diff --git a/packages/transaction-controller/CHANGELOG.md b/packages/transaction-controller/CHANGELOG.md
index a7a5fb27ac0..12d297fd78d 100644
--- a/packages/transaction-controller/CHANGELOG.md
+++ b/packages/transaction-controller/CHANGELOG.md
@@ -13,6 +13,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   - Defaults to 100 if not provided.
 - Add support for `transactionHistoryLimit` feature flag to configure the maximum number of transactions stored in state ([#7648](https://github.com/MetaMask/core/pull/7648))
   - Defaults to 40 if not provided.
+- Add callTrace errors in the simulation data ([#7641](https://github.com/MetaMask/core/pull/7641))
 
 ### Changed
 
diff --git a/packages/transaction-controller/src/api/simulation-api.ts b/packages/transaction-controller/src/api/simulation-api.ts
index 96a5280dbb2..5e77dab80e4 100644
--- a/packages/transaction-controller/src/api/simulation-api.ts
+++ b/packages/transaction-controller/src/api/simulation-api.ts
@@ -135,10 +135,13 @@ export type SimulationResponseLog = {
 /** Call trace of a single simulated transaction. */
 export type SimulationResponseCallTrace = {
   /** Nested calls. */
-  calls: SimulationResponseCallTrace[];
+  calls?: SimulationResponseCallTrace[] | null;
+
+  /** Error message for the call, if any. */
+  error?: string;
 
   /** Raw event logs created by the call. */
-  logs: SimulationResponseLog[];
+  logs?: SimulationResponseLog[] | null;
 };
 
 /**
diff --git a/packages/transaction-controller/src/types.ts b/packages/transaction-controller/src/types.ts
index 2d6aaf3d565..acfdcdd5735 100644
--- a/packages/transaction-controller/src/types.ts
+++ b/packages/transaction-controller/src/types.ts
@@ -1551,6 +1551,9 @@ export type SimulationData = {
   /** Whether the simulation response changed after a security check triggered a re-simulation. */
   isUpdatedAfterSecurityCheck?: boolean;
 
+  /** Error messages extracted from call traces, if any. */
+  callTraceErrors?: string[];
+
   /** Data concerning a change to the user's native balance. */
   nativeBalanceChange?: SimulationBalanceChange;
 
diff --git a/packages/transaction-controller/src/utils/balance-changes.ts b/packages/transaction-controller/src/utils/balance-changes.ts
index 0820e97c369..9b9780820de 100644
--- a/packages/transaction-controller/src/utils/balance-changes.ts
+++ b/packages/transaction-controller/src/utils/balance-changes.ts
@@ -121,6 +121,8 @@ export async function getBalanceChanges(
 ): Promise<{ simulationData: SimulationData; gasUsed?: Hex }> {
   log('Request', request);
 
+  let callTraceErrors: string[] | undefined;
+
   try {
     const response = await baseRequest({
       request,
@@ -130,7 +132,9 @@ export async function getBalanceChanges(
       },
     });
 
-    const transactionError = response.transactions?.[0]?.error;
+    const transactionResponse = response.transactions?.[0];
+    callTraceErrors = extractCallTraceErrors(transactionResponse?.callTrace);
+    const transactionError = transactionResponse?.error;
 
     if (transactionError) {
       throw new SimulationError(transactionError);
@@ -143,8 +147,9 @@ export async function getBalanceChanges(
 
     const tokenBalanceChanges = await getTokenBalanceChanges(request, events);
 
-    const gasUsed = response.transactions?.[0]?.gasUsed;
+    const gasUsed = transactionResponse?.gasUsed;
     const simulationData = {
+      ...(callTraceErrors?.length ? { callTraceErrors } : {}),
       nativeBalanceChange,
       tokenBalanceChanges,
     };
@@ -167,6 +172,7 @@ export async function getBalanceChanges(
 
     return {
       simulationData: {
+        ...(callTraceErrors?.length ? { callTraceErrors } : {}),
         tokenBalanceChanges: [],
         error: {
           code,
@@ -632,6 +638,28 @@ function extractLogs(
   ];
 }
 
+/**
+ * Extract all error messages from a call trace tree.
+ *
+ * @param call - The root call trace.
+ * @returns An array of error messages.
+ */
+function extractCallTraceErrors(call?: SimulationResponseCallTrace): string[] {
+  if (!call) {
+    return [];
+  }
+
+  const errors = call.error ? [call.error] : [];
+  const nestedCalls = call.calls ?? [];
+
+  return [
+    ...errors,
+    ...nestedCalls
+      .map((nestedCall) => extractCallTraceErrors(nestedCall))
+      .flat(),
+  ];
+}
+
 /**
  * Generate balance change data from previous and new balances.
  *