diff --git a/cosmos/_triggers/watcher.py b/cosmos/_triggers/watcher.py
index 98f9f47625..bfbf4ca98d 100644
--- a/cosmos/_triggers/watcher.py
+++ b/cosmos/_triggers/watcher.py
@@ -115,10 +115,15 @@ async def run(self) -> AsyncIterator[TriggerEvent]:
                 return
             elif node_status == "failed":
                 self.log.warning("Model '%s' failed", self.model_unique_id)
-                yield TriggerEvent({"status": "failed"})  # type: ignore[no-untyped-call]
+                yield TriggerEvent({"status": "failed", "reason": "model_failed"})  # type: ignore[no-untyped-call]
                 return
             elif producer_task_state == "failed":
-                yield TriggerEvent({"status": "failed"})  # type: ignore[no-untyped-call]
+                self.log.error(
+                    "Watcher producer task '%s' failed before delivering results for model '%s'",
+                    self.producer_task_id,
+                    self.model_unique_id,
+                )
+                yield TriggerEvent({"status": "failed", "reason": "producer_failed"})  # type: ignore[no-untyped-call]
                 return
 
             # Sleep briefly before re-polling
diff --git a/cosmos/operators/watcher.py b/cosmos/operators/watcher.py
index 456a9bc5d6..30bfdb2670 100644
--- a/cosmos/operators/watcher.py
+++ b/cosmos/operators/watcher.py
@@ -393,9 +393,19 @@ def execute(self, context: Context, **kwargs: Any) -> None:
             )
 
     def execute_complete(self, context: Context, event: dict[str, str]) -> None:
-        if event.get("status") == "failed":
+        status = event.get("status")
+        if status != "failed":
+            return
+
+        reason = event.get("reason")
+        if reason == "model_failed":
+            raise AirflowException(
+                f"dbt model '{self.model_unique_id}' failed. Review the producer task '{self.producer_task_id}' logs for details."
+            )
+
+        if reason == "producer_failed":
             raise AirflowException(
-                f"The dbt build command failed in producer task. Please check the log of task {self.producer_task_id} for details."
+                f"Watcher producer task '{self.producer_task_id}' failed before reporting model results. Check its logs for the underlying error."
             )
 
     def _use_event(self) -> bool:
diff --git a/tests/_triggers/test_watcher.py b/tests/_triggers/test_watcher.py
index 357cc70c9c..96c17890a1 100644
--- a/tests/_triggers/test_watcher.py
+++ b/tests/_triggers/test_watcher.py
@@ -99,24 +99,24 @@ async def test_get_xcom_val_branches(self, airflow_version, expected_val):
                     assert val == "af3"
 
     @pytest.mark.parametrize(
-        "node_status, dr_state, expected",
+        "node_status, producer_state, expected",
         [
-            ("success", "running", "success"),
-            ("failed", "running", "failed"),
-            (None, "failed", "failed"),
+            ("success", "running", {"status": "success"}),
+            ("failed", "running", {"status": "failed", "reason": "model_failed"}),
+            (None, "failed", {"status": "failed", "reason": "producer_failed"}),
         ],
     )
-    async def test_run_various_outcomes(self, node_status, dr_state, expected):
+    async def test_run_various_outcomes(self, node_status, producer_state, expected):
 
         async def fake_get_xcom_val(key):
-            return dr_state if key == "state" else "compressed_data"
+            return producer_state if key == "state" else "compressed_data"
 
         with patch.object(self.trigger, "get_xcom_val", side_effect=fake_get_xcom_val), patch(
             "cosmos._triggers.watcher._parse_compressed_xcom",
             return_value={"data": {"run_result": {"status": node_status}}} if node_status else {},
         ):
             events = [event async for event in self.trigger.run()]
-            assert events[0].payload["status"] == expected
+            assert events[0].payload == expected
 
     @pytest.mark.asyncio
     async def test_run_poke_interval_and_debug_log(self, caplog):
diff --git a/tests/operators/test_watcher.py b/tests/operators/test_watcher.py
index 213c4f83c2..37857a42f4 100644
--- a/tests/operators/test_watcher.py
+++ b/tests/operators/test_watcher.py
@@ -214,6 +214,44 @@ def test_dbt_producer_watcher_operator_blocks_retry_attempt(caplog):
     assert any("does not support Airflow retries" in message for message in caplog.messages)
 
 
+@pytest.mark.parametrize(
+    "event, expected_message",
+    [
+        ({"status": "success"}, None),
+        (
+            {"status": "failed", "reason": "model_failed"},
+            "dbt model 'model.pkg.m' failed. Review the producer task 'dbt_producer_watcher_operator' logs for details.",
+        ),
+        (
+            {"status": "failed", "reason": "producer_failed"},
+            "Watcher producer task 'dbt_producer_watcher_operator' failed before reporting model results. Check its logs for the underlying error.",
+        ),
+    ],
+)
+def test_dbt_consumer_watcher_sensor_execute_complete(event, expected_message):
+    sensor = DbtConsumerWatcherSensor(
+        project_dir=".",
+        profiles_dir=".",
+        profile_config=profile_config,
+        model_unique_id="model.pkg.m",
+        poke_interval=1,
+        producer_task_id="dbt_producer_watcher_operator",
+        task_id="consumer_sensor",
+    )
+    sensor.model_unique_id = "model.pkg.m"
+
+    context = {"dag_run": MagicMock()}
+
+    if expected_message is None:
+        sensor.execute_complete(context, event)
+        return
+
+    with pytest.raises(AirflowException) as excinfo:
+        sensor.execute_complete(context, event)
+
+    assert str(excinfo.value) == expected_message
+
+
 def test_handle_node_finished_pushes_xcom():
     op = DbtProducerWatcherOperator(project_dir=".", profile_config=None)
     ti = _MockTI()
@@ -700,7 +738,8 @@ def test_sensor_not_deferred(self, mock_poke):
     @pytest.mark.parametrize(
         "mock_event",
         [
-            {"status": "failed"},
+            {"status": "failed", "reason": "model_failed"},
+            {"status": "failed", "reason": "producer_failed"},
             {"status": "success"},
         ],
     )