diff --git a/Cargo.lock b/Cargo.lock
index c2e23dbcde3..597cdf552d5 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1194,6 +1194,7 @@ name = "dash-sdk"
 version = "1.8.0-dev.2"
 dependencies = [
  "arc-swap",
+ "assert_matches",
  "async-trait",
  "backon",
  "base64 0.22.1",
diff --git a/packages/rs-sdk/Cargo.toml b/packages/rs-sdk/Cargo.toml
index 9efb674ccc7..86da12f24ef 100644
--- a/packages/rs-sdk/Cargo.toml
+++ b/packages/rs-sdk/Cargo.toml
@@ -56,6 +56,7 @@ tokio-test = { version = "0.4.4" }
 clap = { version = "4.5.4", features = ["derive"] }
 sanitize-filename = { version = "0.5.0" }
 test-case = { version = "3.3.1" }
+assert_matches = "1.5.0"
 
 [features]
 default = ["mocks", "offline-testing"]
diff --git a/packages/rs-sdk/src/error.rs b/packages/rs-sdk/src/error.rs
index 23def69d1a9..16edd7496ce 100644
--- a/packages/rs-sdk/src/error.rs
+++ b/packages/rs-sdk/src/error.rs
@@ -88,16 +88,25 @@ impl From<DapiClientError> for Error {
                 .metadata()
                 .get_bin("dash-serialized-consensus-error-bin")
             {
-                return ConsensusError::deserialize_from_bytes(
-                    consensus_error_value.as_encoded_bytes(),
-                )
-                .map(|consensus_error| {
-                    Self::Protocol(ProtocolError::ConsensusError(Box::new(consensus_error)))
-                })
-                .unwrap_or_else(|e| {
-                    tracing::debug!("Failed to deserialize consensus error: {}", e);
-                    Self::Protocol(e)
-                });
+                return consensus_error_value
+                    .to_bytes()
+                    .map(|bytes| {
+                        ConsensusError::deserialize_from_bytes(&bytes)
+                            .map(|consensus_error| {
+                                Self::Protocol(ProtocolError::ConsensusError(Box::new(
+                                    consensus_error,
+                                )))
+                            })
+                            .unwrap_or_else(|e| {
+                                tracing::debug!("Failed to deserialize consensus error: {}", e);
+                                Self::Protocol(e)
+                            })
+                    })
+                    .unwrap_or_else(|e| {
+                        tracing::debug!("Failed to deserialize consensus error: {}", e);
+                        // TODO: Introduce a specific error for this case
+                        Self::Generic(format!("Invalid consensus error encoding: {e}"))
+                    });
             }
             // Otherwise we parse the error code and act accordingly
             if status.code() == Code::AlreadyExists {
@@ -157,3 +166,92 @@ pub enum StaleNodeError {
         tolerance_ms: u64,
     },
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    mod from_dapi_client_error {
+        use super::*;
+        use assert_matches::assert_matches;
+        use base64::Engine;
+        use dapi_grpc::tonic::metadata::{MetadataMap, MetadataValue};
+        use dpp::consensus::basic::identity::IdentityAssetLockProofLockedTransactionMismatchError;
+        use dpp::consensus::basic::BasicError;
+        use dpp::dashcore::hashes::Hash;
+        use dpp::dashcore::Txid;
+        use dpp::serialization::PlatformSerializableWithPlatformVersion;
+        use dpp::version::PlatformVersion;
+
+        #[test]
+        fn test_already_exists() {
+            let error = DapiClientError::Transport(TransportError::Grpc(
+                dapi_grpc::tonic::Status::new(Code::AlreadyExists, "Object already exists"),
+            ));
+
+            let sdk_error: Error = error.into();
+            assert!(matches!(sdk_error, Error::AlreadyExists(_)));
+        }
+
+        #[test]
+        fn test_consensus_error() {
+            let platform_version = PlatformVersion::latest();
+
+            let consensus_error = ConsensusError::BasicError(
+                BasicError::IdentityAssetLockProofLockedTransactionMismatchError(
+                    IdentityAssetLockProofLockedTransactionMismatchError::new(
+                        Txid::from_byte_array([0; 32]),
+                        Txid::from_byte_array([1; 32]),
+                    ),
+                ),
+            );
+
+            let consensus_error_bytes = consensus_error
+                .serialize_to_bytes_with_platform_version(platform_version)
+                .expect("serialize consensus error to bytes");
+
+            let mut metadata = MetadataMap::new();
+            metadata.insert_bin(
+                "dash-serialized-consensus-error-bin",
+                MetadataValue::from_bytes(&consensus_error_bytes),
+            );
+
+            let status =
+                dapi_grpc::tonic::Status::with_metadata(Code::InvalidArgument, "Test", metadata);
+
+            let error = DapiClientError::Transport(TransportError::Grpc(status));
+
+            let sdk_error = Error::from(error);
+
+            assert_matches!(
+                sdk_error,
+                Error::Protocol(ProtocolError::ConsensusError(e)) if matches!(*e, ConsensusError::BasicError(
+                    BasicError::IdentityAssetLockProofLockedTransactionMismatchError(_)
+                ))
+            );
+        }
+
+        #[test]
+        fn test_consensus_error_with_fixture() {
+            let consensus_error_bytes = base64::engine::general_purpose::STANDARD.decode("ATUgJOJEYbuHBqyTeApO/ptxQ8IAw8nm9NbGROu1nyE/kqcgDTlFeUG0R4wwVcbZJMFErL+VSn63SUpP49cequ3fsKw=").expect("decode base64");
+            let consensus_error = MetadataValue::from_bytes(&consensus_error_bytes);
+
+            let mut metadata = MetadataMap::new();
+            metadata.insert_bin("dash-serialized-consensus-error-bin", consensus_error);
+
+            let status =
+                dapi_grpc::tonic::Status::with_metadata(Code::InvalidArgument, "Test", metadata);
+
+            let error = DapiClientError::Transport(TransportError::Grpc(status));
+
+            let sdk_error = Error::from(error);
+
+            assert_matches!(
+                sdk_error,
+                Error::Protocol(ProtocolError::ConsensusError(e)) if matches!(*e, ConsensusError::BasicError(
+                    BasicError::IdentityAssetLockProofLockedTransactionMismatchError(_)
+                ))
+            );
+        }
+    }
+}