diff --git a/CHANGELOG.md b/CHANGELOG.md
index a167666..d8d8b3c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,14 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+## [1.1.16] - 2026-01-05
+
+### Fixed
+- Theme toggle causing logout due to AuthInterceptor auto-signout on 401
+  - Removed aggressive `signOut()` call in `AuthInterceptor.onError`
+  - 401 errors now propagate to calling code for graceful handling
+  - Preferences API 401 no longer triggers full logout redirect
+
 ## [1.1.15] - 2026-01-05
 
 ### Fixed
diff --git a/lib/core/api/api_interceptors.dart b/lib/core/api/api_interceptors.dart
index 7be3d50..3fd19d2 100644
--- a/lib/core/api/api_interceptors.dart
+++ b/lib/core/api/api_interceptors.dart
@@ -38,16 +38,9 @@ class AuthInterceptor extends Interceptor {
 
   @override
   void onError(DioException err, ErrorInterceptorHandler handler) {
-    // Skip auth error handling for LAN development
-    if (!AppConfig.requiresAuth) {
-      handler.next(err);
-      return;
-    }
-
-    if (err.response?.statusCode == 401) {
-      // Token expired - trigger re-authentication
-      _ref.read(authProvider.notifier).signOut();
-    }
+    // Don't auto-signout on 401 - let calling code handle auth errors gracefully.
+    // Auto-signout was causing issues (e.g., theme toggle triggering logout when
+    // preferences API returned 401).
     handler.next(err);
   }
 }
diff --git a/pubspec.yaml b/pubspec.yaml
index 4cba042..493db91 100644
--- a/pubspec.yaml
+++ b/pubspec.yaml
@@ -16,7 +16,7 @@ publish_to: 'none' # Remove this line if you wish to publish to pub.dev
 # https://developer.apple.com/library/archive/documentation/General/Reference/InfoPlistKeyReference/Articles/CoreFoundationKeys.html
 # In Windows, build-name is used as the major, minor, and patch parts
 # of the product and file versions while build-number is used as the build suffix.
-version: 1.1.15+1
+version: 1.1.16+1
 
 environment:
   sdk: ^3.10.4