diff --git a/apps/app/src/actions/files/upload-file.ts b/apps/app/src/actions/files/upload-file.ts
index f3a0ecbe1..d20b46d2c 100644
--- a/apps/app/src/actions/files/upload-file.ts
+++ b/apps/app/src/actions/files/upload-file.ts
@@ -42,6 +42,23 @@ const uploadAttachmentSchema = z.object({
 export const uploadFile = async (input: z.infer<typeof uploadAttachmentSchema>) => {
   logger.info(`[uploadFile] Starting upload for ${input.fileName}`);
   try {
+    // Check if S3 client is available
+    if (!s3Client) {
+      logger.error('[uploadFile] S3 client not initialized - check environment variables');
+      return {
+        success: false,
+        error: 'File upload service is currently unavailable. Please contact support.',
+      } as const;
+    }
+
+    if (!BUCKET_NAME) {
+      logger.error('[uploadFile] S3 bucket name not configured');
+      return {
+        success: false,
+        error: 'File upload service is not properly configured.',
+      } as const;
+    }
+
     const { fileName, fileType, fileData, entityId, entityType, pathToRevalidate } =
       uploadAttachmentSchema.parse(input);
 
@@ -49,7 +66,11 @@ export const uploadFile = async (input: z.infer<typeof uploadAttachmentSchema>)
     const organizationId = session?.session.activeOrganizationId;
 
     if (!organizationId) {
-      throw new Error('Not authorized - no organization found');
+      logger.error('[uploadFile] Not authorized - no organization found');
+      return {
+        success: false,
+        error: 'Not authorized - no organization found',
+      } as const;
     }
 
     logger.info(`[uploadFile] Starting upload for ${fileName} in org ${organizationId}`);
@@ -59,7 +80,13 @@ export const uploadFile = async (input: z.infer<typeof uploadAttachmentSchema>)
     const MAX_FILE_SIZE_MB = 10;
     const MAX_FILE_SIZE_BYTES = MAX_FILE_SIZE_MB * 1024 * 1024;
     if (fileBuffer.length > MAX_FILE_SIZE_BYTES) {
-      throw new Error(`File exceeds the ${MAX_FILE_SIZE_MB}MB limit.`);
+      logger.warn(
+        `[uploadFile] File size ${fileBuffer.length} exceeds the ${MAX_FILE_SIZE_MB}MB limit.`,
+      );
+      return {
+        success: false,
+        error: `File exceeds the ${MAX_FILE_SIZE_MB}MB limit.`,
+      } as const;
     }
 
     const timestamp = Date.now();
diff --git a/apps/app/src/app/s3.ts b/apps/app/src/app/s3.ts
index 749c29401..fd6ddb3d2 100644
--- a/apps/app/src/app/s3.ts
+++ b/apps/app/src/app/s3.ts
@@ -14,10 +14,21 @@ const redact = (value?: string) => {
 };
 
 try {
+  console.log('[S3] Initializing S3 Client');
+  console.error('--- Provided Configuration ---');
+  console.error(`APP_AWS_REGION: ${APP_AWS_REGION}`);
+  console.error(`APP_AWS_ACCESS_KEY_ID: ${redact(APP_AWS_ACCESS_KEY_ID)}`);
+  console.error(`APP_AWS_SECRET_ACCESS_KEY: ${redact(APP_AWS_SECRET_ACCESS_KEY)}`);
+  console.error(`APP_AWS_BUCKET_NAME: ${BUCKET_NAME}`);
+  console.error('-----------------------------');
+
   if (!APP_AWS_ACCESS_KEY_ID || !APP_AWS_SECRET_ACCESS_KEY || !BUCKET_NAME || !APP_AWS_REGION) {
+    console.error('[S3] AWS S3 credentials or configuration missing. Check environment variables.');
     throw new Error('AWS S3 credentials or configuration missing. Check environment variables.');
   }
 
+  console.log('[S3] AWS S3 credentials or configuration found. Initializing S3 Client');
+
   s3ClientInstance = new S3Client({
     region: APP_AWS_REGION,
     credentials: {
@@ -25,22 +36,20 @@ try {
       secretAccessKey: APP_AWS_SECRET_ACCESS_KEY,
     },
   });
+
+  console.log('[S3] S3 Client initialized successfully');
 } catch (error) {
   console.error('!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!');
   console.error('!!! FAILED TO INITIALIZE S3 CLIENT !!!');
   console.error('!!! This is likely due to missing or invalid environment variables. !!!');
-  console.error('--- Provided Configuration ---');
-  console.error(`APP_AWS_REGION: ${APP_AWS_REGION}`);
-  console.error(`APP_AWS_ACCESS_KEY_ID: ${redact(APP_AWS_ACCESS_KEY_ID)}`);
-  console.error(`APP_AWS_SECRET_ACCESS_KEY: ${redact(APP_AWS_SECRET_ACCESS_KEY)}`);
-  console.error(`APP_AWS_BUCKET_NAME: ${BUCKET_NAME}`);
-  console.error('-----------------------------');
   console.error('Error:', error);
   console.error('!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!');
-  // Prevent the app from continuing without a valid S3 client
-  // In a real-world scenario, you might have a fallback or a dummy client.
-  // For now, we re-throw to make the crash explicit.
-  throw error;
+
+  // Create a dummy client that will fail gracefully at runtime instead of crashing during initialization
+  s3ClientInstance = null as any;
+  console.error(
+    '[S3] Creating dummy S3 client - file uploads will fail until credentials are fixed',
+  );
 }
 
 export const s3Client = s3ClientInstance;