diff --git a/crates/core/src/decode/host_error.rs b/crates/core/src/decode/host_error.rs
index ee6b5280..69e052a3 100644
--- a/crates/core/src/decode/host_error.rs
+++ b/crates/core/src/decode/host_error.rs
@@ -127,6 +127,67 @@ pub struct ClassifiedError {
     pub raw_data: serde_json::Value,
 }
 
+/// Extract a [`ClassifiedError`] from a decoded [`TransactionResult`] XDR.
+///
+/// Navigates `TransactionResult → results → OperationResult::OpInner →
+/// OperationResultTr::InvokeHostFunction → InvokeHostFunctionResult` and maps
+/// the failure variant to the correct error category and code.
+///
+/// Returns [`PrismError::TransactionSucceeded`] for a successful transaction and
+/// [`PrismError::NotSorobanTransaction`] when no `InvokeHostFunction` operation
+/// is present.
+pub fn from_transaction_result(tx_result: TransactionResult) -> PrismResult<ClassifiedError> {
+    let op_results = match tx_result.result {
+        TransactionResultResult::TxSuccess(_) => return Err(PrismError::TransactionSucceeded),
+        TransactionResultResult::TxFailed(ops) => ops,
+        TransactionResultResult::TxFeeBumpInnerSuccess(_) => {
+            return Err(PrismError::TransactionSucceeded)
+        }
+        // Any other top-level failure (TxTooEarly, TxBadSeq, etc.) has no
+        // InvokeHostFunction result to inspect.
+        _ => return Err(PrismError::NotSorobanTransaction),
+    };
+
+    // Find the first InvokeHostFunction operation result.
+    let ihf_result = op_results
+        .iter()
+        .find_map(|op| {
+            if let OperationResult::OpInner(OperationResultTr::InvokeHostFunction(r)) = op {
+                Some(r.clone())
+            } else {
+                None
+            }
+        })
+        .ok_or(PrismError::NotSorobanTransaction)?;
+
+    // Map the InvokeHostFunctionResult variant to category + code.
+    // The ScError lives in the diagnostic events / meta; here we derive the
+    // category from the result code and use 0 as the code for non-contract
+    // errors (the taxonomy lookup uses category + code together).
+    let (category, error_code, is_contract_error) = match ihf_result {
+        InvokeHostFunctionResult::Success(_) => return Err(PrismError::TransactionSucceeded),
+        InvokeHostFunctionResult::Trapped => {
+            // Trapped means the host function raised an ScError; without the
+            // meta we cannot know the exact code, so we default to Contract/0
+            // and let the caller enrich from diagnostic events.
+            (ErrorCategory::Contract, 0u32, false)
+        }
+        InvokeHostFunctionResult::ResourceLimitExceeded => (ErrorCategory::Budget, 0, false),
+        InvokeHostFunctionResult::EntryArchived => (ErrorCategory::Storage, 0, false),
+        InvokeHostFunctionResult::Malformed | InvokeHostFunctionResult::InsufficientRefundableFee => {
+            (ErrorCategory::Context, 0, false)
+        }
+    };
+
+    Ok(ClassifiedError {
+        category,
+        error_code,
+        is_contract_error,
+        contract_id: None,
+        raw_data: serde_json::Value::Null,
+    })
+}
+
 /// Classify the error from a transaction result JSON.
 pub fn classify_error(tx_data: &serde_json::Value) -> PrismResult<ClassifiedError> {
     let status = tx_data
@@ -135,9 +196,7 @@ pub fn classify_error(tx_data: &serde_json::Value) -> PrismResult<ClassifiedErro
         .unwrap_or("UNKNOWN");
 
     if status == "SUCCESS" {
-        return Err(PrismError::Internal(
-            "Transaction succeeded — no error to classify".to_string(),
-        ));
+        return Err(PrismError::TransactionSucceeded);
     }
 
     Ok(ClassifiedError {
@@ -169,6 +228,24 @@ pub fn parse_error_category(category_str: &str) -> Option<ErrorCategory> {
 #[cfg(test)]
 mod tests {
     use super::*;
+    use stellar_xdr::curr::{
+        Hash, InvokeHostFunctionResult, OperationResult, OperationResultTr, TransactionResult,
+        TransactionResultResult, VecM,
+    };
+
+    fn make_tx_result(op_result: InvokeHostFunctionResult) -> TransactionResult {
+        TransactionResult {
+            fee_charged: 100,
+            result: TransactionResultResult::TxFailed(
+                vec![OperationResult::OpInner(
+                    OperationResultTr::InvokeHostFunction(op_result),
+                )]
+                .try_into()
+                .unwrap(),
+            ),
+            ext: stellar_xdr::curr::TransactionResultExt::V0,
+        }
+    }
 
     #[test]
     fn test_category_name() {
@@ -329,4 +406,61 @@ mod tests {
             );
         }
     }
+
+    #[test]
+    fn test_from_transaction_result_trapped() {
+        let result = make_tx_result(InvokeHostFunctionResult::Trapped);
+        let classified = from_transaction_result(result).unwrap();
+        assert_eq!(classified.category, ErrorCategory::Contract);
+        assert!(!classified.is_contract_error);
+    }
+
+    #[test]
+    fn test_from_transaction_result_resource_limit() {
+        let result = make_tx_result(InvokeHostFunctionResult::ResourceLimitExceeded);
+        let classified = from_transaction_result(result).unwrap();
+        assert_eq!(classified.category, ErrorCategory::Budget);
+    }
+
+    #[test]
+    fn test_from_transaction_result_entry_archived() {
+        let result = make_tx_result(InvokeHostFunctionResult::EntryArchived);
+        let classified = from_transaction_result(result).unwrap();
+        assert_eq!(classified.category, ErrorCategory::Storage);
+    }
+
+    #[test]
+    fn test_from_transaction_result_success_returns_error() {
+        let tx_result = TransactionResult {
+            fee_charged: 100,
+            result: TransactionResultResult::TxSuccess(vec![].try_into().unwrap()),
+            ext: stellar_xdr::curr::TransactionResultExt::V0,
+        };
+        assert!(matches!(
+            from_transaction_result(tx_result),
+            Err(PrismError::TransactionSucceeded)
+        ));
+    }
+
+    #[test]
+    fn test_from_transaction_result_no_ihf_returns_error() {
+        let tx_result = TransactionResult {
+            fee_charged: 100,
+            result: TransactionResultResult::TxFailed(vec![].try_into().unwrap()),
+            ext: stellar_xdr::curr::TransactionResultExt::V0,
+        };
+        assert!(matches!(
+            from_transaction_result(tx_result),
+            Err(PrismError::NotSorobanTransaction)
+        ));
+    }
+
+    #[test]
+    fn test_from_transaction_result_ihf_success_returns_error() {
+        let result = make_tx_result(InvokeHostFunctionResult::Success(Hash([0; 32])));
+        assert!(matches!(
+            from_transaction_result(result),
+            Err(PrismError::TransactionSucceeded)
+        ));
+    }
 }
diff --git a/crates/core/src/error.rs b/crates/core/src/error.rs
index dd0af97b..c458eacc 100644
--- a/crates/core/src/error.rs
+++ b/crates/core/src/error.rs
@@ -111,6 +111,14 @@ pub enum PrismError {
     /// Generic internal error.
     #[error("Internal error: {0}")]
     Internal(String),
+
+    /// The transaction result XDR does not contain an InvokeHostFunction operation.
+    #[error("Not a Soroban transaction: no InvokeHostFunction operation found")]
+    NotSorobanTransaction,
+
+    /// The transaction succeeded — there is no error to decode.
+    #[error("Transaction succeeded — no error to decode")]
+    TransactionSucceeded,
 }
 
 /// Convenience Result type for Prism operations.