diff --git a/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.test.ts b/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.test.ts
index c5cbcc3be75..685f554e7f3 100644
--- a/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.test.ts
+++ b/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.test.ts
@@ -247,6 +247,17 @@ const renderComponent = createComponentRenderer(CredentialEdit, {
 	}),
 });
 
+const modalLoadingStub = {
+	props: ['loading'],
+	template: `
+		<div data-test-id="credential-edit-modal-stub" :data-loading="String(loading)">
+			<slot v-if="!loading" name="header" />
+			<slot v-if="!loading" name="content" />
+			<slot v-if="!loading" name="footer" />
+		</div>
+	`,
+};
+
 let broadcastMessageListener: ((event: MessageEvent) => void) | undefined;
 
 class BroadcastChannelMock {
@@ -498,12 +509,50 @@ describe('CredentialEdit', () => {
 
 			const { getByTestId } = renderComponent({
 				props: { modalName: CREDENTIAL_EDIT_MODAL_KEY, mode: 'new' },
+				global: {
+					stubs: {
+						Modal: modalLoadingStub,
+					},
+				},
 			});
 
 			await waitFor(() => {
+				expect(getByTestId('credential-edit-modal-stub')).toHaveAttribute('data-loading', 'false');
 				expect(getByTestId('credential-edit-dialog')).toBeInTheDocument();
 			});
 		});
+
+		it('should stop loading when credential loading fails', async () => {
+			const credentialsStore = mockedStore(useCredentialsStore);
+			credentialsStore.getCredentialData.mockRejectedValueOnce(new Error('Failed to load'));
+
+			const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => {});
+
+			const { getByTestId } = renderComponent({
+				props: {
+					activeId: 'missing-credential',
+					modalName: CREDENTIAL_EDIT_MODAL_KEY,
+					mode: 'edit',
+				},
+				global: {
+					stubs: {
+						Modal: modalLoadingStub,
+					},
+				},
+			});
+
+			try {
+				await waitFor(() => {
+					expect(credentialsStore.getCredentialData).toHaveBeenCalled();
+					expect(getByTestId('credential-edit-modal-stub')).toHaveAttribute(
+						'data-loading',
+						'false',
+					);
+				});
+			} finally {
+				consoleErrorSpy.mockRestore();
+			}
+		});
 	});
 
 	describe('managed credential scope hiding', () => {
@@ -711,6 +760,51 @@ describe('CredentialEdit', () => {
 			await retry(() => expect(queryByText('Custom Scopes')).toBeInTheDocument());
 			expect(queryByText('Enabled Scopes')).toBeInTheDocument();
 		});
+
+		it('should not block modal when external hooks throw', async () => {
+			window.n8nExternalHooks = {
+				credentialsEdit: {
+					credentialModalOpened: [
+						() => {
+							throw new Error('plugin error');
+						},
+					],
+				},
+			};
+
+			const consoleErrorSpy = vi.spyOn(console, 'error').mockImplementation(() => {});
+
+			const { getByTestId } = renderComponent({
+				props: { modalName: CREDENTIAL_EDIT_MODAL_KEY, mode: 'new' },
+				global: {
+					stubs: {
+						Modal: modalLoadingStub,
+					},
+				},
+			});
+
+			try {
+				// Wait for the modal to appear and loading to finish
+				await waitFor(() => {
+					expect(getByTestId('credential-edit-modal-stub')).toHaveAttribute(
+						'data-loading',
+						'false',
+					);
+					expect(getByTestId('credential-edit-dialog')).toBeInTheDocument();
+				});
+
+				// The hook error is logged asynchronously; wait for it
+				await waitFor(() => {
+					expect(consoleErrorSpy).toHaveBeenCalledWith(
+						'[CredentialEdit] External hooks execution failed',
+						expect.any(Error),
+					);
+				});
+			} finally {
+				consoleErrorSpy.mockRestore();
+				delete window.n8nExternalHooks;
+			}
+		});
 	});
 
 	test('should use the requested credential type when node has multiple credential types', async () => {
diff --git a/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.vue b/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.vue
index 146cff9dc5c..73a9a870671 100644
--- a/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.vue
+++ b/packages/frontend/editor-ui/src/features/credentials/components/CredentialEdit/CredentialEdit.vue
@@ -491,89 +491,101 @@ watch(
 );
 
 onMounted(async () => {
-	const modalState = uiStore.modalsById[CREDENTIAL_EDIT_MODAL_KEY];
-	requiredCredentials.value =
-		isCredentialModalState(modalState) && modalState.showAuthSelector === true;
+	// Inner try isolates optional secrets loading; outer try catches all other initialization failures.
+	try {
+		const modalState = uiStore.modalsById[CREDENTIAL_EDIT_MODAL_KEY];
+		requiredCredentials.value =
+			isCredentialModalState(modalState) && modalState.showAuthSelector === true;
 
-	const forceManual = isCredentialModalState(modalState) && modalState.forceManualMode === true;
+		const forceManual = isCredentialModalState(modalState) && modalState.forceManualMode === true;
 
-	const overrideProjectId = isCredentialModalState(modalState) ? modalState.projectId : undefined;
-	const projectId =
-		overrideProjectId ?? projectsStore.currentProjectId ?? projectsStore.personalProject?.id;
-	if (projectId) {
-		try {
-			await externalSecretsStore.fetchSecretsForProject(projectId);
-		} catch {
-			// Secrets fetch failure should not block the credential modal
-		}
-	}
-
-	if (props.mode === 'new' && credentialTypeName.value) {
-		const modalSuggestedName = isCredentialModalState(modalState)
-			? modalState.suggestedName
-			: undefined;
-		credentialName.value = modalSuggestedName
-			? modalSuggestedName
-			: await credentialsStore.getNewCredentialName({
-					credentialTypeName: defaultCredentialTypeName.value,
-				});
-
-		credentialData.value = {
-			...credentialData.value,
-			...(homeProject.value ? { homeProject: homeProject.value } : {}),
-		};
-	} else {
-		await loadCurrentCredential();
-	}
-
-	setCredentialPropertyDefaults();
-
-	// Detect if existing credential uses custom OAuth (user-provided clientId/clientSecret).
-	// Use __overwrittenProperties directly instead of managedOAuthAvailable so that skip-list
-	// types (where managedOAuthAvailable is false) still auto-detect custom credentials.
-	if (
-		credentialType.value?.__overwrittenProperties?.includes('clientId') &&
-		credentialData.value.clientId &&
-		credentialData.value.clientSecret
-	) {
-		useCustomOAuth.value = true;
-	}
-
-	// Default to quick connect mode for new credentials when available and not forced to manual
-	if (
-		props.mode === 'new' &&
-		!forceManual &&
-		credentialTypeName.value &&
-		ndvStore.value.activeNode
-	) {
-		const qcOption = getQuickConnectOption(
-			credentialTypeName.value,
-			ndvStore.value.activeNode.type,
-		);
-		if (qcOption) {
-			isQuickConnectMode.value = true;
-		}
-	}
-
-	await externalHooks.run('credentialsEdit.credentialModalOpened', {
-		credentialType: credentialTypeName.value,
-		isEditingCredential: props.mode === 'edit',
-		activeNode: ndvStore.value.activeNode,
-	});
-
-	setTimeout(async () => {
-		if (credentialId.value) {
-			if (!requiredPropertiesFilled.value && credentialPermissions.value.update) {
-				// sharees can't see properties, so this check would always fail for them
-				// if the credential contains required fields.
-				showValidationWarning.value = true;
-			} else {
-				await retestCredential();
+		const overrideProjectId = isCredentialModalState(modalState) ? modalState.projectId : undefined;
+		const projectId =
+			overrideProjectId ?? projectsStore.currentProjectId ?? projectsStore.personalProject?.id;
+		if (projectId) {
+			try {
+				await externalSecretsStore.fetchSecretsForProject(projectId);
+			} catch {
+				// Secrets fetch failure should not block the credential modal
 			}
 		}
-	}, 0);
 
-	loading.value = false;
+		if (props.mode === 'new' && credentialTypeName.value) {
+			const modalSuggestedName = isCredentialModalState(modalState)
+				? modalState.suggestedName
+				: undefined;
+			credentialName.value = modalSuggestedName
+				? modalSuggestedName
+				: await credentialsStore.getNewCredentialName({
+						credentialTypeName: defaultCredentialTypeName.value,
+					});
+
+			credentialData.value = {
+				...credentialData.value,
+				...(homeProject.value ? { homeProject: homeProject.value } : {}),
+			};
+		} else {
+			// loadCurrentCredential handles its own recovery by showing an error toast and closing the modal.
+			// It should be allowed to propagate to avoid subsequent initialization steps running on empty data.
+			await loadCurrentCredential();
+		}
+
+		setCredentialPropertyDefaults();
+
+		// Detect if existing credential uses custom OAuth (user-provided clientId/clientSecret).
+		// Use __overwrittenProperties directly instead of managedOAuthAvailable so that skip-list
+		// types (where managedOAuthAvailable is false) still auto-detect custom credentials.
+		if (
+			credentialType.value?.__overwrittenProperties?.includes('clientId') &&
+			credentialData.value.clientId &&
+			credentialData.value.clientSecret
+		) {
+			useCustomOAuth.value = true;
+		}
+
+		// Default to quick connect mode for new credentials when available and not forced to manual
+		if (
+			props.mode === 'new' &&
+			!forceManual &&
+			credentialTypeName.value &&
+			ndvStore.value.activeNode
+		) {
+			const qcOption = getQuickConnectOption(
+				credentialTypeName.value,
+				ndvStore.value.activeNode.type,
+			);
+			if (qcOption) {
+				isQuickConnectMode.value = true;
+			}
+		}
+
+		// External hooks are fire-and-forget so slow or failing hooks cannot keep the modal loading.
+		void externalHooks
+			.run('credentialsEdit.credentialModalOpened', {
+				credentialType: credentialTypeName.value,
+				isEditingCredential: props.mode === 'edit',
+				activeNode: ndvStore.value.activeNode,
+			})
+			.catch((error) => {
+				console.error('[CredentialEdit] External hooks execution failed', error);
+			});
+
+		setTimeout(async () => {
+			if (credentialId.value) {
+				if (!requiredPropertiesFilled.value && credentialPermissions.value.update) {
+					// sharees can't see properties, so this check would always fail for them
+					// if the credential contains required fields.
+					showValidationWarning.value = true;
+				} else {
+					await retestCredential();
+				}
+			}
+		}, 0);
+	} catch (error) {
+		console.error('[CredentialEdit] Initialization error', error);
+	} finally {
+		loading.value = false;
+	}
 });
 
 async function beforeClose() {
@@ -729,8 +741,7 @@ async function loadCurrentCredential(id = props.activeId ?? '') {
 			i18n.baseText('credentialEdit.credentialEdit.showError.loadCredential.title'),
 		);
 		closeDialog();
-
-		return;
+		throw error;
 	}
 }