diff --git a/news/435.bugfix b/news/435.bugfix
new file mode 100644
index 000000000..4065af67e
--- /dev/null
+++ b/news/435.bugfix
@@ -0,0 +1 @@
+When initializing a Structured Config with an incorrectly-typed value, the resulting ValidationError now properly reports the offending value in its error message.
diff --git a/omegaconf/_utils.py b/omegaconf/_utils.py
index a01051d5c..2dec6c1e9 100644
--- a/omegaconf/_utils.py
+++ b/omegaconf/_utils.py
@@ -15,6 +15,7 @@
     ConfigTypeError,
     ConfigValueError,
     OmegaConfBaseException,
+    ValidationError,
 )
 from .grammar_parser import parse
 
@@ -217,13 +218,16 @@ def get_attr_data(obj: Any, allow_objects: Optional[bool] = None) -> Dict[str, A
             )
             format_and_raise(node=None, key=None, value=value, cause=e, msg=str(e))
 
-        d[name] = _maybe_wrap(
-            ref_type=type_,
-            is_optional=is_optional,
-            key=name,
-            value=value,
-            parent=dummy_parent,
-        )
+        try:
+            d[name] = _maybe_wrap(
+                ref_type=type_,
+                is_optional=is_optional,
+                key=name,
+                value=value,
+                parent=dummy_parent,
+            )
+        except ValidationError as ex:
+            format_and_raise(node=None, key=name, value=value, cause=ex, msg=str(ex))
         d[name]._set_parent(None)
     return d
 
@@ -257,13 +261,16 @@ def get_dataclass_data(
                 f"Union types are not supported:\n{name}: {type_str(type_)}"
             )
             format_and_raise(node=None, key=None, value=value, cause=e, msg=str(e))
-        d[name] = _maybe_wrap(
-            ref_type=type_,
-            is_optional=is_optional,
-            key=name,
-            value=value,
-            parent=dummy_parent,
-        )
+        try:
+            d[name] = _maybe_wrap(
+                ref_type=type_,
+                is_optional=is_optional,
+                key=name,
+                value=value,
+                parent=dummy_parent,
+            )
+        except ValidationError as ex:
+            format_and_raise(node=None, key=name, value=value, cause=ex, msg=str(ex))
         d[name]._set_parent(None)
     return d
 
diff --git a/tests/structured_conf/test_structured_basic.py b/tests/structured_conf/test_structured_basic.py
index a46e257fa..97b7f41bf 100644
--- a/tests/structured_conf/test_structured_basic.py
+++ b/tests/structured_conf/test_structured_basic.py
@@ -48,6 +48,13 @@ def test_error_on_non_structured_nested_config_class(self, module: Any) -> None:
             assert list(ret.keys()) == ["bar"]
             assert ret.bar == module.NotStructuredConfig()
 
+        def test_error_on_creation_with_bad_value_type(self, module: Any) -> None:
+            with raises(
+                ValidationError,
+                match=re.escape("Value 'seven' could not be converted to Integer"),
+            ):
+                OmegaConf.structured(module.User(age="seven"))
+
         def test_assignment_of_subclass(self, module: Any) -> None:
             cfg = OmegaConf.create({"plugin": module.Plugin})
             cfg.plugin = OmegaConf.structured(module.ConcretePlugin)
diff --git a/tests/test_errors.py b/tests/test_errors.py
index 1ccc811bd..f68f29528 100644
--- a/tests/test_errors.py
+++ b/tests/test_errors.py
@@ -532,23 +532,22 @@ def finalize(self, cfg: Any) -> None:
     pytest.param(
         Expected(
             create=lambda: None,
-            op=lambda cfg: OmegaConf.structured(NotOptionalInt),
+            op=lambda _: OmegaConf.structured(NotOptionalInt),
             exception_type=ValidationError,
             msg="Non optional field cannot be assigned None",
-            object_type_str=None,
-            ref_type_str=None,
+            key="foo",
+            full_key="",
         ),
         id="dict:create_none_optional_with_none",
     ),
     pytest.param(
         Expected(
             create=lambda: None,
-            op=lambda cfg: OmegaConf.structured(NotOptionalInt),
+            op=lambda _: OmegaConf.structured(NotOptionalInt),
             exception_type=ValidationError,
-            object_type=None,
             msg="Non optional field cannot be assigned None",
-            object_type_str="NotOptionalInt",
-            ref_type_str=None,
+            key="foo",
+            full_key="",
         ),
         id="dict:create:not_optional_int_field_with_none",
     ),
@@ -577,6 +576,19 @@ def finalize(self, cfg: Any) -> None:
         ),
         id="dict_create_from_illegal_type",
     ),
+    pytest.param(
+        Expected(
+            create=lambda: None,
+            op=lambda _: OmegaConf.structured(
+                ConcretePlugin(params=ConcretePlugin.FoobarParams(foo="x"))  # type: ignore
+            ),
+            exception_type=ValidationError,
+            msg="Value 'x' could not be converted to Integer",
+            key="foo",
+            full_key="",
+        ),
+        id="structured:create_with_invalid_value",
+    ),
     pytest.param(
         Expected(
             create=lambda: None,