diff --git a/package.json b/package.json
index 6989249a41..83fbda63ca 100644
--- a/package.json
+++ b/package.json
@@ -37,7 +37,7 @@
   "dependencies": {
     "@bitcoin-design/bitcoin-icons-react": "^0.1.10",
     "@bitcoinerlab/secp256k1": "^1.0.5",
-    "@getalby/sdk": "^2.2.3",
+    "@getalby/sdk": "^2.5.0",
     "@headlessui/react": "^1.7.16",
     "@lightninglabs/lnc-web": "^0.2.4-alpha",
     "@noble/curves": "^1.1.0",
diff --git a/src/extension/background-script/connectors/alby.ts b/src/extension/background-script/connectors/alby.ts
index 3df2a38fd7..059b53febe 100644
--- a/src/extension/background-script/connectors/alby.ts
+++ b/src/extension/background-script/connectors/alby.ts
@@ -254,11 +254,20 @@ export default class Alby implements Connector {
         token: this.config.oAuthToken, // initialize with existing token
       });
 
+      authClient.on("tokenRefreshed", (token: Token) => {
+        this._updateOAuthToken(token);
+      });
+      // Currently the JS SDK guarantees request of a new refresh token is done synchronously.
+      // The only way a refresh should fail is if the refresh token has expired, which is handled when the connector is initialized.
+      // If a token refresh fails after init then the connector will be unusable, but we will still log errors here so that this can be debugged if it does ever happen.
+      authClient.on("tokenRefreshFailed", (error: Error) => {
+        console.error("Failed to Refresh token", error);
+      });
+
       if (this.config.oAuthToken) {
         try {
           if (authClient.isAccessTokenExpired()) {
-            const token = await authClient.refreshAccessToken();
-            await this._updateOAuthToken(token.token);
+            await authClient.refreshAccessToken();
           }
           return authClient;
         } catch (error) {
@@ -302,7 +311,6 @@ export default class Alby implements Connector {
     if (!this._authUser || !this._client) {
       throw new Error("Alby client was not initialized");
     }
-    const oldToken = this._authUser?.token;
     let result: T;
     try {
       result = await func(this._client);
@@ -310,11 +318,6 @@ export default class Alby implements Connector {
       console.error(error);
 
       throw error;
-    } finally {
-      const newToken = this._authUser.token;
-      if (newToken && newToken !== oldToken) {
-        await this._updateOAuthToken(newToken);
-      }
     }
     return result;
   }
diff --git a/yarn.lock b/yarn.lock
index bc5eff3c53..4ba068dffc 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -666,12 +666,13 @@
   resolved "https://registry.yarnpkg.com/@eslint/js/-/js-8.51.0.tgz#6d419c240cfb2b66da37df230f7e7eef801c32fa"
   integrity sha512-HxjQ8Qn+4SI3/AFv6sOrDB+g6PpUTDwSJiQqOrnneEk8L71161srI9gjzzZvYVbzHiVg/BvcH95+cK/zfIt4pg==
 
-"@getalby/sdk@^2.2.3":
-  version "2.2.3"
-  resolved "https://registry.npmjs.org/@getalby/sdk/-/sdk-2.2.3.tgz"
-  integrity sha512-8NvzGtpyne8EmRlCcg/sF3kUZWeHRXqZwS1HNuP1ytNNfmKFUZpo3GOauwzEpFFmaD+Fht5bjT3Y/XLk0QtFSw==
+"@getalby/sdk@^2.5.0":
+  version "2.5.0"
+  resolved "https://registry.yarnpkg.com/@getalby/sdk/-/sdk-2.5.0.tgz#d1b0a22cbcf986755c4b684096d97f52ed0b469d"
+  integrity sha512-MRLgI6WxCCLgrar+qDqm/UhKs+V6yXzNm4y1bJRAuN72nkKT+TjTJHCmk9GjTngR3FrOfLbeMsPwBxCmbvfrLQ==
   dependencies:
     crypto-js "^4.1.1"
+    events "^3.3.0"
     nostr-tools "1.13.1"
 
 "@headlessui/react@^1.7.16":