diff --git a/.changeset/five-spoons-burn.md b/.changeset/five-spoons-burn.md
new file mode 100644
index 0000000000..76919e4535
--- /dev/null
+++ b/.changeset/five-spoons-burn.md
@@ -0,0 +1,23 @@
+---
+'@apps/laboratory': patch
+'@reown/appkit-core': patch
+'@apps/demo': patch
+'@apps/gallery': patch
+'@reown/appkit-adapter-ethers': patch
+'@reown/appkit-adapter-ethers5': patch
+'@reown/appkit-adapter-polkadot': patch
+'@reown/appkit-adapter-solana': patch
+'@reown/appkit-adapter-wagmi': patch
+'@reown/appkit': patch
+'@reown/appkit-utils': patch
+'@reown/appkit-cdn': patch
+'@reown/appkit-common': patch
+'@reown/appkit-experimental': patch
+'@reown/appkit-polyfills': patch
+'@reown/appkit-scaffold-ui': patch
+'@reown/appkit-siwe': patch
+'@reown/appkit-ui': patch
+'@reown/appkit-wallet': patch
+---
+
+Refactored token balance error message and ensured that token balances are only fetched again after 5 seconds if the token balance API fails.
\ No newline at end of file
diff --git a/apps/laboratory/tests/email.spec.ts b/apps/laboratory/tests/email.spec.ts
index 9518129f38..f29d47d0d7 100644
--- a/apps/laboratory/tests/email.spec.ts
+++ b/apps/laboratory/tests/email.spec.ts
@@ -100,9 +100,18 @@ emailTest('it should show names feature only for EVM networks', async ({ library
 emailTest('it should show loading on page refresh', async () => {
   await page.page.reload()
   await validator.expectConnectButtonLoading()
+  await validator.expectAccountButtonReady()
+})
+
+emailTest('it should show snackbar error if failed to fetch token balance', async () => {
+  await page.page.context().setOffline(true)
+  await page.openAccount()
+  await validator.expectSnackbar('Token Balance Unavailable')
+  await page.closeModal()
 })
 
 emailTest('it should disconnect correctly', async () => {
+  await page.page.context().setOffline(false)
   await page.goToSettings()
   await page.disconnect()
   await validator.expectDisconnected()
diff --git a/apps/laboratory/tests/shared/validators/ModalValidator.ts b/apps/laboratory/tests/shared/validators/ModalValidator.ts
index a4922f1eaa..24027d17b6 100644
--- a/apps/laboratory/tests/shared/validators/ModalValidator.ts
+++ b/apps/laboratory/tests/shared/validators/ModalValidator.ts
@@ -292,6 +292,11 @@ export class ModalValidator {
     await expect(connectButton).toContainText('Connecting...')
   }
 
+  async expectAccountButtonReady() {
+    const accountButton = this.page.getByTestId('account-button')
+    await expect(accountButton).toBeVisible({ timeout: MAX_WAIT })
+  }
+
   async expectAccountSwitched(oldAddress: string) {
     const address = this.page.getByTestId('w3m-address')
     await expect(address).not.toHaveText(oldAddress)
diff --git a/packages/core/src/controllers/AccountController.ts b/packages/core/src/controllers/AccountController.ts
index 4ace12b837..61d201bd6a 100644
--- a/packages/core/src/controllers/AccountController.ts
+++ b/packages/core/src/controllers/AccountController.ts
@@ -16,6 +16,7 @@ import type { W3mFrameTypes } from '@reown/appkit-wallet'
 import { ChainController } from './ChainController.js'
 import { proxy, ref } from 'valtio/vanilla'
 import type UniversalProvider from '@walletconnect/universal-provider'
+import { ConstantsUtil } from '../utils/ConstantsUtil.js'
 
 // -- Types --------------------------------------------- //
 export interface AccountControllerState {
@@ -40,6 +41,7 @@ export interface AccountControllerState {
   provider?: UniversalProvider | Provider | CombinedProvider
   status?: 'reconnecting' | 'connected' | 'disconnected' | 'connecting'
   siweStatus?: 'uninitialized' | 'ready' | 'loading' | 'success' | 'rejected' | 'error'
+  lastRetry?: number
 }
 
 // -- State --------------------------------------------- //
@@ -227,6 +229,13 @@ export const AccountController = {
     const caipAddress = ChainController.state.activeCaipAddress
     const address = caipAddress ? CoreHelperUtil.getPlainAddress(caipAddress) : undefined
 
+    if (
+      state.lastRetry &&
+      !CoreHelperUtil.isAllowedRetry(state.lastRetry, ConstantsUtil.FIVE_SEC_MS)
+    ) {
+      return
+    }
+
     try {
       if (address && chainId && chain) {
         const response = await BlockchainApiController.getBalance(address, chainId)
@@ -237,9 +246,12 @@ export const AccountController = {
 
         this.setTokenBalance(filteredBalances, chain)
         SwapController.setBalances(SwapApiUtil.mapBalancesToSwapTokens(response.balances))
+        state.lastRetry = undefined
       }
     } catch (error) {
-      SnackController.showError('Failed to fetch token balance')
+      state.lastRetry = Date.now()
+
+      SnackController.showError('Token Balance Unavailable')
     }
   },
 
diff --git a/packages/core/src/utils/CoreHelperUtil.ts b/packages/core/src/utils/CoreHelperUtil.ts
index 3b0d98a54b..30d80f161b 100644
--- a/packages/core/src/utils/CoreHelperUtil.ts
+++ b/packages/core/src/utils/CoreHelperUtil.ts
@@ -42,8 +42,8 @@ export const CoreHelperUtil = {
     return expiry ? expiry - Date.now() <= ConstantsUtil.TEN_SEC_MS : true
   },
 
-  isAllowedRetry(lastRetry: number) {
-    return Date.now() - lastRetry >= ConstantsUtil.ONE_SEC_MS
+  isAllowedRetry(lastRetry: number, differenceMs = ConstantsUtil.ONE_SEC_MS) {
+    return Date.now() - lastRetry >= differenceMs
   },
 
   copyToClopboard(text: string) {