diff --git a/packages/core/src/utils/createCacheForWalletSetupFunction.ts b/packages/core/src/utils/createCacheForWalletSetupFunction.ts
index d73baac3c..021bbbe07 100644
--- a/packages/core/src/utils/createCacheForWalletSetupFunction.ts
+++ b/packages/core/src/utils/createCacheForWalletSetupFunction.ts
@@ -8,7 +8,8 @@ const sleep = (ms: number) => new Promise((resolve) => setTimeout(resolve, ms))
 export async function createCacheForWalletSetupFunction(
   extensionPath: string,
   contextCacheDirPath: string,
-  walletSetup: WalletSetupFunction
+  walletSetup: WalletSetupFunction,
+  fileName: string
 ) {
   // TODO: Extract & Make a constant.
   const browserArgs = [`--disable-extensions-except=${extensionPath}`, `--load-extension=${extensionPath}`]
@@ -24,7 +25,15 @@ export async function createCacheForWalletSetupFunction(
 
   const extensionPage = await waitForExtensionOnLoadPage(context)
 
-  await walletSetup(context, extensionPage)
+  try {
+    await walletSetup(context, extensionPage)
+  } catch (e) {
+    throw new Error(
+      `[CORE] Encountered an error while executing wallet setup function from file ${fileName}. Error message: ${
+        (e as Error).message
+      }`
+    )
+  }
 
   // We sleep here to give the browser enough time to save the context to the disk.
   await sleep(3000) // TODO: Extract & Make this timeout configurable.
diff --git a/packages/core/src/utils/triggerCacheCreation.ts b/packages/core/src/utils/triggerCacheCreation.ts
index 524bd459e..669115c17 100644
--- a/packages/core/src/utils/triggerCacheCreation.ts
+++ b/packages/core/src/utils/triggerCacheCreation.ts
@@ -26,10 +26,16 @@ export async function triggerCacheCreation(
       await fs.remove(cachePath)
     }
 
-    console.log(`Triggering cache creation for: ${funcHash} (${fileName.replace(/\.(js|ts)$/, '.{js,ts}')})`)
+    const fileNameWithCorrectExtension = fileName.replace(/\.(js|ts)$/, '.{js,ts}')
+    console.log(`Triggering cache creation for: ${funcHash} (${fileNameWithCorrectExtension})`)
 
     // We're not inferring the return type here to make sure we don't accidentally await the function.
-    const createCachePromise: Promise<void> = createCacheForWalletSetupFunction(extensionPath, cachePath, setupFunction)
+    const createCachePromise: Promise<void> = createCacheForWalletSetupFunction(
+      extensionPath,
+      cachePath,
+      setupFunction,
+      fileNameWithCorrectExtension
+    )
     cacheCreationPromises.push(createCachePromise)
   }
 
diff --git a/packages/core/test/utils/createCacheForWalletSetupFunction.test.ts b/packages/core/test/utils/createCacheForWalletSetupFunction.test.ts
index bdf1da6ad..3c3ec1d89 100644
--- a/packages/core/test/utils/createCacheForWalletSetupFunction.test.ts
+++ b/packages/core/test/utils/createCacheForWalletSetupFunction.test.ts
@@ -34,9 +34,10 @@ vi.mock('../../src/utils/waitForExtensionOnLoadPage', async () => {
 describe('createCacheForWalletSetupFunction', () => {
   const launchPersistentContextSpy = vi.spyOn(chromium, 'launchPersistentContext')
   const walletSetup = vi.fn()
+  const fileName = 'test.ts'
 
   const runCreateCacheForWalletSetupFunction = async () => {
-    const promise = createCacheForWalletSetupFunction(EXTENSION_PATH, CONTEXT_PATH, walletSetup)
+    const promise = createCacheForWalletSetupFunction(EXTENSION_PATH, CONTEXT_PATH, walletSetup, fileName)
     await vi.runAllTimersAsync()
     await promise
   }
@@ -100,6 +101,17 @@ describe('createCacheForWalletSetupFunction', () => {
     expect(walletSetup).toHaveBeenCalledWith(context, extensionPage)
   })
 
+  it('throws an error if walletSetup throws one', async () => {
+    const errorMessage = 'A duck has thrown a tantrum! 🦆'
+    walletSetup.mockRejectedValueOnce(new Error(errorMessage))
+
+    const promise = createCacheForWalletSetupFunction(EXTENSION_PATH, CONTEXT_PATH, walletSetup, fileName)
+
+    await expect(promise).rejects.toThrowError(
+      `[CORE] Encountered an error while executing wallet setup function from file ${fileName}. Error message: ${errorMessage}`
+    )
+  })
+
   it('closes context', async () => {
     const closeContext = vi.fn()
     // biome-ignore lint/suspicious/noExplicitAny: any type here is intentional
@@ -117,7 +129,7 @@ describe('createCacheForWalletSetupFunction', () => {
 
     const setTimeoutSpy = vi.spyOn(global, 'setTimeout')
 
-    const promise = createCacheForWalletSetupFunction(EXTENSION_PATH, CONTEXT_PATH, walletSetup)
+    const promise = createCacheForWalletSetupFunction(EXTENSION_PATH, CONTEXT_PATH, walletSetup, fileName)
 
     // Verify that nothing was run yet.
     expect(walletSetup).not.toHaveBeenCalled()
diff --git a/packages/core/test/utils/triggerCacheCreation.test.ts b/packages/core/test/utils/triggerCacheCreation.test.ts
index a54ba138d..f25ed0fec 100644
--- a/packages/core/test/utils/triggerCacheCreation.test.ts
+++ b/packages/core/test/utils/triggerCacheCreation.test.ts
@@ -52,18 +52,25 @@ describe('triggerCacheCreation', () => {
     const setupFunctions = new Map<string, { fileName: string; setupFunction: WalletSetupFunction }>()
 
     for (const hash of hashes) {
-      setupFunctions.set(hash, { fileName: path.join(ROOT_DIR, hash), setupFunction: testSetupFunction })
+      setupFunctions.set(hash, { fileName: path.join(ROOT_DIR, `${hash}.ts`), setupFunction: testSetupFunction })
     }
 
     return setupFunctions
   }
 
-  function expectCreateCacheForWalletSetupFunction(n: number, contextCacheDirName: string) {
+  function expectCreateCacheForWalletSetupFunction(
+    n: number,
+    setupFunctions: ReturnType<typeof prepareSetupFunctions>,
+    hash: string
+  ) {
+    const fileNameWithCorrectExtension = setupFunctions.get(hash)?.fileName?.replace(/\.(js|ts)$/, '.{js,ts}')
+
     expect(createCacheForWalletSetupFunctionSpy).toHaveBeenNthCalledWith(
       n,
       EXTENSION_PATH,
-      path.join(ROOT_DIR, contextCacheDirName),
-      testSetupFunction
+      path.join(ROOT_DIR, hash),
+      testSetupFunction,
+      fileNameWithCorrectExtension
     )
   }
 
@@ -101,8 +108,8 @@ describe('triggerCacheCreation', () => {
     await triggerCacheCreation(setupFunctions, downloadExtension, false)
 
     expect(createCacheForWalletSetupFunctionSpy).toHaveBeenCalledTimes(2)
-    expectCreateCacheForWalletSetupFunction(1, 'hash1')
-    expectCreateCacheForWalletSetupFunction(2, 'hash2')
+    expectCreateCacheForWalletSetupFunction(1, setupFunctions, 'hash1')
+    expectCreateCacheForWalletSetupFunction(2, setupFunctions, 'hash2')
   })
 
   it('checks if cache already exists for each entry', async () => {
@@ -136,8 +143,8 @@ describe('triggerCacheCreation', () => {
 
       expect(promises).toHaveLength(2)
       expect(createCacheForWalletSetupFunctionSpy).toHaveBeenCalledTimes(2)
-      expectCreateCacheForWalletSetupFunction(1, 'hash1')
-      expectCreateCacheForWalletSetupFunction(2, 'hash3')
+      expectCreateCacheForWalletSetupFunction(1, setupFunctions, 'hash1')
+      expectCreateCacheForWalletSetupFunction(2, setupFunctions, 'hash3')
     })
   })
 
@@ -164,9 +171,9 @@ describe('triggerCacheCreation', () => {
 
       expect(promises).toHaveLength(3)
       expect(createCacheForWalletSetupFunctionSpy).toHaveBeenCalledTimes(3)
-      expectCreateCacheForWalletSetupFunction(1, 'hash1')
-      expectCreateCacheForWalletSetupFunction(2, 'hash2')
-      expectCreateCacheForWalletSetupFunction(3, 'hash3')
+      expectCreateCacheForWalletSetupFunction(1, setupFunctions, 'hash1')
+      expectCreateCacheForWalletSetupFunction(2, setupFunctions, 'hash2')
+      expectCreateCacheForWalletSetupFunction(3, setupFunctions, 'hash3')
     })
   })
 })