diff --git a/.changeset/fix-claude-usage-login-timeout.md b/.changeset/fix-claude-usage-login-timeout.md
new file mode 100644
index 0000000000..7964b62da9
--- /dev/null
+++ b/.changeset/fix-claude-usage-login-timeout.md
@@ -0,0 +1,7 @@
+---
+"@runfusion/fusion": patch
+---
+
+summary: Report when the server Claude CLI needs login instead of waiting a minute and showing a false usage timeout.
+category: fix
+dev: Detects Claude Code 2.1.x unauthenticated and API-billing session-stat screens during the PTY quota fallback and exits immediately.
diff --git a/packages/dashboard/src/__tests__/usage.test.ts b/packages/dashboard/src/__tests__/usage.test.ts
index 247ecfb3a4..166180099a 100644
--- a/packages/dashboard/src/__tests__/usage.test.ts
+++ b/packages/dashboard/src/__tests__/usage.test.ts
@@ -1095,6 +1095,121 @@ describe("usage", () => {
       _resetSleepFn();
     });
 
+    it("reports the server login requirement immediately when the Claude CLI usage screen is unauthenticated", async () => {
+      setupClaudeMocks({
+        credFileContent: {
+          accessToken: "test-token",
+          scopes: ["user:profile"],
+        },
+      });
+
+      _setSleepFn(async () => {});
+      nodePtyMocks.available = true;
+      const kill = vi.fn();
+      nodePtyMocks.spawn.mockImplementation(() => ({
+        write: vi.fn(),
+        kill,
+        onData: vi.fn((handler: (data: string) => void) => {
+          handler("Not logged in · Run /login\nSession\nTotal cost: $0.0000");
+        }),
+        onExit: vi.fn((handler: () => void) => {
+          handler();
+        }),
+      }));
+
+      const mockReq = { on: vi.fn(), write: vi.fn(), end: vi.fn() };
+      mockRequest.mockImplementation((_options: any, callback: any) => {
+        const mockRes = {
+          statusCode: 429,
+          headers: {},
+          on: vi.fn((event: string, handler: any) => {
+            if (event === "data") handler(Buffer.from('{"error":"rate_limited"}'));
+            if (event === "end") handler();
+          }),
+        };
+        callback(mockRes);
+        return mockReq;
+      });
+
+      /*
+      FNXC:UsageTesting 2026-07-21-21:30:
+      Claude usage probes must restore injected sleep behavior even when an assertion fails so later provider tests cannot inherit the mock.
+      */
+      try {
+        const providers = await fetchAllProviderUsage();
+        const claude = providers.find((provider) => provider.name === "Claude")!;
+
+        expect(claude.status).toBe("error");
+        expect(claude.error).toBe(
+          "Claude CLI has no subscription quota session on the Fusion server. Run `claude /login` there, then refresh Usage.",
+        );
+        expect(kill).toHaveBeenCalledOnce();
+      } finally {
+        _resetSleepFn();
+      }
+    });
+
+    it("reports the server login requirement when Claude 2.1.x shows API billing session statistics", async () => {
+      setupClaudeMocks({
+        credFileContent: {
+          accessToken: "test-token",
+          scopes: ["user:profile"],
+        },
+      });
+
+      _setSleepFn(async () => {});
+      nodePtyMocks.available = true;
+      const kill = vi.fn();
+      nodePtyMocks.spawn.mockImplementation(() => {
+        let dataHandler: ((data: string) => void) | undefined;
+        const process = {
+          write: vi.fn((input: string) => {
+            if (input === "/usage\r") {
+              dataHandler?.("Settings Status Config Usage Stats\nSession\nTotal cost: $0.0000\nUsage: 0 input, 0 output");
+            }
+          }),
+          kill,
+          onData: vi.fn((handler: (data: string) => void) => {
+            dataHandler = handler;
+            handler("Claude Code v2.1.215\nSonnet 5 · API Usage Billing\n❯ ? for shortcuts");
+          }),
+          onExit: vi.fn(),
+        };
+        return process;
+      });
+
+      const mockReq = { on: vi.fn(), write: vi.fn(), end: vi.fn() };
+      mockRequest.mockImplementation((_options: any, callback: any) => {
+        const mockRes = {
+          statusCode: 429,
+          headers: {},
+          on: vi.fn((event: string, handler: any) => {
+            if (event === "data") handler(Buffer.from('{"error":"rate_limited"}'));
+            if (event === "end") handler();
+          }),
+        };
+        callback(mockRes);
+        return mockReq;
+      });
+
+      vi.useFakeTimers();
+      try {
+        const providersPromise = fetchAllProviderUsage();
+        await vi.advanceTimersByTimeAsync(1_500);
+        const providers = await providersPromise;
+        const claude = providers.find((provider) => provider.name === "Claude")!;
+
+        expect(claude.status).toBe("error");
+        expect(claude.error).toBe(
+          "Claude CLI has no subscription quota session on the Fusion server. Run `claude /login` there, then refresh Usage.",
+        );
+        expect(kill).toHaveBeenCalledOnce();
+      } finally {
+        vi.useRealTimers();
+        _resetSleepFn();
+      }
+    });
+
     it("falls back to CLI parsing on 429 rate limit", async () => {
       setupClaudeMocks({
         credFileContent: {
diff --git a/packages/dashboard/src/usage.ts b/packages/dashboard/src/usage.ts
index bf8e171bff..d9c41b2e47 100644
--- a/packages/dashboard/src/usage.ts
+++ b/packages/dashboard/src/usage.ts
@@ -707,6 +707,31 @@ async function fetchClaudeUsageViaCli(): Promise<ProviderUsage> {
           return;
         }
 
+        /*
+         * FNXC:ClaudeUsage 2026-07-19-18:00:
+         * Claude Code 2.1.x can render its settings Usage tab while the CLI is
+         * unauthenticated. That screen contains ordinary session statistics but
+         * no subscription quota percentages, so the old detector waited the
+         * full minute and falsely described the result as a timeout. Surface the
+         * TUI's explicit login state immediately and tell remote-dashboard users
+         * where the login must happen.
+         */
+        const isClaudeLoginRequired = /not logged in\s*[·•-]?\s*run\s*\/login/i.test(clean);
+        const isApiBillingSessionStats =
+          sentCommand &&
+          clean.includes("API Usage Billing") &&
+          clean.includes("Total cost:") &&
+          /Usage:\s*\d+\s+input/i.test(clean);
+        if (isClaudeLoginRequired || isApiBillingSessionStats) {
+          settled = true;
+          clearTimeout(timeout);
+          try { ptyProcess.kill(); } catch {
+            // Kill may fail if process already exited - ignore
+          }
+          reject(new Error("Claude CLI has no subscription quota session on the Fusion server. Run `claude /login` there, then refresh Usage."));
+          return;
+        }
+
         // Auto-approve trust prompt
         if (
           !approvedTrust &&