diff --git a/changelog.md b/changelog.md
index d8c4487b73..8bf218e88b 100644
--- a/changelog.md
+++ b/changelog.md
@@ -10,6 +10,10 @@
 
 * [4070](https://github.com/zeta-chain/node/pull/4070) - remove support for v1 revert address for BTC
 
+### Fixes
+
+* [4090](https://github.com/zeta-chain/node/pull/4090) - print error message in detail if unable to decode Bitcoin memo
+
 ## v33.0.0
 
 ### Features
diff --git a/e2e/e2etests/test_bitcoin_deposit_invalid_memo_revert.go b/e2e/e2etests/test_bitcoin_deposit_invalid_memo_revert.go
index cb180f9658..1c364252bd 100644
--- a/e2e/e2etests/test_bitcoin_deposit_invalid_memo_revert.go
+++ b/e2e/e2etests/test_bitcoin_deposit_invalid_memo_revert.go
@@ -5,6 +5,7 @@ import (
 
 	"github.com/zeta-chain/node/e2e/runner"
 	"github.com/zeta-chain/node/e2e/utils"
+	"github.com/zeta-chain/node/pkg/memo"
 	crosschaintypes "github.com/zeta-chain/node/x/crosschain/types"
 )
 
@@ -20,7 +21,7 @@ func TestBitcoinDepositInvalidMemoRevert(r *runner.E2ERunner, args []string) {
 	txHash, err := r.SendToTSSWithMemo(0.1, nil)
 	require.NoError(r, err)
 
-	// wait for the cctx to be mined
+	// wait for the cctx to be reverted
 	cctx := utils.WaitCctxMinedByInboundHash(r.Ctx, txHash.String(), r.CctxClient, r.Logger, r.CctxTimeout)
 	r.Logger.CCTX(*cctx, "deposit without memo")
 	utils.RequireCCTXStatus(r, cctx, crosschaintypes.CctxStatus_Reverted)
@@ -31,20 +32,49 @@ func TestBitcoinDepositInvalidMemoRevert(r *runner.E2ERunner, args []string) {
 	txHash, err = r.SendToTSSWithMemo(0.1, []byte{})
 	require.NoError(r, err)
 
-	// wait for the cctx to be mined
+	// wait for the cctx to be reverted
 	cctx = utils.WaitCctxMinedByInboundHash(r.Ctx, txHash.String(), r.CctxClient, r.Logger, r.CctxTimeout)
 	r.Logger.CCTX(*cctx, "deposit empty memo")
 	utils.RequireCCTXStatus(r, cctx, crosschaintypes.CctxStatus_Reverted)
 	require.EqualValues(r, crosschaintypes.InboundStatus_INVALID_MEMO, cctx.InboundParams.Status)
 
 	// CASE 3
-	// make a deposit with an invalid memo
-	txHash, err = r.SendToTSSWithMemo(0.1, []byte("invalid memo"))
+	// make a deposit with an invalid legacy memo
+	txHash, err = r.SendToTSSWithMemo(0.1, []byte("invalid legacy memo"))
 	require.NoError(r, err)
 
-	// wait for the cctx to be mined
+	// wait for the cctx to be reverted
 	cctx = utils.WaitCctxMinedByInboundHash(r.Ctx, txHash.String(), r.CctxClient, r.Logger, r.CctxTimeout)
 	r.Logger.CCTX(*cctx, "deposit invalid memo")
 	utils.RequireCCTXStatus(r, cctx, crosschaintypes.CctxStatus_Reverted)
 	require.EqualValues(r, crosschaintypes.InboundStatus_INVALID_MEMO, cctx.InboundParams.Status)
+
+	// CASE 4
+	// make a deposit with an invalid standard memo
+	memo := &memo.InboundMemo{
+		Header: memo.Header{
+			Version:     0,
+			EncodingFmt: memo.EncodingFmtCompactShort,
+			OpCode:      memo.OpCodeDepositAndCall,
+		},
+		FieldsV0: memo.FieldsV0{
+			Receiver: r.TestDAppV2ZEVMAddr,
+			Payload:  []byte("payload is not allowed"),
+		},
+	}
+
+	// modify the op code to 0b0000 (deposit), so payload won't be allowed
+	memoBytes, err := memo.EncodeToBytes()
+	require.NoError(r, err)
+	memoBytes[2] = 0x00
+
+	// deposit to TSS
+	txHash, err = r.SendToTSSWithMemo(0.1, memoBytes)
+	require.NoError(r, err)
+
+	// wait for the cctx to be reverted
+	cctx = utils.WaitCctxMinedByInboundHash(r.Ctx, txHash.String(), r.CctxClient, r.Logger, r.CctxTimeout)
+	r.Logger.CCTX(*cctx, "deposit invalid standard memo")
+	utils.RequireCCTXStatus(r, cctx, crosschaintypes.CctxStatus_Reverted)
+	require.EqualValues(r, crosschaintypes.InboundStatus_INVALID_MEMO, cctx.InboundParams.Status)
 }
diff --git a/zetaclient/chains/bitcoin/observer/inbound.go b/zetaclient/chains/bitcoin/observer/inbound.go
index 4d56664c7b..7afc6d670d 100644
--- a/zetaclient/chains/bitcoin/observer/inbound.go
+++ b/zetaclient/chains/bitcoin/observer/inbound.go
@@ -197,7 +197,7 @@ func (ob *Observer) GetInboundVoteFromBtcEvent(event *BTCInboundEvent) *crosscha
 	// if the memo is invalid, we set the status in the event, the inbound will be observed as invalid
 	err := event.DecodeMemoBytes(ob.Chain().ChainId)
 	if err != nil {
-		ob.Logger().Inbound.Info().Fields(lf).Msgf("invalid memo bytes: %s", hex.EncodeToString(event.MemoBytes))
+		ob.Logger().Inbound.Info().Err(err).Fields(lf).Msgf("invalid memo: %s", hex.EncodeToString(event.MemoBytes))
 		event.Status = crosschaintypes.InboundStatus_INVALID_MEMO
 	}