diff --git a/frontend/src/components/FirstTimeAdminSetup.jsx b/frontend/src/components/FirstTimeAdminSetup.jsx
index 5d34624..09e1f97 100644
--- a/frontend/src/components/FirstTimeAdminSetup.jsx
+++ b/frontend/src/components/FirstTimeAdminSetup.jsx
@@ -1,9 +1,11 @@
 import { AlertCircle, CheckCircle, Shield, UserPlus } from "lucide-react";
 import { useId, useState } from "react";
+import { useNavigate } from "react-router-dom";
 import { useAuth } from "../contexts/AuthContext";
 
 const FirstTimeAdminSetup = () => {
 	const { login, setAuthState } = useAuth();
+	const navigate = useNavigate();
 	const firstNameId = useId();
 	const lastNameId = useId();
 	const usernameId = useId();
@@ -98,13 +100,24 @@ const FirstTimeAdminSetup = () => {
 
 				// If the response includes a token, use it to automatically log in
 				if (data.token && data.user) {
-					// Auto-login using the token from the setup response
+					// Set the authentication state immediately
 					setAuthState(data.token, data.user);
-					setTimeout(() => {}, 2000);
+					// Navigate to dashboard after successful setup
+					setTimeout(() => {
+						navigate("/", { replace: true });
+					}, 100); // Small delay to ensure auth state is set
 				} else {
 					// Fallback to manual login if no token provided
-					setTimeout(() => {
-						login(formData.username.trim(), formData.password);
+					setTimeout(async () => {
+						try {
+							await login(formData.username.trim(), formData.password);
+						} catch (error) {
+							console.error("Auto-login failed:", error);
+							setError(
+								"Account created but auto-login failed. Please login manually.",
+							);
+							setSuccess(false);
+						}
 					}, 2000);
 				}
 			} else {
@@ -132,8 +145,8 @@ const FirstTimeAdminSetup = () => {
 							Admin Account Created!
 						</h1>
 						<p className="text-secondary-600 dark:text-secondary-300 mb-6">
-							Your admin account has been successfully created. You will be
-							automatically logged in shortly.
+							Your admin account has been successfully created and you are now
+							logged in. Redirecting to the dashboard...
 						</p>
 						<div className="flex justify-center">
 							<div className="animate-spin rounded-full h-6 w-6 border-b-2 border-primary-600"></div>
diff --git a/frontend/src/contexts/AuthContext.jsx b/frontend/src/contexts/AuthContext.jsx
index bf2cf87..cc86e6e 100644
--- a/frontend/src/contexts/AuthContext.jsx
+++ b/frontend/src/contexts/AuthContext.jsx
@@ -5,6 +5,7 @@ import {
 	useEffect,
 	useState,
 } from "react";
+import { flushSync } from "react-dom";
 import { AUTH_PHASES, isAuthPhase } from "../constants/authPhases";
 
 const AuthContext = createContext();
@@ -268,11 +269,20 @@ export const AuthProvider = ({ children }) => {
 	}, [authPhase, checkAdminUsersExist]);
 
 	const setAuthState = (authToken, authUser) => {
-		setToken(authToken);
-		setUser(authUser);
+		// Use flushSync to ensure all state updates are applied synchronously
+		flushSync(() => {
+			setToken(authToken);
+			setUser(authUser);
+			setNeedsFirstTimeSetup(false);
+			setAuthPhase(AUTH_PHASES.READY);
+		});
+
+		// Store in localStorage after state is updated
 		localStorage.setItem("token", authToken);
 		localStorage.setItem("user", JSON.stringify(authUser));
-		setAuthPhase(AUTH_PHASES.READY); // Authentication complete, move to ready phase
+
+		// Fetch permissions immediately for the new authenticated user
+		fetchPermissions(authToken);
 	};
 
 	// Computed loading state based on phase and permissions state