diff --git a/frontend/components/MarketplaceListings.test.tsx b/frontend/components/MarketplaceListings.test.tsx
index f0f829d..b8130a2 100644
--- a/frontend/components/MarketplaceListings.test.tsx
+++ b/frontend/components/MarketplaceListings.test.tsx
@@ -149,4 +149,25 @@ describe("MarketplaceListings Filter Panel (Issue #328)", () => {
       expect(global.fetch).toHaveBeenLastCalledWith(expect.not.stringContaining("assetType="));
     });
   });
+
+  // Issue #282 — an empty response and a network error must not look the same.
+  it("shows an error banner (not the empty state) when a filtered fetch fails", async () => {
+    global.fetch = jest.fn().mockRejectedValue(new Error("network down"));
+
+    render(<MarketplaceListings initialTrades={[]} />);
+
+    fireEvent.change(screen.getByLabelText("Carrier"), { target: { value: "MTN" } });
+
+    const alert = await screen.findByRole("alert");
+    expect(alert).toHaveTextContent(/could not load listings/i);
+    // The "no listings" empty state must NOT be shown while in an error state.
+    expect(screen.queryByText("No active listings right now")).not.toBeInTheDocument();
+  });
+
+  it("shows the empty state only when there are no trades and no error", () => {
+    render(<MarketplaceListings initialTrades={[]} />);
+
+    expect(screen.getByText("No active listings right now")).toBeInTheDocument();
+    expect(screen.queryByRole("alert")).not.toBeInTheDocument();
+  });
 });
diff --git a/frontend/components/MarketplaceListings.tsx b/frontend/components/MarketplaceListings.tsx
index d987cc9..7034b51 100644
--- a/frontend/components/MarketplaceListings.tsx
+++ b/frontend/components/MarketplaceListings.tsx
@@ -156,6 +156,7 @@ export default function MarketplaceListings({
   const [trades, setTrades] = useState<TradeOffer[]>(initialTrades);
   const [pagination, setPagination] = useState(initialPagination);
   const [loading, setLoading] = useState(false);
+  const [error, setError] = useState<string | null>(null);
 
   const apiUrl = process.env["NEXT_PUBLIC_API_URL"] ?? "http://localhost:3001";
 
@@ -181,6 +182,7 @@ export default function MarketplaceListings({
   const fetchListings = useCallback(
     async (filters: { assetType?: string; carrier?: string; minAmount?: string; maxAmount?: string }) => {
       setLoading(true);
+      setError(null);
       try {
         const params = new URLSearchParams();
         params.set("page", "1");
@@ -191,13 +193,15 @@ export default function MarketplaceListings({
         if (filters.maxAmount) params.set("maxAmount", filters.maxAmount);
 
         const res = await fetch(`${apiUrl}/api/v1/trades?${params.toString()}`);
-        if (res.ok) {
-          const data = (await res.json()) as TradesResponse;
-          setTrades(data.data ?? []);
-          setPagination(data.pagination ?? { page: 1, limit: 20, total: 0, totalPages: 0 });
+        if (!res.ok) {
+          throw new Error(`Request failed with status ${res.status}`);
         }
+        const data = (await res.json()) as TradesResponse;
+        setTrades(data.data ?? []);
+        setPagination(data.pagination ?? { page: 1, limit: 20, total: 0, totalPages: 0 });
       } catch (err) {
         console.error("Failed to fetch filtered trades:", err);
+        setError("Could not load listings. Please try again.");
       } finally {
         setLoading(false);
       }
@@ -249,6 +253,10 @@ export default function MarketplaceListings({
 
   const hasActiveFilters = Boolean(assetType || carrier || minAmount || maxAmount);
 
+  // "No results" is only shown for a *successful* empty response — never while
+  // loading, and never when the fetch failed (that renders the error banner).
+  const isEmpty = !loading && error === null && trades.length === 0;
+
   return (
     <div>
       {/* Filter Panel */}
diff --git a/frontend/hooks/__tests__/useTradeList.test.ts b/frontend/hooks/__tests__/useTradeList.test.ts
index e193fac..327d843 100644
--- a/frontend/hooks/__tests__/useTradeList.test.ts
+++ b/frontend/hooks/__tests__/useTradeList.test.ts
@@ -145,4 +145,53 @@ describe("useTradeList Hook", () => {
       expect.stringContaining("maxAmount=5000")
     );
   });
+
+  it("exposes isEmpty=true only on a successful empty response", async () => {
+    mockedApiFetch.mockResolvedValueOnce({ data: [], total: 0 });
+
+    const { result } = renderHook(() => useTradeList({ page: 1, limit: 10 }));
+
+    await waitFor(() => expect(result.current.isLoading).toBe(false));
+
+    expect(result.current.error).toBeNull();
+    expect(result.current.isEmpty).toBe(true);
+  });
+
+  it("keeps isEmpty=false (and sets error) when the fetch fails", async () => {
+    const apiError = new ApiError("marketplace unavailable", 500);
+    mockedApiFetch.mockRejectedValueOnce(apiError);
+
+    const { result } = renderHook(() => useTradeList({ page: 1, limit: 10 }));
+
+    await waitFor(() => expect(result.current.isLoading).toBe(false));
+
+    expect(result.current.error).toBe(apiError);
+    expect(result.current.isEmpty).toBe(false);
+  });
+
+  it("keeps isEmpty=false on a successful non-empty response", async () => {
+    mockedApiFetch.mockResolvedValueOnce({
+      data: [
+        {
+          id: "trade-1",
+          sellerId: "user-1",
+          assetCode: "MTN_AIRTIME",
+          amount: 5000,
+          price: 5000,
+          currency: "NGN",
+          status: TradeStatus.ACTIVE,
+          createdAt: new Date(),
+          updatedAt: new Date(),
+        },
+      ],
+      total: 1,
+    });
+
+    const { result } = renderHook(() => useTradeList({ page: 1, limit: 10 }));
+
+    await waitFor(() => expect(result.current.isLoading).toBe(false));
+
+    expect(result.current.error).toBeNull();
+    expect(result.current.isEmpty).toBe(false);
+  });
 });
diff --git a/frontend/hooks/useTradeList.ts b/frontend/hooks/useTradeList.ts
index dbca0ab..8a62552 100644
--- a/frontend/hooks/useTradeList.ts
+++ b/frontend/hooks/useTradeList.ts
@@ -18,6 +18,12 @@ export interface UseTradeListReturn {
   trades: TradeOffer[];
   total: number;
   isLoading: boolean;
+  /**
+   * `true` only when the latest load **succeeded** and returned zero trades.
+   * Never `true` while loading or when `error` is set — so a caller can tell
+   * "no listings available" apart from "failed to load listings".
+   */
+  isEmpty: boolean;
   error: ApiError | Error | null;
   refetch: () => Promise<void>;
 }
@@ -47,6 +53,7 @@ export function useTradeList(options: UseTradeListOptions): UseTradeListReturn {
   const [trades, setTrades] = useState<TradeOffer[]>([]);
   const [total, setTotal] = useState<number>(0);
   const [isLoading, setIsLoading] = useState<boolean>(true);
+  const [isEmpty, setIsEmpty] = useState<boolean>(false);
   const [error, setError] = useState<ApiError | Error | null>(null);
 
   const queryParams = new URLSearchParams();
@@ -69,6 +76,7 @@ export function useTradeList(options: UseTradeListOptions): UseTradeListReturn {
         setTotal(cached.data.total);
         setIsLoading(false);
         setError(null);
+        setIsEmpty(cached.data.trades.length === 0);
         return;
       }
     }
@@ -77,6 +85,7 @@ export function useTradeList(options: UseTradeListOptions): UseTradeListReturn {
       setIsLoading(true);
     }
     setError(null);
+    setIsEmpty(false);
 
     try {
       let promise = inFlightPromises.get(cacheKey);
@@ -98,12 +107,14 @@ export function useTradeList(options: UseTradeListOptions): UseTradeListReturn {
         setTrades(result.trades);
         setTotal(result.total);
         setIsLoading(false);
+        setIsEmpty(result.trades.length === 0);
       }
     } catch (err) {
       inFlightPromises.delete(cacheKey);
       if (isMounted.current) {
         const errorObj = err instanceof ApiError ? err : (err as Error);
         setError(errorObj);
+        setIsEmpty(false);
         setIsLoading(false);
       }
     }
@@ -127,6 +138,7 @@ export function useTradeList(options: UseTradeListOptions): UseTradeListReturn {
     trades,
     total,
     isLoading,
+    isEmpty,
     error,
     refetch: () => fetchData(true),
   };