diff --git a/temporalio/converter.py b/temporalio/converter.py
index a9f8c0c98..2c4fe6187 100644
--- a/temporalio/converter.py
+++ b/temporalio/converter.py
@@ -313,6 +313,15 @@ def from_payloads(
                 raise RuntimeError(
                     f"Payload at index {index} with encoding {encoding.decode()} could not be converted"
                 ) from err
+            except Exception as err:
+                if (hasattr(err, '__module__') and 
+                    err.__module__ and 
+                    'pydantic' in err.__module__ and 
+                    'ValidationError' in err.__class__.__name__):
+                    raise RuntimeError(
+                        f"Payload at index {index} with encoding {encoding.decode()} could not be converted"
+                    ) from err
+                raise
         return values
 
 
diff --git a/tests/worker/test_activity.py b/tests/worker/test_activity.py
index eba7df21f..f84860177 100644
--- a/tests/worker/test_activity.py
+++ b/tests/worker/test_activity.py
@@ -17,6 +17,7 @@
 from time import sleep
 from typing import Any, Callable, List, NoReturn, Optional, Sequence, Type
 
+import pydantic
 import temporalio.api.workflowservice.v1
 from temporalio import activity, workflow
 from temporalio.client import (
@@ -1593,3 +1594,42 @@ async def wait_cancel() -> str:
         e.value.cause.cause.message
         == "Unhandled activity cancel error produced by activity reset"
     )
+
+
+class Foo(pydantic.BaseModel):
+    bar: str
+
+
+@activity.defn
+async def pydantic_validation_activity(params: Foo) -> str:
+    return f"Hello {params.bar}"
+
+
+@workflow.defn
+class PydanticActivityValidationWorkflow:
+    @workflow.run
+    async def run(self, params: dict) -> str:
+        return await workflow.execute_activity(
+            pydantic_validation_activity,
+            args=[params],
+            schedule_to_close_timeout=timedelta(seconds=5)
+        )
+
+
+async def test_activity_pydantic_validation_error_handling(client: Client):
+    from tests.helpers import new_worker
+    
+    async with new_worker(
+        client, 
+        PydanticActivityValidationWorkflow,
+        activities=[pydantic_validation_activity]
+    ) as worker:
+        with pytest.raises(WorkflowFailureError) as err:
+            await client.execute_workflow(
+                PydanticActivityValidationWorkflow.run,
+                {"bar": 123},
+                id=f"wf-{uuid.uuid4()}",
+                task_queue=worker.task_queue,
+            )
+    assert isinstance(err.value.cause, ApplicationError)
+    assert "Failed decoding arguments" in err.value.cause.message
diff --git a/tests/worker/test_workflow.py b/tests/worker/test_workflow.py
index 4ca9890c2..226b3ea8d 100644
--- a/tests/worker/test_workflow.py
+++ b/tests/worker/test_workflow.py
@@ -5272,6 +5272,26 @@ async def run(self, param: str) -> None:
         pass
 
 
+@workflow.defn
+class PydanticValidationErrorWorkflow:
+    @workflow.run
+    async def run(self, params: Foo) -> None:
+        pass
+
+
+async def test_workflow_pydantic_validation_error_general_handling(client: Client):
+    async with new_worker(client, PydanticValidationErrorWorkflow) as worker:
+        with pytest.raises(WorkflowFailureError) as err:
+            await client.execute_workflow(
+                "PydanticValidationErrorWorkflow",
+                {"bar": 123},
+                id=f"wf-{uuid.uuid4()}",
+                task_queue=worker.task_queue,
+            )
+    assert isinstance(err.value.cause, ApplicationError)
+    assert "Failed decoding arguments" in err.value.cause.message
+
+
 async def test_workflow_fail_on_bad_input(client: Client):
     async with new_worker(client, FailOnBadInputWorkflow) as worker:
         with pytest.raises(WorkflowFailureError) as err: