diff --git a/.claude/settings.local.json b/.claude/settings.local.json
index c5119df..e8d4cc1 100644
--- a/.claude/settings.local.json
+++ b/.claude/settings.local.json
@@ -49,7 +49,8 @@
       "WebFetch(domain:www.shadcn-vue.com)",
       "WebFetch(domain:docs.cidaas.com)",
       "WebFetch(domain:articles.cidaas.de)",
-      "WebFetch(domain:pre-release-docs.cidaas.com)"
+      "WebFetch(domain:pre-release-docs.cidaas.com)",
+      "mcp__playwright__browser_console_messages"
     ],
     "deny": [],
     "ask": []
diff --git a/app/components/Auth/LoginForm.vue b/app/components/Auth/LoginForm.vue
index 1fe7e84..b12283a 100644
--- a/app/components/Auth/LoginForm.vue
+++ b/app/components/Auth/LoginForm.vue
@@ -32,19 +32,14 @@ const onSubmit = handleSubmit(async (values) => {
     // Redirect happens in login() function
   } catch (error: any) {
     console.error('Login error:', error)
-    submitError.value = error.data?.message || 'Anmeldung fehlgeschlagen. Bitte versuchen Sie es erneut.'
+    // Error message is now directly in error.message (thrown by useAuth composable)
+    submitError.value = error.message || 'Anmeldung fehlgeschlagen. Bitte versuchen Sie es erneut.'
   }
 })
 </script>
 
 <template>
   <form @submit="onSubmit" class="space-y-6">
-    <!-- Error Alert -->
-    <Alert v-if="submitError" class="border-destructive bg-destructive/10 text-white">
-      <AlertCircle class="h-5 w-5 text-destructive" />
-      <AlertDescription class="text-white/90">{{ submitError }}</AlertDescription>
-    </Alert>
-
     <!-- Email Field -->
     <FormField v-slot="{ componentField }" name="email">
       <FormItem>
@@ -67,6 +62,12 @@ const onSubmit = handleSubmit(async (values) => {
       </FormItem>
     </FormField>
 
+    <!-- Error Alert -->
+    <Alert v-if="submitError" class="border-destructive bg-destructive/10 text-white">
+      <AlertCircle class="h-5 w-5 text-destructive" />
+      <AlertDescription class="text-white/90">{{ submitError }}</AlertDescription>
+    </Alert>
+
     <!-- Submit Button -->
     <Button type="submit" variant="experimenta" size="experimenta" class="w-full" :disabled="isSubmitting">
       <Loader2 v-if="isSubmitting" class="mr-2 h-5 w-5 animate-spin" />
diff --git a/app/composables/useAuth.ts b/app/composables/useAuth.ts
index 284bc8a..1c31074 100644
--- a/app/composables/useAuth.ts
+++ b/app/composables/useAuth.ts
@@ -17,26 +17,32 @@ export function useAuth() {
    * Direct authentication via Cidaas API (no redirect)
    */
   async function login(email: string, password: string) {
-    try {
-      // Call login endpoint - creates session directly
-      await $fetch('/api/auth/login', {
-        method: 'POST',
-        body: { email, password },
-      })
-
-      // Refresh user session
-      await fetch()
-
-      // Redirect to homepage or saved destination
-      const redirectAfterLogin = useCookie('redirect_after_login')
-      const destination = redirectAfterLogin.value || '/'
-      redirectAfterLogin.value = null // Clear cookie
+    // Call login endpoint - creates session directly
+    const response = await $fetch<{ success: boolean; message?: string }>('/api/auth/login', {
+      method: 'POST',
+      body: { email, password },
+      // Don't throw on 4xx/5xx, we handle the response ourselves
+      ignoreResponseError: true,
+    })
 
-      navigateTo(destination)
-    } catch (error) {
-      console.error('Login failed:', error)
+    // Check if login was successful
+    if (!response.success) {
+      // Throw error with the server's message (contains German text with umlauts)
+      const error: any = new Error(response.message || 'Login failed')
+      error.data = response
+      error.statusCode = 401
       throw error
     }
+
+    // Refresh user session
+    await fetch()
+
+    // Redirect to homepage or saved destination
+    const redirectAfterLogin = useCookie('redirect_after_login')
+    const destination = redirectAfterLogin.value || '/'
+    redirectAfterLogin.value = null // Clear cookie
+
+    navigateTo(destination)
   }
 
   /**
diff --git a/server/api/auth/login.post.ts b/server/api/auth/login.post.ts
index 94f7dc6..2f59485 100644
--- a/server/api/auth/login.post.ts
+++ b/server/api/auth/login.post.ts
@@ -21,6 +21,7 @@
 
 import { z } from 'zod'
 import { eq } from 'drizzle-orm'
+import { users } from '../../database/schema'
 
 const loginSchema = z.object({
   email: z.string().email('Invalid email address'),
@@ -93,15 +94,19 @@ export default defineEventHandler(async (event) => {
 
     // Handle specific error cases
     if (error.statusCode === 401) {
-      throw createError({
-        statusCode: 401,
-        statusMessage: 'Ungültige E-Mail-Adresse oder Passwort',
-      })
+      // Set response status and return error as JSON body
+      // This ensures umlauts are properly encoded in the response body
+      setResponseStatus(event, 401, 'Invalid credentials')
+      return {
+        success: false,
+        message: 'Ungültige E-Mail-Adresse oder Passwort',
+      }
     }
 
-    throw createError({
-      statusCode: 500,
-      statusMessage: 'Anmeldung fehlgeschlagen',
-    })
+    setResponseStatus(event, 500, 'Login failed')
+    return {
+      success: false,
+      message: 'Anmeldung fehlgeschlagen',
+    }
   }
 })
diff --git a/server/utils/cidaas.ts b/server/utils/cidaas.ts
index 222ab20..4cd230b 100644
--- a/server/utils/cidaas.ts
+++ b/server/utils/cidaas.ts
@@ -256,6 +256,14 @@ export async function loginWithPassword(
       console.error('Cidaas password login failed:', errorData)
 
       // Handle specific errors
+      // Cidaas returns 400 with error: 'invalid_username_password' for invalid credentials
+      if (response.status === 400 && errorData.error === 'invalid_username_password') {
+        throw createError({
+          statusCode: 401,
+          statusMessage: 'Invalid email or password',
+        })
+      }
+
       if (response.status === 401) {
         throw createError({
           statusCode: 401,