diff --git a/client/src/App.tsx b/client/src/App.tsx
index ef3625cad..0a6b364f8 100644
--- a/client/src/App.tsx
+++ b/client/src/App.tsx
@@ -8,7 +8,7 @@ import darkTheme from "./Utils/Theme/darkTheme";
 import { CssBaseline, GlobalStyles } from "@mui/material";
 import { logger } from "./Utils/Logger"; // Import the logger
 import { Routes } from "./Routes";
-import AppLayout from "@/Components/v1/Layouts/AppLayout";
+import AppLayout from "@/Components/v2/layout/AppLayout";
 import type { RootState } from "@/Types/state";
 
 function App() {
diff --git a/client/src/Components/v1/Layouts/AppLayout/index.jsx b/client/src/Components/v1/Layouts/AppLayout/index.jsx
deleted file mode 100644
index 0dbfb1e7a..000000000
--- a/client/src/Components/v1/Layouts/AppLayout/index.jsx
+++ /dev/null
@@ -1,31 +0,0 @@
-import Box from "@mui/material/Box";
-import PropTypes from "prop-types";
-import { useTheme } from "@emotion/react";
-import BackgroundSVG from "../../../../assets/Images/background.svg";
-import { useSelector } from "react-redux";
-
-const AppLayout = ({ children }) => {
-	const theme = useTheme();
-	const ui = useSelector((state) => state.ui);
-	return (
-		<Box
-			sx={{
-				minHeight: "100vh",
-				backgroundColor: theme.palette.primaryBackground.main,
-				backgroundImage: ui?.mode === "dark" ? `url("${BackgroundSVG}")` : "none",
-				backgroundSize: "100% 100%",
-				backgroundPosition: "center",
-				backgroundRepeat: "no-repeat",
-				color: theme.palette.primary.contrastText,
-			}}
-		>
-			{children}
-		</Box>
-	);
-};
-
-AppLayout.propTypes = {
-	children: PropTypes.node,
-};
-
-export default AppLayout;
diff --git a/client/src/Components/v2/design-elements/OfflineBanner.tsx b/client/src/Components/v2/design-elements/OfflineBanner.tsx
new file mode 100644
index 000000000..fa5690c12
--- /dev/null
+++ b/client/src/Components/v2/design-elements/OfflineBanner.tsx
@@ -0,0 +1,76 @@
+import Box from "@mui/material/Box";
+import Button from "@mui/material/Button";
+import Stack from "@mui/material/Stack";
+import Typography from "@mui/material/Typography";
+import { useTheme } from "@mui/material/styles";
+import { useTranslation } from "react-i18next";
+import { WifiOff } from "lucide-react";
+
+interface OfflineBannerProps {
+	visible: boolean;
+	onRetry?: () => void;
+	isRetrying?: boolean;
+}
+
+export const OfflineBanner = ({ visible, onRetry, isRetrying }: OfflineBannerProps) => {
+	const theme = useTheme();
+	const { t } = useTranslation();
+
+	if (!visible) {
+		return null;
+	}
+
+	return (
+		<Box
+			sx={{
+				position: "fixed",
+				top: 0,
+				left: 0,
+				right: 0,
+				zIndex: theme.zIndex.snackbar,
+				backgroundColor: theme.palette.error.main,
+				color: theme.palette.error.contrastText,
+				px: theme.spacing(8),
+				py: theme.spacing(4),
+			}}
+		>
+			<Stack
+				direction="row"
+				alignItems="center"
+				justifyContent="center"
+				gap={theme.spacing(4)}
+			>
+				<WifiOff size={20} />
+				<Typography
+					variant="body2"
+					fontWeight={500}
+				>
+					{t("components.offlineBanner.serverUnreachable")}
+				</Typography>
+				{onRetry && (
+					<Button
+						size="small"
+						variant="outlined"
+						onClick={onRetry}
+						disabled={isRetrying}
+						sx={{
+							color: "inherit",
+							borderColor: "currentColor",
+							minWidth: "auto",
+							py: 0.5,
+							px: 2,
+							"&:hover": {
+								borderColor: "currentColor",
+								backgroundColor: "rgba(255, 255, 255, 0.1)",
+							},
+						}}
+					>
+						{isRetrying
+							? t("components.offlineBanner.retrying")
+							: t("components.offlineBanner.retry")}
+					</Button>
+				)}
+			</Stack>
+		</Box>
+	);
+};
diff --git a/client/src/Components/v2/design-elements/index.tsx b/client/src/Components/v2/design-elements/index.tsx
index b7b1d484e..9a4b97a44 100644
--- a/client/src/Components/v2/design-elements/index.tsx
+++ b/client/src/Components/v2/design-elements/index.tsx
@@ -19,3 +19,4 @@ export * from "./Gauge";
 export * from "./Tabs";
 export * from "./SplitBox";
 export * from "./TextLink";
+export * from "./OfflineBanner";
diff --git a/client/src/Components/v2/layout/AppLayout.tsx b/client/src/Components/v2/layout/AppLayout.tsx
new file mode 100644
index 000000000..1310863f9
--- /dev/null
+++ b/client/src/Components/v2/layout/AppLayout.tsx
@@ -0,0 +1,39 @@
+import Box from "@mui/material/Box";
+import { ThemeProvider, useTheme } from "@mui/material/styles";
+import { useSelector } from "react-redux";
+import BackgroundSVG from "@/assets/Images/background.svg";
+import type { RootState } from "@/Types/state";
+import { lightTheme, darkTheme } from "@/Utils/Theme/v2Theme";
+import { OfflineBanner } from "@/Components/v2/design-elements";
+
+interface AppLayoutProps {
+	children: React.ReactNode;
+}
+
+const AppLayout = ({ children }: AppLayoutProps) => {
+	const theme = useTheme();
+	const mode = useSelector((state: RootState) => state.ui.mode);
+	const v2theme = mode === "dark" ? darkTheme : lightTheme;
+
+	return (
+		<ThemeProvider theme={v2theme}>
+			<Box
+				sx={{
+					minHeight: "100vh",
+					// @ts-expect-error custom palette property
+					backgroundColor: theme.palette.primaryBackground.main,
+					backgroundImage: mode === "dark" ? `url("${BackgroundSVG}")` : "none",
+					backgroundSize: "100% 100%",
+					backgroundPosition: "center",
+					backgroundRepeat: "no-repeat",
+					color: theme.palette.primary.contrastText,
+				}}
+			>
+				<OfflineBanner visible={false} />
+				{children}
+			</Box>
+		</ThemeProvider>
+	);
+};
+
+export default AppLayout;
diff --git a/client/src/Components/v2/layout/RootLayout.tsx b/client/src/Components/v2/layout/RootLayout.tsx
new file mode 100644
index 000000000..e69de29bb
diff --git a/client/src/Components/v2/sidebar/index.tsx b/client/src/Components/v2/sidebar/index.tsx
new file mode 100644
index 000000000..e69de29bb
diff --git a/client/src/Utils/ApiClient.ts b/client/src/Utils/ApiClient.ts
index c39839558..4b2f4971f 100644
--- a/client/src/Utils/ApiClient.ts
+++ b/client/src/Utils/ApiClient.ts
@@ -15,6 +15,15 @@ type StoreType = {
 let storeInstance: StoreType | null = null;
 let interceptorsInitialized = false;
 
+type ServerUnreachableCallback = (unreachable: boolean) => void;
+let serverUnreachableCallback: ServerUnreachableCallback | null = null;
+
+export const setServerUnreachableCallback = (
+	callback: ServerUnreachableCallback
+): void => {
+	serverUnreachableCallback = callback;
+};
+
 export const initApiClient = (store: StoreType): void => {
 	storeInstance = store;
 
@@ -41,6 +50,12 @@ export const initApiClient = (store: StoreType): void => {
 
 	const onSuccess = (response: AxiosResponse) => response;
 	const onError = (error: AxiosError) => {
+		// Handle network errors (server unreachable)
+		if (error.code === "ERR_NETWORK") {
+			serverUnreachableCallback?.(true);
+			return Promise.reject(error);
+		}
+
 		if (error.response?.status === 401) {
 			if (window.location.pathname !== "/login") {
 				window.location.href = "/login";
diff --git a/client/src/locales/en.json b/client/src/locales/en.json
index cbd9ea7b7..096fabd9d 100644
--- a/client/src/locales/en.json
+++ b/client/src/locales/en.json
@@ -325,6 +325,12 @@
 				"week": "Showing statistics for past 7 days.",
 				"month": "Showing statistics for past 30 days."
 			}
+		},
+		"offlineBanner": {
+			"serverUnreachable": "Unable to reach server",
+			"retry": "Retry",
+			"retrying": "Retrying...",
+			"reconnected": "Connection restored"
 		}
 	},
 	"configure": "Configure",