diff --git a/surfsense_backend/app/tasks/chat/stream_new_chat.py b/surfsense_backend/app/tasks/chat/stream_new_chat.py
index 060dd23c6..ecc727b47 100644
--- a/surfsense_backend/app/tasks/chat/stream_new_chat.py
+++ b/surfsense_backend/app/tasks/chat/stream_new_chat.py
@@ -1581,7 +1581,7 @@ async def stream_new_chat(
                     )
                 else:
                     yield streaming_service.format_error(
-                        "Buy more tokens to continue with this model, or switch to a free model.",
+                        "Buy more tokens to continue with this model, or switch to a free model",
                         error_code="PREMIUM_QUOTA_EXHAUSTED",
                     )
                     yield streaming_service.format_done()
@@ -2349,7 +2349,7 @@ async def stream_resume_chat(
                     )
                 else:
                     yield streaming_service.format_error(
-                        "Buy more tokens to continue with this model, or switch to a free model.",
+                        "Buy more tokens to continue with this model, or switch to a free model",
                         error_code="PREMIUM_QUOTA_EXHAUSTED",
                     )
                     yield streaming_service.format_done()
diff --git a/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx b/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx
index f775e1f06..6ec587f91 100644
--- a/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx
+++ b/surfsense_web/app/dashboard/[search_space_id]/new-chat/[[...chat_id]]/page.tsx
@@ -1032,6 +1032,7 @@ export default function NewChatPage() {
 					setPremiumAlertForThread({
 						threadId: currentThreadId,
 						message: premiumQuotaAlertMessage,
+						userId: currentUser?.id ?? null,
 					});
 				} else {
 					toast.error("Failed to get response. Please try again.");
@@ -1334,6 +1335,7 @@ export default function NewChatPage() {
 					setPremiumAlertForThread({
 						threadId: resumeThreadId,
 						message: premiumQuotaAlertMessage,
+						userId: currentUser?.id ?? null,
 					});
 				} else {
 					toast.error("Failed to resume. Please try again.");
@@ -1692,6 +1694,7 @@ export default function NewChatPage() {
 					setPremiumAlertForThread({
 						threadId,
 						message: premiumQuotaAlertMessage,
+						userId: currentUser?.id ?? null,
 					});
 				} else {
 					toast.error("Failed to regenerate response. Please try again.");
diff --git a/surfsense_web/atoms/chat/premium-alert.atom.ts b/surfsense_web/atoms/chat/premium-alert.atom.ts
index c0efc174f..1c837dd65 100644
--- a/surfsense_web/atoms/chat/premium-alert.atom.ts
+++ b/surfsense_web/atoms/chat/premium-alert.atom.ts
@@ -14,13 +14,25 @@ export const setPremiumAlertForThreadAtom = atom(
 		payload: {
 			threadId: number;
 			message: string;
+			userId?: string | null;
 		}
 	) => {
+		const storageKey = `surfsense-premium-alert-seen-v1:${payload.userId ?? "anonymous"}`;
+
+		if (typeof window !== "undefined") {
+			const hasSeen = localStorage.getItem(storageKey) === "true";
+			if (hasSeen) return;
+		}
+
 		const current = get(premiumAlertByThreadAtom);
 		set(premiumAlertByThreadAtom, {
 			...current,
 			[payload.threadId]: { message: payload.message },
 		});
+
+		if (typeof window !== "undefined") {
+			localStorage.setItem(storageKey, "true");
+		}
 	}
 );
 
diff --git a/surfsense_web/components/assistant-ui/thread.tsx b/surfsense_web/components/assistant-ui/thread.tsx
index cb063fac3..3095556dc 100644
--- a/surfsense_web/components/assistant-ui/thread.tsx
+++ b/surfsense_web/components/assistant-ui/thread.tsx
@@ -161,15 +161,15 @@ const PremiumQuotaPinnedAlert: FC = () => {
 	if (!alert) return null;
 
 	return (
-		<div className="mx-0 bg-amber-500/10 px-3 py-2 text-amber-100">
-			<div className="flex items-start gap-2">
-				<AlertCircle className="mt-0.5 size-4 shrink-0 text-amber-300" />
+		<div className="mx-0 overflow-hidden rounded-2xl border-input bg-muted px-4 py-4 text-foreground select-none">
+			<div className="flex items-center gap-2">
+				<AlertCircle className="size-4 shrink-0 text-muted-foreground" />
 				<div className="min-w-0 flex-1">
 					<p className="text-sm">{alert.message}</p>
 				</div>
 				<button
 					type="button"
-					className="inline-flex size-6 items-center justify-center text-amber-200 transition-colors hover:text-amber-50"
+					className="inline-flex size-6 items-center justify-center text-muted-foreground transition-colors hover:text-foreground"
 					aria-label="Dismiss premium quota alert"
 					onClick={() => clearPremiumAlertForThread(currentThreadId)}
 				>