diff --git a/client/src/lib/hooks/__tests__/useConnection.test.tsx b/client/src/lib/hooks/__tests__/useConnection.test.tsx
index 875c9e387..4550f30a7 100644
--- a/client/src/lib/hooks/__tests__/useConnection.test.tsx
+++ b/client/src/lib/hooks/__tests__/useConnection.test.tsx
@@ -1387,6 +1387,63 @@ describe("useConnection", () => {
     });
   });
 
+  describe("Direct connection OAuth token handling", () => {
+    beforeEach(() => {
+      jest.clearAllMocks();
+      mockSSETransport.options = undefined;
+      mockStreamableHTTPTransport.options = undefined;
+    });
+
+    test("does NOT bake the OAuth provider token into requestInit for direct connections", async () => {
+      // Regression test for #1434: the OAuth token must not be snapshotted into
+      // requestInit at connect time. The SDK's authProvider is the single,
+      // always-current source and refreshes the token on 401; a baked snapshot
+      // shadows the refreshed token and leaves the session stuck on the stale
+      // one after a successful refresh.
+      const directProps = {
+        ...defaultProps,
+        connectionType: "direct" as const,
+      };
+
+      const { result } = renderHook(() => useConnection(directProps));
+
+      await act(async () => {
+        await result.current.connect();
+      });
+
+      const headers = mockSSETransport.options?.requestInit?.headers;
+      // The provider (mocked to return "mock-token") must NOT be baked in.
+      expect(headers).not.toHaveProperty("Authorization");
+      // ...instead the authProvider is wired up so the SDK injects and
+      // refreshes the token per request.
+      expect(mockSSETransport.options?.authProvider).toBeDefined();
+    });
+
+    test("still sends a user-supplied static Authorization header for direct connections", async () => {
+      // A user-provided static Authorization header is an intentional override
+      // of the provider and must still flow through untouched.
+      const customHeaders: CustomHeaders = [
+        { name: "Authorization", value: "Bearer user-token", enabled: true },
+      ];
+
+      const directProps = {
+        ...defaultProps,
+        connectionType: "direct" as const,
+        customHeaders,
+      };
+
+      const { result } = renderHook(() => useConnection(directProps));
+
+      await act(async () => {
+        await result.current.connect();
+      });
+
+      const headers = mockSSETransport.options?.requestInit?.headers;
+      expect(headers).toHaveProperty("Authorization", "Bearer user-token");
+      expect(mockSSETransport.options?.authProvider).toBeDefined();
+    });
+  });
+
   describe("Connection URL Verification", () => {
     beforeEach(() => {
       jest.clearAllMocks();
diff --git a/client/src/lib/hooks/useConnection.ts b/client/src/lib/hooks/useConnection.ts
index 9694b891f..401885e92 100644
--- a/client/src/lib/hooks/useConnection.ts
+++ b/client/src/lib/hooks/useConnection.ts
@@ -525,9 +525,17 @@ export function useConnection({
           header.name.trim().toLowerCase() === "authorization",
       );
 
+      // Track whether the Authorization header was injected from the OAuth
+      // provider (as opposed to a user-supplied static header). For direct
+      // connections this token must NOT be baked into requestInit, because the
+      // SDK's authProvider already injects and refreshes it on every request; a
+      // baked connect-time snapshot would shadow the refreshed token (#1434).
+      let oauthTokenInjected = false;
+
       if (needsOAuthToken) {
         const oauthToken = (await serverAuthProvider.tokens())?.access_token;
         if (oauthToken) {
+          oauthTokenInjected = true;
           // Add the OAuth token
           finalHeaders = [
             // Remove any existing Authorization headers with empty tokens
@@ -575,6 +583,18 @@ export function useConnection({
         serverUrl = new URL(sseUrl);
 
         const requestHeaders = { ...headers };
+        // For direct connections the SDK's authProvider is the single,
+        // always-current source of the OAuth Authorization header: it injects
+        // the token on every request and refreshes it on 401. Baking a
+        // connect-time token snapshot into requestInit/the custom fetch would
+        // shadow the refreshed token and leave the session permanently sending
+        // the stale token after a refresh (#1434). A user-supplied static
+        // Authorization header must still override the provider, so only strip
+        // the header here when it was injected from the OAuth provider (the
+        // header we inject is always named exactly "Authorization").
+        if (oauthTokenInjected) {
+          delete requestHeaders["Authorization"];
+        }
         if (mcpSessionId) {
           requestHeaders["mcp-session-id"] = mcpSessionId;
         }
@@ -588,9 +608,13 @@ export function useConnection({
                 url: string | URL | globalThis.Request,
                 init?: RequestInit,
               ) => {
+                // Let the SDK-provided init (which already merges the
+                // provider's fresh Authorization with requestInit.headers)
+                // win over the connect-time snapshot, so a refreshed token is
+                // actually sent (#1434).
                 const response = await fetch(url, {
-                  ...init,
                   headers: requestHeaders,
+                  ...init,
                 });
 
                 // Capture protocol-related headers from response