diff --git a/lib/callbacks.ex b/lib/callbacks.ex
index 191310c5..0716b1bc 100644
--- a/lib/callbacks.ex
+++ b/lib/callbacks.ex
@@ -42,7 +42,7 @@ defmodule LangChain.Callbacks do
           rescue
             err ->
               msg =
-                "Callback handler for #{inspect(callback_name)} raised an exception: #{inspect(err)}"
+                "Callback handler for #{inspect(callback_name)} raised an exception: #{LangChainError.format_exception(err, __STACKTRACE__, :short)}"
 
               Logger.error(msg)
               raise LangChainError, msg
diff --git a/lib/chains/llm_chain.ex b/lib/chains/llm_chain.ex
index 56e805a1..9df0307d 100644
--- a/lib/chains/llm_chain.ex
+++ b/lib/chains/llm_chain.ex
@@ -978,7 +978,9 @@ defmodule LangChain.Chains.LLMChain do
       end
     rescue
       err ->
-        Logger.error("Function #{function.name} failed in execution. Exception: #{inspect(err)}")
+        Logger.error(
+          "Function #{function.name} failed in execution. Exception: #{LangChainError.format_exception(err, __STACKTRACE__)}"
+        )
 
         ToolResult.new!(%{
           tool_call_id: call.call_id,
diff --git a/lib/function.ex b/lib/function.ex
index 8a2070b9..68b9609a 100644
--- a/lib/function.ex
+++ b/lib/function.ex
@@ -281,8 +281,11 @@ defmodule LangChain.Function do
       end
     rescue
       err ->
-        Logger.error("Function #{function.name} failed in execution. Exception: #{inspect(err)}")
-        {:error, "ERROR: #{inspect(err)}"}
+        Logger.error(
+          "Function! #{function.name} failed in execution. Exception: #{LangChainError.format_exception(err, __STACKTRACE__)}"
+        )
+
+        {:error, "ERROR: #{LangChainError.format_exception(err, __STACKTRACE__, :short)}"}
     end
   end
 
diff --git a/lib/langchain_error.ex b/lib/langchain_error.ex
index c9b5e197..3ac4212b 100644
--- a/lib/langchain_error.ex
+++ b/lib/langchain_error.ex
@@ -47,4 +47,19 @@ defmodule LangChain.LangChainError do
       original: Keyword.get(opts, :original)
     }
   end
+
+  @doc """
+  Formats the exception as a string using a stacktrace to provide context.
+  """
+  @spec format_exception(exception :: struct(), trace :: Exception.stacktrace(), format :: atom()) ::
+          String.t()
+  def format_exception(exception, trace, format \\ :full_stacktrace) do
+    case format do
+      :short ->
+        "(#{inspect(exception.__struct__)}) #{Exception.message(exception)} at #{Enum.at(trace, 0) |> Exception.format_stacktrace_entry()}"
+
+      _ ->
+        Exception.format(:error, exception, trace)
+    end
+  end
 end
diff --git a/test/callbacks_test.exs b/test/callbacks_test.exs
index 2363b168..b4c74de9 100644
--- a/test/callbacks_test.exs
+++ b/test/callbacks_test.exs
@@ -34,7 +34,7 @@ defmodule LangChain.CallbacksTest do
       handlers = %{custom: fn _value -> raise ArgumentError, "BOOM!" end}
 
       assert_raise LangChainError,
-                   "Callback handler for :custom raised an exception: %ArgumentError{message: \"BOOM!\"}",
+                   "Callback handler for :custom raised an exception: (ArgumentError) BOOM! at test/callbacks_test.exs:#{__ENV__.line - 3}: anonymous fn/1 in LangChain.CallbacksTest.\"test fire/3 handles when a handler errors\"/1",
                    fn ->
                      Callbacks.fire([handlers], :custom, ["123"])
                    end
diff --git a/test/chains/llm_chain_test.exs b/test/chains/llm_chain_test.exs
index b4f711b4..39405bfb 100644
--- a/test/chains/llm_chain_test.exs
+++ b/test/chains/llm_chain_test.exs
@@ -1756,7 +1756,10 @@ defmodule LangChain.Chains.LLMChainTest do
 
       assert updated_chain.last_message.role == :tool
       [%ToolResult{} = result] = updated_chain.last_message.tool_results
-      assert result.content == "ERROR: %RuntimeError{message: \"Stuff went boom!\"}"
+
+      assert result.content ==
+               "ERROR: (RuntimeError) Stuff went boom! at test/chains/llm_chain_test.exs:#{__ENV__.line - 19}: anonymous fn/2 in LangChain.Chains.LLMChainTest.\"test execute_tool_calls/2 catches exceptions from executed function and returns Tool result with error message\"/1"
+
       assert result.is_error == true
     end
 
diff --git a/test/function_test.exs b/test/function_test.exs
index 25242330..acabeb3c 100644
--- a/test/function_test.exs
+++ b/test/function_test.exs
@@ -136,7 +136,10 @@ defmodule LangChain.FunctionTest do
 
       # rescues an exception and returns as string text
       result = Function.execute(function, %{}, %{result: :exception})
-      assert result == {:error, "ERROR: %RuntimeError{message: \"fake exception\"}"}
+
+      assert result ==
+               {:error,
+                "ERROR: (RuntimeError) fake exception at test/function_test.exs:13: LangChain.FunctionTest.returns_context/2"}
 
       # returns an error when anything else is returned
       result = Function.execute(function, %{}, %{result: 123})