diff --git a/api/v1alpha1/nicclusterpolicy_types.go b/api/v1alpha1/nicclusterpolicy_types.go
index 1cbd8d88..388fa9e0 100644
--- a/api/v1alpha1/nicclusterpolicy_types.go
+++ b/api/v1alpha1/nicclusterpolicy_types.go
@@ -291,6 +291,8 @@ type AppliedState struct {
 	Name string `json:"name"`
 	// +kubebuilder:validation:Enum={"ready", "notReady", "ignore", "error"}
 	State State `json:"state"`
+	// Error string in case the state is error
+	Error string `json:"error,omitempty"`
 }
 
 // NicClusterPolicyStatus defines the observed state of NicClusterPolicy
diff --git a/config/crd/bases/mellanox.com_hostdevicenetworks.yaml b/config/crd/bases/mellanox.com_hostdevicenetworks.yaml
index a41863b2..7e9efa41 100644
--- a/config/crd/bases/mellanox.com_hostdevicenetworks.yaml
+++ b/config/crd/bases/mellanox.com_hostdevicenetworks.yaml
@@ -65,6 +65,9 @@ spec:
                   description: AppliedState defines a finer-grained view of the observed
                     state of NicClusterPolicy
                   properties:
+                    error:
+                      description: Error string in case the state is error
+                      type: string
                     name:
                       type: string
                     state:
diff --git a/config/crd/bases/mellanox.com_nicclusterpolicies.yaml b/config/crd/bases/mellanox.com_nicclusterpolicies.yaml
index 3e976db3..13dd3d6b 100644
--- a/config/crd/bases/mellanox.com_nicclusterpolicies.yaml
+++ b/config/crd/bases/mellanox.com_nicclusterpolicies.yaml
@@ -1238,6 +1238,9 @@ spec:
                   description: AppliedState defines a finer-grained view of the observed
                     state of NicClusterPolicy
                   properties:
+                    error:
+                      description: Error string in case the state is error
+                      type: string
                     name:
                       type: string
                     state:
diff --git a/controllers/nicclusterpolicy_controller.go b/controllers/nicclusterpolicy_controller.go
index 1e5d380b..03d7c415 100644
--- a/controllers/nicclusterpolicy_controller.go
+++ b/controllers/nicclusterpolicy_controller.go
@@ -298,6 +298,11 @@ NextResult:
 		for i := range cr.Status.AppliedStates {
 			if cr.Status.AppliedStates[i].Name == stateStatus.StateName {
 				cr.Status.AppliedStates[i].State = mellanoxv1alpha1.State(stateStatus.Status)
+				if stateStatus.ErrInfo != nil {
+					cr.Status.AppliedStates[i].Error = stateStatus.ErrInfo.Error()
+				} else {
+					cr.Status.AppliedStates[i].Error = ""
+				}
 				continue NextResult
 			}
 		}
diff --git a/deployment/network-operator/crds/mellanox.com_hostdevicenetworks.yaml b/deployment/network-operator/crds/mellanox.com_hostdevicenetworks.yaml
index a41863b2..7e9efa41 100644
--- a/deployment/network-operator/crds/mellanox.com_hostdevicenetworks.yaml
+++ b/deployment/network-operator/crds/mellanox.com_hostdevicenetworks.yaml
@@ -65,6 +65,9 @@ spec:
                   description: AppliedState defines a finer-grained view of the observed
                     state of NicClusterPolicy
                   properties:
+                    error:
+                      description: Error string in case the state is error
+                      type: string
                     name:
                       type: string
                     state:
diff --git a/deployment/network-operator/crds/mellanox.com_nicclusterpolicies.yaml b/deployment/network-operator/crds/mellanox.com_nicclusterpolicies.yaml
index 3e976db3..13dd3d6b 100644
--- a/deployment/network-operator/crds/mellanox.com_nicclusterpolicies.yaml
+++ b/deployment/network-operator/crds/mellanox.com_nicclusterpolicies.yaml
@@ -1238,6 +1238,9 @@ spec:
                   description: AppliedState defines a finer-grained view of the observed
                     state of NicClusterPolicy
                   properties:
+                    error:
+                      description: Error string in case the state is error
+                      type: string
                     name:
                       type: string
                     state: