diff --git a/src/context/AuthContext.js b/src/context/AuthContext.js
index ca70795..b029b7a 100644
--- a/src/context/AuthContext.js
+++ b/src/context/AuthContext.js
@@ -54,21 +54,75 @@ export const AuthProvider = ({ children }) => {
   };
 
   const login = async (email, password) => {
-    const response = await axios.post(`${API_URL}/api/auth/login`, { email, password });
-    const { access_token, user: userData } = response.data;
-    localStorage.setItem('token', access_token);
-    setToken(access_token);
-    setUser(userData);
-
-    // Fetch user permissions (don't let this fail the login)
     try {
-      await fetchPermissions(access_token);
-    } catch (error) {
-      console.error('Failed to fetch permissions during login, will retry later:', error);
-      // Don't throw - permissions can be fetched later if needed
-    }
+      console.log('[AuthContext] Starting login request...');
 
-    return userData;
+      const response = await axios.post(
+        `${API_URL}/api/auth/login`,
+        { email, password },
+        {
+          timeout: 30000, // 30 second timeout
+          headers: {
+            'Content-Type': 'application/json'
+          }
+        }
+      );
+
+      console.log('[AuthContext] Login response received:', {
+        status: response.status,
+        hasToken: !!response.data?.access_token,
+        hasUser: !!response.data?.user
+      });
+
+      const { access_token, user: userData } = response.data;
+
+      // Store token first
+      localStorage.setItem('token', access_token);
+      console.log('[AuthContext] Token stored in localStorage');
+
+      // Update state
+      setToken(access_token);
+      setUser(userData);
+      console.log('[AuthContext] User state updated:', {
+        email: userData.email,
+        role: userData.role
+      });
+
+      // Fetch user permissions (don't let this fail the login)
+      // Use setTimeout to defer permission fetching slightly
+      setTimeout(async () => {
+        try {
+          console.log('[AuthContext] Fetching permissions...');
+          await fetchPermissions(access_token);
+          console.log('[AuthContext] Permissions fetched successfully');
+        } catch (error) {
+          console.error('[AuthContext] Failed to fetch permissions (non-critical):', {
+            message: error.message,
+            response: error.response?.data,
+            status: error.response?.status
+          });
+          // Don't throw - permissions can be fetched later if needed
+        }
+      }, 100); // Small delay to ensure state is settled
+
+      return userData;
+    } catch (error) {
+      // Enhanced error logging
+      console.error('[AuthContext] Login failed:', {
+        message: error.message,
+        response: error.response?.data,
+        status: error.response?.status,
+        code: error.code,
+        config: {
+          url: error.config?.url,
+          method: error.config?.method,
+          timeout: error.config?.timeout
+        }
+      });
+
+      // Re-throw to let Login component handle the error
+      throw error;
+    }
   };
 
   const logout = () => {
diff --git a/src/utils/api.js b/src/utils/api.js
index 7a1a797..b79e35b 100644
--- a/src/utils/api.js
+++ b/src/utils/api.js
@@ -4,14 +4,60 @@ const API_URL = process.env.REACT_APP_BACKEND_URL;
 
 export const api = axios.create({
   baseURL: `${API_URL}/api`,
+  timeout: 30000, // 30 second timeout for all requests
 });
 
-api.interceptors.request.use((config) => {
-  const token = localStorage.getItem('token');
-  if (token) {
-    config.headers.Authorization = `Bearer ${token}`;
+// Request interceptor - add auth token
+api.interceptors.request.use(
+  (config) => {
+    const token = localStorage.getItem('token');
+    if (token) {
+      config.headers.Authorization = `Bearer ${token}`;
+    }
+    return config;
+  },
+  (error) => {
+    console.error('[API] Request error:', error);
+    return Promise.reject(error);
   }
-  return config;
-});
+);
+
+// Response interceptor - handle errors and retries
+api.interceptors.response.use(
+  (response) => {
+    return response;
+  },
+  async (error) => {
+    const config = error.config;
+
+    // Don't retry if we've already retried or if it's a client error (4xx)
+    if (!config || config.__isRetry || (error.response && error.response.status < 500)) {
+      console.error('[API] Request failed:', {
+        url: config?.url,
+        method: config?.method,
+        status: error.response?.status,
+        message: error.message,
+        data: error.response?.data
+      });
+      return Promise.reject(error);
+    }
+
+    // Mark as retry to prevent infinite loops
+    config.__isRetry = true;
+
+    // Retry after 1 second for server errors or network issues
+    console.warn('[API] Retrying request after 1s:', {
+      url: config.url,
+      method: config.method,
+      error: error.message
+    });
+
+    return new Promise((resolve) => {
+      setTimeout(() => {
+        resolve(api.request(config));
+      }, 1000);
+    });
+  }
+);
 
 export default api;