diff --git a/apps/web/src/components/chat/Chat.test.tsx b/apps/web/src/components/chat/Chat.test.tsx
new file mode 100644
index 0000000..43205ac
--- /dev/null
+++ b/apps/web/src/components/chat/Chat.test.tsx
@@ -0,0 +1,198 @@
+/**
+ * @file Chat.test.tsx
+ * @description Tests for Chat component error handling in imperative handle methods
+ */
+
+import { createRef } from "react";
+import { render } from "@testing-library/react";
+import { describe, it, expect, beforeEach, vi, afterEach, type MockedFunction } from "vitest";
+import { Chat, type ChatRef } from "./Chat";
+import * as useChatModule from "@/hooks/useChat";
+import * as useWebSocketModule from "@/hooks/useWebSocket";
+import * as authModule from "@/lib/auth/auth-context";
+
+// Mock scrollIntoView (not available in JSDOM)
+Element.prototype.scrollIntoView = vi.fn();
+
+// Mock dependencies
+vi.mock("@/lib/auth/auth-context", () => ({
+  useAuth: vi.fn(),
+}));
+
+vi.mock("@/hooks/useChat", () => ({
+  useChat: vi.fn(),
+}));
+
+vi.mock("@/hooks/useWebSocket", () => ({
+  useWebSocket: vi.fn(),
+}));
+
+vi.mock("./MessageList", () => ({
+  MessageList: (): React.ReactElement => <div data-testid="message-list" />,
+}));
+
+vi.mock("./ChatInput", () => ({
+  ChatInput: ({
+    onSend,
+  }: {
+    onSend: (content: string) => Promise<void>;
+    disabled: boolean;
+    inputRef: React.RefObject<HTMLTextAreaElement | null>;
+  }): React.ReactElement => (
+    <button data-testid="chat-input" onClick={(): void => void onSend("test message")}>
+      Send
+    </button>
+  ),
+}));
+
+const mockUseAuth = authModule.useAuth as MockedFunction<typeof authModule.useAuth>;
+const mockUseChat = useChatModule.useChat as MockedFunction<typeof useChatModule.useChat>;
+const mockUseWebSocket = useWebSocketModule.useWebSocket as MockedFunction<
+  typeof useWebSocketModule.useWebSocket
+>;
+
+function createMockUseChatReturn(
+  overrides: Partial<useChatModule.UseChatReturn> = {}
+): useChatModule.UseChatReturn {
+  return {
+    messages: [
+      {
+        id: "welcome",
+        role: "assistant",
+        content: "Hello!",
+        createdAt: new Date().toISOString(),
+      },
+    ],
+    isLoading: false,
+    error: null,
+    conversationId: null,
+    conversationTitle: null,
+    sendMessage: vi.fn().mockResolvedValue(undefined),
+    loadConversation: vi.fn().mockResolvedValue(undefined),
+    startNewConversation: vi.fn(),
+    setMessages: vi.fn(),
+    clearError: vi.fn(),
+    ...overrides,
+  };
+}
+
+describe("Chat", () => {
+  let consoleSpy: ReturnType<typeof vi.spyOn>;
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    consoleSpy = vi.spyOn(console, "error").mockImplementation(() => undefined);
+
+    mockUseAuth.mockReturnValue({
+      user: { id: "user-1", name: "Test User", email: "test@test.com" },
+      isAuthenticated: true,
+      isLoading: false,
+      login: vi.fn(),
+      logout: vi.fn(),
+    } as unknown as ReturnType<typeof authModule.useAuth>);
+
+    mockUseWebSocket.mockReturnValue({
+      isConnected: true,
+      socket: null,
+      connectionError: null,
+    });
+  });
+
+  afterEach(() => {
+    consoleSpy.mockRestore();
+  });
+
+  describe("loadConversation via ref", () => {
+    it("should successfully load a conversation", async () => {
+      const mockLoadConversation = vi.fn().mockResolvedValue(undefined);
+      mockUseChat.mockReturnValue(
+        createMockUseChatReturn({ loadConversation: mockLoadConversation })
+      );
+
+      const ref = createRef<ChatRef>();
+      render(<Chat ref={ref} />);
+
+      await ref.current?.loadConversation("conv-123");
+
+      expect(mockLoadConversation).toHaveBeenCalledWith("conv-123");
+    });
+
+    it("should log error context and re-throw on network failure", async () => {
+      const networkError = new Error("Network request failed");
+      const mockLoadConversation = vi.fn().mockRejectedValue(networkError);
+      mockUseChat.mockReturnValue(
+        createMockUseChatReturn({ loadConversation: mockLoadConversation })
+      );
+
+      const ref = createRef<ChatRef>();
+      render(<Chat ref={ref} />);
+
+      await expect(ref.current?.loadConversation("conv-123")).rejects.toThrow(
+        "Network request failed"
+      );
+
+      expect(consoleSpy).toHaveBeenCalledWith(
+        "Failed to load conversation",
+        expect.objectContaining({
+          error: networkError,
+          conversationId: "conv-123",
+        })
+      );
+    });
+
+    it("should log error context and re-throw on API error (500)", async () => {
+      const apiError = new Error("Internal Server Error");
+      const mockLoadConversation = vi.fn().mockRejectedValue(apiError);
+      mockUseChat.mockReturnValue(
+        createMockUseChatReturn({ loadConversation: mockLoadConversation })
+      );
+
+      const ref = createRef<ChatRef>();
+      render(<Chat ref={ref} />);
+
+      await expect(ref.current?.loadConversation("conv-456")).rejects.toThrow(
+        "Internal Server Error"
+      );
+
+      expect(consoleSpy).toHaveBeenCalledWith(
+        "Failed to load conversation",
+        expect.objectContaining({
+          conversationId: "conv-456",
+        })
+      );
+    });
+
+    it("should re-throw error for caller to handle", async () => {
+      const mockLoadConversation = vi.fn().mockRejectedValue(new Error("Auth failed"));
+      mockUseChat.mockReturnValue(
+        createMockUseChatReturn({ loadConversation: mockLoadConversation })
+      );
+
+      const ref = createRef<ChatRef>();
+      render(<Chat ref={ref} />);
+
+      // Verify the error propagates to the caller
+      await expect(ref.current?.loadConversation("conv-789")).rejects.toThrow("Auth failed");
+    });
+  });
+
+  describe("sendMessage error handling", () => {
+    it("should log error when sendMessage fails", async () => {
+      const sendError = new Error("Send failed");
+      const mockSendMessage = vi.fn().mockRejectedValue(sendError);
+      mockUseChat.mockReturnValue(createMockUseChatReturn({ sendMessage: mockSendMessage }));
+
+      const ref = createRef<ChatRef>();
+      const { getByTestId } = render(<Chat ref={ref} />);
+
+      // Click the send button (which calls handleSendMessage)
+      const sendButton = getByTestId("chat-input");
+      sendButton.click();
+
+      // Wait for async handling
+      await vi.waitFor(() => {
+        expect(consoleSpy).toHaveBeenCalledWith("Error sending message:", sendError);
+      });
+    });
+  });
+});
diff --git a/apps/web/src/components/chat/Chat.tsx b/apps/web/src/components/chat/Chat.tsx
index 69f4550..c79dba7 100644
--- a/apps/web/src/components/chat/Chat.tsx
+++ b/apps/web/src/components/chat/Chat.tsx
@@ -96,8 +96,13 @@ export const Chat = forwardRef<ChatRef, ChatProps>(function Chat(
 
   // Expose methods to parent via ref
   useImperativeHandle(ref, () => ({
-    loadConversation: async (conversationId: string): Promise<void> => {
-      await loadConversation(conversationId);
+    loadConversation: async (cId: string): Promise<void> => {
+      try {
+        await loadConversation(cId);
+      } catch (err) {
+        console.error("Failed to load conversation", { error: err, conversationId: cId });
+        throw err;
+      }
     },
     startNewConversation: (projectId?: string | null): void => {
       startNewConversation(projectId);
@@ -175,7 +180,11 @@ export const Chat = forwardRef<ChatRef, ChatProps>(function Chat(
 
   const handleSendMessage = useCallback(
     async (content: string) => {
-      await sendMessage(content);
+      try {
+        await sendMessage(content);
+      } catch (err) {
+        console.error("Error sending message:", err);
+      }
     },
     [sendMessage]
   );
diff --git a/apps/web/src/hooks/useChat.test.ts b/apps/web/src/hooks/useChat.test.ts
index 012a050..7c98325 100644
--- a/apps/web/src/hooks/useChat.test.ts
+++ b/apps/web/src/hooks/useChat.test.ts
@@ -420,4 +420,175 @@ describe("useChat", () => {
       expect(result.current.error).toBeNull();
     });
   });
+
+  describe("error context logging", () => {
+    it("should log comprehensive error context when sendMessage fails", async () => {
+      const consoleSpy = vi.spyOn(console, "error").mockImplementation(() => undefined);
+      mockSendChatMessage.mockRejectedValueOnce(new Error("LLM timeout"));
+
+      const { result } = renderHook(() => useChat({ model: "llama3.2" }));
+
+      await act(async () => {
+        await result.current.sendMessage("Hello world");
+      });
+
+      expect(consoleSpy).toHaveBeenCalledWith(
+        "Failed to send chat message",
+        expect.objectContaining({
+          errorType: "LLM_ERROR",
+          messageLength: 11,
+          messagePreview: "Hello world",
+          model: "llama3.2",
+          timestamp: expect.any(String) as string,
+        })
+      );
+    });
+
+    it("should truncate long message previews to 50 characters", async () => {
+      const consoleSpy = vi.spyOn(console, "error").mockImplementation(() => undefined);
+      mockSendChatMessage.mockRejectedValueOnce(new Error("Failed"));
+
+      const longMessage = "A".repeat(100);
+      const { result } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result.current.sendMessage(longMessage);
+      });
+
+      expect(consoleSpy).toHaveBeenCalledWith(
+        "Failed to send chat message",
+        expect.objectContaining({
+          messagePreview: "A".repeat(50),
+          messageLength: 100,
+        })
+      );
+    });
+
+    it("should include message count in error context", async () => {
+      const consoleSpy = vi.spyOn(console, "error").mockImplementation(() => undefined);
+
+      // First successful message
+      mockSendChatMessage.mockResolvedValueOnce(createMockChatResponse("OK"));
+      mockCreateConversation.mockResolvedValueOnce(createMockIdea("conv-1", "Test", ""));
+
+      const { result } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result.current.sendMessage("First");
+      });
+
+      // Second message fails
+      mockSendChatMessage.mockRejectedValueOnce(new Error("Fail"));
+
+      await act(async () => {
+        await result.current.sendMessage("Second");
+      });
+
+      // messageCount should reflect messages including the new user message
+      expect(consoleSpy).toHaveBeenCalledWith(
+        "Failed to send chat message",
+        expect.objectContaining({
+          messageCount: expect.any(Number) as number,
+        })
+      );
+    });
+  });
+
+  describe("LLM vs persistence error separation", () => {
+    it("should show LLM error and add error message to chat when API fails", async () => {
+      vi.spyOn(console, "error").mockImplementation(() => undefined);
+      mockSendChatMessage.mockRejectedValueOnce(new Error("Model not available"));
+
+      const { result } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result.current.sendMessage("Hello");
+      });
+
+      expect(result.current.error).toBe("Model not available");
+      // Should have welcome + user + error message
+      expect(result.current.messages).toHaveLength(3);
+      expect(result.current.messages[2]?.content).toContain("Error: Model not available");
+    });
+
+    it("should keep assistant message visible when save fails", async () => {
+      vi.spyOn(console, "error").mockImplementation(() => undefined);
+      mockSendChatMessage.mockResolvedValueOnce(createMockChatResponse("Great answer!"));
+      mockCreateConversation.mockRejectedValueOnce(new Error("Database connection lost"));
+
+      const { result } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result.current.sendMessage("Hello");
+      });
+
+      // Assistant message should still be visible
+      expect(result.current.messages).toHaveLength(3); // welcome + user + assistant
+      expect(result.current.messages[2]?.content).toBe("Great answer!");
+
+      // Error should indicate persistence failure
+      expect(result.current.error).toContain("Message sent but failed to save");
+    });
+
+    it("should log with PERSISTENCE_ERROR type when save fails", async () => {
+      const consoleSpy = vi.spyOn(console, "error").mockImplementation(() => undefined);
+      mockSendChatMessage.mockResolvedValueOnce(createMockChatResponse("Response"));
+      mockCreateConversation.mockRejectedValueOnce(new Error("DB error"));
+
+      const { result } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result.current.sendMessage("Test");
+      });
+
+      expect(consoleSpy).toHaveBeenCalledWith(
+        "Failed to save conversation",
+        expect.objectContaining({
+          errorType: "PERSISTENCE_ERROR",
+        })
+      );
+
+      // Should NOT have logged as LLM_ERROR
+      const llmErrorCalls = consoleSpy.mock.calls.filter((call) => {
+        const ctx: unknown = call[1];
+        return (
+          typeof ctx === "object" &&
+          ctx !== null &&
+          "errorType" in ctx &&
+          (ctx as { errorType: string }).errorType === "LLM_ERROR"
+        );
+      });
+      expect(llmErrorCalls).toHaveLength(0);
+    });
+
+    it("should use different user-facing messages for LLM vs save errors", async () => {
+      vi.spyOn(console, "error").mockImplementation(() => undefined);
+
+      // Test LLM error message
+      mockSendChatMessage.mockRejectedValueOnce(new Error("Timeout"));
+      const { result: result1 } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result1.current.sendMessage("Test");
+      });
+
+      const llmError = result1.current.error;
+
+      // Test save error message
+      mockSendChatMessage.mockResolvedValueOnce(createMockChatResponse("OK"));
+      mockCreateConversation.mockRejectedValueOnce(new Error("DB down"));
+      const { result: result2 } = renderHook(() => useChat());
+
+      await act(async () => {
+        await result2.current.sendMessage("Test");
+      });
+
+      const saveError = result2.current.error;
+
+      // They should be different
+      expect(llmError).toBe("Timeout");
+      expect(saveError).toContain("Message sent but failed to save");
+      expect(llmError).not.toEqual(saveError);
+    });
+  });
 });
diff --git a/apps/web/src/hooks/useChat.ts b/apps/web/src/hooks/useChat.ts
index 5426d52..6a969f8 100644
--- a/apps/web/src/hooks/useChat.ts
+++ b/apps/web/src/hooks/useChat.ts
@@ -208,12 +208,33 @@ export function useChat(options: UseChatOptions = {}): UseChatReturn {
           ? generateTitle(content)
           : (conversationTitle ?? "Chat Conversation");
 
-        // Save conversation
-        await saveConversation(finalMessages, title);
+        // Save conversation (separate error handling from LLM errors)
+        try {
+          await saveConversation(finalMessages, title);
+        } catch (saveErr) {
+          const saveErrorMsg =
+            saveErr instanceof Error ? saveErr.message : "Unknown persistence error";
+          setError(`Message sent but failed to save: ${saveErrorMsg}`);
+          console.error("Failed to save conversation", {
+            error: saveErr,
+            errorType: "PERSISTENCE_ERROR",
+            conversationId,
+          });
+        }
       } catch (err) {
         const errorMsg = err instanceof Error ? err.message : "Failed to send message";
         setError(errorMsg);
         onError?.(err instanceof Error ? err : new Error(errorMsg));
+        console.error("Failed to send chat message", {
+          error: err,
+          errorType: "LLM_ERROR",
+          conversationId,
+          messageLength: content.length,
+          messagePreview: content.substring(0, 50),
+          model,
+          messageCount: messagesRef.current.length,
+          timestamp: new Date().toISOString(),
+        });
 
         // Add error message to chat
         const errorMessage: Message = {
diff --git a/apps/web/src/hooks/useChatOverlay.test.ts b/apps/web/src/hooks/useChatOverlay.test.ts
index dbed8e6..5b2d37f 100644
--- a/apps/web/src/hooks/useChatOverlay.test.ts
+++ b/apps/web/src/hooks/useChatOverlay.test.ts
@@ -260,7 +260,7 @@ describe("useChatOverlay", () => {
       expect(result.current.isOpen).toBe(false);
     });
 
-    it("should not change minimized state when toggling", () => {
+    it("should reset minimized state when toggling closed", () => {
       const { result } = renderHook(() => useChatOverlay());
 
       act(() => {
@@ -274,8 +274,24 @@ describe("useChatOverlay", () => {
         result.current.toggle();
       });
 
-      // Should close but keep minimized state for next open
+      // Should close and reset minimized (invariant: cannot be minimized when closed)
       expect(result.current.isOpen).toBe(false);
+      expect(result.current.isMinimized).toBe(false);
+    });
+
+    it("should preserve minimized state when toggling open", () => {
+      const { result } = renderHook(() => useChatOverlay());
+
+      // Start closed
+      expect(result.current.isOpen).toBe(false);
+
+      act(() => {
+        result.current.toggle();
+      });
+
+      // Should open and not be minimized
+      expect(result.current.isOpen).toBe(true);
+      expect(result.current.isMinimized).toBe(false);
     });
   });
 
@@ -305,4 +321,122 @@ describe("useChatOverlay", () => {
       expect(result.current.isMinimized).toBe(false);
     });
   });
+
+  describe("state invariant enforcement", () => {
+    it("should reject invalid localStorage state: closed AND minimized", () => {
+      vi.spyOn(console, "warn").mockImplementation(() => undefined);
+      // This violates the invariant: cannot be minimized when closed
+      localStorageMock.setItem(
+        "chatOverlayState",
+        JSON.stringify({ isOpen: false, isMinimized: true })
+      );
+
+      const { result } = renderHook(() => useChatOverlay());
+
+      // Should fall back to defaults since invariant is violated
+      expect(result.current.isOpen).toBe(false);
+      expect(result.current.isMinimized).toBe(false);
+    });
+
+    it("should accept valid state: open and minimized", () => {
+      localStorageMock.setItem(
+        "chatOverlayState",
+        JSON.stringify({ isOpen: true, isMinimized: true })
+      );
+
+      const { result } = renderHook(() => useChatOverlay());
+
+      expect(result.current.isOpen).toBe(true);
+      expect(result.current.isMinimized).toBe(true);
+    });
+
+    it("should reset isMinimized when closing via close()", () => {
+      const { result } = renderHook(() => useChatOverlay());
+
+      act(() => {
+        result.current.open();
+        result.current.minimize();
+      });
+
+      expect(result.current.isMinimized).toBe(true);
+
+      act(() => {
+        result.current.close();
+      });
+
+      expect(result.current.isOpen).toBe(false);
+      expect(result.current.isMinimized).toBe(false);
+    });
+  });
+
+  describe("storage error handling", () => {
+    it("should call onStorageError when localStorage save fails", () => {
+      const onStorageError = vi.fn();
+      const quotaError = new DOMException("Storage full", "QuotaExceededError");
+
+      const { result } = renderHook(() => useChatOverlay({ onStorageError }));
+
+      // Make setItem throw
+      vi.spyOn(window.localStorage, "setItem").mockImplementation(() => {
+        throw quotaError;
+      });
+      vi.spyOn(console, "warn").mockImplementation(() => undefined);
+
+      act(() => {
+        result.current.open();
+      });
+
+      expect(onStorageError).toHaveBeenCalledWith(
+        "Storage is full. Chat state may not persist across page refreshes."
+      );
+    });
+
+    it("should show appropriate message for SecurityError", () => {
+      const onStorageError = vi.fn();
+      const securityError = new DOMException("Blocked", "SecurityError");
+
+      const { result } = renderHook(() => useChatOverlay({ onStorageError }));
+
+      vi.spyOn(window.localStorage, "setItem").mockImplementation(() => {
+        throw securityError;
+      });
+      vi.spyOn(console, "warn").mockImplementation(() => undefined);
+
+      act(() => {
+        result.current.open();
+      });
+
+      expect(onStorageError).toHaveBeenCalledWith(
+        "Storage is unavailable in this browser mode. Chat state will not persist."
+      );
+    });
+
+    it("should only notify once per error type", () => {
+      const onStorageError = vi.fn();
+      const quotaError = new DOMException("Storage full", "QuotaExceededError");
+
+      // Set up spy BEFORE rendering so all saves (including initial) throw
+      vi.spyOn(window.localStorage, "setItem").mockImplementation(() => {
+        throw quotaError;
+      });
+      vi.spyOn(console, "warn").mockImplementation(() => undefined);
+
+      const { result } = renderHook(() => useChatOverlay({ onStorageError }));
+
+      // Initial render triggers a save which throws → first notification
+      // Multiple state changes that trigger more saves
+      act(() => {
+        result.current.open();
+      });
+      act(() => {
+        result.current.minimize();
+      });
+      act(() => {
+        result.current.expand();
+      });
+
+      // Should only have been called once for QuotaExceededError despite multiple failures
+      expect(onStorageError).toHaveBeenCalledTimes(1);
+    });
+  });
 });
diff --git a/apps/web/src/hooks/useChatOverlay.ts b/apps/web/src/hooks/useChatOverlay.ts
index 675f2d1..fefdf95 100644
--- a/apps/web/src/hooks/useChatOverlay.ts
+++ b/apps/web/src/hooks/useChatOverlay.ts
@@ -3,7 +3,7 @@
  * @description Hook for managing the global chat overlay state
  */
 
-import { useState, useEffect, useCallback } from "react";
+import { useState, useEffect, useCallback, useRef } from "react";
 import { safeJsonParse, isChatOverlayState } from "@/lib/utils/safe-json";
 
 interface ChatOverlayState {
@@ -11,6 +11,10 @@ interface ChatOverlayState {
   isMinimized: boolean;
 }
 
+export interface UseChatOverlayOptions {
+  onStorageError?: (message: string) => void;
+}
+
 interface UseChatOverlayResult extends ChatOverlayState {
   open: () => void;
   close: () => void;
@@ -27,6 +31,23 @@ const DEFAULT_STATE: ChatOverlayState = {
   isMinimized: false,
 };
 
+/**
+ * Get a user-friendly error message for localStorage failures
+ */
+function getStorageErrorMessage(error: unknown): string {
+  if (error instanceof DOMException) {
+    switch (error.name) {
+      case "QuotaExceededError":
+        return "Storage is full. Chat state may not persist across page refreshes.";
+      case "SecurityError":
+        return "Storage is unavailable in this browser mode. Chat state will not persist.";
+      case "InvalidStateError":
+        return "Storage is disabled. Chat state will not persist across page refreshes.";
+    }
+  }
+  return "Unable to save chat state. It may not persist across page refreshes.";
+}
+
 /**
  * Load state from localStorage with runtime type validation
  */
@@ -48,9 +69,13 @@ function loadState(): ChatOverlayState {
 }
 
 /**
- * Save state to localStorage
+ * Save state to localStorage, notifying on error (once per error type)
  */
-function saveState(state: ChatOverlayState): void {
+function saveState(
+  state: ChatOverlayState,
+  onStorageError: ((message: string) => void) | undefined,
+  notifiedErrors: Set<string>
+): void {
   if (typeof window === "undefined") {
     return;
   }
@@ -58,20 +83,31 @@ function saveState(state: ChatOverlayState): void {
   try {
     window.localStorage.setItem(STORAGE_KEY, JSON.stringify(state));
   } catch (error) {
+    const errorName = error instanceof DOMException ? error.name : "UnknownError";
     console.warn("Failed to save chat overlay state to localStorage:", error);
+
+    if (onStorageError && !notifiedErrors.has(errorName)) {
+      notifiedErrors.add(errorName);
+      onStorageError(getStorageErrorMessage(error));
+    }
   }
 }
 
 /**
  * Custom hook for managing chat overlay state
- * Persists state to localStorage for consistency across page refreshes
+ * Persists state to localStorage for consistency across page refreshes.
+ * Enforces invariant: cannot be minimized when closed.
  */
-export function useChatOverlay(): UseChatOverlayResult {
+export function useChatOverlay(options: UseChatOverlayOptions = {}): UseChatOverlayResult {
+  const { onStorageError } = options;
   const [state, setState] = useState<ChatOverlayState>(loadState);
+  const notifiedErrorsRef = useRef<Set<string>>(new Set());
+  const onStorageErrorRef = useRef(onStorageError);
+  onStorageErrorRef.current = onStorageError;
 
   // Persist state changes to localStorage
   useEffect(() => {
-    saveState(state);
+    saveState(state, onStorageErrorRef.current, notifiedErrorsRef.current);
   }, [state]);
 
   const open = useCallback(() => {
@@ -79,7 +115,7 @@ export function useChatOverlay(): UseChatOverlayResult {
   }, []);
 
   const close = useCallback(() => {
-    setState((prev) => ({ ...prev, isOpen: false }));
+    setState({ isOpen: false, isMinimized: false });
   }, []);
 
   const minimize = useCallback(() => {
@@ -91,7 +127,10 @@ export function useChatOverlay(): UseChatOverlayResult {
   }, []);
 
   const toggle = useCallback(() => {
-    setState((prev) => ({ ...prev, isOpen: !prev.isOpen }));
+    setState((prev) => {
+      const newIsOpen = !prev.isOpen;
+      return { isOpen: newIsOpen, isMinimized: newIsOpen ? prev.isMinimized : false };
+    });
   }, []);
 
   const toggleMinimize = useCallback(() => {
diff --git a/apps/web/src/lib/utils/safe-json.test.ts b/apps/web/src/lib/utils/safe-json.test.ts
index 5ae198a..6257661 100644
--- a/apps/web/src/lib/utils/safe-json.test.ts
+++ b/apps/web/src/lib/utils/safe-json.test.ts
@@ -170,7 +170,12 @@ describe("isMessageArray", () => {
 describe("isChatOverlayState", () => {
   it("should return true for a valid ChatOverlayState", () => {
     expect(isChatOverlayState({ isOpen: true, isMinimized: false })).toBe(true);
-    expect(isChatOverlayState({ isOpen: false, isMinimized: true })).toBe(true);
+    expect(isChatOverlayState({ isOpen: true, isMinimized: true })).toBe(true);
+    expect(isChatOverlayState({ isOpen: false, isMinimized: false })).toBe(true);
+  });
+
+  it("should reject invalid state: closed AND minimized (invariant violation)", () => {
+    expect(isChatOverlayState({ isOpen: false, isMinimized: true })).toBe(false);
   });
 
   it("should return false for non-object values", () => {
diff --git a/apps/web/src/lib/utils/safe-json.ts b/apps/web/src/lib/utils/safe-json.ts
index fe5816f..9f27afd 100644
--- a/apps/web/src/lib/utils/safe-json.ts
+++ b/apps/web/src/lib/utils/safe-json.ts
@@ -76,12 +76,16 @@ export function isMessageArray(value: unknown): value is {
 /**
  * Type guard: validates ChatOverlayState shape
  * Expects { isOpen: boolean, isMinimized: boolean }
+ * Enforces invariant: cannot be minimized when closed
  */
 export function isChatOverlayState(
   value: unknown
 ): value is { isOpen: boolean; isMinimized: boolean } {
   if (!isRecord(value)) return false;
-  return typeof value.isOpen === "boolean" && typeof value.isMinimized === "boolean";
+  if (typeof value.isOpen !== "boolean" || typeof value.isMinimized !== "boolean") return false;
+  // Invariant: cannot be minimized when closed
+  if (!value.isOpen && value.isMinimized) return false;
+  return true;
 }
 
 /**