diff --git a/scaffold/dyad-shim.js b/scaffold/dyad-shim.js
index bb042a9..b892ef2 100644
--- a/scaffold/dyad-shim.js
+++ b/scaffold/dyad-shim.js
@@ -182,4 +182,86 @@
     }
     sendSourcemappedErrorToParent(error, "unhandled-rejection");
   });
+
+  (function watchForViteErrorOverlay() {
+    // --- Configuration for the observer ---
+    // We only care about direct children being added or removed.
+    const config = {
+      childList: true, // Observe additions/removals of child nodes
+      subtree: false, // IMPORTANT: Do *not* observe descendants, only direct children
+    };
+
+    // --- Callback function executed when mutations are observed ---
+    const observerCallback = function (mutationsList) {
+      // Iterate through all mutations that just occurred
+      for (const mutation of mutationsList) {
+        // We are only interested in nodes that were added
+        if (mutation.type === "childList" && mutation.addedNodes.length > 0) {
+          // Check each added node
+          for (const node of mutation.addedNodes) {
+            // Check if it's an ELEMENT_NODE (type 1) and has the correct ID
+            if (
+              node.nodeType === Node.ELEMENT_NODE &&
+              node.tagName === "vite-error-overlay".toUpperCase()
+            ) {
+              reportViteErrorOverlay(node);
+            }
+          }
+        }
+      }
+    };
+
+    function reportViteErrorOverlay(node) {
+      console.log(`Detected vite error overlay: ${node}`);
+      try {
+        window.parent.postMessage(
+          {
+            type: "build-error-report",
+            payload: {
+              message: node.shadowRoot.querySelector(".message").textContent,
+              file: node.shadowRoot.querySelector(".file").textContent,
+              frame: node.shadowRoot.querySelector(".frame").textContent,
+            },
+          },
+          PARENT_TARGET_ORIGIN
+        );
+      } catch (error) {
+        console.error("Could not report vite error overlay", error);
+      }
+    }
+
+    // --- Wait for DOM ready logic ---
+    if (document.readyState === "loading") {
+      // The document is still loading, wait for DOMContentLoaded
+      document.addEventListener("DOMContentLoaded", () => {
+        if (!document.body) {
+          console.error(
+            "document.body does not exist - something very weird happened"
+          );
+          return;
+        }
+
+        const node = document.body.querySelector("vite-error-overlay");
+        if (node) {
+          reportViteErrorOverlay(node);
+        }
+        const observer = new MutationObserver(observerCallback);
+        observer.observe(document.body, config);
+      });
+      console.log(
+        "Document loading, waiting for DOMContentLoaded to set up observer."
+      );
+    } else {
+      if (!document.body) {
+        console.error(
+          "document.body does not exist - something very weird happened"
+        );
+        return;
+      }
+      // The DOM is already interactive or complete
+      console.log("DOM already ready, setting up observer immediately.");
+      const observer = new MutationObserver(observerCallback);
+      observer.observe(document.body, config);
+    }
+  })();
 })();
diff --git a/src/components/preview_panel/PreviewIframe.tsx b/src/components/preview_panel/PreviewIframe.tsx
index 5d62c22..9d5d2c8 100644
--- a/src/components/preview_panel/PreviewIframe.tsx
+++ b/src/components/preview_panel/PreviewIframe.tsx
@@ -16,6 +16,7 @@ import {
   Sparkles,
   ChevronDown,
   Lightbulb,
+  ChevronRight,
 } from "lucide-react";
 import { selectedChatIdAtom } from "@/atoms/chatAtoms";
 import { IpcClient } from "@/ipc/ipc_client";
@@ -38,8 +39,19 @@ interface ErrorBannerProps {
 }
 
 const ErrorBanner = ({ error, onDismiss, onAIFix }: ErrorBannerProps) => {
+  const [isCollapsed, setIsCollapsed] = useState(true);
+
   if (!error) return null;
 
+  const getTruncatedError = () => {
+    const firstLine = error.split("\n")[0];
+    const snippetLength = 200;
+    const snippet = error.substring(0, snippetLength);
+    return firstLine.length < snippet.length
+      ? firstLine
+      : snippet + (snippet.length === snippetLength ? "..." : "");
+  };
+
   return (
     <div className="absolute top-2 left-2 right-2 z-10 bg-red-50 dark:bg-red-950 border border-red-200 dark:border-red-800 rounded-md shadow-sm p-2">
       {/* Close button in top left */}
@@ -52,8 +64,17 @@ const ErrorBanner = ({ error, onDismiss, onAIFix }: ErrorBannerProps) => {
 
       {/* Error message in the middle */}
       <div className="px-6 py-1 text-sm">
-        <div className="text-red-700 dark:text-red-300 text-wrap font-mono whitespace-pre-wrap break-words text-xs">
-          {error}
+        <div
+          className="text-red-700 dark:text-red-300 text-wrap font-mono whitespace-pre-wrap break-words text-xs cursor-pointer flex gap-1 items-start"
+          onClick={() => setIsCollapsed(!isCollapsed)}
+        >
+          <ChevronRight
+            size={14}
+            className={`mt-0.5 transform transition-transform ${
+              isCollapsed ? "" : "rotate-90"
+            }`}
+          />
+          {isCollapsed ? getTruncatedError() : error}
         </div>
       </div>
 
@@ -162,6 +183,7 @@ export const PreviewIframe = ({ loading }: { loading: boolean }) => {
           | "window-error"
           | "unhandled-rejection"
           | "iframe-sourcemapped-error"
+          | "build-error-report"
           | "pushState"
           | "replaceState";
         payload?: {
@@ -169,6 +191,8 @@ export const PreviewIframe = ({ loading }: { loading: boolean }) => {
           stack?: string;
           reason?: string;
           newUrl?: string;
+          file?: string;
+          frame?: string;
         };
       };
 
@@ -195,6 +219,19 @@ export const PreviewIframe = ({ loading }: { loading: boolean }) => {
             timestamp: Date.now(),
           },
         ]);
+      } else if (type === "build-error-report") {
+        console.debug(`Build error report: ${payload}`);
+        const errorMessage = `${payload?.message} from file ${payload?.file}.\n\nSource code:\n${payload?.frame}`;
+        setErrorMessage(errorMessage);
+        setAppOutput((prev) => [
+          ...prev,
+          {
+            message: `Build error report: ${JSON.stringify(payload)}`,
+            type: "client-error",
+            appId: selectedAppId!,
+            timestamp: Date.now(),
+          },
+        ]);
       } else if (type === "pushState" || type === "replaceState") {
         console.debug(`Navigation event: ${type}`, payload);