diff --git a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryService.java b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryService.java
index 3dc449de97..8d09b866f5 100644
--- a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryService.java
+++ b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/FactoryService.java
@@ -43,6 +43,8 @@ import org.eclipse.che.api.factory.server.scm.exception.UnknownScmProviderExcept
 import org.eclipse.che.api.factory.server.scm.exception.UnsatisfiedScmPreconditionException;
 import org.eclipse.che.api.factory.shared.dto.FactoryMetaDto;
 import org.eclipse.che.security.oauth.AuthorisationRequestManager;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
 
 /**
  * Defines Factory REST API.
@@ -61,6 +63,8 @@ public class FactoryService extends Service {
   /** Validate query parameter. If true, factory will be validated */
   public static final String VALIDATE_QUERY_PARAMETER = "validate";
 
+  private static final Logger LOG = LoggerFactory.getLogger(FactoryService.class);
+
   private final FactoryAcceptValidator acceptValidator;
   private final FactoryParametersResolverHolder factoryParametersResolverHolder;
   private final AdditionalFilenamesProvider additionalFilenamesProvider;
@@ -160,7 +164,8 @@ public class FactoryService extends Service {
         | ScmConfigurationPersistenceException
         | UnknownScmProviderException
         | UnsatisfiedScmPreconditionException e) {
-      throw new ApiException(e);
+      // Do not throw an exception here, proceed the workspace start.
+      LOG.debug("Failed to update the OAuth token", e);
     } catch (ScmUnauthorizedException e) {
       throw toApiException(e);
     }
diff --git a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryServiceTest.java b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryServiceTest.java
index 0f9fd72867..51b42cb3bd 100644
--- a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryServiceTest.java
+++ b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/FactoryServiceTest.java
@@ -55,6 +55,10 @@ import org.eclipse.che.api.factory.server.FactoryService.FactoryParametersResolv
 import org.eclipse.che.api.factory.server.builder.FactoryBuilder;
 import org.eclipse.che.api.factory.server.impl.SourceStorageParametersValidator;
 import org.eclipse.che.api.factory.server.scm.PersonalAccessTokenManager;
+import org.eclipse.che.api.factory.server.scm.exception.ScmCommunicationException;
+import org.eclipse.che.api.factory.server.scm.exception.ScmConfigurationPersistenceException;
+import org.eclipse.che.api.factory.server.scm.exception.UnknownScmProviderException;
+import org.eclipse.che.api.factory.server.scm.exception.UnsatisfiedScmPreconditionException;
 import org.eclipse.che.api.factory.server.urlfactory.RemoteFactoryUrl;
 import org.eclipse.che.api.factory.shared.dto.FactoryDto;
 import org.eclipse.che.api.user.server.PreferenceManager;
@@ -72,6 +76,7 @@ import org.mockito.InjectMocks;
 import org.mockito.Mock;
 import org.mockito.testng.MockitoTestNGListener;
 import org.testng.annotations.BeforeMethod;
+import org.testng.annotations.DataProvider;
 import org.testng.annotations.Listeners;
 import org.testng.annotations.Test;
 
@@ -309,6 +314,48 @@ public class FactoryServiceTest {
         "Factory url required");
   }
 
+  @Test(dataProvider = "exceptionProvider")
+  public void shouldNotThrowExceptionOtherThenScmUnauthorizedException(
+      Class<Throwable> throwableClass) throws Exception {
+    // given
+    final FactoryParametersResolverHolder dummyHolder = spy(factoryParametersResolverHolder);
+    FactoryParametersResolver factoryParametersResolver = mock(FactoryParametersResolver.class);
+    doReturn(factoryParametersResolver).when(dummyHolder).getFactoryParametersResolver(anyMap());
+    RemoteFactoryUrl remoteFactoryUrl = mock(RemoteFactoryUrl.class);
+    when(factoryParametersResolver.parseFactoryUrl(eq("someUrl"))).thenReturn(remoteFactoryUrl);
+    when(remoteFactoryUrl.getProviderUrl()).thenReturn(scmServerUrl);
+    when(authorisationRequestManager.isStored(any())).thenReturn(false);
+    when(personalAccessTokenManager.getAndStore(any())).thenThrow(throwableClass);
+    service =
+        new FactoryService(
+            acceptValidator,
+            dummyHolder,
+            additionalFilenamesProvider,
+            personalAccessTokenManager,
+            authorisationRequestManager);
+
+    // when
+    Response response =
+        given()
+            .contentType(ContentType.JSON)
+            .when()
+            .queryParam("url", "someUrl")
+            .post(SERVICE_PATH + "/token/refresh");
+
+    // then
+    assertEquals(response.getStatusCode(), 204);
+  }
+
+  @DataProvider(name = "exceptionProvider")
+  private Object[] exceptionClasses() {
+    return new Class[] {
+      ScmCommunicationException.class,
+      ScmConfigurationPersistenceException.class,
+      UnknownScmProviderException.class,
+      UnsatisfiedScmPreconditionException.class
+    };
+  }
+
   @Test
   public void shouldReturnDefaultFactoryParameterResolver() throws Exception {
     // given