diff --git a/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualMachineCallback.aidl b/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualMachineCallback.aidl
index 15354a3..d7f90a1 100644
--- a/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualMachineCallback.aidl
+++ b/virtualizationservice/aidl/android/system/virtualizationservice/IVirtualMachineCallback.aidl
@@ -42,6 +42,11 @@
     void onPayloadFinished(int cid, int exitCode);
 
     /**
+     * Called when an error occurs in the VM.
+     */
+    void onError(int cid, int errorCode, in String message);
+
+    /**
      * Called when the VM dies.
      *
      * Note that this will not be called if the VirtualizationService itself dies, so you should
diff --git a/virtualizationservice/aidl/android/system/virtualizationservice/VirtualMachineState.aidl b/virtualizationservice/aidl/android/system/virtualizationservice/VirtualMachineState.aidl
index b1aebfd..d85b3c1 100644
--- a/virtualizationservice/aidl/android/system/virtualizationservice/VirtualMachineState.aidl
+++ b/virtualizationservice/aidl/android/system/virtualizationservice/VirtualMachineState.aidl
@@ -44,5 +44,5 @@
     /**
      * The VM has died.
      */
-    DEAD = 5,
+    DEAD = 6,
 }
diff --git a/virtualizationservice/aidl/android/system/virtualmachineservice/IVirtualMachineService.aidl b/virtualizationservice/aidl/android/system/virtualmachineservice/IVirtualMachineService.aidl
index 8611898..97f6ca3 100644
--- a/virtualizationservice/aidl/android/system/virtualmachineservice/IVirtualMachineService.aidl
+++ b/virtualizationservice/aidl/android/system/virtualmachineservice/IVirtualMachineService.aidl
@@ -43,4 +43,25 @@
      * Notifies that the payload has finished.
      */
     void notifyPayloadFinished(int exitCode);
+
+    /**
+     * Notifies that an error has occurred. See the ERROR_* constants.
+     */
+    void notifyError(int errorCode, in String message);
+
+    /**
+     * Error code for all other errors not listed below.
+     */
+    const int ERROR_UNKNOWN = 0;
+
+    /**
+     * Error code indicating that the payload can't be verified due to various reasons (e.g invalid
+     * merkle tree, invalid formats, etc).
+     */
+    const int ERROR_PAYLOAD_VERIFICATION_FAILED = 1;
+
+    /**
+     * Error code indicating that the payload is verified, but has changed since the last boot.
+     */
+    const int ERROR_PAYLOAD_CHANGED = 2;
 }
diff --git a/virtualizationservice/src/aidl.rs b/virtualizationservice/src/aidl.rs
index 5d64684..1c88174 100644
--- a/virtualizationservice/src/aidl.rs
+++ b/virtualizationservice/src/aidl.rs
@@ -714,6 +714,16 @@
         }
     }
 
+    /// Call all registered callbacks to say that the VM encountered an error.
+    pub fn notify_error(&self, cid: Cid, error_code: i32, message: &str) {
+        let callbacks = &*self.0.lock().unwrap();
+        for callback in callbacks {
+            if let Err(e) = callback.onError(cid as i32, error_code, message) {
+                error!("Error notifying error event from VM CID {}: {}", cid, e);
+            }
+        }
+    }
+
     /// Call all registered callbacks to say that the VM has died.
     pub fn callback_on_died(&self, cid: Cid) {
         let callbacks = &*self.0.lock().unwrap();
@@ -879,10 +889,10 @@
             vm.callbacks.notify_payload_started(cid, stream);
             Ok(())
         } else {
-            error!("notifyPayloadStarted is called from an unknown cid {}", cid);
+            error!("notifyPayloadStarted is called from an unknown CID {}", cid);
             Err(new_binder_exception(
                 ExceptionCode::SERVICE_SPECIFIC,
-                format!("cannot find a VM with cid {}", cid),
+                format!("cannot find a VM with CID {}", cid),
             ))
         }
     }
@@ -896,10 +906,10 @@
             vm.callbacks.notify_payload_ready(cid);
             Ok(())
         } else {
-            error!("notifyPayloadReady is called from an unknown cid {}", cid);
+            error!("notifyPayloadReady is called from an unknown CID {}", cid);
             Err(new_binder_exception(
                 ExceptionCode::SERVICE_SPECIFIC,
-                format!("cannot find a VM with cid {}", cid),
+                format!("cannot find a VM with CID {}", cid),
             ))
         }
     }
@@ -913,10 +923,27 @@
             vm.callbacks.notify_payload_finished(cid, exit_code);
             Ok(())
         } else {
-            error!("notifyPayloadFinished is called from an unknown cid {}", cid);
+            error!("notifyPayloadFinished is called from an unknown CID {}", cid);
             Err(new_binder_exception(
                 ExceptionCode::SERVICE_SPECIFIC,
-                format!("cannot find a VM with cid {}", cid),
+                format!("cannot find a VM with CID {}", cid),
+            ))
+        }
+    }
+
+    fn notifyError(&self, error_code: i32, message: &str) -> binder::Result<()> {
+        let cid = self.cid;
+        if let Some(vm) = self.state.lock().unwrap().get_vm(cid) {
+            info!("VM having CID {} encountered an error", cid);
+            vm.update_payload_state(PayloadState::Finished)
+                .map_err(|e| new_binder_exception(ExceptionCode::ILLEGAL_STATE, e.to_string()))?;
+            vm.callbacks.notify_error(cid, error_code, message);
+            Ok(())
+        } else {
+            error!("notifyPayloadStarted is called from an unknown CID {}", cid);
+            Err(new_binder_exception(
+                ExceptionCode::SERVICE_SPECIFIC,
+                format!("cannot find a VM with CID {}", cid),
             ))
         }
     }