diff --git a/gno.land/cmd/gnoland/testdata/addpkg_outofgas.txtar b/gno.land/cmd/gnoland/testdata/addpkg_outofgas.txtar
index 56050f4733b..fc536b705c6 100644
--- a/gno.land/cmd/gnoland/testdata/addpkg_outofgas.txtar
+++ b/gno.land/cmd/gnoland/testdata/addpkg_outofgas.txtar
@@ -7,17 +7,12 @@ gnoland start
 gnokey maketx addpkg -pkgdir $WORK/foo -pkgpath gno.land/r/foo -gas-fee 1000000ugnot -gas-wanted 220000 -broadcast -chainid=tendermint_test test1
 
 
-# add bar package
-# out of gas at store.GetPackage() with gas 60000
+# add bar package - out of gas at store.GetPackage() with gas 60000
 
 ! gnokey maketx addpkg -pkgdir $WORK/bar -pkgpath gno.land/r/bar -gas-fee 1000000ugnot -gas-wanted 60000 -broadcast -chainid=tendermint_test test1
 
-# Out of gas error
-
 stderr '--= Error =--'
 stderr 'Data: out of gas error'
-stderr 'Msg Traces:'
-stderr 'out of gas.*?in preprocess'
 stderr '--= /Error =--'
 
 
@@ -28,8 +23,6 @@ stderr '--= /Error =--'
 
 stderr '--= Error =--'
 stderr 'Data: out of gas error'
-stderr 'Msg Traces:'
-stderr 'out of gas.*?in preprocess'
 stderr '--= /Error =--'
 
 
diff --git a/gno.land/pkg/sdk/vm/gas_test.go b/gno.land/pkg/sdk/vm/gas_test.go
index 0001e3acf7c..276aa9db0b0 100644
--- a/gno.land/pkg/sdk/vm/gas_test.go
+++ b/gno.land/pkg/sdk/vm/gas_test.go
@@ -38,7 +38,7 @@ func TestAddPkgDeliverTxInsuffGas(t *testing.T) {
 	defer func() {
 		if r := recover(); r != nil {
 			switch r.(type) {
-			case store.OutOfGasException:
+			case store.OutOfGasError:
 				res.Error = sdk.ABCIError(std.ErrOutOfGas(""))
 				abort = true
 			default:
@@ -117,7 +117,7 @@ func TestAddPkgDeliverTxFailedNoGas(t *testing.T) {
 	defer func() {
 		if r := recover(); r != nil {
 			switch r.(type) {
-			case store.OutOfGasException:
+			case store.OutOfGasError:
 				res.Error = sdk.ABCIError(std.ErrOutOfGas(""))
 				abort = true
 			default:
diff --git a/gno.land/pkg/sdk/vm/keeper.go b/gno.land/pkg/sdk/vm/keeper.go
index f158524b3df..bf16cd44243 100644
--- a/gno.land/pkg/sdk/vm/keeper.go
+++ b/gno.land/pkg/sdk/vm/keeper.go
@@ -5,6 +5,7 @@ package vm
 import (
 	"bytes"
 	"context"
+	goerrors "errors"
 	"fmt"
 	"io"
 	"log/slog"
@@ -392,18 +393,7 @@ func (vm *VMKeeper) AddPackage(ctx sdk.Context, msg MsgAddPackage) (err error) {
 			GasMeter: ctx.GasMeter(),
 		})
 	defer m2.Release()
-	defer func() {
-		if r := recover(); r != nil {
-			switch r.(type) {
-			case store.OutOfGasException: // panic in consumeGas()
-				panic(r)
-			default:
-				err = errors.Wrapf(fmt.Errorf("%v", r), "VM addpkg panic: %v\n%s\n",
-					r, m2.String())
-				return
-			}
-		}
-	}()
+	defer doRecover(m2, &err)
 	m2.RunMemPackage(memPkg, true)
 
 	// Log the telemetry
@@ -495,21 +485,7 @@ func (vm *VMKeeper) Call(ctx sdk.Context, msg MsgCall) (res string, err error) {
 		})
 	defer m.Release()
 	m.SetActivePackage(mpv)
-	defer func() {
-		if r := recover(); r != nil {
-			switch r := r.(type) {
-			case store.OutOfGasException: // panic in consumeGas()
-				panic(r)
-			case gno.UnhandledPanicError:
-				err = errors.Wrapf(fmt.Errorf("%v", r.Error()), "VM call panic: %s\nStacktrace: %s\n",
-					r.Error(), m.ExceptionsStacktrace())
-			default:
-				err = errors.Wrapf(fmt.Errorf("%v", r), "VM call panic: %v\nMachine State:%s\nStacktrace: %s\n",
-					r, m.String(), m.Stacktrace().String())
-				return
-			}
-		}
-	}()
+	defer doRecover(m, &err)
 	rtvs := m.Eval(xn)
 	for i, rtv := range rtvs {
 		res = res + rtv.String()
@@ -534,6 +510,35 @@ func (vm *VMKeeper) Call(ctx sdk.Context, msg MsgCall) (res string, err error) {
 	// TODO pay for gas? TODO see context?
 }
 
+func doRecover(m *gno.Machine, e *error) {
+	r := recover()
+	if r == nil {
+		return
+	}
+	if err, ok := r.(error); ok {
+		var oog types.OutOfGasError
+		if goerrors.As(err, &oog) {
+			// Re-panic and don't wrap.
+			panic(oog)
+		}
+		var up gno.UnhandledPanicError
+		if goerrors.As(err, &up) {
+			// Common unhandled panic error, skip machine state.
+			*e = errors.Wrapf(
+				errors.New(up.Descriptor),
+				"VM panic: %s\nStacktrace: %s\n",
+				up.Descriptor, m.ExceptionsStacktrace(),
+			)
+			return
+		}
+	}
+	*e = errors.Wrapf(
+		fmt.Errorf("%v", r),
+		"VM panic: %v\nMachine State:%s\nStacktrace: %s\n",
+		r, m.String(), m.Stacktrace().String(),
+	)
+}
+
 // Run executes arbitrary Gno code in the context of the caller's realm.
 func (vm *VMKeeper) Run(ctx sdk.Context, msg MsgRun) (res string, err error) {
 	caller := msg.Caller
@@ -583,37 +588,36 @@ func (vm *VMKeeper) Run(ctx sdk.Context, msg MsgRun) (res string, err error) {
 		Params:        NewSDKParams(vm, ctx),
 		EventLogger:   ctx.EventLogger(),
 	}
-	// Parse and run the files, construct *PV.
+
 	buf := new(bytes.Buffer)
 	output := io.Writer(buf)
-	if vm.Output != nil {
-		output = io.MultiWriter(buf, vm.Output)
-	}
-	m := gno.NewMachineWithOptions(
-		gno.MachineOptions{
-			PkgPath:  "",
-			Output:   output,
-			Store:    gnostore,
-			Alloc:    gnostore.GetAllocator(),
-			Context:  msgCtx,
-			GasMeter: ctx.GasMeter(),
-		})
-	// XXX MsgRun does not have pkgPath. How do we find it on chain?
-	defer m.Release()
-	defer func() {
-		if r := recover(); r != nil {
-			switch r.(type) {
-			case store.OutOfGasException: // panic in consumeGas()
-				panic(r)
-			default:
-				err = errors.Wrapf(fmt.Errorf("%v", r), "VM run main addpkg panic: %v\n%s\n",
-					r, m.String())
-				return
-			}
+
+	// Run as self-executing closure to have own function for doRecover / m.Release defers.
+	pv := func() *gno.PackageValue {
+		// Parse and run the files, construct *PV.
+		if vm.Output != nil {
+			output = io.MultiWriter(buf, vm.Output)
 		}
-	}()
+		m := gno.NewMachineWithOptions(
+			gno.MachineOptions{
+				PkgPath:  "",
+				Output:   output,
+				Store:    gnostore,
+				Alloc:    gnostore.GetAllocator(),
+				Context:  msgCtx,
+				GasMeter: ctx.GasMeter(),
+			})
+		// XXX MsgRun does not have pkgPath. How do we find it on chain?
+		defer m.Release()
+		defer doRecover(m, &err)
 
-	_, pv := m.RunMemPackage(memPkg, false)
+		_, pv := m.RunMemPackage(memPkg, false)
+		return pv
+	}()
+	if err != nil {
+		// handle any errors happened within pv generation.
+		return
+	}
 
 	m2 := gno.NewMachineWithOptions(
 		gno.MachineOptions{
@@ -626,18 +630,7 @@ func (vm *VMKeeper) Run(ctx sdk.Context, msg MsgRun) (res string, err error) {
 		})
 	defer m2.Release()
 	m2.SetActivePackage(pv)
-	defer func() {
-		if r := recover(); r != nil {
-			switch r.(type) {
-			case store.OutOfGasException: // panic in consumeGas()
-				panic(r)
-			default:
-				err = errors.Wrapf(fmt.Errorf("%v", r), "VM run main call panic: %v\n%s\n",
-					r, m2.String())
-				return
-			}
-		}
-	}()
+	defer doRecover(m2, &err)
 	m2.RunMain()
 	res = buf.String()
 
@@ -758,18 +751,7 @@ func (vm *VMKeeper) QueryEval(ctx sdk.Context, pkgPath string, expr string) (res
 			GasMeter: ctx.GasMeter(),
 		})
 	defer m.Release()
-	defer func() {
-		if r := recover(); r != nil {
-			switch r.(type) {
-			case store.OutOfGasException: // panic in consumeGas()
-				panic(r)
-			default:
-				err = errors.Wrapf(fmt.Errorf("%v", r), "VM query eval panic: %v\n%s\n",
-					r, m.String())
-				return
-			}
-		}
-	}()
+	defer doRecover(m, &err)
 	rtvs := m.Eval(xx)
 	res = ""
 	for i, rtv := range rtvs {
@@ -826,18 +808,7 @@ func (vm *VMKeeper) QueryEvalString(ctx sdk.Context, pkgPath string, expr string
 			GasMeter: ctx.GasMeter(),
 		})
 	defer m.Release()
-	defer func() {
-		if r := recover(); r != nil {
-			switch r.(type) {
-			case store.OutOfGasException: // panic in consumeGas()
-				panic(r)
-			default:
-				err = errors.Wrapf(fmt.Errorf("%v", r), "VM query eval string panic: %v\n%s\n",
-					r, m.String())
-				return
-			}
-		}
-	}()
+	defer doRecover(m, &err)
 	rtvs := m.Eval(xx)
 	if len(rtvs) != 1 {
 		return "", errors.New("expected 1 string result, got %d", len(rtvs))
diff --git a/gnovm/pkg/gnolang/preprocess.go b/gnovm/pkg/gnolang/preprocess.go
index d47067854ca..79695d8888a 100644
--- a/gnovm/pkg/gnolang/preprocess.go
+++ b/gnovm/pkg/gnolang/preprocess.go
@@ -10,7 +10,6 @@ import (
 	"sync/atomic"
 
 	"github.com/gnolang/gno/tm2/pkg/errors"
-	tmstore "github.com/gnolang/gno/tm2/pkg/store"
 )
 
 const (
@@ -366,12 +365,6 @@ func initStaticBlocks(store Store, ctx BlockNode, bn BlockNode) {
 
 func doRecover(stack []BlockNode, n Node) {
 	if r := recover(); r != nil {
-		// Catch the out-of-gas exception and throw it
-		if exp, ok := r.(tmstore.OutOfGasException); ok {
-			exp.Descriptor = fmt.Sprintf("in preprocess: %v", r)
-			panic(exp)
-		}
-
 		if _, ok := r.(*PreprocessError); ok {
 			// re-panic directly if this is a PreprocessError already.
 			panic(r)
@@ -388,10 +381,8 @@ func doRecover(stack []BlockNode, n Node) {
 		var err error
 		rerr, ok := r.(error)
 		if ok {
-			// NOTE: gotuna/gorilla expects error exceptions.
 			err = errors.Wrap(rerr, loc.String())
 		} else {
-			// NOTE: gotuna/gorilla expects error exceptions.
 			err = fmt.Errorf("%s: %v", loc.String(), r)
 		}
 
diff --git a/tm2/pkg/sdk/auth/ante.go b/tm2/pkg/sdk/auth/ante.go
index 4495a1729ad..997478fe4b5 100644
--- a/tm2/pkg/sdk/auth/ante.go
+++ b/tm2/pkg/sdk/auth/ante.go
@@ -76,7 +76,7 @@ func NewAnteHandler(ak AccountKeeper, bank BankKeeperI, sigGasConsumer Signature
 		defer func() {
 			if r := recover(); r != nil {
 				switch ex := r.(type) {
-				case store.OutOfGasException:
+				case store.OutOfGasError:
 					log := fmt.Sprintf(
 						"out of gas in location: %v; gasWanted: %d, gasUsed: %d",
 						ex.Descriptor, tx.Fee.GasWanted, newCtx.GasMeter().GasConsumed(),
diff --git a/tm2/pkg/sdk/baseapp.go b/tm2/pkg/sdk/baseapp.go
index ea729abd6ae..746dd618800 100644
--- a/tm2/pkg/sdk/baseapp.go
+++ b/tm2/pkg/sdk/baseapp.go
@@ -759,7 +759,7 @@ func (app *BaseApp) runTx(ctx Context, tx Tx) (result Result) {
 	defer func() {
 		if r := recover(); r != nil {
 			switch ex := r.(type) {
-			case store.OutOfGasException:
+			case store.OutOfGasError:
 				log := fmt.Sprintf(
 					"out of gas, gasWanted: %d, gasUsed: %d location: %v",
 					gasWanted,
diff --git a/tm2/pkg/store/exports.go b/tm2/pkg/store/exports.go
index a1b4aba3655..d6e3b32bc25 100644
--- a/tm2/pkg/store/exports.go
+++ b/tm2/pkg/store/exports.go
@@ -22,8 +22,8 @@ type (
 	Gas                    = types.Gas
 	GasMeter               = types.GasMeter
 	GasConfig              = types.GasConfig
-	OutOfGasException      = types.OutOfGasException
-	GasOverflowException   = types.GasOverflowException
+	OutOfGasError          = types.OutOfGasError
+	GasOverflowError       = types.GasOverflowError
 )
 
 var (
diff --git a/tm2/pkg/store/types/gas.go b/tm2/pkg/store/types/gas.go
index 9d1f3d70c28..a86cff17d1a 100644
--- a/tm2/pkg/store/types/gas.go
+++ b/tm2/pkg/store/types/gas.go
@@ -21,17 +21,25 @@ const (
 // Gas measured by the SDK
 type Gas = int64
 
-// OutOfGasException defines an error thrown when an action results in out of gas.
-type OutOfGasException struct {
+// OutOfGasError defines an error thrown when an action results in out of gas.
+type OutOfGasError struct {
 	Descriptor string
 }
 
-// GasOverflowException defines an error thrown when an action results gas consumption
+func (oog OutOfGasError) Error() string {
+	return "out of gas in location: " + oog.Descriptor
+}
+
+// GasOverflowError defines an error thrown when an action results gas consumption
 // unsigned integer overflow.
-type GasOverflowException struct {
+type GasOverflowError struct {
 	Descriptor string
 }
 
+func (oog GasOverflowError) Error() string {
+	return "gas overflow in location: " + oog.Descriptor
+}
+
 // GasMeter interface to track gas consumption
 type GasMeter interface {
 	GasConsumed() Gas
@@ -88,13 +96,13 @@ func (g *basicGasMeter) ConsumeGas(amount Gas, descriptor string) {
 	}
 	consumed, ok := overflow.Add64(g.consumed, amount)
 	if !ok {
-		panic(GasOverflowException{descriptor})
+		panic(GasOverflowError{descriptor})
 	}
 	// consume gas even if out of gas.
 	// corollary, call (Did)ConsumeGas after consumption.
 	g.consumed = consumed
 	if consumed > g.limit {
-		panic(OutOfGasException{descriptor})
+		panic(OutOfGasError{descriptor})
 	}
 }
 
@@ -139,7 +147,7 @@ func (g *infiniteGasMeter) Remaining() Gas {
 func (g *infiniteGasMeter) ConsumeGas(amount Gas, descriptor string) {
 	consumed, ok := overflow.Add64(g.consumed, amount)
 	if !ok {
-		panic(GasOverflowException{descriptor})
+		panic(GasOverflowError{descriptor})
 	}
 	g.consumed = consumed
 }