diff --git a/cabal.project b/cabal.project
index cc143cc0fb..2e2f51fae9 100644
--- a/cabal.project
+++ b/cabal.project
@@ -7,7 +7,7 @@ constraints: zip +disable-bzip2 +disable-zstd
 source-repository-package
     type: git
     location: https://github.com/simplex-chat/simplexmq.git
-    tag: 6a665a083387fe7145d161957f0fcab223a48838
+    tag: 0f23b4ab5c4c8bf5b937344c865fb195040f3c33
 
 source-repository-package
     type: git
diff --git a/scripts/nix/sha256map.nix b/scripts/nix/sha256map.nix
index 9ffd79f722..7920850741 100644
--- a/scripts/nix/sha256map.nix
+++ b/scripts/nix/sha256map.nix
@@ -1,5 +1,5 @@
 {
-  "https://github.com/simplex-chat/simplexmq.git"."6a665a083387fe7145d161957f0fcab223a48838" = "06nmqbnvalwx8zc8dndzcp31asm65clx519aplzpkipjcbyz93y4";
+  "https://github.com/simplex-chat/simplexmq.git"."0f23b4ab5c4c8bf5b937344c865fb195040f3c33" = "15dmz8qkz2jpc0ak71waiqn7x4lmlhiifymk31qxfdpywh96l55f";
   "https://github.com/simplex-chat/hs-socks.git"."a30cc7a79a08d8108316094f8f2f82a0c5e1ac51" = "0yasvnr7g91k76mjkamvzab2kvlb1g5pspjyjn2fr6v83swjhj38";
   "https://github.com/kazu-yamamoto/http2.git"."78e18f52295a7f89e828539a03fbcb24931461a3" = "05q165anvv0qrcxqbvq1dlvw0l8gmsa9kl6sazk1mfhz2g0yimdk";
   "https://github.com/simplex-chat/direct-sqlcipher.git"."34309410eb2069b029b8fc1872deb1e0db123294" = "0kwkmhyfsn2lixdlgl15smgr1h5gjk7fky6abzh8rng2h5ymnffd";
diff --git a/src/Simplex/Chat.hs b/src/Simplex/Chat.hs
index 20b7c999cc..774eb6895b 100644
--- a/src/Simplex/Chat.hs
+++ b/src/Simplex/Chat.hs
@@ -2328,6 +2328,12 @@ processAgentMsgSndFile _corrId aFileId msg =
                         void $ sendFileDescription sft rfd sharedMsgId $ \msg' -> sendDirectMessage conn msg' $ GroupId groupId
                   _ -> pure ()
               _ -> pure () -- TODO error?
+        SFERR e -> do
+          throwChatError $ CEXFTPSndFile fileId (AgentSndFileId aFileId) e
+          -- update chat item status
+          -- send status to view
+          -- agentXFTPDeleteSndFile
+          pure ()
       where
         sendFileDescription :: SndFileTransfer -> ValidFileDescription 'FRecipient -> SharedMsgId -> (ChatMsgEvent 'Json -> m (SndMessage, Int64)) -> m Int64
         sendFileDescription sft rfd msgId sendMsg = do
@@ -2378,11 +2384,11 @@ processAgentMsgRcvFile _corrId aFileId msg =
                   getChatItemByFileId db user fileId
                 agentXFTPDeleteRcvFile user aFileId fileId
                 toView $ CRRcvFileComplete user ci
-        RFERR _e -> do
+        RFERR e -> do
+          throwChatError $ CEXFTPRcvFile fileId (AgentRcvFileId aFileId) e
           -- update chat item status
           -- send status to view
           agentXFTPDeleteRcvFile user aFileId fileId
-          pure ()
 
 processAgentMessageConn :: forall m. ChatMonad m => User -> ACorrId -> ConnId -> ACommand 'Agent 'AEConn -> m ()
 processAgentMessageConn user _ agentConnId END =
diff --git a/src/Simplex/Chat/Controller.hs b/src/Simplex/Chat/Controller.hs
index 3de890d79c..c8fa158280 100644
--- a/src/Simplex/Chat/Controller.hs
+++ b/src/Simplex/Chat/Controller.hs
@@ -780,6 +780,8 @@ data ChatErrorType
   | CEFileImageType {filePath :: FilePath}
   | CEFileImageSize {filePath :: FilePath}
   | CEFileNotReceived {fileId :: FileTransferId}
+  | CEXFTPRcvFile {fileId :: FileTransferId, agentRcvFileId :: AgentRcvFileId, agentError :: AgentErrorType}
+  | CEXFTPSndFile {fileId :: FileTransferId, agentSndFileId :: AgentSndFileId, agentError :: AgentErrorType}
   | CEInlineFileProhibited {fileId :: FileTransferId}
   | CEInvalidQuote
   | CEInvalidChatItemUpdate
diff --git a/src/Simplex/Chat/Mobile.hs b/src/Simplex/Chat/Mobile.hs
index a4aea94bc5..3213671360 100644
--- a/src/Simplex/Chat/Mobile.hs
+++ b/src/Simplex/Chat/Mobile.hs
@@ -134,7 +134,10 @@ mobileChatOpts dbFilePrefix dbKey =
 
 defaultMobileConfig :: ChatConfig
 defaultMobileConfig =
-  defaultChatConfig {confirmMigrations = MCYesUp}
+  defaultChatConfig
+    { confirmMigrations = MCYesUp,
+      logLevel = CLLError
+    }
 
 type CJSONString = CString
 
diff --git a/src/Simplex/Chat/View.hs b/src/Simplex/Chat/View.hs
index 717c26948f..3104f1dd1f 100644
--- a/src/Simplex/Chat/View.hs
+++ b/src/Simplex/Chat/View.hs
@@ -1284,6 +1284,8 @@ viewChatError logLevel = \case
     CEFileImageType _ -> ["image type must be jpg, send as a file using " <> highlight' "/f"]
     CEFileImageSize _ -> ["max image size: " <> sShow maxImageSize <> " bytes, resize it or send as a file using " <> highlight' "/f"]
     CEFileNotReceived fileId -> ["file " <> sShow fileId <> " not received"]
+    CEXFTPRcvFile fileId aFileId e -> ["error receiving XFTP file " <> sShow fileId <> ", agent file id " <> sShow aFileId <> ": " <> sShow e | logLevel == CLLError]
+    CEXFTPSndFile fileId aFileId e -> ["error sending XFTP file " <> sShow fileId <> ", agent file id " <> sShow aFileId <> ": " <> sShow e | logLevel == CLLError]
     CEInlineFileProhibited _ -> ["A small file sent without acceptance - you can enable receiving such files with -f option."]
     CEInvalidQuote -> ["cannot reply to this message"]
     CEInvalidChatItemUpdate -> ["cannot update this item"]
diff --git a/stack.yaml b/stack.yaml
index ff289f8040..31f74b4400 100644
--- a/stack.yaml
+++ b/stack.yaml
@@ -49,7 +49,7 @@ extra-deps:
   # - simplexmq-1.0.0@sha256:34b2004728ae396e3ae449cd090ba7410781e2b3cefc59259915f4ca5daa9ea8,8561
   # - ../simplexmq
   - github: simplex-chat/simplexmq
-    commit: 6a665a083387fe7145d161957f0fcab223a48838
+    commit: 0f23b4ab5c4c8bf5b937344c865fb195040f3c33
   - github: kazu-yamamoto/http2
     commit: 78e18f52295a7f89e828539a03fbcb24931461a3
   # - ../direct-sqlcipher
diff --git a/tests/ChatClient.hs b/tests/ChatClient.hs
index dcb8f3fc40..f888bedcce 100644
--- a/tests/ChatClient.hs
+++ b/tests/ChatClient.hs
@@ -100,7 +100,11 @@ aCfg :: AgentConfig
 aCfg = (agentConfig defaultChatConfig) {tbqSize = 16}
 
 testAgentCfg :: AgentConfig
-testAgentCfg = aCfg {reconnectInterval = (reconnectInterval aCfg) {initialInterval = 50000}}
+testAgentCfg =
+  aCfg
+    { reconnectInterval = (reconnectInterval aCfg) {initialInterval = 50000},
+      xftpNotifyErrsOnRetry = False
+    }
 
 testCfg :: ChatConfig
 testCfg =