diff --git a/pallets/ethereum-transaction/Cargo.toml b/pallets/ethereum-transaction/Cargo.toml
index 4bf63ca27d..bc71905386 100644
--- a/pallets/ethereum-transaction/Cargo.toml
+++ b/pallets/ethereum-transaction/Cargo.toml
@@ -40,7 +40,7 @@ cfg-traits = { workspace = true }
 sp-core = { workspace = true }
 sp-io = { workspace = true }
 
-pallet-balances = { workspace = true }
+pallet-balances = { workspace = true, default-features = true }
 pallet-evm-precompile-simple = { workspace = true, default-features = true }
 pallet-timestamp = { workspace = true, default-features = true }
 
diff --git a/pallets/ethereum-transaction/src/lib.rs b/pallets/ethereum-transaction/src/lib.rs
index 5f2d900261..e5673e87f1 100644
--- a/pallets/ethereum-transaction/src/lib.rs
+++ b/pallets/ethereum-transaction/src/lib.rs
@@ -29,6 +29,7 @@ mod tests;
 
 #[frame_support::pallet]
 pub mod pallet {
+	use ethereum::ReceiptV3;
 	use frame_system::pallet_prelude::OriginFor;
 
 	use super::*;
@@ -64,6 +65,27 @@ pub mod pallet {
 		}
 	}
 
+	#[pallet::error]
+	pub enum Error<T> {
+		EvmExecutionFailed,
+	}
+
+	impl<T: Config> Pallet<T>
+	where
+		OriginFor<T>:
+			From<pallet_ethereum::Origin> + Into<Result<pallet_ethereum::Origin, OriginFor<T>>>,
+	{
+		fn valid_code(receipt: &ReceiptV3) -> bool {
+			let code = match receipt {
+				ReceiptV3::Legacy(inner)
+				| ReceiptV3::EIP2930(inner)
+				| ReceiptV3::EIP1559(inner) => inner.status_code,
+			};
+
+			code == 1
+		}
+	}
+
 	impl<T: Config> EthereumTransactor for Pallet<T>
 	where
 		OriginFor<T>:
@@ -107,7 +129,7 @@ pub mod pallet {
 
 			Nonce::<T>::put(nonce.saturating_add(U256::one()));
 
-			pallet_ethereum::Pallet::<T>::transact(
+			let info = pallet_ethereum::Pallet::<T>::transact(
 				pallet_ethereum::Origin::EthereumTransaction(from).into(),
 				transaction,
 			)
@@ -129,7 +151,21 @@ pub mod pallet {
 					.map_or(Some(read_weight), |weight| {
 						Some(weight.saturating_add(read_weight))
 					}),
-			})
+			})?;
+
+			// NOTE: The Ethereuem side of things never returns a DispatchError
+			//       if the execution failed. But we can check that manually by
+			//       querying the `Pending` storage of the pallet-ethereum.
+			let pending = pallet_ethereum::Pending::<T>::get();
+			let (_, _, receipt) = pending.last().ok_or(DispatchError::Other(
+				"Ethereuem not adding pending storage. Unexpected.",
+			))?;
+
+			if Pallet::<T>::valid_code(receipt) {
+				Ok(info)
+			} else {
+				Err(Error::<T>::EvmExecutionFailed.into())
+			}
 		}
 	}
 }
diff --git a/pallets/ethereum-transaction/src/tests.rs b/pallets/ethereum-transaction/src/tests.rs
index e7752611f3..c737173525 100644
--- a/pallets/ethereum-transaction/src/tests.rs
+++ b/pallets/ethereum-transaction/src/tests.rs
@@ -4,7 +4,7 @@ use pallet_evm::{AddressMapping, Error::BalanceLow};
 use sp_core::{crypto::AccountId32, H160, U256};
 
 use super::mock::*;
-use crate::pallet::Nonce;
+use crate::{pallet::Nonce, Error};
 
 mod utils {
 	use super::*;
@@ -101,22 +101,17 @@ mod call {
 
 			assert_eq!(Nonce::<Runtime>::get(), U256::from(0));
 
-			// NOTE: We can not check for errors as the internal `pallet-ethereum` logic
-			//       does not transform an EVM error into an Substrate error and return
-			//       `Ok(..)` in theses cases.
-			//
-			//       We can also not mimic the `pallet-ethereum::Pallet::<T>::transact(..)`
-			//       code path as some needed parts are private.
-			assert_ok!(<EthereumTransaction as EthereumTransactor>::call(
-				sender,
-				to,
-				data.as_slice(),
-				value,
-				gas_price,
-				gas_limit,
-			));
-
-			assert_eq!(Nonce::<Runtime>::get(), U256::from(1));
+			assert_eq!(
+				<EthereumTransaction as EthereumTransactor>::call(
+					sender,
+					to,
+					data.as_slice(),
+					value,
+					gas_price,
+					gas_limit,
+				),
+				Err(Error::<Runtime>::EvmExecutionFailed.into())
+			);
 		});
 	}
 }
diff --git a/pallets/liquidity-pools-gateway/routers/src/tests.rs b/pallets/liquidity-pools-gateway/routers/src/tests.rs
index 7c268d8db4..57d1672428 100644
--- a/pallets/liquidity-pools-gateway/routers/src/tests.rs
+++ b/pallets/liquidity-pools-gateway/routers/src/tests.rs
@@ -55,7 +55,7 @@ mod evm_router {
 				target_contract_address: test_contract_address,
 				target_contract_hash: test_contract_hash,
 				fee_values: FeeValues {
-					value: U256::from(10),
+					value: U256::from(0),
 					gas_limit: U256::from(10),
 					gas_price: U256::from(10),
 				},
@@ -337,7 +337,7 @@ mod axelar_evm {
 				target_contract_address: axelar_contract_address,
 				target_contract_hash: axelar_contract_hash,
 				fee_values: FeeValues {
-					value: U256::from(10),
+					value: U256::from(0),
 					gas_limit: U256::from(10),
 					gas_price: U256::from(10),
 				},
diff --git a/runtime/integration-tests/src/evm/ethereum_transaction.rs b/runtime/integration-tests/src/evm/ethereum_transaction.rs
index ad783c1d48..28d9ddfd0d 100644
--- a/runtime/integration-tests/src/evm/ethereum_transaction.rs
+++ b/runtime/integration-tests/src/evm/ethereum_transaction.rs
@@ -147,8 +147,7 @@ async fn call() {
 			U256::from(0x100000),
 		);
 
-		// NOTE: WE CAN NOTE CHECK WHETHER THE EVM ERRORS OUT
-		assert!(res.is_ok());
+		assert!(res.is_err());
 	})
 	.unwrap();
 }
diff --git a/runtime/integration-tests/src/generic/cases/liquidity_pools.rs b/runtime/integration-tests/src/generic/cases/liquidity_pools.rs
index 71a8e586af..b6cfc907fa 100644
--- a/runtime/integration-tests/src/generic/cases/liquidity_pools.rs
+++ b/runtime/integration-tests/src/generic/cases/liquidity_pools.rs
@@ -4854,8 +4854,8 @@ mod development {
 					target_contract_address: axelar_contract_address,
 					target_contract_hash: axelar_contract_hash,
 					fee_values: FeeValues {
-						value: U256::from(10),
-						gas_limit: U256::from(transaction_call_cost + 10_000),
+						value: U256::from(0),
+						gas_limit: U256::from(transaction_call_cost + 1_000_000),
 						gas_price: U256::from(10),
 					},
 				};