diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2b2f21f1784..cee2db1aa8b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -895,6 +895,10 @@ should use 4.0.1-alpha.0 for testing.
 
 ### Added
 
+#### web3-eth-contract
+
+-   Decoding error data, using Error ABI if available, if error was returned from a smart contract function call (#5662).
+
 #### web3-types
 
 -   These types were moved from `web3-eth-accounts` to `web3-types` package: Cipher, CipherOptions, ScryptParams, PBKDF2SHA256Params, KeyStore (#5581 )
diff --git a/packages/web3-eth-contract/CHANGELOG.md b/packages/web3-eth-contract/CHANGELOG.md
index 3062d11eb5b..7602457ec36 100644
--- a/packages/web3-eth-contract/CHANGELOG.md
+++ b/packages/web3-eth-contract/CHANGELOG.md
@@ -186,6 +186,10 @@ const transactionHash = receipt.transactionHash;
 
 ## [Unreleased]
 
+### Added
+
+-   Decoding error data, using Error ABI if available, if error was returned from a smart contract function call (#5662).
+
 ### Fixed
 
 -   Emit past contract events based on `fromBlock` when passed to `contract.events.someEventName` (#5201)
diff --git a/packages/web3-eth-contract/src/contract.ts b/packages/web3-eth-contract/src/contract.ts
index 6f27d4fb4cc..3ef46996978 100644
--- a/packages/web3-eth-contract/src/contract.ts
+++ b/packages/web3-eth-contract/src/contract.ts
@@ -1038,7 +1038,7 @@ export class Contract<Abi extends ContractAbi>
 					call: async (options?: PayableCallOptions, block?: BlockNumberOrTag) =>
 						this._contractMethodCall(methodAbi, abiParams, errorsAbis, options, block),
 					send: (options?: PayableTxOptions) =>
-						this._contractMethodSend(methodAbi, abiParams, options), // TODO: refactor to parse errorsAbi #5587
+						this._contractMethodSend(methodAbi, abiParams, errorsAbis, options),
 					estimateGas: async <
 						ReturnFormat extends DataFormat = typeof DEFAULT_RETURN_FORMAT,
 					>(
@@ -1062,7 +1062,7 @@ export class Contract<Abi extends ContractAbi>
 				call: async (options?: NonPayableCallOptions, block?: BlockNumberOrTag) =>
 					this._contractMethodCall(methodAbi, abiParams, errorsAbis, options, block),
 				send: (options?: NonPayableTxOptions) =>
-					this._contractMethodSend(methodAbi, abiParams, options), // TODO: refactor to parse errorsAbi #5587
+					this._contractMethodSend(methodAbi, abiParams, errorsAbis, options),
 				estimateGas: async <ReturnFormat extends DataFormat = typeof DEFAULT_RETURN_FORMAT>(
 					options?: NonPayableCallOptions,
 					returnFormat: ReturnFormat = DEFAULT_RETURN_FORMAT as ReturnFormat,
@@ -1081,13 +1081,10 @@ export class Contract<Abi extends ContractAbi>
 		};
 	}
 
-	private async _contractMethodCall<
-		E extends AbiErrorFragment,
-		Options extends PayableCallOptions | NonPayableCallOptions,
-	>(
+	private async _contractMethodCall<Options extends PayableCallOptions | NonPayableCallOptions>(
 		abi: AbiFunctionFragment,
 		params: unknown[],
-		errorsAbi: E[],
+		errorsAbi: AbiErrorFragment[],
 		options?: Options,
 		block?: BlockNumberOrTag,
 	) {
@@ -1115,6 +1112,7 @@ export class Contract<Abi extends ContractAbi>
 	private _contractMethodSend<Options extends PayableCallOptions | NonPayableCallOptions>(
 		abi: AbiFunctionFragment,
 		params: unknown[],
+		errorsAbi: AbiErrorFragment[],
 		options?: Options,
 		contractOptions?: ContractOptions,
 	) {
@@ -1132,7 +1130,17 @@ export class Contract<Abi extends ContractAbi>
 			contractOptions: modifiedContractOptions,
 		});
 
-		return sendTransaction(this, tx, DEFAULT_RETURN_FORMAT);
+		const promiEvent = sendTransaction(this, tx, DEFAULT_RETURN_FORMAT);
+
+		// eslint-disable-next-line @typescript-eslint/no-floating-promises
+		promiEvent.on('error', (error: unknown) => {
+			if (error instanceof ContractExecutionError) {
+				// this will parse the error data by trying to decode the ABI error inputs according to EIP-838
+				decodeErrorData(errorsAbi, error.innerError);
+			}
+		});
+
+		return promiEvent;
 	}
 
 	private _contractMethodDeploySend<Options extends PayableCallOptions | NonPayableCallOptions>(
diff --git a/packages/web3-eth-contract/test/unit/contract.test.ts b/packages/web3-eth-contract/test/unit/contract.test.ts
index f1ce2cd11ec..19d5f633fb3 100644
--- a/packages/web3-eth-contract/test/unit/contract.test.ts
+++ b/packages/web3-eth-contract/test/unit/contract.test.ts
@@ -144,11 +144,13 @@ describe('Contract', () => {
 					) {
 						// eslint-disable-next-line
 						expect(_tx.to).toStrictEqual(deployedAddr);
-						// eslint-disable-next-line @typescript-eslint/no-unsafe-return
-						return Promise.resolve({ status: '0x1' }) as any;
+
+						// eslint-disable-next-line @typescript-eslint/no-unsafe-return, @typescript-eslint/no-empty-function
+						return { status: '0x1', on: () => {} } as any;
 					}
-					// eslint-disable-next-line @typescript-eslint/no-unsafe-return
-					return Promise.resolve(newContract) as any;
+
+					// eslint-disable-next-line @typescript-eslint/no-unsafe-return, @typescript-eslint/no-empty-function
+					return Promise.resolve(Object.assign(newContract, { on: () => {} })) as any;
 				});
 
 			const deployedContract = await contract