diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/ObservationConfig.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/ObservationConfig.java
new file mode 100644
index 000000000000..6d54c2ab3498
--- /dev/null
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/configurations/ObservationConfig.java
@@ -0,0 +1,36 @@
+package com.appsmith.server.configurations;
+
+import com.appsmith.server.constants.FieldName;
+import com.appsmith.server.exceptions.AppsmithException;
+import io.micrometer.common.KeyValue;
+import io.micrometer.common.KeyValues;
+import org.springframework.context.annotation.Bean;
+import org.springframework.context.annotation.Configuration;
+import org.springframework.http.server.reactive.observation.DefaultServerRequestObservationConvention;
+import org.springframework.http.server.reactive.observation.ServerRequestObservationContext;
+import org.springframework.http.server.reactive.observation.ServerRequestObservationConvention;
+
+@Configuration
+public class ObservationConfig {
+
+    @Bean
+    public ServerRequestObservationConvention customObservationConvention() {
+        return new DefaultServerRequestObservationConvention() {
+            @Override
+            public KeyValues getLowCardinalityKeyValues(ServerRequestObservationContext context) {
+                KeyValues keyValues = super.getLowCardinalityKeyValues(context);
+
+                // Extract error code safely
+                String errorCode = context.getError() != null && context.getError() instanceof AppsmithException
+                        ? (((AppsmithException) context.getError()).getAppErrorCode())
+                        : FieldName.NONE;
+
+                String errorTitle = context.getError() != null && context.getError() instanceof AppsmithException
+                        ? (((AppsmithException) context.getError()).getTitle())
+                        : FieldName.NONE;
+
+                return keyValues.and(KeyValue.of("errorCode", errorCode)).and(KeyValue.of("exception", errorTitle));
+            }
+        };
+    }
+}
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ce/FieldNameCE.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ce/FieldNameCE.java
index 4a2aa044ce01..ab487f3e12e5 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ce/FieldNameCE.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/constants/ce/FieldNameCE.java
@@ -203,4 +203,5 @@ public class FieldNameCE {
     public static final String ARTIFACT_CONTEXT = "artifactContext";
     public static final String ARTIFACT_ID = "artifactId";
     public static final String BODY = "body";
+    public static final String NONE = "none";
 }
diff --git a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java
index f9ef6a4dfb41..9c73bd563940 100644
--- a/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java
+++ b/app/server/appsmith-server/src/main/java/com/appsmith/server/exceptions/GlobalExceptionHandler.java
@@ -10,6 +10,7 @@
 import com.appsmith.server.helpers.RedisUtils;
 import com.appsmith.server.services.AnalyticsService;
 import com.appsmith.server.services.SessionUserService;
+import io.micrometer.common.KeyValue;
 import io.micrometer.core.instrument.util.StringUtils;
 import lombok.RequiredArgsConstructor;
 import lombok.extern.slf4j.Slf4j;
@@ -17,6 +18,7 @@
 import org.eclipse.jgit.errors.LockFailedException;
 import org.springframework.core.io.buffer.DataBufferLimitException;
 import org.springframework.http.HttpStatus;
+import org.springframework.http.server.reactive.observation.ServerRequestObservationContext;
 import org.springframework.security.access.AccessDeniedException;
 import org.springframework.validation.FieldError;
 import org.springframework.web.bind.annotation.ControllerAdvice;
@@ -84,6 +86,12 @@ public Mono<ResponseDTO<ErrorDTO>> catchAppsmithException(AppsmithException e, S
                             e.getAppErrorCode(), e.getErrorType(), e.getMessage(), e.getTitle(), e.getReferenceDoc()));
         }
 
+        ServerRequestObservationContext.findCurrent(exchange.getAttributes()).ifPresent(context -> {
+            context.setError(e);
+            context.addLowCardinalityKeyValue(KeyValue.of("errorCode", e.getAppErrorCode()));
+            context.addLowCardinalityKeyValue(KeyValue.of("exception", e.getTitle()));
+        });
+
         return getResponseDTOMono(urlPath, response);
     }