diff --git a/config.toml b/config.toml
index 5379b42..2b402cf 100644
--- a/config.toml
+++ b/config.toml
@@ -49,7 +49,7 @@ port = 8080
 [agents]
   [agents.coordinator]
   role = "COORDINATOR"
-  model_id = "local"
+  model_id = "default"
   enable_shell_exec = true
   streaming = false
   log_intermediate = true
@@ -66,7 +66,7 @@ port = 8080
 
   [agents.coder]
   role = "SPECIALIST"
-  model_id = "local"
+  model_id = "default"
   enable_shell_exec = true
   streaming = false
   log_intermediate = true
@@ -82,7 +82,7 @@ port = 8080
 
   [agents.reviewer]
   role = "SPECIALIST"
-  model_id = "local"
+  model_id = "fast"
   streaming = false
   log_intermediate = true
   system_prompt = "You are a Quality Assurance Specialist and Code Reviewer. Your role is to analyze code for potential bugs, security vulnerabilities, and style violations."
@@ -97,7 +97,7 @@ port = 8080
 
   [agents.tester]
   role = "SPECIALIST"
-  model_id = "local"
+  model_id = "fast"
   enable_shell_exec = true
   streaming = false
   log_intermediate = true
diff --git a/pkg/sidekick/agent.go b/pkg/sidekick/agent.go
index dab6a83..5d9ca34 100644
--- a/pkg/sidekick/agent.go
+++ b/pkg/sidekick/agent.go
@@ -133,7 +133,7 @@ func (s *Sidekick) runStep(ctx context.Context, history *[]Message,
   }
   msg, err := CallLLM(ctx, s.Model, *history, s.ToolRegistry, sc, rc)
   if err != nil {
-    return false, "", fmt.Errorf("LLM call failed: %w", err)
+    return false, "", err
   }
   s.logIntermediate(msg)
   *history = append(*history, msg)
@@ -141,10 +141,11 @@ func (s *Sidekick) runStep(ctx context.Context, history *[]Message,
   act, params, parsed, err := s.parseAction(msg)
   if err != nil {
     if !parsed {
+      // Not intended as JSON, just treat as RESPOND
       act, params = ActionTypeRespond, map[string]interface{}{"response": msg.Content}
     } else {
-      *history = append(*history, Message{Role: MessageRoleUser, Content: fmt.Sprintf("Error: %v", err)})
-      return false, "", nil
+      // Intended as structured action but failed validation/parsing
+      return false, "", fmt.Errorf("the AI returned an invalid response: %w", err)
     }
   }
   if act == ActionTypeRespond {
@@ -184,6 +185,9 @@ func (s *Sidekick) dispatch(ctx context.Context, a ActionType, p map[string]inte
       }
       s.IntermediateHandler(fmt.Sprintf("Tool Result: %s", truncRes))
     }
+    if tName == "read_file" || tName == "grep_file" {
+      return res, nil
+    }
     return BufferGate(res, tf, s.Config.ToolResponseThreshold)
   }
   if a == ActionTypeDelegate {
@@ -202,12 +206,23 @@ func (s *Sidekick) parseAction(msg Message) (ActionType, map[string]interface{},
   }
   var env ActionEnvelope
   c := strings.TrimSpace(msg.Content)
+  isProbablyJSON := strings.HasPrefix(c, "{")
   if strings.HasPrefix(c, "```json") && strings.HasSuffix(c, "```") {
     c = strings.TrimSpace(strings.TrimSuffix(strings.TrimPrefix(c, "```json"), "```"))
+    isProbablyJSON = true
   }
   if err := json.Unmarshal([]byte(c), &env); err != nil {
+    if isProbablyJSON {
+      return "", nil, true, fmt.Errorf("malformed JSON action: %w", err)
+    }
     return "", nil, false, err
   }
+  if env.Action == "" {
+    if isProbablyJSON {
+      return "", nil, true, fmt.Errorf("AI response is missing the 'action' field")
+    }
+    return ActionTypeRespond, map[string]interface{}{"response": msg.Content}, false, nil
+  }
   return env.Action, env.Params, true, nil
 }
 
diff --git a/pkg/sidekick/llm.go b/pkg/sidekick/llm.go
index d9c25b0..a9dfd90 100644
--- a/pkg/sidekick/llm.go
+++ b/pkg/sidekick/llm.go
@@ -5,12 +5,21 @@ import (
   "bytes"
   "context"
   "encoding/json"
+  "errors"
   "fmt"
   "io"
   "net/http"
   "strings"
 )
 
+var (
+  ErrLLMTimeout         = errors.New("the request to the AI model timed out. Please try again later")
+  ErrLLMRateLimit       = errors.New("rate limit exceeded. Please wait a moment and try again")
+  ErrLLMAuth            = errors.New("authentication failed. Please check your API key")
+  ErrLLMServer          = errors.New("the AI provider's server encountered an error. Please try again later")
+  ErrLLMInvalidResponse = errors.New("the AI model returned an invalid response structure")
+)
+
 // LLMClient represents an abstraction over the LLM provider
 type LLMClient interface {
   Call(ctx context.Context, model ModelConfig, messages []Message,
@@ -63,11 +72,22 @@ func (s *standardLLMClient) Call(ctx context.Context, model ModelConfig, msgs []
 
   resp, err := client.Do(req)
   if err != nil {
+    if errors.Is(err, context.DeadlineExceeded) || strings.Contains(err.Error(), "timeout") {
+      return Message{}, ErrLLMTimeout
+    }
     return Message{}, fmt.Errorf("HTTP request failed: %w", err)
   }
   defer resp.Body.Close()
 
   if resp.StatusCode != http.StatusOK {
+    switch resp.StatusCode {
+    case http.StatusUnauthorized, http.StatusForbidden:
+      return Message{}, ErrLLMAuth
+    case http.StatusTooManyRequests:
+      return Message{}, ErrLLMRateLimit
+    case http.StatusInternalServerError, http.StatusBadGateway, http.StatusServiceUnavailable:
+      return Message{}, ErrLLMServer
+    }
     body, _ := io.ReadAll(resp.Body)
     return Message{}, fmt.Errorf("API returned error (%d): %s", resp.StatusCode, string(body))
   }
@@ -91,7 +111,7 @@ func (s *standardLLMClient) Call(ctx context.Context, model ModelConfig, msgs []
   }
 
   if err := json.Unmarshal(body, &openAIResp); err != nil {
-    return Message{}, fmt.Errorf("failed to unmarshal response: %w", err)
+    return Message{}, fmt.Errorf("%w: failed to parse API response: %v", ErrLLMInvalidResponse, err)
   }
 
   if openAIResp.Error != nil {
@@ -99,7 +119,7 @@ func (s *standardLLMClient) Call(ctx context.Context, model ModelConfig, msgs []
   }
 
   if len(openAIResp.Choices) == 0 {
-    return Message{}, fmt.Errorf("API returned no choices")
+    return Message{}, fmt.Errorf("%w: API returned no choices", ErrLLMInvalidResponse)
   }
 
   return openAIResp.Choices[0].Message, nil
diff --git a/pkg/sidekick/sidekick_test.go b/pkg/sidekick/sidekick_test.go
index 474a999..f98520f 100644
--- a/pkg/sidekick/sidekick_test.go
+++ b/pkg/sidekick/sidekick_test.go
@@ -2,6 +2,7 @@ package sidekick
 
 import (
   "context"
+  "errors"
   "os"
   "strings"
   "testing"
@@ -148,3 +149,60 @@ func TestTempFileCleanup(t *testing.T) {
     t.Errorf("leak: before %d, after %d", bc, ac)
   }
 }
+
+type errorLLMClient struct {
+  err error
+}
+
+func (e *errorLLMClient) Call(ctx context.Context, model ModelConfig, messages []Message,
+  tools map[string]ToolDefinition, streamCallback, reasoningCallback func(string)) (Message, error) {
+  return Message{}, e.err
+}
+
+func TestLLMTimeoutError(t *testing.T) {
+  SetLLMClient(&errorLLMClient{err: ErrLLMTimeout})
+  a := NewSidekick(AgentConfig{MaxIterations: 1}, ModelConfig{}, nil)
+  _, err := a.Run(context.Background(), nil, nil)
+  if !errors.Is(err, ErrLLMTimeout) {
+    t.Errorf("expected ErrLLMTimeout, got %v", err)
+  }
+}
+
+func TestMalformedJSONAction(t *testing.T) {
+  mc := &mockLLMClient{responses: []Message{
+    {Content: `{"action": "TOOL_CALL", "params": { "missing_brace": `},
+  }}
+  SetLLMClient(mc)
+  a := NewSidekick(AgentConfig{MaxIterations: 1}, ModelConfig{}, nil)
+  _, err := a.Run(context.Background(), nil, nil)
+  if err == nil || !strings.Contains(err.Error(), "malformed JSON action") {
+    t.Errorf("expected malformed JSON action error, got %v", err)
+  }
+}
+
+func TestMissingActionField(t *testing.T) {
+  mc := &mockLLMClient{responses: []Message{
+    {Content: `{"params": {"foo": "bar"}}`},
+  }}
+  SetLLMClient(mc)
+  a := NewSidekick(AgentConfig{MaxIterations: 1}, ModelConfig{}, nil)
+  _, err := a.Run(context.Background(), nil, nil)
+  if err == nil || !strings.Contains(err.Error(), "missing the 'action' field") {
+    t.Errorf("expected missing action field error, got %v", err)
+  }
+}
+
+func TestPlainTextResponse(t *testing.T) {
+  mc := &mockLLMClient{responses: []Message{
+    {Content: `This is a plain text response.`},
+  }}
+  SetLLMClient(mc)
+  a := NewSidekick(AgentConfig{MaxIterations: 1}, ModelConfig{}, nil)
+  res, err := a.Run(context.Background(), nil, nil)
+  if err != nil {
+    t.Errorf("expected no error, got %v", err)
+  }
+  if res != "This is a plain text response." {
+    t.Errorf("expected plain text response, got %s", res)
+  }
+}