diff --git a/lua/avante/llm.lua b/lua/avante/llm.lua
index ad6d96f..476a9f4 100644
--- a/lua/avante/llm.lua
+++ b/lua/avante/llm.lua
@@ -148,7 +148,14 @@ M.stream = function(question, code_lang, code_content, selected_content_content,
     on_error = function(err)
       on_complete(err)
     end,
-    callback = function(_)
+    callback = function(result)
+      if result.status >= 400 then
+        if Provider.on_error then
+          Provider.on_error(result)
+        else
+          Utils.error("API request failed with status " .. result.status, { once = true, title = "Avante" })
+        end
+      end
       active_job = nil
     end,
   })
diff --git a/lua/avante/providers/claude.lua b/lua/avante/providers/claude.lua
index 82bb466..77bf043 100644
--- a/lua/avante/providers/claude.lua
+++ b/lua/avante/providers/claude.lua
@@ -104,4 +104,26 @@ M.parse_curl_args = function(provider, code_opts)
   }
 end
 
+M.on_error = function(result)
+  if not result.body then
+    return Utils.error("API request failed with status " .. result.status, { once = true, title = "Avante" })
+  end
+
+  local ok, body = pcall(vim.json.decode, result.body)
+  if not (ok and body and body.error) then
+    return Utils.error("Failed to parse error response", { once = true, title = "Avante" })
+  end
+
+  local error_msg = body.error.message
+  local error_type = body.error.type
+
+  if error_type == "insufficient_quota" then
+    error_msg = "You don't have any credits or have exceeded your quota. Please check your plan and billing details."
+  elseif error_type == "invalid_request_error" and error_msg:match("temperature") then
+    error_msg = "Invalid temperature value. Please ensure it's between 0 and 1."
+  end
+
+  Utils.error(error_msg, { once = true, title = "Avante" })
+end
+
 return M
diff --git a/lua/avante/providers/init.lua b/lua/avante/providers/init.lua
index bcecbdf..f7b7d73 100644
--- a/lua/avante/providers/init.lua
+++ b/lua/avante/providers/init.lua
@@ -72,6 +72,7 @@ local Dressing = require("avante.ui.dressing")
 ---@field model? string
 ---@field parse_api_key fun(): string | nil
 ---@field parse_stream_data? AvanteStreamParser
+---@field on_error? fun(result: table): nil
 ---
 ---@class avante.Providers
 ---@field openai AvanteProviderFunctor