diff --git a/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/project/ProjectContextProvider.kt b/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/project/ProjectContextProvider.kt
index 75ab0df4f46..22154f51e55 100644
--- a/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/project/ProjectContextProvider.kt
+++ b/plugins/amazonq/shared/jetbrains-community/src/software/aws/toolkits/jetbrains/services/amazonq/project/ProjectContextProvider.kt
@@ -123,11 +123,16 @@ class ProjectContextProvider(val project: Project, private val encoderServer: En
                 }
                 retryCount.incrementAndGet()
             } catch (e: Exception) {
-                logger.warn(e) { "failed to init project context" }
                 if (e.stackTraceToString().contains("Connection refused")) {
-                    retryCount.incrementAndGet()
-                    delay(10000)
+                    if (encoderServer.isNodeProcessRunning()) {
+                        return
+                    } else {
+                        logger.warn(e) { "project context process quit unexpectedly" }
+                        retryCount.incrementAndGet()
+                        delay(10000)
+                    }
                 } else {
+                    logger.warn(e) { "failed to init project context" }
                     return
                 }
             }