diff --git a/backend/lib/services/projects.js b/backend/lib/services/projects.js
index c19d4ec030..8291209bac 100644
--- a/backend/lib/services/projects.js
+++ b/backend/lib/services/projects.js
@@ -138,7 +138,9 @@ exports.create = async function ({ user, body }) {
     if (type === 'DELETE') {
       throw new InternalServerError('Project resource has been deleted')
     }
-    return _.get(project, 'status.phase') === 'Ready'
+    return {
+      ok: _.get(project, 'status.phase') === 'Ready'
+    }
   }
   const timeout = exports.projectInitializationTimeout
   // must be the dashboardClient because rbac rolebinding does not exist yet
diff --git a/backend/lib/services/terminals/index.js b/backend/lib/services/terminals/index.js
index 051861a733..851ce25b6e 100644
--- a/backend/lib/services/terminals/index.js
+++ b/backend/lib/services/terminals/index.js
@@ -550,7 +550,17 @@ async function readTerminalUntilReady ({ user, namespace, name }) {
     }
     const podName = _.get(terminal, 'status.podName')
     const attachServiceAccountName = _.get(terminal, 'status.attachServiceAccountName')
-    return podName && attachServiceAccountName
+
+    const isReady = podName && attachServiceAccountName
+    if (!isReady) {
+      const lastErrorDescription = _.get(terminal, 'status.lastError.description')
+      return {
+        ok: false,
+        reason: lastErrorDescription
+      }
+    }
+
+    return { ok: true }
   }
   const asyncIterable = await client['dashboard.gardener.cloud'].terminals.watch(namespace, name)
   return asyncIterable.until(isTerminalReady, { timeout: 60 * 1000 })
diff --git a/frontend/src/components/GTerminal.vue b/frontend/src/components/GTerminal.vue
index ee6f92fe13..edc4dee3a7 100644
--- a/frontend/src/components/GTerminal.vue
+++ b/frontend/src/components/GTerminal.vue
@@ -381,7 +381,6 @@ import GDisconnected from '@/components/icons/GDisconnected.vue'
 import GSplitVertically from '@/components/icons/GSplitVertically.vue'
 import GSplitHorizontally from '@/components/icons/GSplitHorizontally.vue'
 
-import { isGatewayTimeout } from '@/utils/error'
 import {
   targetText,
   transformHtml,
@@ -683,10 +682,7 @@ export default {
       try {
         await terminalSession.open()
       } catch (err) {
-        let message = get(err, 'response.data.message', err.message)
-        if (isGatewayTimeout(err)) {
-          message = 'Opening the terminal session timed out'
-        }
+        const message = get(err, 'response.data.message', err.message)
         this.showErrorSnackbarBottom(message)
         terminalSession.setDisconnectedState()
       }
diff --git a/packages/kube-client/__tests__/http-client.test.js b/packages/kube-client/__tests__/http-client.test.js
index 4283ec40e5..f70197b210 100644
--- a/packages/kube-client/__tests__/http-client.test.js
+++ b/packages/kube-client/__tests__/http-client.test.js
@@ -73,7 +73,10 @@ describe('kube-client', () => {
       expect(mockClient.stream).toBeCalledTimes(1)
       expect(mockClient.stream.mock.calls[0]).toEqual([url, { method }])
       expect(typeof response.until).toBe('function')
-      const value = await response.until(event => [event.object > 3, event.object])
+      const value = await response.until(event => ({
+        ok: event.object > 3,
+        object: event.object
+      }))
       expect(value).toBe(4)
     })
 
@@ -85,7 +88,10 @@ describe('kube-client', () => {
       expect(mockClient.stream).toBeCalledTimes(1)
       expect(mockClient.stream.mock.calls[0]).toEqual([url, { method }])
       expect(typeof response.until).toBe('function')
-      await expect(response.until(event => event.object > 9, { timeout: 10 })).rejects.toThrow(GatewayTimeout)
+      await expect(response.until(
+        event => ({
+          ok: event.object > 9
+        }), { timeout: 10 })).rejects.toThrow(GatewayTimeout)
       expect(destroySpy).toBeCalled()
       expect(destroySpy.mock.calls[0]).toHaveLength(1)
       expect(destroySpy.mock.calls[0][0].message).toMatch(/"dummies" .* 10 ms/)
diff --git a/packages/kube-client/lib/HttpClient.js b/packages/kube-client/lib/HttpClient.js
index 3eda404e63..c53d9a1a20 100644
--- a/packages/kube-client/lib/HttpClient.js
+++ b/packages/kube-client/lib/HttpClient.js
@@ -34,24 +34,33 @@ class HttpClient {
 
   static extendResponse (response) {
     const { names: { plural } = {} } = this
-    const createTimeoutError = timeout => {
+    const createTimeoutError = (timeout, reason) => {
       const forResource = plural ? ` for "${plural}"` : ''
-      return createError(504, `The condition${forResource} was not met within ${timeout} ms`)
+      let message = `The condition${forResource} was not met within ${timeout} ms`
+      if (reason) {
+        message += `: ${reason}`
+      }
+      return createError(504, message)
     }
 
     response.until = async (condition, { timeout = 60000 } = {}) => {
       let timeoutId
+      let timeoutReason
       if (timeout > 0 && timeout < Infinity) {
-        timeoutId = setTimeout(() => response.destroy(createTimeoutError(timeout)), timeout)
+        timeoutId = setTimeout(() => response.destroy(createTimeoutError(timeout, timeoutReason)), timeout)
       }
       try {
         for await (const event of response) {
-          let ok = condition(event)
-          let object
-          [ok, object] = Array.isArray(ok) ? ok : [ok, event.object]
+          const {
+            ok,
+            reason,
+            object = event.object
+          } = condition(event)
           if (ok) {
             return object
           }
+
+          timeoutReason = reason
         }
         // If the response stream ends even though the condition has not yet been met,
         // also in this case a timeout error is thrown.