diff --git a/src/settings/versions/v1/v1.ts b/src/settings/versions/v1/v1.ts
index 2fc29dd..6799aac 100644
--- a/src/settings/versions/v1/v1.ts
+++ b/src/settings/versions/v1/v1.ts
@@ -5,6 +5,7 @@ import {
 	MAX_DELAY, MAX_MAX_CHAR_LIMIT,
 	MIN_DELAY,
 	MIN_MAX_CHAR_LIMIT,
+	MIN_MAX_TOKENS,
 	azureOAIApiSettingsSchema,
 	fewShotExampleSchema,
 	modelOptionsSchema,
@@ -151,7 +152,7 @@ export const DEFAULT_SETTINGS = {
 		top_p: 0.1,
 		frequency_penalty: 0.25,
 		presence_penalty: 0,
-		max_tokens: 800,
+		max_tokens: MIN_MAX_TOKENS,
 	},
 	// Prompt settings
 	systemMessage: `Your job is to predict the most logical text that should be written at the location of the <mask/>.
diff --git a/src/types/settings.test.ts b/src/types/settings.test.ts
index a768869..d4faf67 100644
--- a/src/types/settings.test.ts
+++ b/src/types/settings.test.ts
@@ -454,4 +454,82 @@ describe('settings migration', () => {
 			},
 		})
 	})
+
+	it('should migrate max_tokens from old value to new minimum', () => {
+		// Test case: user has old max_tokens value (800) that needs to be migrated
+		const settingsWithOldMaxTokens = {
+			version: 0.4,
+			modelOptions: {
+				temperature: 1,
+				top_p: 0.1,
+				frequency_penalty: 0.25,
+				presence_penalty: 0,
+				max_tokens: 800, // Old value that's below new minimum
+			},
+			// Include other required fields for valid settings
+			autocompleteEnabled: true,
+			advancedMode: false,
+			apiProvider: 'openai',
+			triggers: DEFAULT_SETTINGS.triggers,
+			delay: 500,
+			systemMessage: DEFAULT_SETTINGS.systemMessage,
+			fewShotExamples: DEFAULT_SETTINGS.fewShotExamples,
+			userMessageTemplate: '{{prefix}}<mask/>{{suffix}}',
+			chainOfThoughRemovalRegex: '(.|\\n)*ANSWER:',
+			dontIncludeDataviews: true,
+			maxPrefixCharLimit: 4000,
+			maxSuffixCharLimit: 4000,
+			removeDuplicateMathBlockIndicator: true,
+			removeDuplicateCodeBlockIndicator: true,
+			ignoredFilePatterns: '**/secret/**\n',
+			ignoredTags: '',
+			cacheSuggestions: true,
+			debugMode: false,
+		}
+
+		const result = parseInfioSettings(settingsWithOldMaxTokens)
+		
+		// Should successfully parse and migrate max_tokens to 4096
+		expect(result.modelOptions.max_tokens).toBe(4096)
+		expect(result.version).toBe(0.5)
+	})
+
+	it('should not change max_tokens if it is already above minimum', () => {
+		// Test case: user has max_tokens already above minimum
+		const settingsWithValidMaxTokens = {
+			version: 0.4,
+			modelOptions: {
+				temperature: 1,
+				top_p: 0.1,
+				frequency_penalty: 0.25,
+				presence_penalty: 0,
+				max_tokens: 6000, // Already above minimum
+			},
+			// Include other required fields for valid settings
+			autocompleteEnabled: true,
+			advancedMode: false,
+			apiProvider: 'openai',
+			triggers: DEFAULT_SETTINGS.triggers,
+			delay: 500,
+			systemMessage: DEFAULT_SETTINGS.systemMessage,
+			fewShotExamples: DEFAULT_SETTINGS.fewShotExamples,
+			userMessageTemplate: '{{prefix}}<mask/>{{suffix}}',
+			chainOfThoughRemovalRegex: '(.|\\n)*ANSWER:',
+			dontIncludeDataviews: true,
+			maxPrefixCharLimit: 4000,
+			maxSuffixCharLimit: 4000,
+			removeDuplicateMathBlockIndicator: true,
+			removeDuplicateCodeBlockIndicator: true,
+			ignoredFilePatterns: '**/secret/**\n',
+			ignoredTags: '',
+			cacheSuggestions: true,
+			debugMode: false,
+		}
+
+		const result = parseInfioSettings(settingsWithValidMaxTokens)
+		
+		// Should keep the existing max_tokens value since it's already valid
+		expect(result.modelOptions.max_tokens).toBe(6000)
+		expect(result.version).toBe(0.5)
+	})
 })
diff --git a/src/types/settings.ts b/src/types/settings.ts
index cd1bb86..9bad35e 100644
--- a/src/types/settings.ts
+++ b/src/types/settings.ts
@@ -6,6 +6,7 @@ import {
 	MAX_MAX_CHAR_LIMIT,
 	MIN_DELAY,
 	MIN_MAX_CHAR_LIMIT,
+	MIN_MAX_TOKENS,
 	fewShotExampleSchema,
 	modelOptionsSchema
 } from '../settings/versions/shared';
@@ -13,7 +14,7 @@ import { DEFAULT_SETTINGS } from "../settings/versions/v1/v1";
 import { ApiProvider } from '../types/llm/model';
 import { isRegexValid, isValidIgnorePattern } from '../utils/auto-complete';
 
-export const SETTINGS_SCHEMA_VERSION = 0.4
+export const SETTINGS_SCHEMA_VERSION = 0.5
 
 const InfioProviderSchema = z.object({
 	name: z.literal('Infio'),
@@ -432,9 +433,28 @@ const MIGRATIONS: Migration[] = [
 	{
 		fromVersion: 0.1,
 		toVersion: 0.4,
+		migrate: (data) => {
+			const newData = { ...data }
+			newData.version = 0.4
+			return newData
+		},
+	},
+	{
+		fromVersion: 0.4,
+		toVersion: 0.5,
 		migrate: (data) => {
 			const newData = { ...data }
 			newData.version = SETTINGS_SCHEMA_VERSION
+			
+			// Handle max_tokens minimum value increase from 800 to 4096
+			if (newData.modelOptions && typeof newData.modelOptions === 'object') {
+				const modelOptions = newData.modelOptions as Record<string, any>
+				if (typeof modelOptions.max_tokens === 'number' && modelOptions.max_tokens < MIN_MAX_TOKENS) {
+					console.log(`Updating max_tokens from ${modelOptions.max_tokens} to ${MIN_MAX_TOKENS} due to minimum value change`)
+					modelOptions.max_tokens = MIN_MAX_TOKENS
+				}
+			}
+			
 			return newData
 		},
 	},