diff --git a/packages/ai-proxy/src/mcp-client.ts b/packages/ai-proxy/src/mcp-client.ts
index b30212a8f..922af7b61 100644
--- a/packages/ai-proxy/src/mcp-client.ts
+++ b/packages/ai-proxy/src/mcp-client.ts
@@ -1,10 +1,28 @@
-import type { Logger } from '@forestadmin/datasource-toolkit';
+import type { Logger, LoggerLevel } from '@forestadmin/datasource-toolkit';
 
 import { MultiServerMCPClient } from '@langchain/mcp-adapters';
 
 import { McpConnectionError } from './types/errors';
 import McpServerRemoteTool from './types/mcp-server-remote-tool';
 
+const UNREACHABLE_ERROR_CODES: string[] = [
+  'ECONNREFUSED',
+  'ENOTFOUND',
+  'ETIMEDOUT',
+  'ENETUNREACH',
+  'EHOSTUNREACH',
+];
+
+function isServerUnreachable(error: Error): boolean {
+  const { code } = error as NodeJS.ErrnoException;
+
+  return !!code && UNREACHABLE_ERROR_CODES.includes(code);
+}
+
+function getLogLevelForError(error: Error): LoggerLevel {
+  return isServerUnreachable(error) ? 'Warn' : 'Error';
+}
+
 export type McpConfiguration = {
   configs: MultiServerMCPClient['config']['mcpServers'];
 } & Omit<MultiServerMCPClient['config'], 'mcpServers'>;
@@ -39,7 +57,8 @@ export default class McpClient {
           );
           this.tools.push(...extendedTools);
         } catch (error) {
-          this.logger?.('Error', `Error loading tools for ${name}`, error as Error);
+          const logLevel = getLogLevelForError(error as Error);
+          this.logger?.(logLevel, `Error loading tools for ${name}`, error as Error);
           errors.push({ server: name, error: error as Error });
         }
       }),
@@ -48,8 +67,10 @@ export default class McpClient {
     // Surface partial failures to provide better feedback
     if (errors.length > 0) {
       const errorMessage = errors.map(e => `${e.server}: ${e.error.message}`).join('; ');
+      const allConnectionErrors = errors.every(e => isServerUnreachable(e.error));
+      const summaryLogLevel = allConnectionErrors ? 'Warn' : 'Error';
       this.logger?.(
-        'Error',
+        summaryLogLevel,
         `Failed to load tools from ${errors.length}/${Object.keys(this.mcpClients).length} ` +
           `MCP server(s): ${errorMessage}`,
       );
@@ -72,7 +93,8 @@ export default class McpClient {
         await this.closeConnections();
       } catch (cleanupError) {
         // Log but don't throw - we don't want to mask the original connection error
-        this.logger?.('Error', 'Error during test connection cleanup', cleanupError as Error);
+        const logLevel = getLogLevelForError(cleanupError as Error);
+        this.logger?.(logLevel, 'Error during test connection cleanup', cleanupError as Error);
       }
     }
   }
@@ -88,14 +110,16 @@ export default class McpClient {
 
     if (failures.length > 0) {
       failures.forEach(({ name, result }) => {
-        this.logger?.(
-          'Error',
-          `Failed to close MCP connection for ${name}`,
-          (result as PromiseRejectedResult).reason,
-        );
+        const error = (result as PromiseRejectedResult).reason;
+        const logLevel = getLogLevelForError(error);
+        this.logger?.(logLevel, `Failed to close MCP connection for ${name}`, error);
       });
+      const allConnectionErrors = failures.every(({ result }) =>
+        isServerUnreachable((result as PromiseRejectedResult).reason),
+      );
+      const summaryLogLevel = allConnectionErrors ? 'Warn' : 'Error';
       this.logger?.(
-        'Error',
+        summaryLogLevel,
         `Failed to close ${failures.length}/${results.length} MCP connections. ` +
           `This may result in resource leaks.`,
       );
diff --git a/packages/ai-proxy/test/mcp-client.test.ts b/packages/ai-proxy/test/mcp-client.test.ts
index caa09eaf2..bb12fbf6d 100644
--- a/packages/ai-proxy/test/mcp-client.test.ts
+++ b/packages/ai-proxy/test/mcp-client.test.ts
@@ -106,6 +106,71 @@ describe('McpClient', () => {
         expect(mcpClient.tools.length).toEqual(2);
       });
     });
+
+    describe('error logging levels', () => {
+      function createSystemError(code: string, message: string): NodeJS.ErrnoException {
+        const error = new Error(message) as NodeJS.ErrnoException;
+        error.code = code;
+
+        return error;
+      }
+
+      it('should log unreachable server errors as Warn', async () => {
+        const loggerMock = jest.fn();
+        const mcpClient = new McpClient(aConfig, loggerMock);
+        const unreachableError = createSystemError('ECONNREFUSED', 'Connection refused');
+        getToolsMock.mockRejectedValue(unreachableError);
+
+        await mcpClient.loadTools();
+
+        expect(loggerMock).toHaveBeenCalledWith(
+          'Warn',
+          expect.stringContaining('Error loading tools for'),
+          unreachableError,
+        );
+        expect(loggerMock).toHaveBeenCalledWith(
+          'Warn',
+          expect.stringContaining('Failed to load tools from'),
+        );
+      });
+
+      it('should log other errors as Error', async () => {
+        const loggerMock = jest.fn();
+        const mcpClient = new McpClient(aConfig, loggerMock);
+        const otherError = new Error('Authentication failed');
+        getToolsMock.mockRejectedValue(otherError);
+
+        await mcpClient.loadTools();
+
+        expect(loggerMock).toHaveBeenCalledWith(
+          'Error',
+          expect.stringContaining('Error loading tools for'),
+          otherError,
+        );
+        expect(loggerMock).toHaveBeenCalledWith(
+          'Error',
+          expect.stringContaining('Failed to load tools from'),
+        );
+      });
+
+      it.each(['ECONNREFUSED', 'ENOTFOUND', 'ETIMEDOUT', 'ENETUNREACH', 'EHOSTUNREACH'])(
+        'should log %s errors as Warn',
+        async errorCode => {
+          const loggerMock = jest.fn();
+          const mcpClient = new McpClient(aConfig, loggerMock);
+          const error = createSystemError(errorCode, 'Connection error');
+          getToolsMock.mockRejectedValue(error);
+
+          await mcpClient.loadTools();
+
+          expect(loggerMock).toHaveBeenCalledWith(
+            'Warn',
+            expect.stringContaining('Error loading tools for'),
+            error,
+          );
+        },
+      );
+    });
   });
 
   describe('closeConnection', () => {