diff --git a/src/services/api.ts b/src/services/api.ts
index c46ca0a..987347d 100644
--- a/src/services/api.ts
+++ b/src/services/api.ts
@@ -121,16 +121,29 @@ export const api = {
   },
 
   verifyOtp: async (type: string, otp: string, phoneOrEmail?: string) => {
-    const res = await fetch(`${BASE_URL}/auth/verify-otp/`, {
+    const url = `${BASE_URL}/auth/verify-otp/`;
+    const payload = { 
+      type, 
+      otp,
+      phone: type === 'phone' ? phoneOrEmail : undefined,
+      email: type === 'email' ? phoneOrEmail : undefined
+    };
+
+    let res = await fetch(url, {
       method: 'POST',
       headers: getAuthHeaders(),
-      body: JSON.stringify({ 
-        type, 
-        otp,
-        phone: type === 'phone' ? phoneOrEmail : undefined,
-        email: type === 'email' ? phoneOrEmail : undefined
-      })
+      body: JSON.stringify(payload)
     });
+
+    if (res.status === 401) {
+      localStorage.removeItem('tradhox_user_auth');
+      res = await fetch(url, {
+        method: 'POST',
+        headers: { 'Content-Type': 'application/json' },
+        body: JSON.stringify(payload)
+      });
+    }
+
     if (!res.ok) {
       const errData = await res.json().catch(() => ({}));
       const msg = errData.error || errData.message || errData.detail || 'Failed to verify OTP';
@@ -143,7 +156,7 @@ export const api = {
         id: String(data.user.id),
         name: data.user.first_name ? `${data.user.first_name} ${data.user.last_name || ''}`.trim() : data.user.username,
         email: data.user.email,
-        phone: data.user.profile?.phone || phoneOrEmail,
+        phone: data.user.profile?.phone || (type === 'phone' ? phoneOrEmail : ''),
         role: 'Seller',
         avatar: data.user.profile?.logo_url || '/images/avatars/seller-main.jpg',
         storeName: data.user.profile?.store_name || 'My Store'