diff --git a/.changeset/heavy-olives-divide.md b/.changeset/heavy-olives-divide.md
new file mode 100644
index 000000000..eebbb2860
--- /dev/null
+++ b/.changeset/heavy-olives-divide.md
@@ -0,0 +1,5 @@
+---
+'@gitbook/api': patch
+---
+
+Improve error handling for streamed API operations.
diff --git a/bun.lockb b/bun.lockb
index 2e8d85976..3251fbff9 100755
Binary files a/bun.lockb and b/bun.lockb differ
diff --git a/packages/api/package.json b/packages/api/package.json
index b5be46ad3..59860b0b2 100644
--- a/packages/api/package.json
+++ b/packages/api/package.json
@@ -13,7 +13,7 @@
     ],
     "dependencies": {
         "event-iterator": "^2.0.0",
-        "eventsource-parser": "^1.1.1"
+        "eventsource-parser": "^3.0.0"
     },
     "devDependencies": {
         "swagger-typescript-api": "^13.0.3",
diff --git a/packages/api/templates/http-client.ejs b/packages/api/templates/http-client.ejs
index 8d72a187a..1663a4fcd 100644
--- a/packages/api/templates/http-client.ejs
+++ b/packages/api/templates/http-client.ejs
@@ -2,7 +2,7 @@
 const { apiConfig, generateResponses, config } = it;
 %>
 import { EventIterator } from 'event-iterator';
-import { createParser, type ParsedEvent, type ReconnectInterval } from 'eventsource-parser';
+import { createParser, type EventSourceMessage } from 'eventsource-parser';
 
 export type QueryParamsType = Record<string | number, any>;
 export type ResponseFormat = keyof Omit<Body, "body" | "bodyUsed">;
@@ -277,15 +277,23 @@ export class HttpClient<SecurityDataType = unknown> {
                         queue.stop();
                     }
 
-                    const parser = createParser((event: ParsedEvent | ReconnectInterval) => {
-                        if (event.type === 'event') {
-                            if (event.data === 'done') {
+                    const parser = createParser({
+                        onEvent: (event: EventSourceMessage) => {
+                            if (event.event === 'done') {
                                 stop();
+                            } else if (event.event === 'error') {
+                                const data = JSON.parse(event.data);
+                                reader.cancel();
+                                queue.fail(new Error(data.error.message));
                             } else {
                                 const data = JSON.parse(event.data);
                                 queue.push(data);
                             }
-                        }
+                        },
+                        onError: (error) => {
+                            reader.cancel();
+                            queue.fail(error);
+                        },
                     })
 
                     const decoder = new TextDecoder();