diff --git a/new-ui/src/pages/full/ConfigureMfaPage/hooks/showMfaConfigErrorModal.test.tsx b/new-ui/src/pages/full/ConfigureMfaPage/hooks/showMfaConfigErrorModal.test.tsx
new file mode 100644
index 00000000..d0de2a62
--- /dev/null
+++ b/new-ui/src/pages/full/ConfigureMfaPage/hooks/showMfaConfigErrorModal.test.tsx
@@ -0,0 +1,58 @@
+import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
+import { act, fireEvent, render, screen } from '@testing-library/react';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import { ConfirmModal } from '../../../../shared/components/ConfirmModal/ConfirmModal';
+import { useConfirmModal } from '../../../../shared/hooks/confirmModal/useConfirmModal';
+import { MfaMethod } from '../../../../shared/rust-api/types';
+import { showMfaConfigErrorModal } from './showMfaConfigErrorModal';
+import { useConfigureMfaStore } from './useConfigureMfaStore';
+
+vi.hoisted(() => {
+  document.body.innerHTML = '<div id="root"></div><div id="modals-root"></div>';
+});
+vi.mock('@tauri-apps/plugin-log', () => ({ error: vi.fn() }));
+vi.mock('../../../../shared/rust-api/api', () => ({ api: {} }));
+
+const message = 'Email MFA is unavailable because SMTP is not configured.';
+
+describe('MFA configuration error modal', () => {
+  beforeEach(() => {
+    useConfirmModal.getState().reset();
+    useConfigureMfaStore.getState().reset();
+    useConfigureMfaStore.setState({
+      sessionId: 'session-1',
+      selectedMethods: [MfaMethod.Email],
+      authorized: true,
+    });
+  });
+
+  it.each(['Got it', 'close button'])(
+    'dismisses via %s without resetting the flow',
+    (action) => {
+      render(
+        <QueryClientProvider client={new QueryClient()}>
+          <ConfirmModal />
+        </QueryClientProvider>,
+      );
+      act(() => {
+        showMfaConfigErrorModal(message);
+      });
+
+      expect(screen.getByText('MFA configuration error')).toBeTruthy();
+      expect(screen.getByText(message)).toBeTruthy();
+      expect(screen.queryByText('Cancel')).toBeNull();
+      const button =
+        action === 'Got it'
+          ? screen.getByRole('button', { name: 'Got it' })
+          : screen.getByRole('button', { name: '' });
+      fireEvent.click(button);
+
+      expect(useConfirmModal.getState().visible).toBe(false);
+      expect(useConfigureMfaStore.getState()).toMatchObject({
+        sessionId: 'session-1',
+        selectedMethods: [MfaMethod.Email],
+        authorized: true,
+      });
+    },
+  );
+});
diff --git a/new-ui/src/pages/full/ConfigureMfaPage/hooks/showMfaConfigErrorModal.ts b/new-ui/src/pages/full/ConfigureMfaPage/hooks/showMfaConfigErrorModal.ts
new file mode 100644
index 00000000..27d5aabc
--- /dev/null
+++ b/new-ui/src/pages/full/ConfigureMfaPage/hooks/showMfaConfigErrorModal.ts
@@ -0,0 +1,18 @@
+import { ButtonVariant } from '../../../../shared/components/Button/types';
+import { useConfirmModal } from '../../../../shared/hooks/confirmModal/useConfirmModal';
+
+export const showMfaConfigErrorModal = (message: string): (() => void) => {
+  const cancelProps = { text: 'Got it', variant: ButtonVariant.Primary };
+  useConfirmModal.getState().open({
+    title: 'MFA configuration error',
+    content: message,
+    cancelProps,
+  });
+
+  return () => {
+    // a later caller may have replaced this modal before the step unmounts
+    if (useConfirmModal.getState().cancelProps === cancelProps) {
+      useConfirmModal.setState({ visible: false });
+    }
+  };
+};
diff --git a/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.test.ts b/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.test.ts
new file mode 100644
index 00000000..ab59e1c2
--- /dev/null
+++ b/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.test.ts
@@ -0,0 +1,146 @@
+import { act, renderHook } from '@testing-library/react';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import { ButtonVariant } from '../../../../shared/components/Button/types';
+import { useConfirmModal } from '../../../../shared/hooks/confirmModal/useConfirmModal';
+import { showEdgeComsError } from '../components/EdgeComsError/useEdgeComsErrorStore';
+import { useMfaConfigErrorHandler } from './useMfaConfigErrorHandler';
+
+vi.mock('@tauri-apps/plugin-log', () => ({ error: vi.fn() }));
+vi.mock('../components/EdgeComsError/useEdgeComsErrorStore', () => ({
+  showEdgeComsError: vi.fn(),
+}));
+
+const renderHandler = (hasCodeInput = true) => {
+  const setError = vi.fn();
+  const onSessionExpired = vi.fn();
+  const hook = renderHook(() =>
+    useMfaConfigErrorHandler({
+      context: 'Email MFA configuration failed',
+      setError,
+      onSessionExpired,
+      fallback: 'Configuration failed',
+      hasCodeInput,
+    }),
+  );
+  return { ...hook, setError, onSessionExpired };
+};
+
+const error = (type: string, message?: string) => JSON.stringify({ type, message });
+
+describe('useMfaConfigErrorHandler', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    useConfirmModal.getState().reset();
+  });
+
+  it('shows missing SMTP in an informational modal instead of the code input', () => {
+    const { result, setError, onSessionExpired } = renderHandler();
+    const retry = vi.fn();
+    act(() => result.current(error('smtp_not_configured'), retry));
+
+    expect(useConfirmModal.getState()).toMatchObject({
+      visible: true,
+      title: 'MFA configuration error',
+      content:
+        'Email MFA is unavailable because SMTP is not configured on this Defguard instance. Contact your administrator.',
+      cancelProps: { text: 'Got it', variant: ButtonVariant.Primary },
+      submitProps: null,
+    });
+    expect(setError).not.toHaveBeenCalled();
+    expect(onSessionExpired).not.toHaveBeenCalled();
+    expect(retry).not.toHaveBeenCalled();
+  });
+
+  it('shows a safe modal for a server error without exposing backend details', () => {
+    const { result, setError } = renderHandler();
+    act(() =>
+      result.current(
+        JSON.stringify({ type: 'proxy_error', status: 500, message: 'private details' }),
+      ),
+    );
+
+    expect(useConfirmModal.getState()).toMatchObject({
+      visible: true,
+      content:
+        'Could not complete MFA configuration. Please try again or contact your administrator.',
+    });
+    expect(setError).not.toHaveBeenCalled();
+  });
+
+  it.each([new Error('private details'), error('future_error', 'private details')])(
+    'uses the caller fallback in a modal for an unknown error',
+    (err) => {
+      const { result, setError } = renderHandler();
+      act(() => result.current(err));
+
+      expect(useConfirmModal.getState()).toMatchObject({
+        visible: true,
+        content: 'Configuration failed',
+      });
+      expect(setError).not.toHaveBeenCalled();
+    },
+  );
+
+  it('keeps invalid codes inline', () => {
+    const { result, setError } = renderHandler();
+    act(() => result.current(error('invalid_code', 'invalid code')));
+
+    expect(setError).toHaveBeenCalledWith('Invalid code');
+    expect(useConfirmModal.getState().visible).toBe(false);
+  });
+
+  it('preserves rejections without a code input', () => {
+    const { result, setError } = renderHandler(false);
+    act(() => result.current(error('invalid_code', 'Verification rejected')));
+
+    expect(setError).toHaveBeenCalledWith('Verification rejected');
+    expect(useConfirmModal.getState().visible).toBe(false);
+  });
+
+  it('preserves session expiration handling', () => {
+    const { result, onSessionExpired } = renderHandler();
+    act(() => result.current(error('session_expired')));
+
+    expect(onSessionExpired).toHaveBeenCalledOnce();
+    expect(useConfirmModal.getState().visible).toBe(false);
+  });
+
+  it('preserves the network error screen and retry callback', () => {
+    const { result, setError } = renderHandler();
+    const retry = vi.fn();
+    act(() => result.current(error('network_error'), retry));
+
+    expect(showEdgeComsError).toHaveBeenCalledWith(retry);
+    expect(setError).not.toHaveBeenCalled();
+    expect(useConfirmModal.getState().visible).toBe(false);
+  });
+
+  it('ignores cancellation', () => {
+    const { result, setError, onSessionExpired } = renderHandler();
+    act(() => result.current(error('cancelled')));
+
+    expect(setError).not.toHaveBeenCalled();
+    expect(onSessionExpired).not.toHaveBeenCalled();
+    expect(useConfirmModal.getState().visible).toBe(false);
+  });
+
+  it('dismisses its modal when the step unmounts', () => {
+    const { result, unmount } = renderHandler();
+    act(() => result.current(error('smtp_not_configured')));
+    unmount();
+
+    expect(useConfirmModal.getState().visible).toBe(false);
+  });
+
+  it('does not dismiss a modal opened by another caller', () => {
+    const { result, unmount } = renderHandler();
+    act(() => result.current(error('smtp_not_configured')));
+    act(() => useConfirmModal.getState().open({ title: 'Another modal' }));
+    unmount();
+
+    expect(useConfirmModal.getState()).toMatchObject({
+      visible: true,
+      title: 'Another modal',
+    });
+  });
+});
diff --git a/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.ts b/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.ts
index ad95430c..1ef5a204 100644
--- a/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.ts
+++ b/new-ui/src/pages/full/ConfigureMfaPage/hooks/useMfaConfigErrorHandler.ts
@@ -1,5 +1,5 @@
 import { error as logError } from '@tauri-apps/plugin-log';
-import { useCallback } from 'react';
+import { useCallback, useEffect, useRef } from 'react';
 import {
   isMfaConfigAlreadyAuthorized,
   isMfaConfigCancelled,
@@ -11,10 +11,12 @@ import {
   isMfaConfigProxyError,
   isMfaConfigSecurityKeyError,
   isMfaConfigSessionExpired,
+  isMfaConfigSmtpNotConfigured,
   isMfaConfigTimeout,
   mfaErrorMessage,
 } from '../../../../shared/rust-api/mfaError';
 import { showEdgeComsError } from '../components/EdgeComsError/useEdgeComsErrorStore';
+import { showMfaConfigErrorModal } from './showMfaConfigErrorModal';
 
 type Options = {
   context: string;
@@ -34,8 +36,16 @@ export const useMfaConfigErrorHandler = ({
   onSessionExpired,
   fallback,
   hasCodeInput = true,
-}: Options) =>
-  useCallback(
+}: Options) => {
+  const dismissModalRef = useRef<(() => void) | null>(null);
+
+  useEffect(() => {
+    return () => {
+      dismissModalRef.current?.();
+    };
+  }, []);
+
+  return useCallback(
     (err: unknown, retry?: () => void) => {
       // A cancel is the user's own doing, so it is neither logged nor shown.
       if (isMfaConfigCancelled(err)) {
@@ -83,11 +93,16 @@ export const useMfaConfigErrorHandler = ({
         showEdgeComsError(retry);
         return;
       }
-      if (isMfaConfigProxyError(err)) {
-        setError('Service temporarily unavailable, try again.');
-        return;
+      let message = fallback;
+      if (isMfaConfigSmtpNotConfigured(err)) {
+        message =
+          'Email MFA is unavailable because SMTP is not configured on this Defguard instance. Contact your administrator.';
+      } else if (isMfaConfigProxyError(err)) {
+        message =
+          'Could not complete MFA configuration. Please try again or contact your administrator.';
       }
-      setError(fallback);
+      dismissModalRef.current = showMfaConfigErrorModal(message);
     },
     [context, setError, onSessionExpired, fallback, hasCodeInput],
   );
+};
diff --git a/new-ui/src/shared/components/LocationCard/views/LocationCardConnectionErrorView/LocationCardConnectionErrorView.tsx b/new-ui/src/shared/components/LocationCard/views/LocationCardConnectionErrorView/LocationCardConnectionErrorView.tsx
index ed3379b4..9f34bea9 100644
--- a/new-ui/src/shared/components/LocationCard/views/LocationCardConnectionErrorView/LocationCardConnectionErrorView.tsx
+++ b/new-ui/src/shared/components/LocationCard/views/LocationCardConnectionErrorView/LocationCardConnectionErrorView.tsx
@@ -23,13 +23,12 @@ export const LocationCardConnectionErrorView = () => {
         </>
       )}
       <p className="description">{connectionError ?? DEFAULT_CONNECTION_ERROR}</p>
-      <SizedBox height={ThemeSpacing.Xl} />
+      <SizedBox height={ThemeSpacing.Xl4} />
       <Button
         text="Got it"
         variant={ButtonVariant.Secondary}
         onClick={() => setView(LocationCardViews.Default)}
       />
-      <SizedBox height={ThemeSpacing.Xl} />
     </div>
   );
 };
diff --git a/new-ui/src/shared/rust-api/mfaError.ts b/new-ui/src/shared/rust-api/mfaError.ts
index 64411d43..cdaceb0a 100644
--- a/new-ui/src/shared/rust-api/mfaError.ts
+++ b/new-ui/src/shared/rust-api/mfaError.ts
@@ -119,6 +119,9 @@ export const isMfaConfigNetworkError = (err: unknown): boolean =>
 export const isMfaConfigProxyError = (err: unknown): boolean =>
   parseMfaError(err)?.type === 'proxy_error';
 
+export const isMfaConfigSmtpNotConfigured = (err: unknown): boolean =>
+  parseMfaError(err)?.type === 'smtp_not_configured';
+
 /** Describes an OIDC polling error and its user-facing message. */
 export type OidcPollFailure = {
   kind:
diff --git a/src-tauri/core/src/mfa_config.rs b/src-tauri/core/src/mfa_config.rs
index 279cb2b2..1a7902de 100644
--- a/src-tauri/core/src/mfa_config.rs
+++ b/src-tauri/core/src/mfa_config.rs
@@ -22,7 +22,7 @@ use tokio_util::sync::CancellationToken;
 use crate::{
     database::models::{instance::MfaCapabilities, Id},
     mfa::{OIDC_POLL_INTERVAL, OIDC_POLL_TIMEOUT},
-    proxy::{post_with_headers, read_error_message},
+    proxy::post_with_headers,
 };
 
 // No leading slash: it would make `Url::join` discard a proxy base path (`https://host/defguard/`).
@@ -175,6 +175,9 @@ pub enum MfaConfigError {
     #[error("{message}")]
     NetworkError { message: String },
 
+    #[error("SMTP is not configured on this Defguard instance")]
+    SmtpNotConfigured,
+
     #[error("Proxy error (HTTP {status}): {message}")]
     ProxyError { status: u16, message: String },
 
@@ -300,7 +303,21 @@ async fn check_response(response: Response, endpoint: &str) -> Result<Response,
         return Err(MfaConfigError::Unsupported);
     }
 
-    let message = read_error_message(response).await;
+    let body = response.json::<serde_json::Value>().await.ok();
+    if body
+        .as_ref()
+        .and_then(|body| body.get("code"))
+        .and_then(serde_json::Value::as_str)
+        == Some("smtp_not_configured")
+    {
+        return Err(MfaConfigError::SmtpNotConfigured);
+    }
+    let message = body
+        .as_ref()
+        .and_then(|body| body.get("error"))
+        .and_then(serde_json::Value::as_str)
+        .map(String::from)
+        .unwrap_or_else(|| format!("HTTP {status}"));
     match status {
         // a wrong code or FIDO2 assertion, any other 401 is a session Core no longer knows
         StatusCode::UNAUTHORIZED if message == INVALID_CODE_MESSAGE => {
diff --git a/src-tauri/core/src/mfa_config/tests.rs b/src-tauri/core/src/mfa_config/tests.rs
index 4bfa08f7..78a56aad 100644
--- a/src-tauri/core/src/mfa_config/tests.rs
+++ b/src-tauri/core/src/mfa_config/tests.rs
@@ -1175,3 +1175,70 @@ async fn test_proxy_base_path_is_preserved() {
         .await
         .unwrap();
 }
+
+#[tokio::test]
+async fn test_setup_start_preserves_smtp_error_code() {
+    for (status, body) in [
+        (
+            500,
+            json!({ "error": "Internal server error", "code": "smtp_not_configured" }),
+        ),
+        (500, json!({ "code": "smtp_not_configured" })),
+        (
+            428,
+            json!({ "error": "different message", "code": "smtp_not_configured" }),
+        ),
+    ] {
+        let server = MockServer::start().await;
+        mount(
+            &server,
+            SETUP_START,
+            ResponseTemplate::new(status).set_body_json(body),
+        )
+        .await;
+        let err = mfa_config_setup_start(
+            mock_url(&server),
+            SESSION_TOKEN.into(),
+            MfaMethod::Email,
+            &ALL_CAPABILITIES,
+        )
+        .await
+        .unwrap_err();
+
+        assert!(matches!(err, MfaConfigError::SmtpNotConfigured));
+        assert_eq!(
+            serde_json::to_value(&err).unwrap()["type"],
+            "smtp_not_configured"
+        );
+    }
+}
+
+#[tokio::test]
+async fn test_setup_start_unrecognized_error_code_keeps_proxy_error() {
+    for body in [
+        json!({ "error": "Internal server error" }),
+        json!({ "error": "Internal server error", "code": null }),
+        json!({ "error": "Internal server error", "code": "future_code" }),
+        json!({ "error": "Internal server error", "code": 123 }),
+    ] {
+        let server = MockServer::start().await;
+        mount(
+            &server,
+            SETUP_START,
+            ResponseTemplate::new(500).set_body_json(body),
+        )
+        .await;
+        let err = mfa_config_setup_start(
+            mock_url(&server),
+            SESSION_TOKEN.into(),
+            MfaMethod::Email,
+            &ALL_CAPABILITIES,
+        )
+        .await
+        .unwrap_err();
+
+        assert!(
+            matches!(err, MfaConfigError::ProxyError { status: 500, message } if message == "Internal server error")
+        );
+    }
+}
diff --git a/src-tauri/proto b/src-tauri/proto
index 2a39d0a0..85351455 160000
--- a/src-tauri/proto
+++ b/src-tauri/proto
@@ -1 +1 @@
-Subproject commit 2a39d0a09ebed4fe3ea08f1b54be5259ec63bed6
+Subproject commit 85351455ecf6e986fc6940cdbc4c403e3daf3bde