diff --git a/packages/apps/src/microsoft_teams/apps/app_oauth.py b/packages/apps/src/microsoft_teams/apps/app_oauth.py
index 2876d246..535eadf3 100644
--- a/packages/apps/src/microsoft_teams/apps/app_oauth.py
+++ b/packages/apps/src/microsoft_teams/apps/app_oauth.py
@@ -60,19 +60,25 @@ async def sign_in_token_exchange(
                 self.event_emitter.emit("sign_in", SignInEvent(activity_ctx=ctx, token_response=token))
                 return None
             except Exception as e:
-                ctx.logger.error(
-                    f"Error exchanging token for user {activity.from_.id} in "
-                    f"conversation {activity.conversation.id}: {e}"
-                )
                 if isinstance(e, HTTPStatusError):
                     status = e.response.status_code
                     if status not in (404, 400, 412):
+                        log.error(
+                            f"Error exchanging token for user {activity.from_.id} in "
+                            f"conversation {activity.conversation.id}: {e}"
+                        )
                         self.event_emitter.emit("error", ErrorEvent(error=e, context={"activity": activity}))
                         return InvokeResponse(status=status or 500)
-                ctx.logger.warning(
-                    f"Unable to exchange token for user {activity.from_.id} in "
-                    f"conversation {activity.conversation.id}: {e}"
-                )
+                    log.info(
+                        f"Unable to exchange token for user {activity.from_.id} in "
+                        f"conversation {activity.conversation.id}: {e}"
+                    )
+                else:
+                    log.error(
+                        f"Unable to exchange token for user {activity.from_.id} in "
+                        f"conversation {activity.conversation.id}: {e}"
+                    )
+                    self.event_emitter.emit("error", ErrorEvent(error=e, context={"activity": activity}))
                 return InvokeResponse(
                     status=412,
                     body=TokenExchangeInvokeResponse(
diff --git a/packages/apps/tests/test_app_oauth.py b/packages/apps/tests/test_app_oauth.py
index fa4981d8..62ef79e5 100644
--- a/packages/apps/tests/test_app_oauth.py
+++ b/packages/apps/tests/test_app_oauth.py
@@ -168,9 +168,6 @@ async def test_sign_in_token_exchange_http_error_404(self, oauth_handlers, mock_
         # Verify no error event emitted for 404
         oauth_handlers.event_emitter.emit.assert_not_called()
 
-        # Verify warning logged
-        mock_context.logger.warning.assert_called_once()
-
         # Verify failure response
         assert isinstance(result, InvokeResponse) and isinstance(result.body, TokenExchangeInvokeResponse)
         assert result.status == 412
@@ -215,8 +212,10 @@ async def test_sign_in_token_exchange_generic_exception(
 
         result = await oauth_handlers.sign_in_token_exchange(mock_context)
 
-        # Verify warning logged
-        mock_context.logger.warning.assert_called_once()
+        # Verify error event emitted for non-HTTP exceptions
+        oauth_handlers.event_emitter.emit.assert_called_once_with(
+            "error", ErrorEvent(error=generic_error, context={"activity": token_exchange_activity})
+        )
 
         # Verify failure response
         assert isinstance(result, InvokeResponse) and isinstance(result.body, TokenExchangeInvokeResponse)