diff --git a/docs/tools.md b/docs/tools.md
index 17f7da0a1..1b97274d9 100644
--- a/docs/tools.md
+++ b/docs/tools.md
@@ -320,3 +320,26 @@ When you create a function tool via `@function_tool`, you can pass a `failure_er
 -   If you explicitly pass `None`, then any tool call errors will be re-raised for you to handle. This could be a `ModelBehaviorError` if the model produced invalid JSON, or a `UserError` if your code crashed, etc.
 
 If you are manually creating a `FunctionTool` object, then you must handle errors inside the `on_invoke_tool` function.
+
+## Example: Custom Error Handling in Function Tools
+
+```python
+from agents import function_tool, RunContextWrapper
+from typing import Any
+
+def my_custom_error_function(context: RunContextWrapper[Any], error: Exception) -> str:
+    """A custom function to provide a user-friendly error message."""
+    print(f"A tool call failed with the following error: {error}")
+    return "An internal server error occurred. Please try again later."
+
+@function_tool(failure_error_function=my_custom_error_function)
+def get_user_profile(user_id: str) -> str:
+    """Fetches a user profile from a mock API.
+     This function demonstrates a 'flaky' or failing API call.
+    """
+    if user_id == "user_123":
+        return "User profile for user_123 successfully retrieved."
+    else:
+        raise ValueError(f"Could not retrieve profile for user_id: {user_id}. API returned an error.")
+
+```
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