diff --git a/c/src/metta.rs b/c/src/metta.rs
index 0382c834f..ea41bc3c3 100644
--- a/c/src/metta.rs
+++ b/c/src/metta.rs
@@ -1180,6 +1180,7 @@ pub extern "C" fn metta_get_module_space(metta: *const metta_t, mod_id: module_i
 pub struct run_context_t {
     /// Internal.  Should not be accessed directly
     context: *mut RustRunContext,
+    err_string: *mut c_char,
 }
 
 //LP-TODO-NEXT I need to implement a solution to automatically retire run_context_t so we can throw a
@@ -1187,12 +1188,25 @@ pub struct run_context_t {
 // layer because it's harder to exercise lifecycle discipline in Python and a bug in Python shouldn't lead
 // to invlid memory access
 
+impl run_context_t {
+    fn take_err_string(&mut self) -> Option<String> {
+        if !self.err_string.is_null() {
+            let return_string = unsafe{ std::ffi::CString::from_raw(self.err_string) }.to_str().expect("UTF-8 error").to_string();
+            self.err_string = core::ptr::null_mut();
+            Some(return_string)
+        } else {
+            None
+        }
+    }
+}
+
 struct RustRunContext(RunContext<'static, 'static, 'static>);
 
 impl From<&mut RunContext<'_, '_, '_>> for run_context_t {
     fn from(context_ref: &mut RunContext<'_, '_, '_>) -> Self {
         Self {
-            context: (context_ref as *mut RunContext<'_, '_, '_>).cast()
+            context: (context_ref as *mut RunContext<'_, '_, '_>).cast(),
+            err_string: core::ptr::null_mut(),
         }
     }
 }
@@ -1260,6 +1274,20 @@ pub extern "C" fn run_context_get_tokenizer(run_context: *const run_context_t) -
     context.module().tokenizer().clone().into()
 }
 
+/// @brief Sets a runtime error
+/// @ingroup interpreter_group
+/// @param[in]  run_context  A pointer to the `run_context_t` to access the runner API
+/// @param[in]  message  A C-string specifying an error message
+/// @note Raising an error through this function will cause the MeTTa interpreter to take an error pathway
+///
+#[no_mangle]
+pub extern "C" fn run_context_raise_error(run_context: *mut run_context_t, message: *const c_char) {
+    let context = unsafe{ &mut *run_context };
+    let msg_str = unsafe{ std::ffi::CStr::from_ptr(message) };
+    let _ = context.take_err_string(); //Make sure an existing err string gets dropped.
+    context.err_string = std::ffi::CString::from(msg_str).into_raw();
+}
+
 /// @brief Represents the state of an in-flight MeTTa execution run
 /// @ingroup interpreter_group
 /// @note A `runner_state_t` is initially created by `runner_state_new_with_parser()`.  Each call to `metta_run_step()`, in
@@ -1929,7 +1957,10 @@ impl ModuleLoader for CFsModFmtLoader {
 
         (api.load)(self.payload, &mut c_context, self.callback_context);
 
-        Ok(())
+        match c_context.take_err_string() {
+            None => Ok(()),
+            Some(err_string) => Err(err_string),
+        }
     }
     fn get_resource(&self, _res_key: ResourceKey) -> Result<Vec<u8>, String> {
         //TODO, add C API for providing resources
diff --git a/python/hyperon/runner.py b/python/hyperon/runner.py
index dbf052ffb..8f3aefd76 100644
--- a/python/hyperon/runner.py
+++ b/python/hyperon/runner.py
@@ -362,8 +362,7 @@ def loader_func(run_context):
                 if '__name__' in dir(obj) and obj.__name__ == 'metta_register':
                     obj(run_context)
 
-        except:
-            # LP-TODO-Next, need to create error pathway through C interface 
-            raise RuntimeError("Error loading Python module: ", pymod_name)
+        except Exception as e:
+            raise RuntimeError("Error loading Python module: ", pymod_name, e)
 
     return loader_func
diff --git a/python/hyperonpy.cpp b/python/hyperonpy.cpp
index 6e38e804c..fc01bcbb5 100644
--- a/python/hyperonpy.cpp
+++ b/python/hyperonpy.cpp
@@ -564,7 +564,13 @@ void load_mod_fmt_callback(const void* payload, run_context_t* run_context, void
     py::object* callback_context_obj = (py::object*)callback_context;
     py::function py_func = fmt_interface_obj->attr("_load_called_from_c");
     CRunContext c_run_context = CRunContext(run_context);
-    py_func(&c_run_context, callback_context_obj);
+    try {
+        py_func(&c_run_context, callback_context_obj);
+    } catch (py::error_already_set &e) {
+        char message[4096];
+        snprintf(message, lenghtof(message), "Exception caught:\n%s", e.what());
+        run_context_raise_error(run_context, message);
+    }
 }
 
 void free_mod_fmt_context(void* callback_context) {
diff --git a/python/tests/test_extend.py b/python/tests/test_extend.py
index 53edd5ee3..0ebdc82b5 100644
--- a/python/tests/test_extend.py
+++ b/python/tests/test_extend.py
@@ -112,12 +112,8 @@ def test_error_pyext(self):
         This test verifies that an error from a Python extension is properly propagated
         '''
         metta = MeTTa(env_builder=Environment.custom_env(working_dir=os.getcwd(), disable_config=True, is_test=True))
-        try:
-          metta.run("!(import! &self error_pyext)")
-        except Exception as err:
-            pass
-        else:
-            raise Exception('error_pyext.py should raise an error when loading, so no-err is an error')
+        result = metta.run("!(import! &self error_pyext)")
+        self.assertEqual(S('Error'), result[0][0].get_children()[0])
 
 if __name__ == "__main__":
     unittest.main()