diff --git a/configs/testing-library-compass/src/index.tsx b/configs/testing-library-compass/src/index.tsx
index 0e4a90e18ee..c0b332f7016 100644
--- a/configs/testing-library-compass/src/index.tsx
+++ b/configs/testing-library-compass/src/index.tsx
@@ -93,6 +93,10 @@ type TestConnectionsOptions = {
   connectFn?: (
     connectionOptions: ConnectionInfo['connectionOptions']
   ) => Partial<DataService> | Promise<Partial<DataService>>;
+  /**
+   * Connection storage mock
+   */
+  connectionStorage?: ConnectionStorage;
 } & Partial<
   Omit<
     React.ComponentProps<typeof CompassConnections>,
@@ -258,9 +262,9 @@ function createWrapper(
     preferences: new InMemoryPreferencesAccess(options.preferences),
     track: Sinon.stub(),
     logger: createNoopLogger(),
-    connectionStorage: new InMemoryConnectionStorage(
-      options.connections
-    ) as ConnectionStorage,
+    connectionStorage:
+      options.connectionStorage ??
+      (new InMemoryConnectionStorage(options.connections) as ConnectionStorage),
     connectionsStore: {
       getState: undefined as unknown as () => State,
       actions: {} as ReturnType<typeof useConnectionActions>,
@@ -330,6 +334,12 @@ function createWrapper(
                     <ConnectFnProvider connect={wrapperState.connect}>
                       <CompassConnections
                         appName={options.appName ?? 'TEST'}
+                        onFailToLoadConnections={
+                          options.onFailToLoadConnections ??
+                          (() => {
+                            // noop
+                          })
+                        }
                         onExtraConnectionDataRequest={
                           options.onExtraConnectionDataRequest ??
                           (() => {
diff --git a/packages/compass-connections/src/index.tsx b/packages/compass-connections/src/index.tsx
index b1a6073d68a..e6a20fabea6 100644
--- a/packages/compass-connections/src/index.tsx
+++ b/packages/compass-connections/src/index.tsx
@@ -63,6 +63,10 @@ const ConnectionsComponent: React.FunctionComponent<{
    * connections on plugin activate
    */
   preloadStorageConnectionInfos?: ConnectionInfo[];
+  /**
+   * When connections fail to load, this callback will be called
+   */
+  onFailToLoadConnections: (error: Error) => void;
 }> = ({ children }) => {
   return (
     <ConnectionActionsProvider>
@@ -90,6 +94,7 @@ const CompassConnectionsPlugin = registerHadronPlugin(
         appName: initialProps.appName,
         connectFn: initialProps.connectFn,
         globalAppRegistry,
+        onFailToLoadConnections: initialProps.onFailToLoadConnections,
       });
 
       setTimeout(() => {
diff --git a/packages/compass-connections/src/stores/connections-store-redux.spec.tsx b/packages/compass-connections/src/stores/connections-store-redux.spec.tsx
index d6f6cc36492..a238f5c7ff6 100644
--- a/packages/compass-connections/src/stores/connections-store-redux.spec.tsx
+++ b/packages/compass-connections/src/stores/connections-store-redux.spec.tsx
@@ -9,6 +9,7 @@ import {
   render,
 } from '@mongodb-js/testing-library-compass';
 import React from 'react';
+import { InMemoryConnectionStorage } from '@mongodb-js/connection-storage/provider';
 
 const mockConnections = [
   {
@@ -48,6 +49,30 @@ describe('CompassConnections store', function () {
     sinon.restore();
   });
 
+  describe('#loadAll', function () {
+    it('calls onFailToLoadConnections when it fails to loadAll connections', async function () {
+      const onFailToLoadConnectionsSpy = sinon.spy();
+      const connectionStorage = new InMemoryConnectionStorage();
+      connectionStorage.loadAll = sinon
+        .stub()
+        .rejects(new Error('loadAll failed'));
+
+      renderCompassConnections({
+        connectionStorage,
+        onFailToLoadConnections: onFailToLoadConnectionsSpy,
+      });
+
+      await waitFor(() => {
+        expect(onFailToLoadConnectionsSpy).to.have.been.calledOnce;
+      });
+
+      expect(onFailToLoadConnectionsSpy.firstCall.firstArg).to.have.property(
+        'message',
+        'loadAll failed'
+      );
+    });
+  });
+
   describe('#connect', function () {
     it('should show notifications throughout connection flow and save connection to persistent store', async function () {
       const { connectionsStore, connectionStorage, track } =
diff --git a/packages/compass-connections/src/stores/connections-store-redux.ts b/packages/compass-connections/src/stores/connections-store-redux.ts
index 2e29261282f..057c3a2762f 100644
--- a/packages/compass-connections/src/stores/connections-store-redux.ts
+++ b/packages/compass-connections/src/stores/connections-store-redux.ts
@@ -216,6 +216,7 @@ type ThunkExtraArg = {
   ) => Promise<[ExtraConnectionDataForTelemetry, string | null]>;
   connectFn?: typeof devtoolsConnect;
   globalAppRegistry: Pick<AppRegistry, 'on' | 'emit' | 'removeListener'>;
+  onFailToLoadConnections: (error: Error) => void;
 };
 
 export type ConnectionsThunkAction<
@@ -1266,7 +1267,11 @@ export const loadConnections = (): ConnectionsThunkAction<
   | ConnectionsLoadSuccessAction
   | ConnectionsLoadErrorAction
 > => {
-  return async (dispatch, getState, { connectionStorage }) => {
+  return async (
+    dispatch,
+    getState,
+    { connectionStorage, onFailToLoadConnections }
+  ) => {
     if (getState().connections.status !== 'initial') {
       return;
     }
@@ -1276,6 +1281,7 @@ export const loadConnections = (): ConnectionsThunkAction<
       dispatch({ type: ActionTypes.ConnectionsLoadSuccess, connections });
     } catch (err) {
       dispatch({ type: ActionTypes.ConnectionsLoadError, error: err as any });
+      onFailToLoadConnections(err as Error);
     }
   };
 };
diff --git a/packages/compass-web/sandbox/index.tsx b/packages/compass-web/sandbox/index.tsx
index 848a941ffbe..7f07b889617 100644
--- a/packages/compass-web/sandbox/index.tsx
+++ b/packages/compass-web/sandbox/index.tsx
@@ -1,6 +1,11 @@
-import React, { useLayoutEffect, useRef } from 'react';
+import React, { useCallback, useLayoutEffect, useRef } from 'react';
 import ReactDOM from 'react-dom';
-import { resetGlobalCSS, css, Body } from '@mongodb-js/compass-components';
+import {
+  resetGlobalCSS,
+  css,
+  Body,
+  openToast,
+} from '@mongodb-js/compass-components';
 import type { AllPreferences } from 'compass-preferences-model';
 import { CompassWeb } from '../src/index';
 import { SandboxConnectionStorageProvider } from '../src/connection-storage';
@@ -86,6 +91,14 @@ const App = () => {
     getMetaEl('csrf-time').setAttribute('content', csrfTime ?? '');
   }, [csrfToken, csrfTime]);
 
+  const onFailToLoadConnections = useCallback((error: Error) => {
+    openToast('failed-to-load-connections', {
+      title: 'Failed to load connections',
+      description: error.message,
+      variant: 'warning',
+    });
+  }, []);
+
   if (status === 'checking') {
     return null;
   }
@@ -132,6 +145,7 @@ const App = () => {
             onTrack={sandboxTelemetry.track}
             onDebug={sandboxLogger.debug}
             onLog={sandboxLogger.log}
+            onFailToLoadConnections={onFailToLoadConnections}
           ></CompassWeb>
         </Body>
       </SandboxPreferencesUpdateProvider>
diff --git a/packages/compass-web/src/entrypoint.spec.tsx b/packages/compass-web/src/entrypoint.spec.tsx
index e920b5189c2..e574f38003f 100644
--- a/packages/compass-web/src/entrypoint.spec.tsx
+++ b/packages/compass-web/src/entrypoint.spec.tsx
@@ -74,6 +74,7 @@ describe('CompassWeb', function () {
             enableCreatingNewConnections: true,
             ...props.initialPreferences,
           }}
+          onFailToLoadConnections={() => {}}
         ></CompassWeb>
       </ConnectFnProvider>
     );
diff --git a/packages/compass-web/src/entrypoint.tsx b/packages/compass-web/src/entrypoint.tsx
index 6b47914adf5..482038fba6c 100644
--- a/packages/compass-web/src/entrypoint.tsx
+++ b/packages/compass-web/src/entrypoint.tsx
@@ -150,6 +150,11 @@ type CompassWebProps = {
   onOpenConnectViaModal?: (
     atlasMetadata: ConnectionInfo['atlasMetadata']
   ) => void;
+
+  /**
+   * Callback prop called when connections fail to load
+   */
+  onFailToLoadConnections: (err: Error) => void;
 };
 
 function CompassWorkspace({
@@ -253,6 +258,7 @@ const CompassWeb = ({
   onDebug,
   onTrack,
   onOpenConnectViaModal,
+  onFailToLoadConnections,
 }: CompassWebProps) => {
   const appRegistry = useRef(new AppRegistry());
   const logger = useCompassWebLoggerAndTelemetry({
@@ -335,6 +341,7 @@ const CompassWeb = ({
                   >
                     <CompassConnections
                       appName={appName ?? 'Compass Web'}
+                      onFailToLoadConnections={onFailToLoadConnections}
                       onExtraConnectionDataRequest={() => {
                         return Promise.resolve([{}, null] as [
                           Record<string, unknown>,
diff --git a/packages/compass/src/app/components/home.tsx b/packages/compass/src/app/components/home.tsx
index 5cf88e8b73e..e018b09abd7 100644
--- a/packages/compass/src/app/components/home.tsx
+++ b/packages/compass/src/app/components/home.tsx
@@ -6,6 +6,7 @@ import {
   css,
   cx,
   getScrollbarStyles,
+  openToast,
   palette,
   resetGlobalCSS,
 } from '@mongodb-js/compass-components';
@@ -149,6 +150,13 @@ function HomeWithConnections({
           onExtraConnectionDataRequest={getExtraConnectionData}
           onAutoconnectInfoRequest={onAutoconnectInfoRequest}
           doNotReconnectDisconnectedAutoconnectInfo
+          onFailToLoadConnections={(error) => {
+            openToast('failed-to-load-connections', {
+              title: 'Failed to load connections',
+              description: error.message,
+              variant: 'warning',
+            });
+          }}
         >
           <Home {...props}></Home>
         </CompassConnections>