diff --git a/clients/tabby-agent/src/http/tabbyApiClient.ts b/clients/tabby-agent/src/http/tabbyApiClient.ts
index df064ffbcc34..72797eaa530c 100644
--- a/clients/tabby-agent/src/http/tabbyApiClient.ts
+++ b/clients/tabby-agent/src/http/tabbyApiClient.ts
@@ -49,7 +49,7 @@ export class TabbyApiClient extends EventEmitter {
 
   private readonly completionRequestStats = new RequestStats();
   private completionResponseIssue: "highTimeoutRate" | "slowResponseTime" | undefined = undefined;
-  private rateLimited: boolean = false;
+  private rateLimitExceeded: boolean = false;
 
   private connectionErrorMessage: string | undefined = undefined;
   private serverHealth: TabbyApiComponents["schemas"]["HealthState"] | undefined = undefined;
@@ -178,11 +178,11 @@ export class TabbyApiClient extends EventEmitter {
     }
   }
 
-  private updateIsRateLimited(isRateLimited: boolean) {
-    if (this.rateLimited != isRateLimited) {
-      this.logger.debug(`updateIsRateLimited: ${isRateLimited}`);
-      this.rateLimited = isRateLimited;
-      this.emit("isRateLimitedUpdated", isRateLimited);
+  private updateIsRateLimitExceeded(isRateLimitExceeded: boolean) {
+    if (this.rateLimitExceeded != isRateLimitExceeded) {
+      this.logger.debug(`updateIsRateLimitExceeded: ${isRateLimitExceeded}`);
+      this.rateLimitExceeded = isRateLimitExceeded;
+      this.emit("isRateLimitExceededUpdated", isRateLimitExceeded);
     }
   }
 
@@ -224,8 +224,8 @@ export class TabbyApiClient extends EventEmitter {
     return !!this.completionResponseIssue;
   }
 
-  isRateLimited(): boolean {
-    return this.rateLimited;
+  isRateLimitExceeded(): boolean {
+    return this.rateLimitExceeded;
   }
 
   getServerHealth(): TabbyApiComponents["schemas"]["HealthState"] | undefined {
@@ -384,7 +384,7 @@ export class TabbyApiClient extends EventEmitter {
       }
       this.logger.trace(`Completion response data: [${requestId}]`, response.data);
       statsData.latency = performance.now() - requestStartedAt;
-      this.updateIsRateLimited(false);
+      this.updateIsRateLimitExceeded(false);
       return response.data;
     } catch (error) {
       this.updateIsFetchingCompletion(false);
@@ -397,16 +397,16 @@ export class TabbyApiClient extends EventEmitter {
       } else if (isUnauthorizedError(error)) {
         this.logger.debug(`Completion request failed due to unauthorized. [${requestId}]`);
         statsData.notAvailable = true;
-        this.updateIsRateLimited(false);
+        this.updateIsRateLimitExceeded(false);
         this.connect(); // schedule a reconnection
       } else if (isRateLimitedError(error)) {
         this.logger.debug(`Completion request failed due to rate limiting. [${requestId}]`);
         statsData.notAvailable = true;
-        this.updateIsRateLimited(true);
+        this.updateIsRateLimitExceeded(true);
       } else {
         this.logger.error(`Completion request failed. [${requestId}]`, error);
         statsData.notAvailable = true;
-        this.updateIsRateLimited(false);
+        this.updateIsRateLimitExceeded(false);
         this.connect(); // schedule a reconnection
       }
       throw error; // rethrow error
diff --git a/clients/tabby-agent/src/status.ts b/clients/tabby-agent/src/status.ts
index 27d824f8c959..1be6493bfc0e 100644
--- a/clients/tabby-agent/src/status.ts
+++ b/clients/tabby-agent/src/status.ts
@@ -70,7 +70,7 @@ export class StatusProvider extends EventEmitter implements Feature {
     this.tabbyApiClient.on("hasCompletionResponseTimeIssueUpdated", async () => {
       this.notify();
     });
-    this.tabbyApiClient.on("isRateLimitedUpdated", async () => {
+    this.tabbyApiClient.on("isRateLimitExceededUpdated", async () => {
       this.notify();
     });
 
@@ -206,12 +206,9 @@ export class StatusProvider extends EventEmitter implements Feature {
       case "ready":
         {
           const ignored = this.dataStore.data.statusIgnoredIssues ?? [];
-          if (this.tabbyApiClient.isRateLimited()) {
-            statusInfo = { status: "rateLimited" };
-          } else if (
-            this.tabbyApiClient.hasCompletionResponseTimeIssue() &&
-            !ignored.includes("completionResponseSlow")
-          ) {
+          if (this.tabbyApiClient.isRateLimitExceeded()) {
+            statusInfo = { status: "rateLimitExceeded" };
+          } else if (this.tabbyApiClient.hasCompletionResponseTimeIssue() && !ignored.includes("completionResponseSlow")) {
             statusInfo = { status: "completionResponseSlow" };
           } else if (this.tabbyApiClient.isFetchingCompletion()) {
             statusInfo = { status: "fetching" };
@@ -272,7 +269,7 @@ export class StatusProvider extends EventEmitter implements Feature {
       case "completionResponseSlow":
         statusInfo.tooltip = "Tabby: Slow Completion Response Detected";
         break;
-      case "rateLimited":
+      case "rateLimitExceeded":
         statusInfo.tooltip = "Tabby: Too Many Requests";
         break;
       default:
diff --git a/clients/vscode/src/StatusBarItem.ts b/clients/vscode/src/StatusBarItem.ts
index 751df388e942..8a0fc7c98bd0 100644
--- a/clients/vscode/src/StatusBarItem.ts
+++ b/clients/vscode/src/StatusBarItem.ts
@@ -94,7 +94,7 @@ export class StatusBarItem {
             break;
           }
           case "completionResponseSlow":
-          case "rateLimited": {
+          case "rateLimitExceeded": {
             this.setColorWarning();
             this.setIcon(iconWarning);
             this.setTooltip(statusInfo.tooltip);
diff --git a/clients/vscode/src/commands/commandPalette.ts b/clients/vscode/src/commands/commandPalette.ts
index 934e99973bba..83f2e7692869 100644
--- a/clients/vscode/src/commands/commandPalette.ts
+++ b/clients/vscode/src/commands/commandPalette.ts
@@ -209,7 +209,7 @@ export class CommandPalette {
               },
             };
           }
-          case "rateLimited": {
+          case 'rateLimitExceeded': {
             return {
               label: `${STATUS_PREFIX}Too Many Requests`,
               description: "Request limit exceeded",