diff --git a/sdk/go/ai/client.go b/sdk/go/ai/client.go
index 981084e4..10410889 100644
--- a/sdk/go/ai/client.go
+++ b/sdk/go/ai/client.go
@@ -134,7 +134,13 @@ func (c *Client) doRequest(ctx context.Context, req *Request) (*Response, error)
 		if err := json.Unmarshal(respBody, &errResp); err != nil {
 			return nil, fmt.Errorf("API error (%d): %s", httpResp.StatusCode, string(respBody))
 		}
-		return nil, fmt.Errorf("API error: %s", errResp.Error.Message)
+		// Return a structured APIError so callers can distinguish auth vs rate-limit vs server errors
+		return nil, &APIError{
+			HTTPStatus: httpResp.StatusCode,
+			Type:       errResp.Error.Type,
+			Code:       errResp.Error.Code,
+			Message:    errResp.Error.Message,
+		}
 	}
 
 	// Parse response
@@ -228,7 +234,14 @@ func (c *Client) StreamComplete(ctx context.Context, prompt string, opts ...Opti
 		// Check for errors
 		if httpResp.StatusCode >= 400 {
 			respBody, _ := io.ReadAll(httpResp.Body)
-			errCh <- fmt.Errorf("API error (%d): %s", httpResp.StatusCode, string(respBody))
+			var errResp ErrorResponse
+			json.Unmarshal(respBody, &errResp) // best-effort parsing; fall back to raw body
+			errCh <- &APIError{
+				HTTPStatus: httpResp.StatusCode,
+				Type:       errResp.Error.Type,
+				Code:       errResp.Error.Code,
+				Message:    errResp.Error.Message,
+			}
 			return
 		}
 
diff --git a/sdk/go/ai/response.go b/sdk/go/ai/response.go
index 673c7d83..d072df6f 100644
--- a/sdk/go/ai/response.go
+++ b/sdk/go/ai/response.go
@@ -64,6 +64,37 @@ type ErrorDetail struct {
 	Code    string `json:"code,omitempty"`
 }
 
+// APIError represents a structured API error with full context for retry/fallback decisions.
+// Formerly all non-2xx responses were flattened into fmt.Errorf, losing HTTP status code,
+// provider error type, and structured error code — preventing callers from distinguishing
+// auth (401) vs rate-limit (429) vs content filter (400) vs server error (5xx).
+type APIError struct {
+	HTTPStatus int
+	Type       string // e.g. "invalid_request_error", "authentication_error", "rate_limit_error"
+	Code       string // provider-specific error code
+	Message    string // human-readable message
+}
+
+func (e *APIError) Error() string {
+	return fmt.Sprintf("API error (%d): [%s] %s", e.HTTPStatus, e.Type, e.Message)
+}
+
+// IsRetryable returns true if the error represents a transient condition worth retrying.
+// 429 Rate Limited and 5xx Server Errors are retryable; 400, 401, 403, 404 are not.
+func (e *APIError) IsRetryable() bool {
+	return e.HTTPStatus == 429 || e.HTTPStatus >= 500
+}
+
+// IsAuthError returns true if this is an authentication error (401).
+func (e *APIError) IsAuthError() bool {
+	return e.HTTPStatus == 401
+}
+
+// IsRateLimited returns true if this is a rate limit error (429).
+func (e *APIError) IsRateLimited() bool {
+	return e.HTTPStatus == 429
+}
+
 // HasToolCalls returns true if the response contains tool calls.
 func (r *Response) HasToolCalls() bool {
 	if len(r.Choices) == 0 {