diff --git a/package-lock.json b/package-lock.json
index f165e509ea6..b5fee62c049 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -24755,15 +24755,6 @@
         "node": ">=0.4.x"
       }
     },
-    "node_modules/eventsource-parser": {
-      "version": "3.0.3",
-      "resolved": "https://registry.npmjs.org/eventsource-parser/-/eventsource-parser-3.0.3.tgz",
-      "integrity": "sha512-nVpZkTMM9rF6AQ9gPJpFsNAMt48wIzB5TQgiTLdHiuO8XEDhUgZEhqKlZWXbIzo9VmJ/HvysHqEaVeD5v9TPvA==",
-      "license": "MIT",
-      "engines": {
-        "node": ">=20.0.0"
-      }
-    },
     "node_modules/evp_bytestokey": {
       "version": "1.0.3",
       "resolved": "https://registry.npmjs.org/evp_bytestokey/-/evp_bytestokey-1.0.3.tgz",
@@ -46761,8 +46752,9 @@
         "@mongodb-js/atlas-service": "^0.56.0",
         "@mongodb-js/compass-app-registry": "^9.4.20",
         "@mongodb-js/compass-components": "^1.49.0",
+        "@mongodb-js/compass-logging": "^1.7.12",
         "@mongodb-js/connection-info": "^0.17.1",
-        "ai": "^5.0.5",
+        "ai": "^5.0.26",
         "compass-preferences-model": "^2.51.0",
         "mongodb-connection-string-url": "^3.0.1",
         "react": "^17.0.2",
@@ -46794,13 +46786,30 @@
       }
     },
     "packages/compass-assistant/node_modules/@ai-sdk/gateway": {
-      "version": "1.0.4",
-      "resolved": "https://registry.npmjs.org/@ai-sdk/gateway/-/gateway-1.0.4.tgz",
-      "integrity": "sha512-1roLdgMbFU3Nr4MC97/te7w6OqxsWBkDUkpbCcvxF3jz/ku91WVaJldn/PKU8feMKNyI5W9wnqhbjb1BqbExOQ==",
+      "version": "1.0.15",
+      "resolved": "https://registry.npmjs.org/@ai-sdk/gateway/-/gateway-1.0.15.tgz",
+      "integrity": "sha512-xySXoQ29+KbGuGfmDnABx+O6vc7Gj7qugmj1kGpn0rW0rQNn6UKUuvscKMzWyv1Uv05GyC1vqHq8ZhEOLfXscQ==",
       "license": "Apache-2.0",
       "dependencies": {
         "@ai-sdk/provider": "2.0.0",
-        "@ai-sdk/provider-utils": "3.0.1"
+        "@ai-sdk/provider-utils": "3.0.7"
+      },
+      "engines": {
+        "node": ">=18"
+      },
+      "peerDependencies": {
+        "zod": "^3.25.76 || ^4"
+      }
+    },
+    "packages/compass-assistant/node_modules/@ai-sdk/gateway/node_modules/@ai-sdk/provider-utils": {
+      "version": "3.0.7",
+      "resolved": "https://registry.npmjs.org/@ai-sdk/provider-utils/-/provider-utils-3.0.7.tgz",
+      "integrity": "sha512-o3BS5/t8KnBL3ubP8k3w77AByOypLm+pkIL/DCw0qKkhDbvhCy+L3hRTGPikpdb8WHcylAeKsjgwOxhj4cqTUA==",
+      "license": "Apache-2.0",
+      "dependencies": {
+        "@ai-sdk/provider": "2.0.0",
+        "@standard-schema/spec": "^1.0.0",
+        "eventsource-parser": "^3.0.5"
       },
       "engines": {
         "node": ">=18"
@@ -46885,14 +46894,14 @@
       }
     },
     "packages/compass-assistant/node_modules/ai": {
-      "version": "5.0.10",
-      "resolved": "https://registry.npmjs.org/ai/-/ai-5.0.10.tgz",
-      "integrity": "sha512-oPvaifsnHZzT3I07qI9jgWDOGpXDAFSXJ54rgpeHSq6qKQlQ3vwaCgQz861wb+5iJ/kk+B/qm3i5Yfghc/+XSw==",
+      "version": "5.0.26",
+      "resolved": "https://registry.npmjs.org/ai/-/ai-5.0.26.tgz",
+      "integrity": "sha512-bGNtG+nYQ2U+5mzuLbxIg9WxGQJ2u5jv2gYgP8C+CJ1YI4qqIjvjOgGEZWzvNet8jiOGIlqstsht9aQefKzmBw==",
       "license": "Apache-2.0",
       "dependencies": {
-        "@ai-sdk/gateway": "1.0.4",
+        "@ai-sdk/gateway": "1.0.15",
         "@ai-sdk/provider": "2.0.0",
-        "@ai-sdk/provider-utils": "3.0.1",
+        "@ai-sdk/provider-utils": "3.0.7",
         "@opentelemetry/api": "1.9.0"
       },
       "engines": {
@@ -46902,6 +46911,32 @@
         "zod": "^3.25.76 || ^4"
       }
     },
+    "packages/compass-assistant/node_modules/ai/node_modules/@ai-sdk/provider-utils": {
+      "version": "3.0.7",
+      "resolved": "https://registry.npmjs.org/@ai-sdk/provider-utils/-/provider-utils-3.0.7.tgz",
+      "integrity": "sha512-o3BS5/t8KnBL3ubP8k3w77AByOypLm+pkIL/DCw0qKkhDbvhCy+L3hRTGPikpdb8WHcylAeKsjgwOxhj4cqTUA==",
+      "license": "Apache-2.0",
+      "dependencies": {
+        "@ai-sdk/provider": "2.0.0",
+        "@standard-schema/spec": "^1.0.0",
+        "eventsource-parser": "^3.0.5"
+      },
+      "engines": {
+        "node": ">=18"
+      },
+      "peerDependencies": {
+        "zod": "^3.25.76 || ^4"
+      }
+    },
+    "packages/compass-assistant/node_modules/eventsource-parser": {
+      "version": "3.0.5",
+      "resolved": "https://registry.npmjs.org/eventsource-parser/-/eventsource-parser-3.0.5.tgz",
+      "integrity": "sha512-bSRG85ZrMdmWtm7qkF9He9TNRzc/Bm99gEJMaQoHJ9E6Kv9QBbsldh2oMj7iXmYNEAVvNgvv5vPorG6W+XtBhQ==",
+      "license": "MIT",
+      "engines": {
+        "node": ">=20.0.0"
+      }
+    },
     "packages/compass-assistant/node_modules/just-extend": {
       "version": "6.2.0",
       "resolved": "https://registry.npmjs.org/just-extend/-/just-extend-6.2.0.tgz",
@@ -60037,6 +60072,7 @@
         "@mongodb-js/atlas-service": "^0.56.0",
         "@mongodb-js/compass-app-registry": "^9.4.20",
         "@mongodb-js/compass-components": "^1.49.0",
+        "@mongodb-js/compass-logging": "^1.7.12",
         "@mongodb-js/connection-info": "^0.17.1",
         "@mongodb-js/eslint-config-compass": "^1.4.7",
         "@mongodb-js/mocha-config-compass": "^1.7.0",
@@ -60049,7 +60085,7 @@
         "@types/react": "^17.0.5",
         "@types/react-dom": "^17.0.10",
         "@types/sinon-chai": "^3.2.5",
-        "ai": "^5.0.5",
+        "ai": "^5.0.26",
         "autoevals": "^0.0.130",
         "braintrust": "^0.2.4",
         "chai": "^4.3.6",
@@ -60068,12 +60104,24 @@
       },
       "dependencies": {
         "@ai-sdk/gateway": {
-          "version": "1.0.4",
-          "resolved": "https://registry.npmjs.org/@ai-sdk/gateway/-/gateway-1.0.4.tgz",
-          "integrity": "sha512-1roLdgMbFU3Nr4MC97/te7w6OqxsWBkDUkpbCcvxF3jz/ku91WVaJldn/PKU8feMKNyI5W9wnqhbjb1BqbExOQ==",
+          "version": "1.0.15",
+          "resolved": "https://registry.npmjs.org/@ai-sdk/gateway/-/gateway-1.0.15.tgz",
+          "integrity": "sha512-xySXoQ29+KbGuGfmDnABx+O6vc7Gj7qugmj1kGpn0rW0rQNn6UKUuvscKMzWyv1Uv05GyC1vqHq8ZhEOLfXscQ==",
           "requires": {
             "@ai-sdk/provider": "2.0.0",
-            "@ai-sdk/provider-utils": "3.0.1"
+            "@ai-sdk/provider-utils": "3.0.7"
+          },
+          "dependencies": {
+            "@ai-sdk/provider-utils": {
+              "version": "3.0.7",
+              "resolved": "https://registry.npmjs.org/@ai-sdk/provider-utils/-/provider-utils-3.0.7.tgz",
+              "integrity": "sha512-o3BS5/t8KnBL3ubP8k3w77AByOypLm+pkIL/DCw0qKkhDbvhCy+L3hRTGPikpdb8WHcylAeKsjgwOxhj4cqTUA==",
+              "requires": {
+                "@ai-sdk/provider": "2.0.0",
+                "@standard-schema/spec": "^1.0.0",
+                "eventsource-parser": "^3.0.5"
+              }
+            }
           }
         },
         "@ai-sdk/openai": {
@@ -60133,16 +60181,33 @@
           }
         },
         "ai": {
-          "version": "5.0.10",
-          "resolved": "https://registry.npmjs.org/ai/-/ai-5.0.10.tgz",
-          "integrity": "sha512-oPvaifsnHZzT3I07qI9jgWDOGpXDAFSXJ54rgpeHSq6qKQlQ3vwaCgQz861wb+5iJ/kk+B/qm3i5Yfghc/+XSw==",
+          "version": "5.0.26",
+          "resolved": "https://registry.npmjs.org/ai/-/ai-5.0.26.tgz",
+          "integrity": "sha512-bGNtG+nYQ2U+5mzuLbxIg9WxGQJ2u5jv2gYgP8C+CJ1YI4qqIjvjOgGEZWzvNet8jiOGIlqstsht9aQefKzmBw==",
           "requires": {
-            "@ai-sdk/gateway": "1.0.4",
+            "@ai-sdk/gateway": "1.0.15",
             "@ai-sdk/provider": "2.0.0",
-            "@ai-sdk/provider-utils": "3.0.1",
+            "@ai-sdk/provider-utils": "3.0.7",
             "@opentelemetry/api": "1.9.0"
+          },
+          "dependencies": {
+            "@ai-sdk/provider-utils": {
+              "version": "3.0.7",
+              "resolved": "https://registry.npmjs.org/@ai-sdk/provider-utils/-/provider-utils-3.0.7.tgz",
+              "integrity": "sha512-o3BS5/t8KnBL3ubP8k3w77AByOypLm+pkIL/DCw0qKkhDbvhCy+L3hRTGPikpdb8WHcylAeKsjgwOxhj4cqTUA==",
+              "requires": {
+                "@ai-sdk/provider": "2.0.0",
+                "@standard-schema/spec": "^1.0.0",
+                "eventsource-parser": "^3.0.5"
+              }
+            }
           }
         },
+        "eventsource-parser": {
+          "version": "3.0.5",
+          "resolved": "https://registry.npmjs.org/eventsource-parser/-/eventsource-parser-3.0.5.tgz",
+          "integrity": "sha512-bSRG85ZrMdmWtm7qkF9He9TNRzc/Bm99gEJMaQoHJ9E6Kv9QBbsldh2oMj7iXmYNEAVvNgvv5vPorG6W+XtBhQ=="
+        },
         "just-extend": {
           "version": "6.2.0",
           "resolved": "https://registry.npmjs.org/just-extend/-/just-extend-6.2.0.tgz",
@@ -76724,11 +76789,6 @@
       "resolved": "https://registry.npmjs.org/events/-/events-1.1.1.tgz",
       "integrity": "sha512-kEcvvCBByWXGnZy6JUlgAp2gBIUjfCAV6P6TgT1/aaQKcmuAEC4OZTV1I4EWQLz2gxZw76atuVyvHhTxvi0Flw=="
     },
-    "eventsource-parser": {
-      "version": "3.0.3",
-      "resolved": "https://registry.npmjs.org/eventsource-parser/-/eventsource-parser-3.0.3.tgz",
-      "integrity": "sha512-nVpZkTMM9rF6AQ9gPJpFsNAMt48wIzB5TQgiTLdHiuO8XEDhUgZEhqKlZWXbIzo9VmJ/HvysHqEaVeD5v9TPvA=="
-    },
     "evp_bytestokey": {
       "version": "1.0.3",
       "resolved": "https://registry.npmjs.org/evp_bytestokey/-/evp_bytestokey-1.0.3.tgz",
diff --git a/packages/compass-assistant/package.json b/packages/compass-assistant/package.json
index 44c1c9fe9eb..81f317e653b 100644
--- a/packages/compass-assistant/package.json
+++ b/packages/compass-assistant/package.json
@@ -54,8 +54,9 @@
     "@mongodb-js/compass-app-registry": "^9.4.20",
     "@mongodb-js/compass-components": "^1.49.0",
     "@mongodb-js/connection-info": "^0.17.1",
+    "@mongodb-js/compass-logging": "^1.7.12",
     "mongodb-connection-string-url": "^3.0.1",
-    "ai": "^5.0.5",
+    "ai": "^5.0.26",
     "compass-preferences-model": "^2.51.0",
     "react": "^17.0.2",
     "throttleit": "^2.1.0",
diff --git a/packages/compass-assistant/src/@ai-sdk/react/use-chat.ts b/packages/compass-assistant/src/@ai-sdk/react/use-chat.ts
index 6dfb36fda40..486ac1064f0 100644
--- a/packages/compass-assistant/src/@ai-sdk/react/use-chat.ts
+++ b/packages/compass-assistant/src/@ai-sdk/react/use-chat.ts
@@ -43,6 +43,7 @@ export type UseChatHelpers<UI_MESSAGE extends UIMessage> = {
   | 'addToolResult'
   | 'status'
   | 'messages'
+  | 'clearError'
 >;
 
 export type UseChatOptions<UI_MESSAGE extends UIMessage> =
@@ -116,6 +117,7 @@ export function useChat<UI_MESSAGE extends UIMessage = UIMessage>({
     setMessages,
     sendMessage: chatRef.current.sendMessage,
     regenerate: chatRef.current.regenerate,
+    clearError: chatRef.current.clearError,
     stop: chatRef.current.stop,
     error,
     resumeStream: chatRef.current.resumeStream,
diff --git a/packages/compass-assistant/src/assistant-chat.tsx b/packages/compass-assistant/src/assistant-chat.tsx
index 5f1a04ac201..78198e16ece 100644
--- a/packages/compass-assistant/src/assistant-chat.tsx
+++ b/packages/compass-assistant/src/assistant-chat.tsx
@@ -10,6 +10,7 @@ import {
   LgChatInputBar,
   spacing,
   css,
+  Banner,
 } from '@mongodb-js/compass-components';
 
 const { ChatWindow } = LgChatChatWindow;
@@ -36,10 +37,19 @@ const chatWindowFixesStyles = css({
   height: '100%',
 });
 
+function makeErrorMessage(message: string) {
+  message = message || 'An error occurred';
+  return `${message}. Try clearing the chat if the error persists.`;
+}
+
+const errorBannerWrapperStyles = css({
+  margin: spacing[400],
+});
+
 export const AssistantChat: React.FunctionComponent<AssistantChatProps> = ({
   chat,
 }) => {
-  const { messages, sendMessage, status } = useChat({
+  const { messages, sendMessage, status, error, clearError } = useChat({
     chat,
   });
 
@@ -94,6 +104,13 @@ export const AssistantChat: React.FunctionComponent<AssistantChatProps> = ({
               />
             )}
           </MessageFeed>
+          {error && (
+            <div className={errorBannerWrapperStyles}>
+              <Banner variant="danger" dismissible onClose={clearError}>
+                {makeErrorMessage(error.message)}
+              </Banner>
+            </div>
+          )}
           <InputBar
             data-testid="assistant-chat-input"
             onMessageSend={handleMessageSend}
diff --git a/packages/compass-assistant/src/compass-assistant-provider.tsx b/packages/compass-assistant/src/compass-assistant-provider.tsx
index c4c3cfd5320..92531f74e45 100644
--- a/packages/compass-assistant/src/compass-assistant-provider.tsx
+++ b/packages/compass-assistant/src/compass-assistant-provider.tsx
@@ -11,6 +11,7 @@ import { DocsProviderTransport } from './docs-provider-transport';
 import { useDrawerActions } from '@mongodb-js/compass-components';
 import { buildConnectionErrorPrompt, buildExplainPlanPrompt } from './prompts';
 import { usePreference } from 'compass-preferences-model/provider';
+import { createLoggerLocator } from '@mongodb-js/compass-logging/provider';
 import type { ConnectionInfo } from '@mongodb-js/connection-info';
 import { redactConnectionString } from 'mongodb-connection-string-url';
 
@@ -151,11 +152,19 @@ export const CompassAssistantProvider = registerCompassPlugin(
       }
       return <AssistantProvider chat={chat}>{children}</AssistantProvider>;
     },
-    activate: (initialProps, { atlasService }) => {
+    activate: (initialProps, { atlasService, logger }) => {
       const chat = new Chat({
         transport: new DocsProviderTransport({
           baseUrl: atlasService.assistantApiEndpoint(),
         }),
+        onError: (err: any) => {
+          logger.log.error(
+            logger.mongoLogId(1_001_000_370),
+            'Assistant',
+            'Failed to send a message',
+            { err }
+          );
+        },
       });
       return {
         store: { state: { chat } },
@@ -165,5 +174,6 @@ export const CompassAssistantProvider = registerCompassPlugin(
   },
   {
     atlasService: atlasServiceLocator,
+    logger: createLoggerLocator('COMPASS-ASSISTANT'),
   }
 );