diff --git a/.changeset/fix-token-dir-error-propagation.md b/.changeset/fix-token-dir-error-propagation.md
new file mode 100644
index 00000000..16d1ad32
--- /dev/null
+++ b/.changeset/fix-token-dir-error-propagation.md
@@ -0,0 +1,5 @@
+---
+"gws": patch
+---
+
+Fix auth error propagation: properly propagate errors when token directory creation or permission setting fails, instead of silently ignoring them
diff --git a/src/token_storage.rs b/src/token_storage.rs
index 8b63e61b..5fb17a00 100644
--- a/src/token_storage.rs
+++ b/src/token_storage.rs
@@ -82,11 +82,25 @@ impl EncryptedTokenStorage {
         let encrypted = crate::credential_store::encrypt(json.as_bytes())?;
 
         if let Some(parent) = self.file_path.parent() {
-            let _ = tokio::fs::create_dir_all(parent).await;
+            tokio::fs::create_dir_all(parent).await.map_err(|e| {
+                anyhow::anyhow!(
+                    "Failed to create token directory '{}': {}",
+                    sanitize_for_terminal(&parent.display().to_string()),
+                    e
+                )
+            })?;
             #[cfg(unix)]
             {
                 use std::os::unix::fs::PermissionsExt;
-                let _ = std::fs::set_permissions(parent, std::fs::Permissions::from_mode(0o700));
+                tokio::fs::set_permissions(parent, std::fs::Permissions::from_mode(0o700))
+                    .await
+                    .map_err(|e| {
+                        anyhow::anyhow!(
+                            "Failed to set permissions on token directory '{}': {}",
+                            sanitize_for_terminal(&parent.display().to_string()),
+                            e
+                        )
+                    })?;
             }
         }