diff --git a/agent.ts b/agent.ts
index 36d4d8c3..f449eddb 100644
--- a/agent.ts
+++ b/agent.ts
@@ -24,6 +24,7 @@ import {
   Networks,
   BASE_FEE
 } from "@stellar/stellar-sdk";
+import { decodeStellarError } from "./utils/errorDecoder";
 
 const { Server } = Horizon;
 
@@ -398,8 +399,9 @@ export class AgentClient {
       };
 
     } catch (error) {
-      console.error("Token launch failed:", error);
-      throw new Error(`Token launch failed: ${error instanceof Error ? error.message : String(error)}`);
+      const decodedError = decodeStellarError(error);
+      console.error("Token launch failed:", decodedError);
+      throw new Error(`Token launch failed: ${decodedError}`);
     }
   }
 
diff --git a/lib/contract.ts b/lib/contract.ts
index 200884d5..4cf129f4 100644
--- a/lib/contract.ts
+++ b/lib/contract.ts
@@ -11,6 +11,7 @@ import {
   } from "@stellar/stellar-sdk";
   import { signTransaction } from "./stellar";
   import { buildTransaction } from "../utils/buildTransaction";
+  import { decodeStellarError } from "../utils/errorDecoder";
   
   export interface SorobanContractConfig {
     network: "testnet" | "mainnet";
@@ -111,8 +112,9 @@ import {
       const passphrase = config.network === "mainnet" ? Networks.PUBLIC : Networks.TESTNET;
       const tx = TransactionBuilder.fromXDR(signedXDR, passphrase);
       const txResult = await server.sendTransaction(tx).catch((err) => {
-        console.error(`Send transaction failed for ${functName}: ${err.message}`);
-        throw new Error(`Send transaction failed: ${err.message}`);
+        const decodedError = decodeStellarError(err);
+        console.error(`Send transaction failed for ${functName}: ${decodedError}`);
+        throw new Error(`Send transaction failed: ${decodedError}`);
       });
   
       let txResponse = await server.getTransaction(txResult.hash);
@@ -130,8 +132,9 @@ import {
       }
   
       if (txResponse.status !== "SUCCESS") {
+        const decodedError = decodeStellarError(txResponse);
         console.error(`Transaction failed for ${functName} with status: ${txResponse.status}`, JSON.stringify(txResponse, null, 2));
-        throw new Error(`Transaction failed with status: ${txResponse.status}`);
+        throw new Error(`Transaction failed: ${decodedError} (Status: ${txResponse.status})`);
       }
   
       // Parse return value if present (e.g., for withdraw)
@@ -149,9 +152,9 @@ import {
   
       return null; // No return value for void functions
     } catch (error: unknown) {
-      const errorMessage = error instanceof Error ? error.message : String(error);
-      console.error(`Error in contract interaction (${functName}):`, errorMessage);
-      throw error;
+      const decodedError = decodeStellarError(error);
+      console.error(`Error in contract interaction (${functName}):`, decodedError);
+      throw new Error(`Contract interaction failed: ${decodedError}`);
     }
   };
   
diff --git a/lib/dex.ts b/lib/dex.ts
index d14da97a..bbf96929 100644
--- a/lib/dex.ts
+++ b/lib/dex.ts
@@ -8,6 +8,7 @@ import {
 } from "@stellar/stellar-sdk";
 import { getSigningKeypair, signTransaction } from "./stellar";
 import { buildPathPaymentTransaction } from "../utils/buildTransaction";
+import { decodeStellarError } from "../utils/errorDecoder";
 
 export type StellarAssetInput =
   | { type: "native" }
@@ -260,7 +261,10 @@ export async function swapBestRoute(
     signedXdr,
     getNetworkPassphrase(client.network)
   );
-  const submission = await server.submitTransaction(signedTransaction);
+  const submission = await server.submitTransaction(signedTransaction).catch((err) => {
+    const decodedError = decodeStellarError(err);
+    throw new Error(`Swap failed: ${decodedError}`);
+  });
 
   return {
     hash: submission.hash,
diff --git a/package-lock.json b/package-lock.json
index 184ce2b5..065f3907 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -2420,6 +2420,20 @@
         "node": ">=4.5"
       }
     },
+    "node_modules/bufferutil": {
+      "version": "4.1.0",
+      "resolved": "https://registry.npmjs.org/bufferutil/-/bufferutil-4.1.0.tgz",
+      "integrity": "sha512-ZMANVnAixE6AWWnPzlW2KpUrxhm9woycYvPOo67jWHyFowASTEd9s+QN1EIMsSDtwhIxN4sWE1jotpuDUIgyIw==",
+      "hasInstallScript": true,
+      "license": "MIT",
+      "optional": true,
+      "dependencies": {
+        "node-gyp-build": "^4.3.0"
+      },
+      "engines": {
+        "node": ">=6.14.2"
+      }
+    },
     "node_modules/c8": {
       "version": "10.1.3",
       "resolved": "https://registry.npmjs.org/c8/-/c8-10.1.3.tgz",
@@ -4045,6 +4059,18 @@
         }
       }
     },
+    "node_modules/node-gyp-build": {
+      "version": "4.8.4",
+      "resolved": "https://registry.npmjs.org/node-gyp-build/-/node-gyp-build-4.8.4.tgz",
+      "integrity": "sha512-LA4ZjwlnUblHVgq0oBF3Jl/6h/Nvs5fzBLwdEF4nuxnFdsfajde4WfxtJr3CaiH+F6ewcIB/q4jQ4UzPyid+CQ==",
+      "license": "MIT",
+      "optional": true,
+      "bin": {
+        "node-gyp-build": "bin.js",
+        "node-gyp-build-optional": "optional.js",
+        "node-gyp-build-test": "build-test.js"
+      }
+    },
     "node_modules/noms": {
       "version": "0.0.0",
       "resolved": "https://registry.npmjs.org/noms/-/noms-0.0.0.tgz",
@@ -5127,6 +5153,20 @@
       "integrity": "sha512-HXgFDgDommxn5/bIv0cnQZsPhHDA90NPHD6+c/v21U5+Sx5hoP8+dP9IZXBU1gIfvdRfhG8cel9QNPeionfcCQ==",
       "license": "MIT"
     },
+    "node_modules/utf-8-validate": {
+      "version": "5.0.10",
+      "resolved": "https://registry.npmjs.org/utf-8-validate/-/utf-8-validate-5.0.10.tgz",
+      "integrity": "sha512-Z6czzLq4u8fPOyx7TU6X3dvUZVvoJmxSQ+IcrlmagKhilxlhZgxPK6C5Jqbkw1IDUmFTM+cz9QDnnLTwDz/2gQ==",
+      "hasInstallScript": true,
+      "license": "MIT",
+      "optional": true,
+      "dependencies": {
+        "node-gyp-build": "^4.3.0"
+      },
+      "engines": {
+        "node": ">=6.14.2"
+      }
+    },
     "node_modules/util": {
       "version": "0.12.5",
       "resolved": "https://registry.npmjs.org/util/-/util-0.12.5.tgz",
@@ -5459,17 +5499,6 @@
         }
       }
     },
-    "node_modules/web3-eth-abi/node_modules/zod": {
-      "version": "3.25.76",
-      "resolved": "https://registry.npmjs.org/zod/-/zod-3.25.76.tgz",
-      "integrity": "sha512-gzUt/qt81nXsFGKIFcC3YnfEAx5NkunCfnDlvuBSSFS02bcXu4Lmea0AFIUwbLWxWPx3d9p8S5QoaujKcNQxcQ==",
-      "license": "MIT",
-      "optional": true,
-      "peer": true,
-      "funding": {
-        "url": "https://github.com/sponsors/colinhacks"
-      }
-    },
     "node_modules/web3-eth-accounts": {
       "version": "4.3.1",
       "resolved": "https://registry.npmjs.org/web3-eth-accounts/-/web3-eth-accounts-4.3.1.tgz",
diff --git a/tests/unit/utils/errorDecoder.test.ts b/tests/unit/utils/errorDecoder.test.ts
new file mode 100644
index 00000000..08d6c719
--- /dev/null
+++ b/tests/unit/utils/errorDecoder.test.ts
@@ -0,0 +1,81 @@
+import { describe, expect, it } from "vitest";
+import { decodeStellarError } from "../../../utils/errorDecoder";
+
+describe("errorDecoder", () => {
+  it("decodes Horizon error with result codes", () => {
+    const error = {
+      response: {
+        data: {
+          extras: {
+            result_codes: {
+              transaction: "tx_failed",
+              operations: ["op_underfunded"],
+            },
+          },
+        },
+      },
+    };
+    const decoded = decodeStellarError(error);
+    expect(decoded).toContain("The transaction failed to execute.");
+    expect(decoded).toContain("Account has insufficient funds for this operation.");
+  });
+
+  it("decodes Horizon error with multiple operation failures", () => {
+    const error = {
+      response: {
+        data: {
+          extras: {
+            result_codes: {
+              transaction: "tx_failed",
+              operations: ["op_success", "op_no_trust"],
+            },
+          },
+        },
+      },
+    };
+    const decoded = decodeStellarError(error);
+    expect(decoded).toContain("The transaction failed to execute.");
+    expect(decoded).toContain("The account is missing a trustline for the required asset.");
+    expect(decoded).not.toContain("op_success");
+  });
+
+  it("handles Horizon detail message if no result codes", () => {
+    const error = {
+      response: {
+        data: {
+          detail: "The request was invalid.",
+        },
+      },
+    };
+    const decoded = decodeStellarError(error);
+    expect(decoded).toBe("The request was invalid.");
+  });
+
+  it("handles Soroban FAILED status", () => {
+    const error = {
+      status: "FAILED",
+    };
+    const decoded = decodeStellarError(error);
+    expect(decoded).toBe("The smart contract transaction failed.");
+  });
+
+  it("handles general error objects", () => {
+    const error = new Error("Something went wrong");
+    const decoded = decodeStellarError(error);
+    expect(decoded).toBe("Something went wrong");
+  });
+
+  it("extracts codes from error messages", () => {
+    const error = new Error("Error: op_low_reserve");
+    const decoded = decodeStellarError(error);
+    expect(decoded).toContain("Account does not have enough balance to meet the minimum reserve requirement.");
+    expect(decoded).toContain("(op_low_reserve)");
+  });
+
+  it("handles unknown errors", () => {
+    const decoded = decodeStellarError(null);
+    expect(decoded).toBe("Unknown error occurred.");
+    
+    expect(decodeStellarError({})).toBe("[object Object]");
+  });
+});
diff --git a/utils/errorDecoder.ts b/utils/errorDecoder.ts
new file mode 100644
index 00000000..942934b3
--- /dev/null
+++ b/utils/errorDecoder.ts
@@ -0,0 +1,111 @@
+/**
+ * Utility to decode Stellar and Soroban error messages into human-readable strings.
+ */
+
+export interface StellarError {
+  response?: {
+    data?: {
+      extras?: {
+        result_codes?: {
+          transaction?: string;
+          operations?: string[];
+        };
+      };
+      detail?: string;
+    };
+    status?: number;
+  };
+  message?: string;
+}
+
+const ERROR_MESSAGES: Record<string, string> = {
+  // Transaction level
+  tx_failed: "The transaction failed to execute.",
+  tx_bad_seq: "Transaction sequence number is incorrect. Please try again.",
+  tx_too_late: "The transaction has expired.",
+  tx_too_early: "The transaction was submitted too early.",
+  tx_insufficient_fee: "The transaction fee was too low.",
+  tx_missing_operation: "The transaction has no operations.",
+  tx_bad_auth: "Transaction has too few or invalid signatures.",
+  tx_no_source_account: "The source account was not found.",
+
+  // Operation level
+  op_underfunded: "Account has insufficient funds for this operation.",
+  op_low_reserve: "Account does not have enough balance to meet the minimum reserve requirement.",
+  op_no_trust: "The account is missing a trustline for the required asset.",
+  op_not_authorized: "The account is not authorized to hold this asset.",
+  op_line_full: "The trustline limit for this asset has been reached.",
+  op_no_destination: "The destination account does not exist.",
+  op_no_issuer: "The asset issuer does not exist.",
+  op_src_not_authorized: "The source account is not authorized to send this asset.",
+  op_src_no_trust: "The source account is missing a trustline for the asset.",
+  op_too_many_subentries: "The account has reached the maximum number of subentries (trustlines, offers, etc.).",
+  op_cross_self: "Cannot trade with oneself.",
+  op_bad_auth: "Operation has invalid signatures.",
+  op_immutable_set: "The account is immutable and its options cannot be changed.",
+  
+  // DEX specific
+  op_under_dest_min: "The swap could not be completed at the requested price (slippage too high).",
+  op_over_source_max: "The swap would require more source assets than the specified maximum.",
+  op_no_path: "No viable path found for this swap.",
+  
+  // Soroban/Smart Contract
+  HostError: "A smart contract execution error occurred.",
+  ContractError: "The smart contract returned an error.",
+};
+
+/**
+ * Decodes a Stellar/Horizon/Soroban error into a human-readable message.
+ */
+export function decodeStellarError(error: any): string {
+  if (!error) return "Unknown error occurred.";
+
+  // Handle Horizon errors
+  const resultCodes = error.response?.data?.extras?.result_codes;
+  if (resultCodes) {
+    const messages: string[] = [];
+
+    // Check transaction-level error
+    if (resultCodes.transaction && ERROR_MESSAGES[resultCodes.transaction]) {
+      messages.push(ERROR_MESSAGES[resultCodes.transaction]);
+    }
+
+    // Check operation-level errors
+    if (resultCodes.operations && Array.isArray(resultCodes.operations)) {
+      resultCodes.operations.forEach((opCode: string) => {
+        if (opCode !== "op_success" && ERROR_MESSAGES[opCode]) {
+          messages.push(ERROR_MESSAGES[opCode]);
+        } else if (opCode !== "op_success") {
+          messages.push(`Operation failed: ${opCode}`);
+        }
+      });
+    }
+
+    if (messages.length > 0) {
+      return messages.join(" ");
+    }
+  }
+
+  // Handle Horizon detail message
+  if (error.response?.data?.detail) {
+    return error.response.data.detail;
+  }
+
+  // Handle Soroban RPC errors
+  if (error.status === "FAILED") {
+    return "The smart contract transaction failed.";
+  }
+
+  // Handle general Error objects
+  if (error.message) {
+    // Try to extract known error codes from message strings
+    for (const [code, msg] of Object.entries(ERROR_MESSAGES)) {
+      if (error.message.includes(code)) {
+        return `${msg} (${code})`;
+      }
+    }
+    return error.message;
+  }
+
+  return String(error);
+}