diff --git a/openhands/controller/agent_controller.py b/openhands/controller/agent_controller.py
index 78b27c89ff7f..04f5f5722334 100644
--- a/openhands/controller/agent_controller.py
+++ b/openhands/controller/agent_controller.py
@@ -15,6 +15,7 @@
     LLMNoActionError,
     LLMResponseError,
 )
+from openhands.core.logger import LOG_ALL_EVENTS
 from openhands.core.logger import openhands_logger as logger
 from openhands.core.schema import AgentState
 from openhands.events import EventSource, EventStream, EventStreamSubscriber
@@ -506,8 +507,7 @@ async def _step(self) -> None:
 
         await self.update_state_after_step()
 
-        # Use info level if LOG_ALL_EVENTS is set
-        log_level = 'info' if os.getenv('LOG_ALL_EVENTS') in ('true', '1') else 'debug'
+        log_level = 'info' if LOG_ALL_EVENTS else 'debug'
         self.log(log_level, str(action), extra={'msg_type': 'ACTION'})
 
     async def _delegate_step(self):
diff --git a/openhands/core/logger.py b/openhands/core/logger.py
index 20a4a4d6581a..c3826130201a 100644
--- a/openhands/core/logger.py
+++ b/openhands/core/logger.py
@@ -16,6 +16,8 @@
 LOG_TO_FILE = os.getenv('LOG_TO_FILE', 'False').lower() in ['true', '1', 'yes']
 DISABLE_COLOR_PRINTING = False
 
+LOG_ALL_EVENTS = os.getenv('LOG_ALL_EVENTS', 'False').lower() in ['true', '1', 'yes']
+
 ColorType = Literal[
     'red',
     'green',
@@ -65,8 +67,11 @@ def format(self, record):
                 return f'{time_str} - {name_str}:{level_str}: {record.filename}:{record.lineno}\n{msg_type_color}\n{msg}'
             return f'{time_str} - {msg_type_color}\n{msg}'
         elif msg_type == 'STEP':
-            msg = '\n\n==============\n' + record.msg + '\n'
-            return f'{msg}'
+            if LOG_ALL_EVENTS:
+                msg = '\n\n==============\n' + record.msg + '\n'
+                return f'{msg}'
+            else:
+                return record.msg
         return super().format(record)
 
 
diff --git a/openhands/runtime/base.py b/openhands/runtime/base.py
index b12c501c19f3..74891a7d52b0 100644
--- a/openhands/runtime/base.py
+++ b/openhands/runtime/base.py
@@ -47,11 +47,19 @@
 }
 
 
-class RuntimeNotReadyError(Exception):
+class RuntimeUnavailableError(Exception):
     pass
 
 
-class RuntimeDisconnectedError(Exception):
+class RuntimeNotReadyError(RuntimeUnavailableError):
+    pass
+
+
+class RuntimeDisconnectedError(RuntimeUnavailableError):
+    pass
+
+
+class RuntimeNotFoundError(RuntimeUnavailableError):
     pass
 
 
diff --git a/openhands/runtime/impl/eventstream/eventstream_runtime.py b/openhands/runtime/impl/eventstream/eventstream_runtime.py
index 77cbaf338281..a59683282980 100644
--- a/openhands/runtime/impl/eventstream/eventstream_runtime.py
+++ b/openhands/runtime/impl/eventstream/eventstream_runtime.py
@@ -34,7 +34,11 @@
 )
 from openhands.events.serialization import event_to_dict, observation_from_dict
 from openhands.events.serialization.action import ACTION_TYPE_TO_CLASS
-from openhands.runtime.base import Runtime
+from openhands.runtime.base import (
+    Runtime,
+    RuntimeDisconnectedError,
+    RuntimeNotFoundError,
+)
 from openhands.runtime.builder import DockerRuntimeBuilder
 from openhands.runtime.impl.eventstream.containers import remove_all_containers
 from openhands.runtime.plugins import PluginRequirement
@@ -422,10 +426,22 @@ def _refresh_logs(self):
 
     @tenacity.retry(
         stop=tenacity.stop_after_delay(120) | stop_if_should_exit(),
-        reraise=(ConnectionRefusedError,),
+        retry=tenacity.retry_if_exception_type(
+            (ConnectionError, requests.exceptions.ConnectionError)
+        ),
+        reraise=True,
         wait=tenacity.wait_fixed(2),
     )
     def _wait_until_alive(self):
+        try:
+            container = self.docker_client.containers.get(self.container_name)
+            if container.status == 'exited':
+                raise RuntimeDisconnectedError(
+                    f'Container {self.container_name} has exited.'
+                )
+        except docker.errors.NotFound:
+            raise RuntimeNotFoundError(f'Container {self.container_name} not found.')
+
         self._refresh_logs()
         if not self.log_buffer:
             raise RuntimeError('Runtime client is not ready.')
diff --git a/openhands/runtime/impl/remote/remote_runtime.py b/openhands/runtime/impl/remote/remote_runtime.py
index 8c9843de98b4..f0ef0cbec19a 100644
--- a/openhands/runtime/impl/remote/remote_runtime.py
+++ b/openhands/runtime/impl/remote/remote_runtime.py
@@ -31,6 +31,7 @@
 from openhands.runtime.base import (
     Runtime,
     RuntimeDisconnectedError,
+    RuntimeNotFoundError,
     RuntimeNotReadyError,
 )
 from openhands.runtime.builder.remote import RemoteRuntimeBuilder
@@ -109,7 +110,9 @@ def _start_or_attach_to_runtime(self):
         if existing_runtime:
             self.log('debug', f'Using existing runtime with ID: {self.runtime_id}')
         elif self.attach_to_existing:
-            raise RuntimeError('Could not find existing runtime to attach to.')
+            raise RuntimeNotFoundError(
+                f'Could not find existing runtime for SID: {self.sid}'
+            )
         else:
             self.send_status_message('STATUS$STARTING_CONTAINER')
             if self.config.sandbox.runtime_container_image is None:
diff --git a/openhands/server/listen.py b/openhands/server/listen.py
index d18bea277404..4ab814d43e16 100644
--- a/openhands/server/listen.py
+++ b/openhands/server/listen.py
@@ -34,6 +34,7 @@
     Request,
     UploadFile,
     WebSocket,
+    WebSocketDisconnect,
     status,
 )
 from fastapi.responses import FileResponse, JSONResponse
@@ -238,7 +239,8 @@ async def attach_session(request: Request, call_next):
     request.state.conversation = await session_manager.attach_to_conversation(
         request.state.sid
     )
-    if request.state.conversation is None:
+    if not request.state.conversation:
+        logger.error(f'Runtime not found for session: {request.state.sid}')
         return JSONResponse(
             status_code=status.HTTP_404_NOT_FOUND,
             content={'error': 'Session not found'},
@@ -344,7 +346,13 @@ async def websocket_endpoint(websocket: WebSocket):
 
     latest_event_id = -1
     if websocket.query_params.get('latest_event_id'):
-        latest_event_id = int(websocket.query_params.get('latest_event_id'))
+        try:
+            latest_event_id = int(websocket.query_params.get('latest_event_id'))
+        except ValueError:
+            logger.warning(
+                f'Invalid latest_event_id: {websocket.query_params.get("latest_event_id")}'
+            )
+            pass
 
     async_stream = AsyncEventStreamWrapper(
         session.agent_session.event_stream, latest_event_id + 1
@@ -361,7 +369,14 @@ async def websocket_endpoint(websocket: WebSocket):
             ),
         ):
             continue
-        await websocket.send_json(event_to_dict(event))
+        try:
+            await websocket.send_json(event_to_dict(event))
+        except WebSocketDisconnect:
+            logger.warning(
+                'Websocket disconnected while sending event history, before loop started'
+            )
+            session.close()
+            return
 
     await session.loop_recv()
 
diff --git a/openhands/server/session/agent_session.py b/openhands/server/session/agent_session.py
index 8f9d20a5dc6e..76f6e2aa8bcb 100644
--- a/openhands/server/session/agent_session.py
+++ b/openhands/server/session/agent_session.py
@@ -11,7 +11,7 @@
 from openhands.events.event import EventSource
 from openhands.events.stream import EventStream
 from openhands.runtime import get_runtime_cls
-from openhands.runtime.base import Runtime
+from openhands.runtime.base import Runtime, RuntimeUnavailableError
 from openhands.security import SecurityAnalyzer, options
 from openhands.storage.files import FileStore
 
@@ -194,13 +194,13 @@ async def _create_runtime(
 
         try:
             await self.runtime.connect()
-        except Exception as e:
+        except RuntimeUnavailableError as e:
             logger.error(f'Runtime initialization failed: {e}', exc_info=True)
             if self._status_callback:
                 self._status_callback(
                     'error', 'STATUS$ERROR_RUNTIME_DISCONNECTED', str(e)
                 )
-            raise
+            return
 
         if self.runtime is not None:
             logger.debug(
diff --git a/openhands/server/session/manager.py b/openhands/server/session/manager.py
index f746b3676e29..790b7c4bd1eb 100644
--- a/openhands/server/session/manager.py
+++ b/openhands/server/session/manager.py
@@ -6,6 +6,7 @@
 from openhands.core.config import AppConfig
 from openhands.core.logger import openhands_logger as logger
 from openhands.events.stream import session_exists
+from openhands.runtime.base import RuntimeUnavailableError
 from openhands.server.session.conversation import Conversation
 from openhands.server.session.session import Session
 from openhands.storage.files import FileStore
@@ -26,7 +27,11 @@ async def attach_to_conversation(self, sid: str) -> Conversation | None:
         if not await session_exists(sid, self.file_store):
             return None
         c = Conversation(sid, file_store=self.file_store, config=self.config)
-        await c.connect()
+        try:
+            await c.connect()
+        except RuntimeUnavailableError as e:
+            logger.error(f'Error connecting to conversation {c.sid}: {e}')
+            return None
         end_time = time.time()
         logger.info(
             f'Conversation {c.sid} connected in {end_time - start_time} seconds'