diff --git a/packages/js-sdk/src/envd/api.ts b/packages/js-sdk/src/envd/api.ts
index 960a03ded6..201f5beed8 100644
--- a/packages/js-sdk/src/envd/api.ts
+++ b/packages/js-sdk/src/envd/api.ts
@@ -8,6 +8,7 @@ import {
   InvalidArgumentError,
   NotFoundError,
   NotEnoughSpaceError,
+  RateLimitError,
   formatSandboxTimeoutError,
   AuthenticationError,
 } from '../errors'
@@ -38,7 +39,7 @@ export async function handleEnvdApiError(res: {
     case 404:
       return new NotFoundError(message)
     case 429:
-      return new SandboxError(
+      return new RateLimitError(
         `${res.response.status}: ${message}: The requests are being rate limited.`
       )
     case 502:
diff --git a/packages/js-sdk/src/envd/rpc.ts b/packages/js-sdk/src/envd/rpc.ts
index 9ad34ec6e8..80670de04a 100644
--- a/packages/js-sdk/src/envd/rpc.ts
+++ b/packages/js-sdk/src/envd/rpc.ts
@@ -8,6 +8,7 @@ import {
   formatSandboxTimeoutError,
   InvalidArgumentError,
   NotFoundError,
+  RateLimitError,
   SandboxError,
   TimeoutError,
 } from '../errors'
@@ -24,6 +25,10 @@ export function handleRpcError(err: unknown): Error {
         return new NotFoundError(err.message)
       case Code.Unavailable:
         return formatSandboxTimeoutError(err.message)
+      case Code.ResourceExhausted:
+        return new RateLimitError(
+          `${err.message}: Rate limit exceeded, please try again later.`
+        )
       case Code.Canceled:
         return new TimeoutError(
           `${err.message}: This error is likely due to exceeding 'requestTimeoutMs'. You can pass the request timeout value as an option when making the request.`
diff --git a/packages/python-sdk/e2b/__init__.py b/packages/python-sdk/e2b/__init__.py
index 264fd5deee..f62b986e93 100644
--- a/packages/python-sdk/e2b/__init__.py
+++ b/packages/python-sdk/e2b/__init__.py
@@ -42,6 +42,7 @@
     InvalidArgumentException,
     NotEnoughSpaceException,
     NotFoundException,
+    RateLimitException,
     SandboxException,
     TemplateException,
     TimeoutException,
@@ -127,6 +128,7 @@
     "GitUpstreamException",
     "InvalidArgumentException",
     "NotEnoughSpaceException",
+    "RateLimitException",
     "TemplateException",
     "BuildException",
     "FileUploadException",
diff --git a/packages/python-sdk/e2b/envd/api.py b/packages/python-sdk/e2b/envd/api.py
index 2c5670d5d0..7c400c0e82 100644
--- a/packages/python-sdk/e2b/envd/api.py
+++ b/packages/python-sdk/e2b/envd/api.py
@@ -7,6 +7,7 @@
     AuthenticationException,
     InvalidArgumentException,
     NotEnoughSpaceException,
+    RateLimitException,
     format_sandbox_timeout_exception,
 )
 
@@ -50,7 +51,7 @@ def format_envd_api_exception(status_code: int, message: str):
     elif status_code == 404:
         return NotFoundException(message)
     elif status_code == 429:
-        return SandboxException(f"{message}: The requests are being rate limited.")
+        return RateLimitException(f"{message}: The requests are being rate limited.")
     elif status_code == 502:
         return format_sandbox_timeout_exception(message)
     elif status_code == 507: