diff --git a/apps/emqx_rule_engine/src/emqx_rule_engine_api.erl b/apps/emqx_rule_engine/src/emqx_rule_engine_api.erl
index 95c028a1e..62e1553d2 100644
--- a/apps/emqx_rule_engine/src/emqx_rule_engine_api.erl
+++ b/apps/emqx_rule_engine/src/emqx_rule_engine_api.erl
@@ -423,7 +423,22 @@ param_path_id() ->
 %% Internal functions
 %%------------------------------------------------------------------------------
 
-err_msg(Msg) -> emqx_misc:readable_error_msg(Msg).
+err_msg({RuleError, {_E, Reason, _S}}) ->
+    emqx_misc:readable_error_msg(encode_nested_error(RuleError, Reason));
+err_msg({Reason, _Details}) ->
+    emqx_misc:readable_error_msg(Reason);
+err_msg(Msg) ->
+    emqx_misc:readable_error_msg(Msg).
+
+encode_nested_error(RuleError, Reason) when is_tuple(Reason) ->
+    encode_nested_error(RuleError, element(1, Reason));
+encode_nested_error(RuleError, Reason) ->
+    case emqx_json:safe_encode([{RuleError, Reason}]) of
+        {ok, Json} ->
+            Json;
+        _ ->
+            {RuleError, Reason}
+    end.
 
 format_rule_resp(Rules) when is_list(Rules) ->
     [format_rule_resp(R) || R <- Rules];
diff --git a/apps/emqx_rule_engine/test/emqx_rule_engine_api_SUITE.erl b/apps/emqx_rule_engine/test/emqx_rule_engine_api_SUITE.erl
index 82a305009..d89bc2651 100644
--- a/apps/emqx_rule_engine/test/emqx_rule_engine_api_SUITE.erl
+++ b/apps/emqx_rule_engine/test/emqx_rule_engine_api_SUITE.erl
@@ -40,6 +40,9 @@ end_per_suite(_Config) ->
 init_per_testcase(_, Config) ->
     Config.
 
+end_per_testcase(t_crud_rule_api, Config) ->
+    meck:unload(emqx_json),
+    end_per_testcase(common, Config);
 end_per_testcase(_, _Config) ->
     {200, #{data := Rules}} =
         emqx_rule_engine_api:'/rules'(get, #{query_string => #{}}),
@@ -119,12 +122,54 @@ t_crud_rule_api(_Config) ->
         emqx_rule_engine_api:'/rules/:id'(get, #{bindings => #{id => RuleID}})
     ),
 
+    {400, #{
+        code := 'BAD_REQUEST',
+        message := SelectAndTransformJsonError
+    }} =
+        emqx_rule_engine_api:'/rule_test'(
+            post,
+            test_rule_params(<<"SELECT\n  payload.msg\nFROM\n  \"t/#\"">>, <<"{\"msg\": \"hel">>)
+        ),
+    ?assertMatch(
+        #{<<"select_and_transform_error">> := <<"decode_json_failed">>},
+        emqx_json:decode(SelectAndTransformJsonError, [return_maps])
+    ),
+    {400, #{
+        code := 'BAD_REQUEST',
+        message := SelectAndTransformBadArgError
+    }} =
+        emqx_rule_engine_api:'/rule_test'(
+            post,
+            test_rule_params(
+                <<"SELECT\n  payload.msg > 1\nFROM\n  \"t/#\"">>, <<"{\"msg\": \"hello\"}">>
+            )
+        ),
+    ?assertMatch(
+        #{<<"select_and_transform_error">> := <<"badarg">>},
+        emqx_json:decode(SelectAndTransformBadArgError, [return_maps])
+    ),
+    {400, #{
+        code := 'BAD_REQUEST',
+        message := BadSqlMessage
+    }} = emqx_rule_engine_api:'/rule_test'(
+        post,
+        test_rule_params(
+            <<"BAD_SQL">>, <<"{\"msg\": \"hello\"}">>
+        )
+    ),
+    ?assertMatch({match, _}, re:run(BadSqlMessage, "syntax error")),
+    meck:expect(emqx_json, safe_encode, 1, {error, foo}),
     ?assertMatch(
         {400, #{
             code := 'BAD_REQUEST',
-            message := <<"{select_and_transform_error,{error,{decode_json_failed,", _/binary>>
+            message := <<"{select_and_transform_error,badarg}">>
         }},
-        emqx_rule_engine_api:'/rule_test'(post, test_rule_params())
+        emqx_rule_engine_api:'/rule_test'(
+            post,
+            test_rule_params(
+                <<"SELECT\n  payload.msg > 1\nFROM\n  \"t/#\"">>, <<"{\"msg\": \"hello\"}">>
+            )
+        )
     ),
     ok.
 
@@ -221,19 +266,18 @@ t_reset_metrics_on_disable(_Config) ->
     ?assertMatch(#{passed := 0, matched := 0}, Metrics1),
     ok.
 
-test_rule_params() ->
+test_rule_params(Sql, Payload) ->
     #{
         body => #{
             <<"context">> =>
                 #{
                     <<"clientid">> => <<"c_emqx">>,
                     <<"event_type">> => <<"message_publish">>,
-                    <<"payload">> => <<"{\"msg\": \"hel">>,
+                    <<"payload">> => Payload,
                     <<"qos">> => 1,
                     <<"topic">> => <<"t/a">>,
                     <<"username">> => <<"u_emqx">>
                 },
-            <<"sql">> =>
-                <<"SELECT\n  payload.msg\nFROM\n  \"t/#\"">>
+            <<"sql">> => Sql
         }
     }.
diff --git a/changes/ce/feat-10059.en.md b/changes/ce/feat-10059.en.md
new file mode 100644
index 000000000..2c4de015c
--- /dev/null
+++ b/changes/ce/feat-10059.en.md
@@ -0,0 +1 @@
+Errors returned by rule engine API are formatted in a more human readable way rather than dumping the raw error including the stacktrace.
diff --git a/changes/ce/feat-10059.zh.md b/changes/ce/feat-10059.zh.md
new file mode 100644
index 000000000..99f8fe8ee
--- /dev/null
+++ b/changes/ce/feat-10059.zh.md
@@ -0,0 +1 @@
+规则引擎 API 返回用户可读的错误信息而不是原始的栈追踪信息。