diff --git a/pkg/rpc/client/nep5.go b/pkg/rpc/client/nep5.go
index 1fc5fa89b..dd3d39fca 100644
--- a/pkg/rpc/client/nep5.go
+++ b/pkg/rpc/client/nep5.go
@@ -7,6 +7,7 @@ import (
 	"github.com/nspcc-dev/neo-go/pkg/core/transaction"
 	"github.com/nspcc-dev/neo-go/pkg/encoding/address"
 	"github.com/nspcc-dev/neo-go/pkg/io"
+	"github.com/nspcc-dev/neo-go/pkg/rpc/response/result"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract"
 	"github.com/nspcc-dev/neo-go/pkg/util"
 	"github.com/nspcc-dev/neo-go/pkg/vm/emit"
@@ -34,8 +35,10 @@ func (c *Client) NEP5Decimals(tokenHash util.Uint160) (int64, error) {
 	result, err := c.InvokeFunction(tokenHash, "decimals", []smartcontract.Parameter{}, nil)
 	if err != nil {
 		return 0, err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return 0, errors.New("invalid VM state")
+	}
+	err = getInvocationError(result)
+	if err != nil {
+		return 0, fmt.Errorf("failed to get NEP5 decimals: %w", err)
 	}
 
 	return topIntFromStack(result.Stack)
@@ -46,8 +49,10 @@ func (c *Client) NEP5Name(tokenHash util.Uint160) (string, error) {
 	result, err := c.InvokeFunction(tokenHash, "name", []smartcontract.Parameter{}, nil)
 	if err != nil {
 		return "", err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return "", errors.New("invalid VM state")
+	}
+	err = getInvocationError(result)
+	if err != nil {
+		return "", fmt.Errorf("failed to get NEP5 name: %w", err)
 	}
 
 	return topStringFromStack(result.Stack)
@@ -58,8 +63,10 @@ func (c *Client) NEP5Symbol(tokenHash util.Uint160) (string, error) {
 	result, err := c.InvokeFunction(tokenHash, "symbol", []smartcontract.Parameter{}, nil)
 	if err != nil {
 		return "", err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return "", errors.New("invalid VM state")
+	}
+	err = getInvocationError(result)
+	if err != nil {
+		return "", fmt.Errorf("failed to get NEP5 symbol: %w", err)
 	}
 
 	return topStringFromStack(result.Stack)
@@ -70,8 +77,10 @@ func (c *Client) NEP5TotalSupply(tokenHash util.Uint160) (int64, error) {
 	result, err := c.InvokeFunction(tokenHash, "totalSupply", []smartcontract.Parameter{}, nil)
 	if err != nil {
 		return 0, err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return 0, errors.New("invalid VM state")
+	}
+	err = getInvocationError(result)
+	if err != nil {
+		return 0, fmt.Errorf("failed to get NEP5 total supply: %w", err)
 	}
 
 	return topIntFromStack(result.Stack)
@@ -85,8 +94,10 @@ func (c *Client) NEP5BalanceOf(tokenHash, acc util.Uint160) (int64, error) {
 	}}, nil)
 	if err != nil {
 		return 0, err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return 0, errors.New("invalid VM state")
+	}
+	err = getInvocationError(result)
+	if err != nil {
+		return 0, fmt.Errorf("failed to get NEP5 balance: %w", err)
 	}
 
 	return topIntFromStack(result.Stack)
@@ -156,7 +167,7 @@ func (c *Client) CreateTxFromScript(script []byte, acc *wallet.Account, sysFee,
 			return nil, fmt.Errorf("can't add system fee to transaction: %w", err)
 		}
 		if result.State != "HALT" {
-			return nil, fmt.Errorf("can't add system fee to transaction: bad vm state: %s", result.State)
+			return nil, fmt.Errorf("can't add system fee to transaction: bad vm state: %s due to an error: %s", result.State, result.FaultException)
 		}
 		sysFee = result.GasConsumed
 	}
@@ -225,3 +236,14 @@ func topStringFromStack(st []stackitem.Item) (string, error) {
 	}
 	return string(bs), nil
 }
+
+// getInvocationError returns an error in case of bad VM state or empty stack.
+func getInvocationError(result *result.Invoke) error {
+	if result.State != "HALT" {
+		return fmt.Errorf("invocation failed: %s", result.FaultException)
+	}
+	if len(result.Stack) == 0 {
+		return errors.New("result stack is empty")
+	}
+	return nil
+}
diff --git a/pkg/rpc/client/policy.go b/pkg/rpc/client/policy.go
index cb27263a6..7e6aa59bf 100644
--- a/pkg/rpc/client/policy.go
+++ b/pkg/rpc/client/policy.go
@@ -1,7 +1,6 @@
 package client
 
 import (
-	"errors"
 	"fmt"
 
 	"github.com/nspcc-dev/neo-go/pkg/core/native"
@@ -33,8 +32,10 @@ func (c *Client) invokeNativePolicyMethod(operation string) (int64, error) {
 	result, err := c.InvokeFunction(PolicyContractHash, operation, []smartcontract.Parameter{}, nil)
 	if err != nil {
 		return 0, err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return 0, errors.New("invalid VM state")
+	}
+	err = getInvocationError(result)
+	if err != nil {
+		return 0, fmt.Errorf("failed to invoke %s Policy method: %w", operation, err)
 	}
 
 	return topIntFromStack(result.Stack)
@@ -45,10 +46,11 @@ func (c *Client) GetBlockedAccounts() (native.BlockedAccounts, error) {
 	result, err := c.InvokeFunction(PolicyContractHash, "getBlockedAccounts", []smartcontract.Parameter{}, nil)
 	if err != nil {
 		return nil, err
-	} else if result.State != "HALT" || len(result.Stack) == 0 {
-		return nil, errors.New("invalid VM state")
 	}
-
+	err = getInvocationError(result)
+	if err != nil {
+		return nil, fmt.Errorf("failed to get blocked accounts: %w", err)
+	}
 	return topBlockedAccountsFromStack(result.Stack)
 }
 
diff --git a/pkg/rpc/client/rpc.go b/pkg/rpc/client/rpc.go
index fb6175c54..1f4761a01 100644
--- a/pkg/rpc/client/rpc.go
+++ b/pkg/rpc/client/rpc.go
@@ -540,12 +540,17 @@ func (c *Client) AddNetworkFee(tx *transaction.Transaction, extraFee int64, accs
 	for i, cosigner := range tx.Signers {
 		if accs[i].Contract.Deployed {
 			res, err := c.InvokeFunction(cosigner.Account, manifest.MethodVerify, []smartcontract.Parameter{}, tx.Signers)
-			if err == nil && res.State == "HALT" && len(res.Stack) == 1 {
-				r, err := topIntFromStack(res.Stack)
-				if err != nil || r == 0 {
-					return core.ErrVerificationFailed
-				}
-			} else {
+			if err != nil {
+				return fmt.Errorf("failed to invoke verify: %w", err)
+			}
+			if res.State != "HALT" {
+				return fmt.Errorf("invalid VM state %s due to an error: %s", res.State, res.FaultException)
+			}
+			if l := len(res.Stack); l != 1 {
+				return fmt.Errorf("result stack length should be equal to 1, got %d", l)
+			}
+			r, err := topIntFromStack(res.Stack)
+			if err != nil || r == 0 {
 				return core.ErrVerificationFailed
 			}
 			tx.NetworkFee += res.GasConsumed
diff --git a/pkg/rpc/client/rpc_test.go b/pkg/rpc/client/rpc_test.go
index 47fbc1673..01b907994 100644
--- a/pkg/rpc/client/rpc_test.go
+++ b/pkg/rpc/client/rpc_test.go
@@ -677,6 +677,41 @@ var rpcClientTestCases = map[string][]rpcClientTestCase{
 				}
 			},
 		},
+		{
+			name: "positive, FAULT state",
+			invoke: func(c *Client) (interface{}, error) {
+				hash, err := util.Uint160DecodeStringLE("91b83e96f2a7c4fdf0c1688441ec61986c7cae26")
+				if err != nil {
+					panic(err)
+				}
+				contr, err := util.Uint160DecodeStringLE("af7c7328eee5a275a3bcaee2bf0cf662b5e739be")
+				if err != nil {
+					panic(err)
+				}
+				return c.InvokeFunction(contr, "balanceOf", []smartcontract.Parameter{
+					{
+						Type:  smartcontract.Hash160Type,
+						Value: hash,
+					},
+				}, []transaction.Signer{{
+					Account: util.Uint160{1, 2, 3},
+				}})
+			},
+			serverResponse: `{"jsonrpc":"2.0","id":1,"result":{"script":"1426ae7c6c9861ec418468c1f0fdc4a7f2963eb89151c10962616c616e63654f6667be39e7b562f60cbfe2aebca375a2e5ee28737caf","state":"FAULT","gasconsumed":"31100000","stack":[{"type":"ByteString","value":"JivsCEQy"}],"tx":"d101361426ae7c6c9861ec418468c1f0fdc4a7f2963eb89151c10962616c616e63654f6667be39e7b562f60cbfe2aebca375a2e5ee28737caf000000000000000000000000","exception":"gas limit exceeded"}}`,
+			result: func(c *Client) interface{} {
+				bytes, err := hex.DecodeString("262bec084432")
+				if err != nil {
+					panic(err)
+				}
+				return &result.Invoke{
+					State:          "FAULT",
+					GasConsumed:    31100000,
+					Script:         "1426ae7c6c9861ec418468c1f0fdc4a7f2963eb89151c10962616c616e63654f6667be39e7b562f60cbfe2aebca375a2e5ee28737caf",
+					Stack:          []stackitem.Item{stackitem.NewByteArray(bytes)},
+					FaultException: "gas limit exceeded",
+				}
+			},
+		},
 	},
 	"invokescript": {
 		{
diff --git a/pkg/rpc/response/result/invoke.go b/pkg/rpc/response/result/invoke.go
index 55fbf9ba9..17439ed95 100644
--- a/pkg/rpc/response/result/invoke.go
+++ b/pkg/rpc/response/result/invoke.go
@@ -9,17 +9,19 @@ import (
 // Invoke represents code invocation result and is used by several RPC calls
 // that invoke functions, scripts and generic bytecode.
 type Invoke struct {
-	State       string
-	GasConsumed int64
-	Script      string
-	Stack       []stackitem.Item
+	State          string
+	GasConsumed    int64
+	Script         string
+	Stack          []stackitem.Item
+	FaultException string
 }
 
 type invokeAux struct {
-	State       string          `json:"state"`
-	GasConsumed int64           `json:"gasconsumed,string"`
-	Script      string          `json:"script"`
-	Stack       json.RawMessage `json:"stack"`
+	State          string          `json:"state"`
+	GasConsumed    int64           `json:"gasconsumed,string"`
+	Script         string          `json:"script"`
+	Stack          json.RawMessage `json:"stack"`
+	FaultException string          `json:"exception,omitempty"`
 }
 
 // MarshalJSON implements json.Marshaler.
@@ -43,10 +45,11 @@ func (r Invoke) MarshalJSON() ([]byte, error) {
 		}
 	}
 	return json.Marshal(&invokeAux{
-		GasConsumed: r.GasConsumed,
-		Script:      r.Script,
-		State:       r.State,
-		Stack:       st,
+		GasConsumed:    r.GasConsumed,
+		Script:         r.Script,
+		State:          r.State,
+		Stack:          st,
+		FaultException: r.FaultException,
 	})
 }
 
@@ -72,5 +75,6 @@ func (r *Invoke) UnmarshalJSON(data []byte) error {
 	r.GasConsumed = aux.GasConsumed
 	r.Script = aux.Script
 	r.State = aux.State
+	r.FaultException = aux.FaultException
 	return nil
 }
diff --git a/pkg/rpc/server/server.go b/pkg/rpc/server/server.go
index 9db856dda..3a56d2ec8 100644
--- a/pkg/rpc/server/server.go
+++ b/pkg/rpc/server/server.go
@@ -712,8 +712,14 @@ func (s *Server) getDecimals(contractID int32, cache map[int32]decimals) (decima
 		return decimals{}, fmt.Errorf("can't create script: %w", err)
 	}
 	res := s.runScriptInVM(script, nil)
-	if res == nil || res.State != "HALT" || len(res.Stack) == 0 {
-		return decimals{}, errors.New("execution error : no result")
+	if res == nil {
+		return decimals{}, fmt.Errorf("execution error: no result")
+	}
+	if res.State != "HALT" {
+		return decimals{}, fmt.Errorf("execution error: bad VM state %s due to an error %s", res.State, res.FaultException)
+	}
+	if len(res.Stack) == 0 {
+		return decimals{}, fmt.Errorf("execution error: empty stack")
 	}
 
 	d := decimals{Hash: h}
@@ -997,12 +1003,17 @@ func (s *Server) runScriptInVM(script []byte, tx *transaction.Transaction) *resu
 	vm := s.chain.GetTestVM(tx)
 	vm.GasLimit = int64(s.config.MaxGasInvoke)
 	vm.LoadScriptWithFlags(script, smartcontract.All)
-	_ = vm.Run()
+	err := vm.Run()
+	var faultException string
+	if err != nil {
+		faultException = err.Error()
+	}
 	result := &result.Invoke{
-		State:       vm.State().String(),
-		GasConsumed: vm.GasConsumed(),
-		Script:      hex.EncodeToString(script),
-		Stack:       vm.Estack().ToArray(),
+		State:          vm.State().String(),
+		GasConsumed:    vm.GasConsumed(),
+		Script:         hex.EncodeToString(script),
+		Stack:          vm.Estack().ToArray(),
+		FaultException: faultException,
 	}
 	return result
 }