diff --git a/packages/cli/src/ui/App.tsx b/packages/cli/src/ui/App.tsx
index cd8295f7..2366a235 100644
--- a/packages/cli/src/ui/App.tsx
+++ b/packages/cli/src/ui/App.tsx
@@ -18,10 +18,7 @@ import { InputPrompt } from './components/InputPrompt.js';
 import { Footer } from './components/Footer.js';
 import { ThemeDialog } from './components/ThemeDialog.js';
 import { ITermDetectionWarning } from './utils/itermDetection.js';
-import {
-  useStartupWarnings,
-  useInitializationErrorEffect,
-} from './hooks/useAppEffects.js';
+import { useStartupWarnings } from './hooks/useAppEffects.js';
 import { shortenPath, type Config } from '@gemini-code/server';
 import { Colors } from './colors.js';
 import { Tips } from './components/Tips.js';
@@ -47,7 +44,6 @@ export const App = ({ config, cliVersion }: AppProps) => {
   } = useThemeCommand();
 
   useStartupWarnings(setStartupWarnings);
-  useInitializationErrorEffect(initError, history, setHistory);
 
   const handleFinalSubmit = useCallback(
     (submittedValue: string) => {
@@ -105,6 +101,37 @@ export const App = ({ config, cliVersion }: AppProps) => {
         </Box>
       )}
 
+      {isThemeDialogOpen ? (
+        <ThemeDialog
+          onSelect={handleThemeSelect}
+          onHighlight={handleThemeHighlight}
+        />
+      ) : (
+        <>
+          <Box flexDirection="column">
+            <HistoryDisplay history={history} onSubmit={submitQuery} />
+            <LoadingIndicator
+              isLoading={streamingState === StreamingState.Responding}
+              currentLoadingPhrase={currentLoadingPhrase}
+              elapsedTime={elapsedTime}
+            />
+          </Box>
+
+          {isInputActive && (
+            <>
+              <Box>
+                <Text color={Colors.SubtleComment}>cwd: </Text>
+                <Text color={Colors.LightBlue}>
+                  {shortenPath(config.getTargetDir(), /*maxLength*/ 70)}
+                </Text>
+              </Box>
+
+              <InputPrompt onSubmit={handleHistorySubmit} />
+            </>
+          )}
+        </>
+      )}
+
       {initError && streamingState !== StreamingState.Responding && (
         <Box
           borderStyle="round"
@@ -137,37 +164,6 @@ export const App = ({ config, cliVersion }: AppProps) => {
         </Box>
       )}
 
-      {isThemeDialogOpen ? (
-        <ThemeDialog
-          onSelect={handleThemeSelect}
-          onHighlight={handleThemeHighlight}
-        />
-      ) : (
-        <>
-          <Box flexDirection="column">
-            <HistoryDisplay history={history} onSubmit={submitQuery} />
-            <LoadingIndicator
-              isLoading={streamingState === StreamingState.Responding}
-              currentLoadingPhrase={currentLoadingPhrase}
-              elapsedTime={elapsedTime}
-            />
-          </Box>
-
-          {isInputActive && (
-            <>
-              <Box>
-                <Text color={Colors.SubtleComment}>cwd: </Text>
-                <Text color={Colors.LightBlue}>
-                  {shortenPath(config.getTargetDir(), /*maxLength*/ 70)}
-                </Text>
-              </Box>
-
-              <InputPrompt onSubmit={handleHistorySubmit} />
-            </>
-          )}
-        </>
-      )}
-
       <Footer
         config={config}
         queryLength={query.length}
diff --git a/packages/cli/src/ui/hooks/useAppEffects.ts b/packages/cli/src/ui/hooks/useAppEffects.ts
index 4576ce33..da1ab203 100644
--- a/packages/cli/src/ui/hooks/useAppEffects.ts
+++ b/packages/cli/src/ui/hooks/useAppEffects.ts
@@ -8,7 +8,6 @@ import { useEffect } from 'react';
 import fs from 'fs';
 import path from 'path';
 import os from 'os';
-import { HistoryItem } from '../types.js';
 import { getErrorMessage } from '@gemini-code/server';
 
 const warningsFilePath = path.join(os.tmpdir(), 'gemini-code-cli-warnings.txt');
@@ -41,28 +40,3 @@ export function useStartupWarnings(
     }
   }, [setStartupWarnings]); // Include setStartupWarnings in dependency array
 }
-
-// Effect to handle initialization errors
-export function useInitializationErrorEffect(
-  initError: string | null,
-  history: HistoryItem[],
-  setHistory: React.Dispatch<React.SetStateAction<HistoryItem[]>>,
-) {
-  useEffect(() => {
-    if (
-      initError &&
-      !history.some(
-        (item) => item.type === 'error' && item.text?.includes(initError),
-      )
-    ) {
-      setHistory((prev) => [
-        ...prev,
-        {
-          id: Date.now(),
-          type: 'error',
-          text: `Initialization Error: ${initError}. Please check API key and configuration.`,
-        } as HistoryItem,
-      ]);
-    }
-  }, [initError, history, setHistory]); // Include setHistory in dependency array
-}