diff --git a/mergin/client.py b/mergin/client.py
index e9d0b21e..75f34026 100644
--- a/mergin/client.py
+++ b/mergin/client.py
@@ -62,15 +62,30 @@ class ServerType(Enum):
 
 
 def decode_token_data(token):
-    token_prefix = "Bearer ."
+    token_prefix = "Bearer "
     if not token.startswith(token_prefix):
-        raise TokenError(f"Token doesn't start with 'Bearer .': {token}")
+        raise TokenError(f"Token doesn't start with 'Bearer ': {token}")
     try:
-        data = token[len(token_prefix) :].split(".")[0]
-        # add proper base64 padding"
-        data += "=" * (-len(data) % 4)
-        decoded = zlib.decompress(base64.urlsafe_b64decode(data))
-        return json.loads(decoded)
+        token_raw = token[len(token_prefix) :]
+        is_compressed = False
+
+        # compressed tokens start with dot,
+        # see https://github.com/pallets/itsdangerous/blob/main/src/itsdangerous/url_safe.py#L55
+        if token_raw.startswith("."):
+            token_raw = token_raw.lstrip(".")
+            is_compressed = True
+
+        payload_raw = token_raw.split(".")[0]
+
+        # add proper base64 padding
+        payload_raw += "=" * (-len(payload_raw) % 4)
+        payload_data = base64.urlsafe_b64decode(payload_raw)
+
+        if is_compressed:
+            payload_data = zlib.decompress(payload_data)
+
+        return json.loads(payload_data)
+
     except (IndexError, TypeError, ValueError, zlib.error):
         raise TokenError(f"Invalid token data: {token}")
 
diff --git a/mergin/test/test_client.py b/mergin/test/test_client.py
index 32bc192f..43263929 100644
--- a/mergin/test/test_client.py
+++ b/mergin/test/test_client.py
@@ -152,16 +152,37 @@ def test_login(mc):
     assert MerginClient(mc.url, auth_token=token)
 
     invalid_token = "Completely invalid token...."
-    with pytest.raises(TokenError, match=f"Token doesn't start with 'Bearer .': {invalid_token}"):
+    with pytest.raises(TokenError, match=f"Token doesn't start with 'Bearer ': {invalid_token}"):
         decode_token_data(invalid_token)
 
     invalid_token = "Bearer .jas646kgfa"
     with pytest.raises(TokenError, match=f"Invalid token data: {invalid_token}"):
         decode_token_data(invalid_token)
 
+    invalid_token = "Bearer jas646kgfa"
+    with pytest.raises(TokenError, match=f"Invalid token data: {invalid_token}"):
+        decode_token_data(invalid_token)
+
     with pytest.raises(LoginError, match="Invalid username or password"):
         mc.login("foo", "bar")
 
+    valid_token_dot = "Bearer .eJxNi0kKgDAMAL8iubqQRuuSkz-RojkEWi0uIIh_Fz15G2aYC45N1kEnYJN9PLsgwOCijl5l3iEDCU793_VyuhC9FOMS3n5GXd-JkGyObU6UmI6pZoNFZRtbUorIiHA_KFshoA.abc.def"
+    decoded_value = decode_token_data(valid_token_dot)
+
+    # expected: {'user_id': 1, 'username': 'apiclient', 'email': 'apiclient@example.com', 'expire': '2025-08-22 19:26:10.457532+00:00'}
+    assert decoded_value["user_id"] == 1
+    assert decoded_value["username"] == "apiclient"
+    assert decoded_value["email"] == "apiclient@example.com"
+    assert decoded_value["expire"] == "2025-08-22 19:26:10.457532+00:00"
+
+    valid_token_nodot = "Bearer eyJ1c2VyX2lkIjoxLCJ1c2VybmFtZSI6ImFwaSIsImVtYWlsIjoiYXBpQGUuY29tIn0.abc.def"
+    decoded_value = decode_token_data(valid_token_nodot)
+
+    # expected: {'user_id': 1, 'username': 'api', 'email': 'api@e.com'}
+    assert decoded_value["user_id"] == 1
+    assert decoded_value["username"] == "api"
+    assert decoded_value["email"] == "api@e.com"
+
 
 def test_create_delete_project(mc: MerginClient):
     test_project = "test_create_delete"