diff --git a/backend/app/api/dependencies/auth.py b/backend/app/api/dependencies/auth.py
index 5d6a7aa..5eb91f3 100755
--- a/backend/app/api/dependencies/auth.py
+++ b/backend/app/api/dependencies/auth.py
@@ -151,3 +151,83 @@ async def get_optional_current_user(
         return user
     except (TokenExpiredError, TokenInvalidError):
         return None
+
+
+async def get_current_user_sse(
+    db: AsyncSession = Depends(get_db),
+    authorization: str | None = Header(None),
+    token: str | None = None,  # Query parameter - passed directly from route
+) -> User:
+    """
+    Get the current authenticated user for SSE endpoints.
+
+    SSE (Server-Sent Events) via EventSource API doesn't support custom headers,
+    so this dependency accepts tokens from either:
+    1. Authorization header (preferred, for non-EventSource clients)
+    2. Query parameter 'token' (fallback for EventSource compatibility)
+
+    Security note: Query parameter tokens appear in server logs and browser history.
+    Consider implementing short-lived SSE-specific tokens for production if this
+    is a concern. The current approach is acceptable for internal/trusted networks.
+
+    Args:
+        db: Database session
+        authorization: Authorization header (Bearer token)
+        token: Query parameter token (fallback for EventSource)
+
+    Returns:
+        User: The authenticated user
+
+    Raises:
+        HTTPException: If authentication fails
+    """
+    # Try Authorization header first (preferred)
+    auth_token = None
+    if authorization:
+        scheme, param = get_authorization_scheme_param(authorization)
+        if scheme.lower() == "bearer" and param:
+            auth_token = param
+
+    # Fall back to query parameter if no header token
+    if not auth_token and token:
+        auth_token = token
+
+    if not auth_token:
+        raise HTTPException(
+            status_code=status.HTTP_401_UNAUTHORIZED,
+            detail="Not authenticated",
+            headers={"WWW-Authenticate": "Bearer"},
+        )
+
+    try:
+        # Decode token and get user ID
+        token_data = get_token_data(auth_token)
+
+        # Get user from database
+        result = await db.execute(select(User).where(User.id == token_data.user_id))
+        user = result.scalar_one_or_none()
+
+        if not user:
+            raise HTTPException(
+                status_code=status.HTTP_404_NOT_FOUND, detail="User not found"
+            )
+
+        if not user.is_active:
+            raise HTTPException(
+                status_code=status.HTTP_403_FORBIDDEN, detail="Inactive user"
+            )
+
+        return user
+
+    except TokenExpiredError:
+        raise HTTPException(
+            status_code=status.HTTP_401_UNAUTHORIZED,
+            detail="Token expired",
+            headers={"WWW-Authenticate": "Bearer"},
+        )
+    except TokenInvalidError:
+        raise HTTPException(
+            status_code=status.HTTP_401_UNAUTHORIZED,
+            detail="Could not validate credentials",
+            headers={"WWW-Authenticate": "Bearer"},
+        )
diff --git a/backend/app/api/routes/events.py b/backend/app/api/routes/events.py
index 5d987a8..4e4d463 100644
--- a/backend/app/api/routes/events.py
+++ b/backend/app/api/routes/events.py
@@ -20,12 +20,12 @@ import logging
 from typing import TYPE_CHECKING
 from uuid import UUID
 
-from fastapi import APIRouter, Depends, Header, Request
+from fastapi import APIRouter, Depends, Header, Query, Request
 from slowapi import Limiter
 from slowapi.util import get_remote_address
 from sse_starlette.sse import EventSourceResponse
 
-from app.api.dependencies.auth import get_current_user
+from app.api.dependencies.auth import get_current_user, get_current_user_sse
 from app.api.dependencies.event_bus import get_event_bus
 from app.core.database import get_db
 from app.core.exceptions import AuthorizationError
@@ -150,9 +150,16 @@ async def event_generator(
     description="""
     Stream real-time events for a project via Server-Sent Events (SSE).
 
-    **Authentication**: Required (Bearer token)
+    **Authentication**: Required (Bearer token OR query parameter)
     **Authorization**: Must have access to the project
 
+    **Authentication Methods**:
+    - Bearer token in Authorization header (preferred)
+    - Query parameter `token` (for EventSource compatibility)
+
+    Note: EventSource API doesn't support custom headers, so the query parameter
+    option is provided for browser-based SSE clients.
+
     **SSE Event Format**:
     ```
     event: agent.status_changed
@@ -190,9 +197,10 @@ async def event_generator(
 async def stream_project_events(
     request: Request,
     project_id: UUID,
-    current_user: User = Depends(get_current_user),
-    event_bus: EventBus = Depends(get_event_bus),
     db: "AsyncSession" = Depends(get_db),
+    event_bus: EventBus = Depends(get_event_bus),
+    token: str | None = Query(None, description="Auth token (for EventSource compatibility)"),
+    authorization: str | None = Header(None, alias="Authorization"),
     last_event_id: str | None = Header(None, alias="Last-Event-ID"),
 ):
     """
@@ -207,6 +215,11 @@ async def stream_project_events(
 
     The connection is automatically cleaned up when the client disconnects.
     """
+    # Authenticate user (supports both header and query param tokens)
+    current_user = await get_current_user_sse(
+        db=db, authorization=authorization, token=token
+    )
+
     logger.info(
         f"SSE connection request for project {project_id} "
         f"by user {current_user.id} "
diff --git a/frontend/src/lib/hooks/useProjectEvents.ts b/frontend/src/lib/hooks/useProjectEvents.ts
index bf36003..cee36c7 100644
--- a/frontend/src/lib/hooks/useProjectEvents.ts
+++ b/frontend/src/lib/hooks/useProjectEvents.ts
@@ -258,10 +258,11 @@ export function useProjectEvents(
 
     // Build SSE URL with auth token
     const baseUrl = config.api.url;
-    const sseUrl = `${baseUrl}/api/v1/projects/${projectId}/events`;
+    // Backend SSE endpoint is at /events/stream (not /events)
+    const sseUrl = `${baseUrl}/api/v1/projects/${projectId}/events/stream`;
 
     // Note: EventSource doesn't support custom headers natively
-    // We pass the token as a query parameter (backend should validate this)
+    // Backend SSE endpoint accepts token as query parameter for EventSource compatibility
     const urlWithAuth = `${sseUrl}?token=${encodeURIComponent(accessToken)}`;
 
     try {