diff --git a/.changeset/tame-melons-poke.md b/.changeset/tame-melons-poke.md
new file mode 100644
index 00000000000..154ffaf9ce0
--- /dev/null
+++ b/.changeset/tame-melons-poke.md
@@ -0,0 +1,5 @@
+---
+"thirdweb": patch
+---
+
+Show warning when sponsorship policy rejects a transaction
diff --git a/packages/thirdweb/src/wallets/smart/lib/paymaster.ts b/packages/thirdweb/src/wallets/smart/lib/paymaster.ts
index c988687643d..55ca73ff32f 100644
--- a/packages/thirdweb/src/wallets/smart/lib/paymaster.ts
+++ b/packages/thirdweb/src/wallets/smart/lib/paymaster.ts
@@ -83,6 +83,13 @@ Code: ${code}`,
         paymasterAndData: res.result,
       };
     }
+    // check for policy errors
+    if (res.result.policyId && res.result.reason) {
+      console.warn(
+        `Paymaster policy rejected this transaction with reason: ${res.result.reason} (policyId: ${res.result.policyId})`,
+      );
+    }
+
     return {
       paymasterAndData: res.result.paymasterAndData,
       verificationGasLimit: res.result.verificationGasLimit