diff --git a/src/workbench_cli/utilities/error_handling.py b/src/workbench_cli/utilities/error_handling.py
index c6e1ee9..1a6cca8 100644
--- a/src/workbench_cli/utilities/error_handling.py
+++ b/src/workbench_cli/utilities/error_handling.py
@@ -100,6 +100,17 @@ def format_and_print_error(error: Exception, handler_name: str, params: argparse
         print(f"   • The API URL is correct: {getattr(params, 'api_url', '<not specified>')}")
     
     elif isinstance(error, ApiError):
+        # Check for credential errors first
+        if "user_not_found_or_api_key_is_not_correct" in error_message:
+            print(f"\n❌ Invalid credentials")
+            print(f"   The username or API token provided is incorrect.")
+            print(f"\n💡 Please check:")
+            print(f"   • Your username: {getattr(params, 'api_user', '<not specified>')}")
+            print(f"   • Your API token is correct and not expired")
+            print(f"   • Your account has access to the Workbench instance")
+            print(f"   • The API URL is correct: {getattr(params, 'api_url', '<not specified>')}")
+            return  # Exit early to avoid showing generic API error details
+        
         print(f"\n❌ Workbench API error")
         print(f"   {error_message}")
         
diff --git a/tests/unit/utilities/test_error_handling.py b/tests/unit/utilities/test_error_handling.py
index 44c9fa5..c9c560d 100644
--- a/tests/unit/utilities/test_error_handling.py
+++ b/tests/unit/utilities/test_error_handling.py
@@ -330,4 +330,30 @@ def handler_with_args(workbench, params):
     params.test_attr = "test_value"
     
     result = handler_with_args(workbench, params)
-    assert result is True 
\ No newline at end of file
+    assert result is True 
+
+@patch('builtins.print')
+def test_format_and_print_error_credential_error(mock_print, mock_params):
+    """Test that credential errors are formatted with user-friendly messages."""
+    # Set up mock params with credential info
+    mock_params.api_user = 'testuser'
+    mock_params.api_url = 'https://example.com/api.php'
+    
+    # Create an API error with the credential error message
+    error = ApiError("Classes.FossID.user_not_found_or_api_key_is_not_correct")
+    
+    # Call the error formatting function
+    format_and_print_error(error, "test_handler", mock_params)
+    
+    # Check that print was called with credential-specific messages
+    print_calls = [call.args[0] for call in mock_print.call_args_list]
+    
+    # Verify the credential-specific message is shown
+    assert any("❌ Invalid credentials" in call for call in print_calls)
+    assert any("The username or API token provided is incorrect" in call for call in print_calls)
+    assert any("testuser" in call for call in print_calls)  # Should show the username
+    assert any("https://example.com/api.php" in call for call in print_calls)  # Should show the API URL
+    
+    # Verify generic API error message is NOT shown
+    assert not any("❌ Workbench API error" in call for call in print_calls)
+    assert not any("Classes.FossID.user_not_found_or_api_key_is_not_correct" in call for call in print_calls) 
\ No newline at end of file