diff --git a/packages/nodes-base/nodes/Microsoft/Teams/v2/methods/listSearch.ts b/packages/nodes-base/nodes/Microsoft/Teams/v2/methods/listSearch.ts
index 02ded4fabab..8cbde108be6 100644
--- a/packages/nodes-base/nodes/Microsoft/Teams/v2/methods/listSearch.ts
+++ b/packages/nodes-base/nodes/Microsoft/Teams/v2/methods/listSearch.ts
@@ -40,22 +40,30 @@ export async function getChats(
 		$expand: 'members',
 	};
 
+	// `/v1.0/chats` occasionally 5xxs transiently; retry up to `maxAttempts` times,
+	// sleeping 1s between attempts (not after the last one), and surface the final
+	// failure instead of swallowing it as an empty result.
+	const maxAttempts = 5;
 	let value: IDataObject[] = [];
-	let attempts = 5;
-	do {
+	let lastError: Error | undefined;
+
+	for (let attempt = 0; attempt < maxAttempts; attempt++) {
 		try {
 			value = ((await microsoftApiRequest.call(this, 'GET', '/v1.0/chats', {}, qs)) as IDataObject)
 				.value as IDataObject[];
+			lastError = undefined;
 			break;
 		} catch (error) {
-			if (attempts > 0) {
+			lastError = error;
+			if (attempt < maxAttempts - 1) {
 				await sleep(1000);
-				attempts--;
-			} else {
-				throw new NodeOperationError(this.getNode(), error);
 			}
 		}
-	} while (attempts > 0);
+	}
+
+	if (lastError) {
+		throw new NodeOperationError(this.getNode(), lastError);
+	}
 
 	for (const chat of value) {
 		if (!chat.topic) {
diff --git a/packages/nodes-base/nodes/Microsoft/Teams/v2/test/methods/listSearch.test.ts b/packages/nodes-base/nodes/Microsoft/Teams/v2/test/methods/listSearch.test.ts
new file mode 100644
index 00000000000..9c648b85f11
--- /dev/null
+++ b/packages/nodes-base/nodes/Microsoft/Teams/v2/test/methods/listSearch.test.ts
@@ -0,0 +1,116 @@
+import type { ILoadOptionsFunctions, INode } from 'n8n-workflow';
+import { sleep } from '@n8n/utils/sleep';
+import type { Mock } from 'vitest';
+import type { DeepMockProxy } from 'vitest-mock-extended';
+import { mock, mockDeep } from 'vitest-mock-extended';
+
+import { getChats } from '../../methods/listSearch';
+import * as transport from '../../transport';
+import type * as _importType0 from '../../transport';
+
+// Real transport module except the network helper
+vi.mock('../../transport', async () => {
+	const originalModule = await vi.importActual<typeof _importType0>('../../transport');
+	return {
+		...originalModule,
+		microsoftApiRequest: vi.fn(),
+	};
+});
+
+// `getChats` retries through `sleep(1000)` between attempts; stub it so the
+// retry-count/no-final-sleep assertions below run instantly instead of for real seconds.
+vi.mock('@n8n/utils/sleep', () => ({
+	sleep: vi.fn().mockResolvedValue(undefined),
+}));
+
+// Service Principal guard coverage for `getChats` already lives in
+// `../transport/index.test.ts` (`'listSearch credential routing'`), via a different
+// mocking layer (low-level HTTP helpers). Not duplicated here.
+describe('Microsoft Teams v2 — getChats', () => {
+	let ctx: DeepMockProxy<ILoadOptionsFunctions>;
+	const apiRequest = transport.microsoftApiRequest as Mock;
+	const sleepMock = sleep as unknown as Mock;
+
+	const setParams = (params: Record<string, unknown>) => {
+		ctx.getNodeParameter.mockImplementation(
+			(name: string, _itemIndex?: number, fallback?: unknown) =>
+				(name in params ? params[name] : fallback) as never,
+		);
+	};
+
+	beforeEach(() => {
+		vi.clearAllMocks();
+		ctx = mockDeep<ILoadOptionsFunctions>();
+		ctx.getNode.mockReturnValue(mock<INode>({ typeVersion: 1 }));
+		setParams({ authentication: 'microsoftOAuth2Api' });
+	});
+
+	it('throws a NodeOperationError carrying the original Graph error message when every attempt fails', async () => {
+		apiRequest.mockRejectedValue(new Error('Graph is down'));
+
+		await expect(getChats.call(ctx)).rejects.toThrow('Graph is down');
+	});
+
+	it('pins the retry count at exactly 5 calls and sleeps exactly 4 times (not 5) on total failure', async () => {
+		apiRequest.mockRejectedValue(new Error('boom'));
+
+		await expect(getChats.call(ctx)).rejects.toThrow();
+		expect(apiRequest).toHaveBeenCalledTimes(5);
+		expect(sleepMock).toHaveBeenCalledTimes(4);
+	});
+
+	it('recovers if the first 4 attempts fail, resolving with the parsed chats and no throw', async () => {
+		apiRequest
+			.mockRejectedValueOnce(new Error('transient 1'))
+			.mockRejectedValueOnce(new Error('transient 2'))
+			.mockRejectedValueOnce(new Error('transient 3'))
+			.mockRejectedValueOnce(new Error('transient 4'))
+			.mockResolvedValueOnce({
+				value: [{ id: 'c1', topic: 'Standup', chatType: 'Group', webUrl: 'https://teams/chat/c1' }],
+			});
+
+		const result = await getChats.call(ctx);
+
+		expect(apiRequest).toHaveBeenCalledTimes(5);
+		expect(sleepMock).toHaveBeenCalledTimes(4);
+		expect(result.results).toEqual([
+			{ name: 'Standup (Group)', value: 'c1', url: 'https://teams/chat/c1' },
+		]);
+	});
+
+	it('succeeds on the first attempt with exactly 1 call and no sleep', async () => {
+		apiRequest.mockResolvedValue({ value: [] });
+
+		await getChats.call(ctx);
+
+		expect(apiRequest).toHaveBeenCalledTimes(1);
+		expect(sleepMock).not.toHaveBeenCalled();
+	});
+
+	it('returns an empty result for a genuinely empty tenant without throwing', async () => {
+		apiRequest.mockResolvedValue({ value: [] });
+
+		const result = await getChats.call(ctx);
+
+		expect(result).toEqual({ results: [] });
+	});
+
+	it('builds the chat name from member display names when topic is absent, preserving the chatType suffix', async () => {
+		apiRequest.mockResolvedValue({
+			value: [
+				{
+					id: 'c2',
+					chatType: 'oneOnOne',
+					webUrl: 'https://teams/chat/c2',
+					members: [{ displayName: 'Alice' }, { displayName: 'Bob' }, {}],
+				},
+			],
+		});
+
+		const result = await getChats.call(ctx);
+
+		expect(result.results).toEqual([
+			{ name: 'Alice, Bob (oneOnOne)', value: 'c2', url: 'https://teams/chat/c2' },
+		]);
+	});
+});