diff --git a/meetingnotes/Managers/AudioManager.swift b/meetingnotes/Managers/AudioManager.swift
index b0f2739..51e2149 100644
--- a/meetingnotes/Managers/AudioManager.swift
+++ b/meetingnotes/Managers/AudioManager.swift
@@ -10,11 +10,15 @@ import ScreenCaptureKit
 class AudioManager: NSObject, ObservableObject {
     @Published var transcriptChunks: [TranscriptChunk] = []
     @Published var isRecording = false
+    @Published var errorMessage: String?
     
     private var audioEngine = AVAudioEngine()
     private var micSocketTask: URLSessionWebSocketTask?
     private var systemSocketTask: URLSessionWebSocketTask?
     private let realtimeURL = URL(string: "wss://api.openai.com/v1/realtime?intent=transcription")!
+
+    // Unique identifier for the current recording session
+    private var sessionID = UUID()
     
     // ScreenCaptureKit properties
     private var stream: SCStream?
@@ -42,6 +46,14 @@ class AudioManager: NSObject, ObservableObject {
     func startRecording() {
         print("Starting recording...")
         
+        // Bump session ID so any old async callbacks can be ignored
+        sessionID = UUID()
+
+        // Clear any previous errors
+        DispatchQueue.main.async {
+            self.errorMessage = nil
+        }
+        
         // First ensure everything is stopped and cleaned up
         stopRecordingInternal()
         
@@ -76,9 +88,7 @@ class AudioManager: NSObject, ObservableObject {
         systemSocketTask = nil
         
         // Reset state
-        DispatchQueue.main.async {
-            self.isRecording = false
-        }
+        // (isRecording already cleared in stopRecording)
         
         print("Internal cleanup completed")
     }
@@ -238,6 +248,8 @@ class AudioManager: NSObject, ObservableObject {
     }
     
     func stopRecording() {
+        // Immediately mark as not recording to prevent stale callbacks
+        self.isRecording = false
         print("Stopping recording...")
         
         // Stop system audio capture
@@ -256,10 +268,6 @@ class AudioManager: NSObject, ObservableObject {
         systemSocketTask?.cancel(with: .normalClosure, reason: nil)
         systemSocketTask = nil
         
-        DispatchQueue.main.async {
-            self.isRecording = false
-        }
-        
         print("Recording stopped")
     }
     
@@ -295,7 +303,11 @@ class AudioManager: NSObject, ObservableObject {
     
     private func connectToOpenAIRealtime(source: AudioSource) {
         guard let key = KeychainHelper.shared.getAPIKey(), !key.isEmpty else {
-            print("❌ No OpenAI key found")
+            let errorMsg = ErrorMessage.noAPIKey
+            print("❌ \(errorMsg)")
+            DispatchQueue.main.async {
+                self.errorMessage = errorMsg
+            }
             return
         }
 
@@ -305,7 +317,21 @@ class AudioManager: NSObject, ObservableObject {
         request.addValue("realtime=v1", forHTTPHeaderField: "OpenAI-Beta")
 
         let task = session.webSocketTask(with: request)
+        
+        // Add connection monitoring
         task.resume()
+        
+        let thisSession = sessionID
+        // Monitor connection state (ignore if session changed or recording stopped)
+        DispatchQueue.main.asyncAfter(deadline: .now() + 10) { [weak self, weak task] in
+            guard let self = self, self.sessionID == thisSession, self.isRecording else { return }
+            guard let task = task, task.state != .running else { return }
+            let errorMsg = ErrorMessage.connectionTimeout
+            print("❌ \(errorMsg)")
+            DispatchQueue.main.async {
+                self.errorMessage = errorMsg
+            }
+        }
 
         // Send initial configuration
         let config: [String: Any] = [
@@ -328,14 +354,29 @@ class AudioManager: NSObject, ObservableObject {
         do {
             let jsonData = try JSONSerialization.data(withJSONObject: config)
             if let jsonStr = String(data: jsonData, encoding: .utf8) {
-                task.send(.string(jsonStr)) { error in
+                task.send(.string(jsonStr)) { [weak self] error in
                     if let error = error {
-                        print("❌ Config send error: \(error)")
+                        guard let self = self, self.sessionID == thisSession else { return }
+
+                        // Ignore cancellation errors, which are expected when stopping a session.
+                        if (error as? URLError)?.code == .cancelled {
+                            return
+                        }
+
+                        let errorMsg = "\(ErrorMessage.configurationFailed): \(ErrorHandler.shared.handleError(error))"
+                        print("❌ \(errorMsg)")
+                        DispatchQueue.main.async {
+                            self.errorMessage = errorMsg
+                        }
                     }
                 }
             }
         } catch {
-            print("❌ Config JSON error: \(error)")
+            let errorMsg = "\(ErrorMessage.configurationFailed): \(ErrorHandler.shared.handleError(error))"
+            print("❌ \(errorMsg)")
+            DispatchQueue.main.async {
+                self.errorMessage = errorMsg
+            }
         }
 
         switch source {
@@ -345,11 +386,11 @@ class AudioManager: NSObject, ObservableObject {
             systemSocketTask = task
         }
 
-        receiveMessage(for: source)
+        receiveMessage(for: source, sessionID: thisSession)
         print("🌐 Connected to OpenAI Realtime (\(source))")
     }
 
-    private func receiveMessage(for source: AudioSource) {
+    private func receiveMessage(for source: AudioSource, sessionID: UUID) {
         let task: URLSessionWebSocketTask? = (source == .mic) ? micSocketTask : systemSocketTask
         task?.receive { [weak self] result in
             switch result {
@@ -362,18 +403,44 @@ class AudioManager: NSObject, ObservableObject {
                 @unknown default:
                     break
                 }
-                self?.receiveMessage(for: source) // continue loop
+                // Continue loop for this session
+                if let self = self, self.sessionID == sessionID {
+                    self.receiveMessage(for: source, sessionID: sessionID)
+                }
             case .failure(let error):
+                guard let self = self, self.sessionID == sessionID else { return } // Stale callback
+                // Ignore errors caused by intentional socket closure after recording stops
+                if self.isRecording == false { return }
+
+                let errorMsg = self.handleWebSocketError(error, source: source)
                 print("❌ Receive error (\(source)): \(error)")
-                // Attempt reconnect if still recording
-                DispatchQueue.main.asyncAfter(deadline: .now() + 2) {
-                    if self?.isRecording == true {
-                        self?.connectToOpenAIRealtime(source: source)
+                
+                DispatchQueue.main.async {
+                    self.errorMessage = errorMsg
+                }
+                
+                // Only attempt reconnect for network errors, not API errors
+                if ErrorHandler.shared.shouldRetry(error) {
+                    DispatchQueue.main.asyncAfter(deadline: .now() + 2) { [weak self] in
+                        guard let self = self, self.isRecording, self.sessionID == sessionID else { return }
+                        self.connectToOpenAIRealtime(source: source)
                     }
                 }
             }
         }
     }
+    
+    private func handleWebSocketError(_ error: Error, source: AudioSource) -> String {
+        // Check for WebSocket close codes first
+        if let closeCode = (error as NSError?)?.userInfo["closeCode"] as? Int {
+            return ErrorHandler.shared.handleWebSocketCloseCode(closeCode)
+        }
+        
+        // Use centralized error handler for all other errors
+        return ErrorHandler.shared.handleError(error)
+    }
+    
+
 
     private func parseRealtimeEvent(_ text: String, source: AudioSource) {
         guard let data = text.data(using: .utf8),
@@ -433,12 +500,19 @@ class AudioManager: NSObject, ObservableObject {
 
         let base64 = data.base64EncodedString()
         let message: [String: Any] = ["type": "input_audio_buffer.append", "audio": base64]
-
+        
+        let thisSession = self.sessionID
         do {
             let jsonData = try JSONSerialization.data(withJSONObject: message)
             if let jsonStr = String(data: jsonData, encoding: .utf8) {
-                socket.send(.string(jsonStr)) { error in
+                socket.send(.string(jsonStr)) { [weak self] error in
                     if let error = error {
+                        guard let self = self, self.sessionID == thisSession else { return }
+
+                        // Ignore cancellation errors, which are expected when stopping recording.
+                        if (error as? URLError)?.code == .cancelled {
+                            return
+                        }
                         print("❌ Send error (\(source)): \(error)")
                     }
                 }
diff --git a/meetingnotes/Services/APIKeyValidator.swift b/meetingnotes/Services/APIKeyValidator.swift
new file mode 100644
index 0000000..f47bc44
--- /dev/null
+++ b/meetingnotes/Services/APIKeyValidator.swift
@@ -0,0 +1,89 @@
+// APIKeyValidator.swift
+// Service to validate OpenAI API keys and check for sufficient funds
+
+import Foundation
+
+/// Service to validate OpenAI API keys
+class APIKeyValidator {
+    static let shared = APIKeyValidator()
+    
+    private init() {}
+    
+    /// Validates the OpenAI API key by making a test request
+    /// - Parameter apiKey: The API key to validate
+    /// - Returns: Result indicating success or failure with error message
+    func validateAPIKey(_ apiKey: String) async -> Result<Void, APIKeyValidationError> {
+        guard !apiKey.isEmpty else {
+            return .failure(.emptyKey)
+        }
+        
+        // Make a simple request to validate the key
+        guard let url = URL(string: "https://api.openai.com/v1/models") else {
+            return .failure(.invalidURL)
+        }
+        
+        var request = URLRequest(url: url)
+        request.httpMethod = "GET"
+        request.setValue("Bearer \(apiKey)", forHTTPHeaderField: "Authorization")
+        request.setValue("application/json", forHTTPHeaderField: "Content-Type")
+        
+        do {
+            let (data, response) = try await URLSession.shared.data(for: request)
+            
+            guard let httpResponse = response as? HTTPURLResponse else {
+                return .failure(.networkError("Invalid response"))
+            }
+            
+            switch httpResponse.statusCode {
+            case 200:
+                // Key is valid - check if models are available
+                if let json = try? JSONSerialization.jsonObject(with: data) as? [String: Any],
+                   let models = json["data"] as? [[String: Any]], !models.isEmpty {
+                    return .success(())
+                } else {
+                    return .failure(.noModelsAvailable)
+                }
+            default:
+                let errorMessage = ErrorHandler.shared.handleHTTPStatusCode(httpResponse.statusCode)
+                return .failure(.httpError(errorMessage))
+            }
+        } catch {
+            let errorMessage = ErrorHandler.shared.handleError(error)
+            return .failure(.networkError(errorMessage))
+        }
+    }
+    
+    /// Validates the currently stored API key
+    /// - Returns: Result indicating success or failure with error message
+    func validateCurrentAPIKey() async -> Result<Void, APIKeyValidationError> {
+        guard let apiKey = KeychainHelper.shared.getAPIKey() else {
+            return .failure(.emptyKey)
+        }
+        
+        return await validateAPIKey(apiKey)
+    }
+}
+
+/// Errors that can occur during API key validation
+enum APIKeyValidationError: Error, LocalizedError {
+    case emptyKey
+    case invalidURL
+    case noModelsAvailable
+    case networkError(String)
+    case httpError(String)
+    
+    var errorDescription: String? {
+        switch self {
+        case .emptyKey:
+            return ErrorMessage.noAPIKey
+        case .invalidURL:
+            return ErrorMessage.invalidURL
+        case .noModelsAvailable:
+            return ErrorMessage.noModelsAvailable
+        case .networkError(let message):
+            return message
+        case .httpError(let message):
+            return message
+        }
+    }
+}
\ No newline at end of file
diff --git a/meetingnotes/Services/ErrorHandler.swift b/meetingnotes/Services/ErrorHandler.swift
new file mode 100644
index 0000000..f1e5895
--- /dev/null
+++ b/meetingnotes/Services/ErrorHandler.swift
@@ -0,0 +1,191 @@
+// ErrorHandler.swift
+// Centralized error handling service for OpenAI API and network errors
+
+import Foundation
+
+/// Centralized error handling service
+class ErrorHandler {
+    static let shared = ErrorHandler()
+    
+    private init() {}
+    
+    /// Handles errors from OpenAI API calls and network requests
+    /// - Parameter error: The error to handle
+    /// - Returns: User-friendly error message
+    func handleError(_ error: Error) -> String {
+        // Handle network errors
+        if let urlError = error as? URLError {
+            return handleNetworkError(urlError)
+        }
+        
+        // Handle HTTP response errors
+        if let httpError = error as? HTTPError {
+            return handleHTTPError(httpError)
+        }
+        
+        // Handle OpenAI API errors by checking error description
+        let errorDescription = error.localizedDescription.lowercased()
+        if let openAIError = categorizeOpenAIError(errorDescription) {
+            return openAIError
+        }
+        
+        // Generic error fallback
+        return "An unexpected error occurred: \(error.localizedDescription)"
+    }
+    
+    /// Handles WebSocket close codes
+    /// - Parameter closeCode: WebSocket close code
+    /// - Returns: User-friendly error message
+    func handleWebSocketCloseCode(_ closeCode: Int) -> String {
+        switch closeCode {
+        case 1000: return "Connection closed normally"
+        case 1001: return ErrorMessage.connectionLost
+        case 1002: return "Connection protocol error. Please try again."
+        case 1003: return ErrorMessage.unsupportedData
+        case 1008: return "API policy violation. Please check your API key and account status."
+        case 1011: return ErrorMessage.apiServerError
+        case 4000: return ErrorMessage.badRequest
+        case 4001: return ErrorMessage.invalidAPIKey
+        case 4002: return ErrorMessage.accessForbidden
+        case 4003: return ErrorMessage.apiEndpointNotFound
+        case 4004: return "Invalid API method. Please update the app."
+        case 4005: return ErrorMessage.requestTimeout
+        case 4006: return ErrorMessage.requestTooLarge
+        case 4007: return ErrorMessage.rateLimited
+        case 4008: return ErrorMessage.insufficientFunds
+        default:   return "Connection error (code \(closeCode)). Please try again."
+        }
+    }
+    
+    /// Handles HTTP status codes
+    /// - Parameter statusCode: HTTP status code
+    /// - Parameter message: Optional error message
+    /// - Returns: User-friendly error message
+    func handleHTTPStatusCode(_ statusCode: Int, message: String? = nil) -> String {
+        switch statusCode {
+        case 200...299:
+            return ErrorMessage.success
+        case 400:
+            return ErrorMessage.badRequest
+        case 401:
+            return ErrorMessage.invalidAPIKey
+        case 402:
+            return ErrorMessage.insufficientFunds
+        case 403:
+            return ErrorMessage.accessForbidden
+        case 404:
+            return ErrorMessage.apiEndpointNotFound
+        case 429:
+            return ErrorMessage.rateLimited
+        case 500...599:
+            return ErrorMessage.apiServerError
+        default:
+            return "HTTP error \(statusCode): \(message ?? "Unknown error")"
+        }
+    }
+    
+    /// Determines if an error should trigger a retry
+    /// - Parameter error: The error to check
+    /// - Returns: True if the error is retryable
+    func shouldRetry(_ error: Error) -> Bool {
+        // Network errors are generally retryable
+        if let urlError = error as? URLError {
+            switch urlError.code {
+            case .timedOut, .cannotFindHost, .networkConnectionLost, .cannotConnectToHost:
+                return true
+            default:
+                return false
+            }
+        }
+        
+        // WebSocket close codes
+        if let closeCode = (error as NSError?)?.userInfo["closeCode"] as? Int {
+            return closeCode < 4000 // Only retry for non-API errors
+        }
+        
+        return false
+    }
+    
+    // MARK: - Private Methods
+    
+    private func handleNetworkError(_ urlError: URLError) -> String {
+        switch urlError.code {
+        case .notConnectedToInternet:
+            return "No internet connection. Please check your network and try again."
+        case .timedOut:
+            return "Request timed out. Please try again."
+        case .cannotFindHost:
+            return "Cannot reach OpenAI servers. Please check your internet connection."
+        case .cannotConnectToHost:
+            return "Cannot connect to OpenAI servers. Please check your internet connection."
+        case .networkConnectionLost:
+            return "Network connection lost. Please try again."
+        case .httpTooManyRedirects:
+            return "Too many redirects. Please try again later."
+        case .secureConnectionFailed:
+            return "Secure connection failed. Please check your internet connection."
+        case .serverCertificateUntrusted:
+            return "Server certificate untrusted. Please try again."
+        default:
+            return "Network error: \(urlError.localizedDescription)"
+        }
+    }
+    
+    private func handleHTTPError(_ httpError: HTTPError) -> String {
+        return handleHTTPStatusCode(httpError.statusCode, message: httpError.message)
+    }
+    
+    private func categorizeOpenAIError(_ errorDescription: String) -> String? {
+        if errorDescription.contains("unauthorized") || errorDescription.contains("401") {
+            return ErrorMessage.invalidAPIKey
+        } else if errorDescription.contains("insufficient") || errorDescription.contains("402") {
+            return ErrorMessage.insufficientFunds
+        } else if errorDescription.contains("rate limit") || errorDescription.contains("429") {
+            return ErrorMessage.rateLimited
+        } else if errorDescription.contains("server error") || errorDescription.contains("500") {
+            return ErrorMessage.apiServerError
+        } else if errorDescription.contains("forbidden") || errorDescription.contains("403") {
+            return ErrorMessage.accessForbidden
+        } else if errorDescription.contains("not found") || errorDescription.contains("404") {
+            return ErrorMessage.apiEndpointNotFound
+        }
+        
+        return nil
+    }
+}
+
+/// HTTP error type
+struct HTTPError: Error {
+    let statusCode: Int
+    let message: String?
+    
+    init(statusCode: Int, message: String? = nil) {
+        self.statusCode = statusCode
+        self.message = message
+    }
+}
+
+/// Common error messages
+enum ErrorMessage {
+    static let noAPIKey = "OpenAI API key not found. Please configure your API key in Settings."
+    static let noTemplate = "No template content found. Please select a valid template."
+    static let noTranscript = "No transcript available. Please record some audio first."
+    static let connectionTimeout = "Failed to connect to OpenAI transcription service. Please check your internet connection and API key."
+    static let configurationFailed = "Failed to configure transcription session."
+    static let invalidURL = "Invalid API URL configuration."
+    static let noModelsAvailable = "No models available with your API key. Please check your account status."
+
+    // Centralized messages used across handlers
+    static let success = "Success"
+    static let badRequest = "Bad request. Please check your input."
+    static let invalidAPIKey = "Invalid OpenAI API key. Please check your API key in Settings."
+    static let insufficientFunds = "Insufficient funds in your OpenAI account. Please add credits to your account."
+    static let accessForbidden = "Access forbidden. Please check your API key permissions."
+    static let apiEndpointNotFound = "API endpoint not found. Please update the app."
+    static let rateLimited = "OpenAI API rate limit exceeded. Please try again later."
+    static let apiServerError = "OpenAI server error. Please try again later."
+    static let requestTimeout = "Request timeout. Please try again."
+    static let requestTooLarge = "Request too large. Please try again."
+    static let unsupportedData = "Unsupported data format. Please update the app."
+    static let connectionLost = "Connection lost. Please try again."
+}
\ No newline at end of file
diff --git a/meetingnotes/Services/NotesGenerator.swift b/meetingnotes/Services/NotesGenerator.swift
index 9b40a2a..baddb0a 100644
--- a/meetingnotes/Services/NotesGenerator.swift
+++ b/meetingnotes/Services/NotesGenerator.swift
@@ -4,6 +4,12 @@
 import Foundation
 import OpenAI
 
+/// Result type for note generation streaming
+enum GenerationResult {
+    case content(String)
+    case error(String)
+}
+
 /// Generates meeting notes using OpenAI API
 class NotesGenerator {
     static let shared = NotesGenerator()
@@ -20,16 +26,28 @@ class NotesGenerator {
     func generateNotesStream(meeting: Meeting,
                             userBlurb: String,
                             systemPrompt: String,
-                            templateId: UUID? = nil) -> AsyncStream<String> {
+                            templateId: UUID? = nil) -> AsyncStream<GenerationResult> {
         
-        return AsyncStream<String>(String.self) { continuation in
+        return AsyncStream<GenerationResult>(GenerationResult.self) { continuation in
             Task {
                 do {
                     guard let apiKey = KeychainHelper.shared.getAPIKey(), !apiKey.isEmpty else {
+                        continuation.yield(.error(ErrorMessage.noAPIKey))
                         continuation.finish()
                         return
                     }
                     
+                    // Validate API key before proceeding
+                    let validationResult = await APIKeyValidator.shared.validateAPIKey(apiKey)
+                    switch validationResult {
+                    case .failure(let error):
+                        continuation.yield(.error(error.localizedDescription))
+                        continuation.finish()
+                        return
+                    case .success():
+                        break
+                    }
+                    
                     let openAI = OpenAI(apiToken: apiKey)
                     
                     // Create date formatter for meeting date
@@ -48,7 +66,14 @@ class NotesGenerator {
                     
                     // If no template content, use default
                     if templateContent.isEmpty {
-                        // No template content found, finish the stream
+                        continuation.yield(.error(ErrorMessage.noTemplate))
+                        continuation.finish()
+                        return
+                    }
+                    
+                    // Check if transcript is empty
+                    if meeting.formattedTranscript.trimmingCharacters(in: .whitespacesAndNewlines).isEmpty {
+                        continuation.yield(.error(ErrorMessage.noTranscript))
                         continuation.finish()
                         return
                     }
@@ -75,13 +100,15 @@ class NotesGenerator {
                     
                     for try await result in stream {
                         if let content = result.choices.first?.delta.content {
-                            continuation.yield(content)
+                            continuation.yield(.content(content))
                         }
                     }
                     
                     continuation.finish()
                 } catch {
+                    let errorMessage = ErrorHandler.shared.handleError(error)
                     print("Error in streaming generation: \(error)")
+                    continuation.yield(.error(errorMessage))
                     continuation.finish()
                 }
             }
diff --git a/meetingnotes/ViewModels/MeetingViewModel.swift b/meetingnotes/ViewModels/MeetingViewModel.swift
index cb7258a..ffbe2a8 100644
--- a/meetingnotes/ViewModels/MeetingViewModel.swift
+++ b/meetingnotes/ViewModels/MeetingViewModel.swift
@@ -98,6 +98,15 @@ class MeetingViewModel: ObservableObject {
             }
             .store(in: &cancellables)
         
+        // Update error message when audio manager encounters errors
+        audioManager.$errorMessage
+            .compactMap { $0 }
+            .sink { [weak self] errorMessage in
+                self?.errorMessage = errorMessage
+                print("🚨 Audio Manager Error: \(errorMessage)")
+            }
+            .store(in: &cancellables)
+        
         // Auto-save when meeting properties change
         $meeting
             .debounce(for: .milliseconds(500), scheduler: RunLoop.main)
@@ -143,7 +152,20 @@ class MeetingViewModel: ObservableObject {
     }
     
     func startRecording() {
-        audioManager.startRecording()
+        // Validate API key before starting recording
+        Task {
+            let validationResult = await APIKeyValidator.shared.validateCurrentAPIKey()
+            
+            switch validationResult {
+            case .success():
+                // Key is valid, proceed with recording
+                audioManager.startRecording()
+            case .failure(let error):
+                // Show error message
+                errorMessage = error.localizedDescription
+                print("❌ API key validation failed: \(error.localizedDescription)")
+            }
+        }
     }
     
     func stopRecording() {
@@ -176,6 +198,9 @@ class MeetingViewModel: ObservableObject {
         isGeneratingNotes = true
         errorMessage = nil
         
+        // Clear any audio manager errors as well
+        audioManager.errorMessage = nil
+        
         // Clear existing notes for streaming
         meeting.generatedNotes = ""
         
@@ -191,11 +216,23 @@ class MeetingViewModel: ObservableObject {
             templateId: selectedTemplateId
         )
         
-        for await chunk in stream {
-            meeting.generatedNotes += chunk
+        var hasError = false
+        for await result in stream {
+            switch result {
+            case .content(let chunk):
+                meeting.generatedNotes += chunk
+            case .error(let error):
+                errorMessage = error
+                hasError = true
+                print("🚨 Note Generation Error: \(error)")
+                break
+            }
         }
         
-        saveMeeting()
+        // Only save if there was no error
+        if !hasError {
+            saveMeeting()
+        }
         
         isGeneratingNotes = false
     }