diff --git a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilder.java b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilder.java
index cd95fb12f4..f35564a220 100644
--- a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilder.java
+++ b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilder.java
@@ -30,6 +30,7 @@
 import javax.inject.Singleton;
 import org.eclipse.che.api.core.ApiException;
 import org.eclipse.che.api.core.BadRequestException;
+import org.eclipse.che.api.factory.server.scm.exception.ScmUnauthorizedException;
 import org.eclipse.che.api.factory.server.urlfactory.RemoteFactoryUrl.DevfileLocation;
 import org.eclipse.che.api.factory.shared.dto.FactoryDevfileV2Dto;
 import org.eclipse.che.api.factory.shared.dto.FactoryDto;
@@ -131,7 +132,9 @@ public Optional<FactoryMetaDto> createFactoryFromDevfile(
         continue;
       } catch (DevfileException e) {
         LOG.debug("Unexpected devfile exception: {}", e.getMessage());
-        throw new ApiException(e.getMessage());
+        throw e.getCause() instanceof ScmUnauthorizedException
+            ? toApiException(e, location)
+            : new ApiException(e.getMessage());
       }
       if (isNullOrEmpty(devfileYamlContent)) {
         return Optional.empty();
diff --git a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilderTest.java b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilderTest.java
index 1c9ea46bb2..062d0e9820 100644
--- a/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilderTest.java
+++ b/wsmaster/che-core-api-factory/src/test/java/org/eclipse/che/api/factory/server/urlfactory/URLFactoryBuilderTest.java
@@ -451,7 +451,7 @@ public String location() {
     } catch (ApiException e) {
       assertTrue(e.getClass().isAssignableFrom(expectedClass));
       assertEquals(e.getMessage(), expectedMessage);
-      if (e.getServiceError() instanceof ExtendedError)
+      if ("SCM Authentication required".equals(e.getMessage()))
         assertEquals(((ExtendedError) e.getServiceError()).getAttributes(), expectedAttributes);
     }
   }