diff --git a/libs/sdk-bindings/src/breez_sdk.udl b/libs/sdk-bindings/src/breez_sdk.udl
index b9b9d22de..abf2a213c 100644
--- a/libs/sdk-bindings/src/breez_sdk.udl
+++ b/libs/sdk-bindings/src/breez_sdk.udl
@@ -98,6 +98,13 @@ enum SendPaymentError {
     "ServiceConnectivity",
 };
 
+[Error]
+enum RedeemOnchainError {    
+    "Generic",    
+    "ServiceConnectivity",
+    "InsufficientFunds",
+};
+
 enum EnvironmentType {
     "Production",
     "Staging",
@@ -874,7 +881,7 @@ interface BlockingBreezServices {
    [Throws=SdkError]
    void set_payment_metadata(string hash, string metadata);
 
-   [Throws=SdkError]
+   [Throws=RedeemOnchainError]
    RedeemOnchainFundsResponse redeem_onchain_funds(RedeemOnchainFundsRequest req);
 
    [Throws=SdkError]
@@ -973,7 +980,7 @@ interface BlockingBreezServices {
    [Throws=ReceiveOnchainError]
    BuyBitcoinResponse buy_bitcoin(BuyBitcoinRequest req);
 
-   [Throws=SdkError]
+   [Throws=RedeemOnchainError]
    PrepareRedeemOnchainFundsResponse prepare_redeem_onchain_funds(PrepareRedeemOnchainFundsRequest req);
 };
 
diff --git a/libs/sdk-bindings/src/uniffi_binding.rs b/libs/sdk-bindings/src/uniffi_binding.rs
index 7aada9bd0..ec446fd29 100644
--- a/libs/sdk-bindings/src/uniffi_binding.rs
+++ b/libs/sdk-bindings/src/uniffi_binding.rs
@@ -212,7 +212,7 @@ impl BlockingBreezServices {
     pub fn redeem_onchain_funds(
         &self,
         req: RedeemOnchainFundsRequest,
-    ) -> SdkResult<RedeemOnchainFundsResponse> {
+    ) -> RedeemOnchainResult<RedeemOnchainFundsResponse> {
         rt().block_on(self.breez_services.redeem_onchain_funds(req))
     }
 
@@ -382,7 +382,7 @@ impl BlockingBreezServices {
     pub fn prepare_redeem_onchain_funds(
         &self,
         req: PrepareRedeemOnchainFundsRequest,
-    ) -> SdkResult<PrepareRedeemOnchainFundsResponse> {
+    ) -> RedeemOnchainResult<PrepareRedeemOnchainFundsResponse> {
         rt().block_on(self.breez_services.prepare_redeem_onchain_funds(req))
     }
 }
diff --git a/libs/sdk-core/src/binding.rs b/libs/sdk-core/src/binding.rs
index 13420a054..f22cd88df 100644
--- a/libs/sdk-core/src/binding.rs
+++ b/libs/sdk-core/src/binding.rs
@@ -31,8 +31,8 @@ use tokio::sync::Mutex;
 use crate::breez_services::{self, BreezEvent, BreezServices, EventListener};
 use crate::chain::RecommendedFees;
 use crate::error::{
-    ConnectError, ReceiveOnchainError, ReceivePaymentError, SdkError, SendOnchainError,
-    SendPaymentError,
+    ConnectError, ReceiveOnchainError, ReceivePaymentError, RedeemOnchainError, SdkError,
+    SendOnchainError, SendPaymentError,
 };
 use crate::lsp::LspInformation;
 use crate::models::{Config, LogEntry, NodeState, Payment, SwapInfo};
@@ -639,7 +639,7 @@ pub fn buy_bitcoin(req: BuyBitcoinRequest) -> Result<BuyBitcoinResponse> {
 /// See [BreezServices::redeem_onchain_funds]
 pub fn redeem_onchain_funds(req: RedeemOnchainFundsRequest) -> Result<RedeemOnchainFundsResponse> {
     block_on(async { get_breez_services().await?.redeem_onchain_funds(req).await })
-        .map_err(anyhow::Error::new::<SdkError>)
+        .map_err(anyhow::Error::new::<RedeemOnchainError>)
 }
 
 /// See [BreezServices::prepare_redeem_onchain_funds]
@@ -652,7 +652,7 @@ pub fn prepare_redeem_onchain_funds(
             .prepare_redeem_onchain_funds(req)
             .await
     })
-    .map_err(anyhow::Error::new::<SdkError>)
+    .map_err(anyhow::Error::new::<RedeemOnchainError>)
 }
 
 /*  Refundables API's */
diff --git a/libs/sdk-core/src/breez_services.rs b/libs/sdk-core/src/breez_services.rs
index e3233b0b6..a8ff5bfb5 100644
--- a/libs/sdk-core/src/breez_services.rs
+++ b/libs/sdk-core/src/breez_services.rs
@@ -29,8 +29,8 @@ use crate::chain::{
     DEFAULT_MEMPOOL_SPACE_URL,
 };
 use crate::error::{
-    ConnectError, ReceiveOnchainError, ReceiveOnchainResult, ReceivePaymentError, SdkError,
-    SdkResult, SendOnchainError, SendPaymentError,
+    ConnectError, ReceiveOnchainError, ReceiveOnchainResult, ReceivePaymentError,
+    RedeemOnchainResult, SdkError, SdkResult, SendOnchainError, SendPaymentError,
 };
 use crate::greenlight::{GLBackupTransport, Greenlight};
 use crate::lnurl::pay::*;
@@ -626,7 +626,7 @@ impl BreezServices {
     pub async fn redeem_onchain_funds(
         &self,
         req: RedeemOnchainFundsRequest,
-    ) -> SdkResult<RedeemOnchainFundsResponse> {
+    ) -> RedeemOnchainResult<RedeemOnchainFundsResponse> {
         self.start_node().await?;
         let txid = self
             .node_api
@@ -639,7 +639,7 @@ impl BreezServices {
     pub async fn prepare_redeem_onchain_funds(
         &self,
         req: PrepareRedeemOnchainFundsRequest,
-    ) -> SdkResult<PrepareRedeemOnchainFundsResponse> {
+    ) -> RedeemOnchainResult<PrepareRedeemOnchainFundsResponse> {
         self.start_node().await?;
         let response = self.node_api.prepare_redeem_onchain_funds(req).await?;
         Ok(response)
diff --git a/libs/sdk-core/src/error.rs b/libs/sdk-core/src/error.rs
index 4c7c22eee..a398d5faa 100644
--- a/libs/sdk-core/src/error.rs
+++ b/libs/sdk-core/src/error.rs
@@ -201,6 +201,53 @@ impl From<PersistError> for ReceiveOnchainError {
     }
 }
 
+pub type RedeemOnchainResult<T, E = RedeemOnchainError> = Result<T, E>;
+
+#[derive(Debug, Error)]
+pub enum RedeemOnchainError {
+    /// This error is raised when a general error occurs not specific to other error variants
+    /// in this enum.
+    #[error("Generic: {err}")]
+    Generic { err: String },
+
+    /// This error is raised when a connection to an external service fails.
+    #[error("Service connectivity: {err}")]
+    ServiceConnectivity { err: String },
+
+    /// This error is raised when the node does not have enough funds to redeem the onchain balance.
+    #[error("{err}")]
+    InsufficientFunds { err: String },
+}
+
+impl From<NodeError> for RedeemOnchainError {
+    fn from(value: NodeError) -> Self {
+        match value {
+            NodeError::InsufficientFunds(err) => Self::InsufficientFunds { err },
+            NodeError::ServiceConnectivity(err) => Self::ServiceConnectivity { err },
+            _ => Self::Generic {
+                err: value.to_string(),
+            },
+        }
+    }
+}
+
+impl From<anyhow::Error> for RedeemOnchainError {
+    fn from(err: anyhow::Error) -> Self {
+        Self::Generic {
+            err: err.to_string(),
+        }
+    }
+}
+
+impl From<SdkError> for RedeemOnchainError {
+    fn from(value: SdkError) -> Self {
+        match value {
+            SdkError::Generic { err } => Self::Generic { err },
+            SdkError::ServiceConnectivity { err } => Self::ServiceConnectivity { err },
+        }
+    }
+}
+
 /// Error returned by [crate::breez_services::BreezServices::receive_payment]
 #[derive(Debug, Error)]
 pub enum ReceivePaymentError {
diff --git a/libs/sdk-core/src/greenlight/node_api.rs b/libs/sdk-core/src/greenlight/node_api.rs
index 0ddf06a1c..b89fb91e8 100644
--- a/libs/sdk-core/src/greenlight/node_api.rs
+++ b/libs/sdk-core/src/greenlight/node_api.rs
@@ -1260,7 +1260,9 @@ impl NodeAPI for Greenlight {
             + witness_input_size * txins.len() as u64;
         let fee: u64 = tx_weight * req.sat_per_vbyte as u64 / WITNESS_SCALE_FACTOR as u64;
         if fee >= amount_sat {
-            return Err(NodeError::generic("Insufficient funds to pay fees"));
+            return Err(NodeError::InsufficientFunds(
+                "Insufficient funds to pay fees".to_string(),
+            ));
         }
 
         return Ok(PrepareRedeemOnchainFundsResponse {
diff --git a/libs/sdk-core/src/node_api.rs b/libs/sdk-core/src/node_api.rs
index d669c6d98..5de808263 100644
--- a/libs/sdk-core/src/node_api.rs
+++ b/libs/sdk-core/src/node_api.rs
@@ -12,9 +12,9 @@ use crate::{
     bitcoin::util::bip32::{ChildNumber, ExtendedPrivKey},
     lightning_invoice::RawBolt11Invoice,
     persist::error::PersistError,
-    CustomMessage, LspInformation, MaxChannelAmount, NodeCredentials, Payment, PaymentResponse,
-    PrepareRedeemOnchainFundsRequest, PrepareRedeemOnchainFundsResponse, RouteHint, RouteHintHop,
-    SyncResponse, TlvEntry, LnUrlAuthError
+    CustomMessage, LnUrlAuthError, LspInformation, MaxChannelAmount, NodeCredentials, Payment,
+    PaymentResponse, PrepareRedeemOnchainFundsRequest, PrepareRedeemOnchainFundsResponse,
+    RouteHint, RouteHintHop, SyncResponse, TlvEntry,
 };
 
 pub type NodeResult<T, E = NodeError> = Result<T, E>;
@@ -59,6 +59,9 @@ pub enum NodeError {
 
     #[error("{0}")]
     ServiceConnectivity(String),
+
+    #[error("{0}")]
+    InsufficientFunds(String),
 }
 
 impl NodeError {
@@ -86,7 +89,7 @@ impl From<NodeError> for LnUrlAuthError {
         match value {
             NodeError::ServiceConnectivity(err) => Self::ServiceConnectivity { err },
             _ => Self::Generic {
-                err: value.to_string()
+                err: value.to_string(),
             },
         }
     }