diff --git a/src/lib/api-unauthorized.test.ts b/src/lib/api-unauthorized.test.ts
new file mode 100644
index 0000000..b674748
--- /dev/null
+++ b/src/lib/api-unauthorized.test.ts
@@ -0,0 +1,15 @@
+import { describe, expect, it } from 'vitest';
+import { ApiError, isUnauthorized, NetworkError } from './api';
+
+describe('isUnauthorized (#42)', () => {
+  it('is true only for a 401 ApiError', () => {
+    expect(isUnauthorized(new ApiError('Unauthorized', 401))).toBe(true);
+  });
+
+  it('keeps the token for other failures', () => {
+    expect(isUnauthorized(new ApiError('Forbidden', 403))).toBe(false);
+    expect(isUnauthorized(new ApiError('Server error', 500))).toBe(false);
+    expect(isUnauthorized(new NetworkError('Could not reach the server.'))).toBe(false);
+    expect(isUnauthorized(new Error('boom'))).toBe(false);
+  });
+});
diff --git a/src/lib/api.ts b/src/lib/api.ts
index f6d35c3..0a4607b 100644
--- a/src/lib/api.ts
+++ b/src/lib/api.ts
@@ -26,6 +26,11 @@ export class NetworkError extends ApiError {
 /** Default per-request timeout; override with `RequestOptions.timeoutMs`. */
 export const DEFAULT_TIMEOUT_MS = 15_000;
 
+/** True when the backend rejected our credentials (expired / invalid JWT). */
+export function isUnauthorized(err: unknown): boolean {
+  return err instanceof ApiError && err.status === 401;
+}
+
 export function getToken(): string | null {
   if (typeof window === 'undefined') return null;
   return window.localStorage.getItem(TOKEN_KEY);
diff --git a/src/lib/auth-context.tsx b/src/lib/auth-context.tsx
index f1461bd..2a58e1f 100644
--- a/src/lib/auth-context.tsx
+++ b/src/lib/auth-context.tsx
@@ -1,7 +1,7 @@
 'use client';
 
 import { createContext, useCallback, useContext, useEffect, useState } from 'react';
-import { apiFetch, clearToken, setToken } from './api';
+import { apiFetch, clearToken, getToken, isUnauthorized, setToken } from './api';
 import type { Me } from './types';
 
 interface AuthResponse {
@@ -25,10 +25,20 @@ export function AuthProvider({ children }: { children: React.ReactNode }) {
   const [loading, setLoading] = useState(true);
 
   const refresh = useCallback(async () => {
+    // No stored token: we're signed out, so skip the /users/me round-trip
+    // that would only fail on every page load (#42).
+    if (!getToken()) {
+      setUser(null);
+      return;
+    }
     try {
       const me = await apiFetch<Me>('/users/me');
       setUser(me);
-    } catch {
+    } catch (err) {
+      // A 401 means the stored JWT is expired or invalid: drop it so later
+      // requests stop sending a dead Authorization header (#42). Other
+      // failures (network, 5xx) keep the token — the session may be fine.
+      if (isUnauthorized(err)) clearToken();
       setUser(null);
     }
   }, []);