diff --git a/src/app/api/chat/send/route.ts b/src/app/api/chat/send/route.ts
index 4677248..c23f82a 100644
--- a/src/app/api/chat/send/route.ts
+++ b/src/app/api/chat/send/route.ts
@@ -102,6 +102,7 @@ export async function POST(request: NextRequest) {
             const remoteUrl = `https://${targetNodeDomain}/api/swarm/chat/inbox`;
             
             try {
+                console.log('[Chat Send] Forwarding to remote:', remoteUrl, 'Envelope:', JSON.stringify(body, null, 2));
                 const response = await fetch(remoteUrl, {
                     method: 'POST',
                     headers: { 'Content-Type': 'application/json' },
@@ -109,8 +110,30 @@ export async function POST(request: NextRequest) {
                 });
 
                 if (!response.ok) {
-                    const errorData = await response.json().catch(() => ({}));
-                    console.error('[Chat Send] Remote delivery failed:', errorData);
+                    const errorText = await response.text();
+                    let errorData;
+                    try {
+                        errorData = JSON.parse(errorText);
+                    } catch {
+                        errorData = { raw: errorText };
+                    }
+                    console.error('[Chat Send] Remote delivery failed:', response.status, errorData);
+                    
+                    // Check if remote node doesn't support V2 (returns V1 validation errors)
+                    const isV1ValidationError = errorData.details && 
+                        Array.isArray(errorData.details) && 
+                        errorData.details.some((d: any) => 
+                            d.path && ['messageId', 'senderHandle', 'senderNodeDomain', 'recipientHandle', 'encryptedContent', 'timestamp'].includes(d.path[0])
+                        );
+                    
+                    if (isV1ValidationError) {
+                        return NextResponse.json({ 
+                            error: 'Remote node needs update',
+                            details: 'The recipient node is running an older version that does not support the V2 chat protocol. Please ask the node administrator to update to the latest version.',
+                            remoteError: errorData 
+                        }, { status: 400 });
+                    }
+                    
                     return NextResponse.json({ 
                         error: 'Remote delivery failed',
                         details: errorData 
diff --git a/src/app/api/swarm/chat/inbox/route.ts b/src/app/api/swarm/chat/inbox/route.ts
index a25f0f5..b260476 100644
--- a/src/app/api/swarm/chat/inbox/route.ts
+++ b/src/app/api/swarm/chat/inbox/route.ts
@@ -29,6 +29,49 @@ export async function POST(request: NextRequest) {
     }
 
     const body = await request.json();
+    console.log('[Swarm Inbox] Received body keys:', Object.keys(body), 'action:', body.action);
+    
+    // Check if this is a V2 encrypted envelope (has 'action' and 'data' fields)
+    // MUST check BEFORE Zod validation to avoid validation errors
+    if (body.action === 'chat.deliver' && body.data) {
+      // V2 E2EE Message - store in chatInbox
+      const { recipientDid, recipientDeviceId, ciphertext } = body.data;
+      
+      if (!recipientDid || !ciphertext) {
+        return NextResponse.json({ error: 'Invalid V2 payload' }, { status: 400 });
+      }
+
+      // Find recipient by DID
+      const recipient = await db.query.users.findFirst({
+        where: eq(users.did, recipientDid)
+      });
+
+      if (!recipient) {
+        return NextResponse.json({ error: 'Recipient not found' }, { status: 404 });
+      }
+
+      // Import chatInbox schema
+      const { chatInbox } = await import('@/db/schema');
+      
+      // Store in V2 inbox
+      await db.insert(chatInbox).values({
+        senderDid: body.did, // From signed envelope
+        recipientDid,
+        recipientDeviceId: recipientDeviceId || null,
+        envelope: JSON.stringify(body),
+        expiresAt: new Date(Date.now() + 30 * 24 * 60 * 60 * 1000)
+      });
+
+      console.log(`[Swarm Chat V2] Received encrypted message for ${recipientDid}`);
+
+      return NextResponse.json({
+        success: true,
+        message: 'V2 message received',
+        version: 2
+      });
+    }
+    
+    // V1 Legacy Message Format - validate with Zod
     const data = chatMessageSchema.parse(body) as SwarmChatMessagePayload;
 
     // Find the recipient (local user)
diff --git a/src/lib/hooks/useChatEncryption.ts b/src/lib/hooks/useChatEncryption.ts
index 50d0427..2377c93 100644
--- a/src/lib/hooks/useChatEncryption.ts
+++ b/src/lib/hooks/useChatEncryption.ts
@@ -412,8 +412,14 @@ export function useChatEncryption() {
       });
 
       if (!sendRes.ok) {
-        const errorData = await sendRes.json().catch(() => ({ error: 'Unknown error' }));
-        console.error('[Chat] Send failed:', errorData);
+        const errorText = await sendRes.text();
+        let errorData;
+        try {
+          errorData = JSON.parse(errorText);
+        } catch {
+          errorData = { error: errorText };
+        }
+        console.error('[Chat] Send failed:', sendRes.status, errorData);
         throw new Error(`Failed to send message: ${errorData.error || sendRes.statusText}`);
       }