diff --git a/crates/llm_gateway/src/stream_context.rs b/crates/llm_gateway/src/stream_context.rs
index 655f76ff..bd2fba5e 100644
--- a/crates/llm_gateway/src/stream_context.rs
+++ b/crates/llm_gateway/src/stream_context.rs
@@ -316,10 +316,9 @@ impl HttpContext for StreamContext {
             let chat_completions_response: ChatCompletionsResponse =
                 match serde_json::from_slice(&body) {
                     Ok(de) => de,
-                    Err(e) => {
+                    Err(_e) => {
                         debug!("invalid response: {}", String::from_utf8_lossy(&body));
-                        self.send_server_error(ServerError::Deserialization(e), None);
-                        return Action::Pause;
+                        return Action::Continue;
                     }
                 };
 
diff --git a/crates/prompt_gateway/src/stream_context.rs b/crates/prompt_gateway/src/stream_context.rs
index 602f1629..da4d344f 100644
--- a/crates/prompt_gateway/src/stream_context.rs
+++ b/crates/prompt_gateway/src/stream_context.rs
@@ -33,6 +33,7 @@ use sha2::{Digest, Sha256};
 use std::cell::RefCell;
 use std::collections::HashMap;
 use std::rc::Rc;
+use std::str::FromStr;
 use std::time::Duration;
 
 use common::stats::IncrementingMetric;
@@ -70,11 +71,12 @@ pub enum ServerError {
     Serialization(serde_json::Error),
     #[error("{0}")]
     LogicError(String),
-    #[error("upstream error response authority={authority}, path={path}, status={status}")]
+    #[error("upstream application error host={host}, path={path}, status={status}, body={body}")]
     Upstream {
-        authority: String,
+        host: String,
         path: String,
         status: String,
+        body: String,
     },
     #[error("jailbreak detected: {0}")]
     Jailbreak(String),
@@ -149,7 +151,6 @@ impl StreamContext {
     }
 
     fn send_server_error(&self, error: ServerError, override_status_code: Option<StatusCode>) {
-        debug!("server error occurred: {}", error);
         self.send_http_response(
             override_status_code
                 .unwrap_or(StatusCode::INTERNAL_SERVER_ERROR)
@@ -164,6 +165,7 @@ impl StreamContext {
         let embedding_response: CreateEmbeddingResponse = match serde_json::from_slice(&body) {
             Ok(embedding_response) => embedding_response,
             Err(e) => {
+                debug!("error deserializing embedding response: {}", e);
                 return self.send_server_error(ServerError::Deserialization(e), None);
             }
         };
@@ -234,6 +236,7 @@ impl StreamContext {
         let json_data: String = match serde_json::to_string(&zero_shot_classification_request) {
             Ok(json_data) => json_data,
             Err(error) => {
+                debug!("error serializing zero shot classification request: {}", error);
                 return self.send_server_error(ServerError::Serialization(error), None);
             }
         };
@@ -263,6 +266,7 @@ impl StreamContext {
         callout_context.response_handler_type = ResponseHandlerType::ZeroShotIntent;
 
         if let Err(e) = self.http_call(call_args, callout_context) {
+            debug!("error dispatching zero shot classification request: {}", e);
             self.send_server_error(ServerError::HttpDispatch(e), None);
         }
     }
@@ -276,6 +280,7 @@ impl StreamContext {
             match serde_json::from_slice(&body) {
                 Ok(hallucination_response) => hallucination_response,
                 Err(e) => {
+                    debug!("error deserializing hallucination response: {}", e);
                     return self.send_server_error(ServerError::Deserialization(e), None);
                 }
             };
@@ -339,6 +344,7 @@ impl StreamContext {
             match serde_json::from_slice(&body) {
                 Ok(zeroshot_response) => zeroshot_response,
                 Err(e) => {
+                    debug!("error deserializing zero shot classification response: {}", e);
                     return self.send_server_error(ServerError::Deserialization(e), None);
                 }
             };
@@ -450,6 +456,7 @@ impl StreamContext {
                     callout_context.prompt_target_name = Some(default_prompt_target.name.clone());
 
                     if let Err(e) = self.http_call(call_args, callout_context) {
+                        debug!("error dispatching default prompt target request: {}", e);
                         return self.send_server_error(
                             ServerError::HttpDispatch(e),
                             Some(StatusCode::BAD_REQUEST),
@@ -465,6 +472,7 @@ impl StreamContext {
         let prompt_target = match self.prompt_targets.get(&prompt_target_name) {
             Some(prompt_target) => prompt_target.clone(),
             None => {
+                debug!("prompt target not found: {}", prompt_target_name);
                 return self.send_server_error(
                     ServerError::LogicError(format!(
                         "Prompt target not found: {prompt_target_name}"
@@ -537,6 +545,7 @@ impl StreamContext {
                 msg_body
             }
             Err(e) => {
+                debug!("error serializing arch_fc request body: {}", e);
                 return self.send_server_error(ServerError::Serialization(e), None);
             }
         };
@@ -569,6 +578,7 @@ impl StreamContext {
         callout_context.prompt_target_name = Some(prompt_target.name);
 
         if let Err(e) = self.http_call(call_args, callout_context) {
+            debug!("error dispatching arch_fc request: {}", e);
             self.send_server_error(ServerError::HttpDispatch(e), Some(StatusCode::BAD_REQUEST));
         }
     }
@@ -580,6 +590,7 @@ impl StreamContext {
         let arch_fc_response: ChatCompletionsResponse = match serde_json::from_str(&body_str) {
             Ok(arch_fc_response) => arch_fc_response,
             Err(e) => {
+                debug!("error deserializing arch_fc response: {}", e);
                 return self.send_server_error(ServerError::Deserialization(e), None);
             }
         };
@@ -693,6 +704,7 @@ impl StreamContext {
                 match serde_json::to_string(&hallucination_classification_request) {
                     Ok(json_data) => json_data,
                     Err(error) => {
+                        debug!("error serializing hallucination classification request: {}", error);
                         return self.send_server_error(ServerError::Serialization(error), None);
                     }
                 };
@@ -789,13 +801,15 @@ impl StreamContext {
     ) {
         if let Some(http_status) = self.get_http_call_response_header(":status") {
             if http_status != StatusCode::OK.as_str() {
+                debug!("upstream error response: {}", http_status);
                 return self.send_server_error(
                     ServerError::Upstream {
-                        authority: callout_context.upstream_cluster.unwrap(),
+                        host: callout_context.upstream_cluster.unwrap(),
                         path: callout_context.upstream_cluster_path.unwrap(),
-                        status: http_status,
+                        status: http_status.clone(),
+                        body: String::from_utf8(body).unwrap(),
                     },
-                    None,
+                    Some(StatusCode::from_str(http_status.as_str()).unwrap()),
                 );
             }
         } else {
@@ -893,6 +907,7 @@ impl StreamContext {
                 .prompt_guards
                 .jailbreak_on_exception_message()
                 .unwrap_or("refrain from discussing jailbreaking.");
+            debug!("jailbreak detected: {}", msg);
             return self.send_server_error(
                 ServerError::Jailbreak(String::from(msg)),
                 Some(StatusCode::BAD_REQUEST),
@@ -916,6 +931,7 @@ impl StreamContext {
         let json_data: String = match serde_json::to_string(&get_embeddings_input) {
             Ok(json_data) => json_data,
             Err(error) => {
+                debug!("error serializing get embeddings request: {}", error);
                 return self.send_server_error(ServerError::Deserialization(error), None);
             }
         };
@@ -952,6 +968,7 @@ impl StreamContext {
         };
 
         if let Err(e) = self.http_call(call_args, call_context) {
+            debug!("error dispatching get embeddings request: {}", e);
             self.send_server_error(ServerError::HttpDispatch(e), None);
         }
     }
@@ -985,6 +1002,7 @@ impl StreamContext {
         let chat_completions_resp: ChatCompletionsResponse = match serde_json::from_slice(&body) {
             Ok(chat_completions_resp) => chat_completions_resp,
             Err(e) => {
+                debug!("error deserializing default target response: {}", e);
                 return self.send_server_error(ServerError::Deserialization(e), None);
             }
         };
@@ -1259,9 +1277,8 @@ impl HttpContext for StreamContext {
                 match serde_json::from_slice(&body) {
                     Ok(de) => de,
                     Err(e) => {
-                        debug!("invalid response: {}", String::from_utf8_lossy(&body));
-                        self.send_server_error(ServerError::Deserialization(e), None);
-                        return Action::Pause;
+                        debug!("invalid response: {}, {}", String::from_utf8_lossy(&body), e);
+                        return Action::Continue;
                     }
                 };
 
diff --git a/crates/prompt_gateway/tests/integration.rs b/crates/prompt_gateway/tests/integration.rs
index 5f27adc3..0338f23b 100644
--- a/crates/prompt_gateway/tests/integration.rs
+++ b/crates/prompt_gateway/tests/integration.rs
@@ -487,7 +487,6 @@ fn bad_request_to_open_ai_chat_completions() {
         .expect_get_buffer_bytes(Some(BufferType::HttpRequestBody))
         .returning(Some(incomplete_chat_completions_request_body))
         .expect_log(Some(LogLevel::Debug), None)
-        .expect_log(Some(LogLevel::Debug), None)
         .expect_send_local_response(
             Some(StatusCode::BAD_REQUEST.as_u16().into()),
             None,