diff --git a/v1/providers/nebius/errors.go b/v1/providers/nebius/errors.go
index fd4b311d..49a87d80 100644
--- a/v1/providers/nebius/errors.go
+++ b/v1/providers/nebius/errors.go
@@ -3,6 +3,7 @@ package v1
 import (
 	"fmt"
 
+	v1 "github.com/brevdev/cloud/v1"
 	"google.golang.org/grpc/codes"
 	"google.golang.org/grpc/status"
 )
@@ -30,6 +31,20 @@ func isNotFoundError(err error) bool {
 	return false
 }
 
+func handleErrToCloudErr(e error) error {
+	if e == nil {
+		return nil
+	}
+
+	// Check for gRPC ResourceExhausted status code
+	if grpcStatus, ok := status.FromError(e); ok {
+		if grpcStatus.Code() == codes.ResourceExhausted {
+			return v1.ErrOutOfQuota
+		}
+	}
+	return e
+}
+
 // isAlreadyExistsError checks if an error is an "already exists" error
 //
 //nolint:unused // Reserved for future error handling improvements
diff --git a/v1/providers/nebius/instance.go b/v1/providers/nebius/instance.go
index 3460efdb..40c569ee 100644
--- a/v1/providers/nebius/instance.go
+++ b/v1/providers/nebius/instance.go
@@ -143,17 +143,18 @@ func (c *NebiusClient) CreateInstance(ctx context.Context, attrs v1.CreateInstan
 
 	operation, err := c.sdk.Services().Compute().V1().Instance().Create(ctx, createReq)
 	if err != nil {
-		return nil, errors.WrapAndTrace(err)
+		return nil, errors.WrapAndTrace(handleErrToCloudErr(err))
 	}
 
 	// Wait for the operation to complete and get the actual instance ID
 	finalOp, err := operation.Wait(ctx)
 	if err != nil {
-		return nil, errors.WrapAndTrace(err)
+		return nil, errors.WrapAndTrace(handleErrToCloudErr(err))
 	}
 
 	if !finalOp.Successful() {
-		return nil, fmt.Errorf("instance creation failed: %v", finalOp.Status())
+		statusErr := fmt.Errorf("instance creation failed: %v", finalOp.Status())
+		return nil, handleErrToCloudErr(statusErr)
 	}
 
 	// Get the actual instance ID from the completed operation