diff --git a/noir-projects/noir-contracts/contracts/avm_nested_calls_test_contract/src/main.nr b/noir-projects/noir-contracts/contracts/avm_nested_calls_test_contract/src/main.nr
index 1ebc736cc8d..a21791aaee4 100644
--- a/noir-projects/noir-contracts/contracts/avm_nested_calls_test_contract/src/main.nr
+++ b/noir-projects/noir-contracts/contracts/avm_nested_calls_test_contract/src/main.nr
@@ -26,6 +26,12 @@ contract AvmNestedCallsTest {
         arg_a + arg_b
     }
 
+    #[aztec(public-vm)]
+    fn assert_same(arg_a: Field, arg_b: Field) -> pub Field {
+        assert(arg_a == arg_b, "Values are not equal");
+        1
+    }
+
     // Use the standard context interface to emit a new nullifier
     #[aztec(public-vm)]
     fn new_nullifier(nullifier: Field) {
diff --git a/yarn-project/simulator/src/avm/avm_simulator.test.ts b/yarn-project/simulator/src/avm/avm_simulator.test.ts
index 73afe6c07ed..9e21712d017 100644
--- a/yarn-project/simulator/src/avm/avm_simulator.test.ts
+++ b/yarn-project/simulator/src/avm/avm_simulator.test.ts
@@ -842,7 +842,23 @@ describe('AVM simulator: transpiled Noir contracts', () => {
       const results = await new AvmSimulator(context).executeBytecode(callBytecode);
 
       expect(results.reverted).toBe(true); // The outer call should revert.
-      expect(results.revertReason?.message).toMatch(/Nested static call failed/);
+      expect(results.revertReason?.message).toEqual('Static calls cannot alter storage');
+    });
+
+    it(`Nested calls rethrow exceptions`, async () => {
+      const calldata: Fr[] = [new Fr(1), new Fr(2)];
+      const callBytecode = getAvmNestedCallsTestContractBytecode('nested_call_to_add');
+      // We actually don't pass the function ADD, but it's ok because the signature is the same.
+      const nestedBytecode = getAvmNestedCallsTestContractBytecode('assert_same');
+      const context = initContext({ env: initExecutionEnvironment({ calldata }) });
+      jest
+        .spyOn(context.persistableState.hostStorage.contractsDb, 'getBytecode')
+        .mockReturnValue(Promise.resolve(nestedBytecode));
+
+      const results = await new AvmSimulator(context).executeBytecode(callBytecode);
+
+      expect(results.reverted).toBe(true); // The outer call should revert.
+      expect(results.revertReason?.message).toEqual('Assertion failed: Values are not equal');
     });
   });
 });
diff --git a/yarn-project/simulator/src/avm/opcodes/external_calls.test.ts b/yarn-project/simulator/src/avm/opcodes/external_calls.test.ts
index bf052349410..d19f5b833e0 100644
--- a/yarn-project/simulator/src/avm/opcodes/external_calls.test.ts
+++ b/yarn-project/simulator/src/avm/opcodes/external_calls.test.ts
@@ -205,31 +205,25 @@ describe('External Calls', () => {
 
     it('Should fail if a static call attempts to touch storage', async () => {
       const gasOffset = 0;
-      const gas = new Field(0);
-      const addrOffset = 1;
+      const gas = [new Field(0n), new Field(0n), new Field(0n)];
+      const addrOffset = 10;
       const addr = new Field(123456n);
-      const argsOffset = 2;
+      const argsOffset = 20;
       const args = [new Field(1n), new Field(2n), new Field(3n)];
 
       const argsSize = args.length;
-      const argsSizeOffset = 20;
-      const retOffset = 8;
+      const argsSizeOffset = 40;
+      const retOffset = 80;
       const retSize = 2;
-      const successOffset = 7;
+      const successOffset = 70;
 
-      context.machineState.memory.set(0, gas);
-      context.machineState.memory.set(1, addr);
+      context.machineState.memory.setSlice(gasOffset, gas);
+      context.machineState.memory.set(addrOffset, addr);
       context.machineState.memory.set(argsSizeOffset, new Uint32(argsSize));
-      context.machineState.memory.setSlice(2, args);
+      context.machineState.memory.setSlice(argsOffset, args);
 
       const otherContextInstructions: Instruction[] = [
-        new CalldataCopy(
-          /*indirect=*/ 0,
-          /*csOffset=*/ adjustCalldataIndex(0),
-          /*copySize=*/ argsSize,
-          /*dstOffset=*/ 0,
-        ),
-        new SStore(/*indirect=*/ 0, /*srcOffset=*/ 1, /*size=*/ 1, /*slotOffset=*/ 0),
+        new SStore(/*indirect=*/ 0, /*srcOffset=*/ 0, /*size=*/ 0, /*slotOffset=*/ 0),
       ];
 
       const otherContextInstructionsBytecode = markBytecodeAsAvm(encodeToBytecode(otherContextInstructions));
@@ -249,11 +243,7 @@ describe('External Calls', () => {
         successOffset,
         /*temporaryFunctionSelectorOffset=*/ 0,
       );
-      await instruction.execute(context);
-
-      // No revert has occurred, but the nested execution has failed
-      const successValue = context.machineState.memory.get(successOffset);
-      expect(successValue).toEqual(new Uint8(0n));
+      await expect(() => instruction.execute(context)).rejects.toThrow(/Static calls cannot alter storage/);
     });
   });
 
diff --git a/yarn-project/simulator/src/avm/opcodes/external_calls.ts b/yarn-project/simulator/src/avm/opcodes/external_calls.ts
index 2fa2f02ddfc..1cf06ce5fcb 100644
--- a/yarn-project/simulator/src/avm/opcodes/external_calls.ts
+++ b/yarn-project/simulator/src/avm/opcodes/external_calls.ts
@@ -7,6 +7,7 @@ import { gasLeftToGas, sumGas } from '../avm_gas.js';
 import { Field, Uint8 } from '../avm_memory_types.js';
 import { type AvmContractCallResults } from '../avm_message_call_result.js';
 import { AvmSimulator } from '../avm_simulator.js';
+import { AvmExecutionError } from '../errors.js';
 import { Opcode, OperandType } from '../serialization/instruction_serialization.js';
 import { Addressing } from './addressing_mode.js';
 import { Instruction } from './instruction.js';
@@ -99,6 +100,18 @@ abstract class ExternalCall extends Instruction {
 
     const success = !nestedCallResults.reverted;
 
+    // TRANSITIONAL: We rethrow here so that the MESSAGE gets propagated.
+    if (!success) {
+      class RethrownError extends AvmExecutionError {
+        constructor(message: string) {
+          super(message);
+          this.name = 'RethrownError';
+        }
+      }
+
+      throw new RethrownError(nestedCallResults.revertReason?.message || 'Unknown nested call error');
+    }
+
     // We only take as much data as was specified in the return size and pad with zeroes if the return data is smaller
     // than the specified size in order to prevent that memory to be left with garbage
     const returnData = nestedCallResults.output.slice(0, this.retSize);