diff --git a/internal/hooks/hookshttp/hookshttp.go b/internal/hooks/hookshttp/hookshttp.go
index 36df0977f..a06826ca7 100644
--- a/internal/hooks/hookshttp/hookshttp.go
+++ b/internal/hooks/hookshttp/hookshttp.go
@@ -17,6 +17,7 @@ import (
 	"github.com/sirupsen/logrus"
 	"github.com/supabase/auth/internal/api/apierrors"
 	"github.com/supabase/auth/internal/conf"
+	"github.com/supabase/auth/internal/hooks/hookserrors"
 	"github.com/supabase/auth/internal/observability"
 
 	standardwebhooks "github.com/standard-webhooks/standard-webhooks/libraries/go"
@@ -232,15 +233,24 @@ func (o *Dispatcher) runHTTPHook(
 			}
 			return nil, apierrors.NewInternalServerError(
 				"Service currently unavailable due to hook")
-		case http.StatusBadRequest:
-			return nil, apierrors.NewInternalServerError(
-				"Invalid payload sent to hook")
-		case http.StatusUnauthorized:
-			return nil, apierrors.NewInternalServerError(
-				"Hook requires authorization token")
 		default:
-			return nil, apierrors.NewInternalServerError(
-				"Unexpected status code returned from hook: %d", rsp.StatusCode)
+			body, err := io.ReadAll(io.LimitReader(rsp.Body, o.limitResponse))
+			if err == nil && len(body) > 0 {
+				if err := hookserrors.Check(body); err != nil {
+					return nil, err
+				}
+			}
+			switch rsp.StatusCode {
+			case http.StatusBadRequest:
+				return nil, apierrors.NewInternalServerError(
+					"Invalid payload sent to hook")
+			case http.StatusUnauthorized:
+				return nil, apierrors.NewInternalServerError(
+					"Hook requires authorization token")
+			default:
+				return nil, apierrors.NewInternalServerError(
+					"Unexpected status code returned from hook: %d", rsp.StatusCode)
+			}
 		}
 	}
 
diff --git a/internal/hooks/hookshttp/hookshttp_test.go b/internal/hooks/hookshttp/hookshttp_test.go
index 875584211..b4f3d7c2f 100644
--- a/internal/hooks/hookshttp/hookshttp_test.go
+++ b/internal/hooks/hookshttp/hookshttp_test.go
@@ -187,11 +187,32 @@ func TestDispatch(t *testing.T) {
 		},
 	}
 
-	// error status codes
 	{
-		addCase := func(statusIn, statusOut int, msg string) {
+		addCaseWithCustomError := func(statusIn int, customHTTPCode int, customMsg string) {
 			cases = append(cases, testCase{
-				desc: fmt.Sprintf("fail - invalid status code %d", statusIn),
+				desc:   fmt.Sprintf("fail - status %d with custom error propagates", statusIn),
+				req:    M{"empty": true},
+				errStr: fmt.Sprintf("%d: %s", customHTTPCode, customMsg),
+				hr: &mockHandler{
+					status: statusIn,
+					ctype:  "application/json",
+					data: M{
+						"error": M{
+							"http_code": customHTTPCode,
+							"message":   customMsg,
+						},
+					},
+				},
+			})
+		}
+		addCaseWithCustomError(http.StatusBadRequest, 403, "Signups from this domain not allowed")
+		addCaseWithCustomError(http.StatusForbidden, 422, "Email validation failed")
+		addCaseWithCustomError(http.StatusUnauthorized, 401, "Custom auth error")
+		addCaseWithCustomError(http.StatusTeapot, 500, "Custom server error from hook")
+
+		addCaseFallback := func(statusIn, statusOut int, msg string) {
+			cases = append(cases, testCase{
+				desc: fmt.Sprintf("fail - status %d without error object falls back", statusIn),
 				req:  M{"empty": true},
 				err: &apierrors.HTTPError{
 					HTTPStatus: statusOut,
@@ -201,41 +222,64 @@ func TestDispatch(t *testing.T) {
 				hr: &mockHandler{
 					status: statusIn,
 					ctype:  "application/json",
-					data: M{
-						"error": M{
-							// This is not propagated in current implementation
-							"http_code": 500,
-							"message":   "sentinel error",
-						},
-					},
+					data:   M{"no_error_key": true},
 				},
 			})
 		}
-		addCase(
-			http.StatusServiceUnavailable,
-			http.StatusInternalServerError,
-			"Service currently unavailable due to hook",
-		)
-		addCase(
-			http.StatusTooManyRequests,
-			http.StatusInternalServerError,
-			"Service currently unavailable due to hook",
-		)
-		addCase(
+		addCaseFallback(
 			http.StatusBadRequest,
 			http.StatusInternalServerError,
 			"Invalid payload sent to hook",
 		)
-		addCase(
+		addCaseFallback(
 			http.StatusUnauthorized,
 			http.StatusInternalServerError,
 			"Hook requires authorization token",
 		)
-		addCase(
+		addCaseFallback(
 			http.StatusTeapot,
 			http.StatusInternalServerError,
 			"Unexpected status code returned from hook: 418",
 		)
+
+		cases = append(cases, testCase{
+			desc: "fail - 503 uses retry logic",
+			req:  M{"empty": true},
+			err: &apierrors.HTTPError{
+				HTTPStatus: http.StatusInternalServerError,
+				ErrorCode:  apierrors.ErrorCodeUnexpectedFailure,
+				Message:    "Service currently unavailable due to hook",
+			},
+			hr: &mockHandler{
+				status: http.StatusServiceUnavailable,
+				ctype:  "application/json",
+				data: M{
+					"error": M{
+						"http_code": 500,
+						"message":   "custom error ignored for 503",
+					},
+				},
+			},
+		})
+		cases = append(cases, testCase{
+			desc: "fail - 429 uses retry logic",
+			req:  M{"empty": true},
+			err: &apierrors.HTTPError{
+				HTTPStatus: http.StatusInternalServerError,
+				ErrorCode:  apierrors.ErrorCodeUnexpectedFailure,
+				Message:    "Service currently unavailable due to hook",
+			},
+			hr: &mockHandler{
+				status: http.StatusTooManyRequests,
+				ctype:  "application/json",
+				data: M{
+					"error": M{
+						"http_code": 500,
+						"message":   "custom error ignored for 429",
+					},
+				},
+			},
+		})
 	}
 
 	for _, tc := range cases {