvider>
+    );
+  };
+
   describe('Agent Display', () => {
     it('should render agent cards when data is available', () => {
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
       expect(screen.getByTestId('agent-card-1')).toBeInTheDocument();
       expect(screen.getByTestId('agent-card-2')).toBeInTheDocument();
@@ -179,7 +223,12 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
     });
 
     it('should call onSelectAgent when agent card is clicked', () => {
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
       fireEvent.click(screen.getByTestId('agent-card-1'));
       expect(mockOnSelectAgent).toHaveBeenCalledWith(mockAgents[0]);
@@ -188,24 +237,41 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
 
   describe('Loading States', () => {
     it('should show loading state when isLoading is true', () => {
-      mockUseGetMarketplaceAgentsQuery.mockReturnValue({
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
         ...defaultMockQueryResult,
         isLoading: true,
         data: undefined,
       });
 
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
-      expect(screen.getByText('Loading...')).toBeInTheDocument();
+      // Should show skeleton loading state
+      expect(document.querySelector('.animate-pulse')).toBeInTheDocument();
     });
 
     it('should show empty state when no agents are available', () => {
-      mockUseGetMarketplaceAgentsQuery.mockReturnValue({
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
         ...defaultMockQueryResult,
-        data: { data: [], pagination: { current: 1, hasMore: false, total: 0 } },
+        data: {
+          pages: [
+            {
+              data: [],
+            },
+          ],
+        },
       });
 
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
       expect(screen.getByText('No agents available')).toBeInTheDocument();
     });
@@ -214,14 +280,19 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
   describe('Error Handling', () => {
     it('should show error display when query has error', () => {
       const mockError = new Error('Failed to fetch agents');
-      mockUseGetMarketplaceAgentsQuery.mockReturnValue({
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
         ...defaultMockQueryResult,
         error: mockError,
         isError: true,
         data: undefined,
       });
 
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
       expect(screen.getByText('Error: Failed to fetch agents')).toBeInTheDocument();
       expect(screen.getByRole('button', { name: 'Retry' })).toBeInTheDocument();
@@ -230,25 +301,41 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
 
   describe('Search Results', () => {
     it('should show search results title when searching', () => {
+      const Wrapper = createWrapper();
       render(
-        <AgentGrid category="finance" searchQuery="automation" onSelectAgent={mockOnSelectAgent} />,
+        <Wrapper>
+          <AgentGrid
+            category="finance"
+            searchQuery="automation"
+            onSelectAgent={mockOnSelectAgent}
+          />
+        </Wrapper>,
       );
 
       expect(screen.getByText('Results for "automation"')).toBeInTheDocument();
     });
 
     it('should show empty search results message', () => {
-      mockUseGetMarketplaceAgentsQuery.mockReturnValue({
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
         ...defaultMockQueryResult,
-        data: { data: [], pagination: { current: 1, hasMore: false, total: 0 } },
+        data: {
+          pages: [
+            {
+              data: [],
+            },
+          ],
+        },
       });
 
+      const Wrapper = createWrapper();
       render(
-        <AgentGrid
-          category="finance"
-          searchQuery="nonexistent"
-          onSelectAgent={mockOnSelectAgent}
-        />,
+        <Wrapper>
+          <AgentGrid
+            category="finance"
+            searchQuery="nonexistent"
+            onSelectAgent={mockOnSelectAgent}
+          />
+        </Wrapper>,
       );
 
       expect(screen.getByText('No results found')).toBeInTheDocument();
@@ -257,24 +344,33 @@ describe('AgentGrid Integration with useGetMarketplaceAgentsQuery', () => {
   });
 
   describe('Load More Functionality', () => {
-    it('should show "See more" button when hasMore is true', () => {
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+    it('should show "See more" button when hasNextPage is true', () => {
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
-      expect(screen.getByRole('button', { name: 'See more' })).toBeInTheDocument();
+      expect(
+        screen.getByRole('button', { name: 'Load more agents from Finance' }),
+      ).toBeInTheDocument();
     });
 
-    it('should not show "See more" button when hasMore is false', () => {
-      mockUseGetMarketplaceAgentsQuery.mockReturnValue({
+    it('should not show "See more" button when hasNextPage is false', () => {
+      mockUseMarketplaceAgentsInfiniteQuery.mockReturnValue({
         ...defaultMockQueryResult,
-        data: {
-          ...defaultMockQueryResult.data,
-          pagination: { current: 1, hasMore: false, total: 2 },
-        },
+        hasNextPage: false,
       });
 
-      render(<AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />);
+      const Wrapper = createWrapper();
+      render(
+        <Wrapper>
+          <AgentGrid category="finance" searchQuery="" onSelectAgent={mockOnSelectAgent} />
+        </Wrapper>,
+      );
 
-      expect(screen.queryByRole('button', { name: 'See more' })).not.toBeInTheDocument();
+      expect(screen.queryByRole('button', { name: /Load more agents/ })).not.toBeInTheDocument();
     });
   });
 });
diff --git a/client/src/components/SidePanel/Agents/__tests__/ErrorDisplay.spec.tsx b/client/src/components/SidePanel/Agents/__tests__/ErrorDisplay.spec.tsx
index 8008d5e4d9..b8ab6bb1c0 100644
--- a/client/src/components/SidePanel/Agents/__tests__/ErrorDisplay.spec.tsx
+++ b/client/src/components/SidePanel/Agents/__tests__/ErrorDisplay.spec.tsx
@@ -38,6 +38,9 @@ const mockLocalize = jest.fn((key: string, options?: any) => {
     com_agents_error_server_suggestion: 'Please try again in a few moments.',
     com_agents_error_search_title: 'Search Error',
     com_agents_error_category_title: 'Category Error',
+    com_agents_error_timeout_title: 'Connection Timeout',
+    com_agents_error_timeout_message: 'The request took too long to complete.',
+    com_agents_error_timeout_suggestion: 'Please check your internet connection and try again.',
     com_agents_search_no_results: `No agents found for "${options?.query}"`,
     com_agents_category_empty: `No agents found in the ${options?.category} category`,
     com_agents_error_retry: 'Try Again',
diff --git a/client/src/locales/en/translation.json b/client/src/locales/en/translation.json
index a31813947b..cb52c9a2df 100644
--- a/client/src/locales/en/translation.json
+++ b/client/src/locales/en/translation.json
@@ -1154,6 +1154,9 @@
   "com_agents_error_server_suggestion": "Please try again in a few moments.",
   "com_agents_error_search_title": "Search Error",
   "com_agents_error_category_title": "Category Error",
+  "com_agents_error_timeout_title": "Connection Timeout",
+  "com_agents_error_timeout_message": "The request took too long to complete.",
+  "com_agents_error_timeout_suggestion": "Please check your internet connection and try again.",
   "com_agents_search_no_results": "No agents found for \"{{query}}\"",
   "com_agents_category_empty": "No agents found in the {{category}} category",
   "com_agents_error_retry": "Try Again",