diff --git a/ROADMAP.md b/ROADMAP.md
--- a/ROADMAP.md
+++ b/ROADMAP.md
@@ -19,14 +19,24 @@
 | v0.4.0  |   ✓   | [Animation & Transitions](#animation--transitions)                               |
 | v0.5.0  |   ✓   | [Navigation & History API Routing](#navigation--history-api-routing)             |
 |         |   ✓   | [Refactor](#evaluator--binder-hardening)                                         |
+| v0.5.1  |   ✓   | [Error Handling & Diagnostics](#error-handling--diagnostics)                     |
+| v0.5.2  |       |                                                                                  |
+| v0.5.3  |       |                                                                                  |
+| v0.5.4  |       |                                                                                  |
+| v0.6.1  |       | [Persistence & Offline](#persistence--offline)                                   |
+| v0.6.2  |       |                                                                                  |
+| v0.6.3  |       |                                                                                  |
+| v0.6.4  |       | [Background Requests & Reactive Polling](#background-requests--reactive-polling) |
+| v0.6.5  |       |                                                                                  |
+| v0.6.6  |       |                                                                                  |
+| v0.6.7  |       | [Streaming & Patch Engine](#streaming--patch-engine)                             |
+| v0.6.8  |       |                                                                                  |
+| v0.6.9  |       |                                                                                  |
+| v0.6.10 |       |                                                                                  |
+| v0.7.0  |       |                                                                                  |
+| v0.8.0  |       | Support `voltx-` & `vx-` attributes: recommend `vx-`                             |
+|         |       | Switch to `data-voltx`                                                           |
 |         |       | Update demo to be a multi page application with routing plugin                   |
-| v0.5.1  |       | Support `voltx-` & `vx-` attributes: recommend `vx-`                             |
-| v0.5.2  |       | Switch to `data-voltx`                                                           |
-| v0.5.3  |       | [Background Requests & Reactive Polling](#background-requests--reactive-polling) |
-| v0.5.4  |       | [Streaming & Patch Engine](#streaming--patch-engine)                             |
-| v0.5.5  |       | PWA Capabilities                                                                 |
-| v0.5.6  |       | [Persistence & Offline](#persistence--offline)                                   |
-|         |       |                                                                                  |
 | v0.9.0  |       | [Inspector & Developer Tools](#inspector--developer-tools)                       |
 | v1.0.0  |       | [Stable Release](#stable-release)                                                |
 
@@ -102,18 +112,42 @@
 
 ## To-Do
 
+### Error Handling & Diagnostics
+
+**Goal**: Provide clear, actionable feedback when runtime or directive errors occur.
+**Outcome**: VoltX.js surfaces developer-friendly diagnostics for expression evaluation,
+directive parsing, and network operations, making it easier to debug apps without opaque stack traces.
+**Deliverables**:
+    - v0.5.1
+        ✓ Centralized error boundary system for directives and effects.
+        ✓ Sandbox error wrapping with contextual hints (directive name, expression, element).
+        ✓ `$volt.report(error, context)` API for plugin and app-level reporting.
+    - v0.5.2
+        - Visual in-DOM error overlays for development mode.
+        - Enhanced console messages with source map trace and directive path.
+        - Differentiated error levels: warn, error, fatal.
+    - v0.5.3
+        - Runtime health monitor tracking evaluation and subscription failures.
+    - v0.5.4
+        - Documentation: "Understanding VoltX Errors" guide.
+        - Configurable global error policy (silent, overlay, throw).
+
 ### Streaming & Patch Engine
 
 **Goal:** Enable real-time updates via SSE/WebSocket streaming with intelligent DOM patching.
 **Outcome:** VoltX.js can receive and apply live updates from the server
 **Deliverables:**
-    - Server-Sent Events (SSE) integration
-    - `data-volt-flow` attribute for SSE endpoints
-    - Signal patching from backend (`data-signals-*` merge system)
-    - Backend action system with `$$spark()` syntax
-    - JSON Patch parser and DOM morphing engine
-    - WebSocket as alternative to SSE
-    - `data-volt-ignore-morph` for selective patch exclusion
+    - v0.5.7
+        - Server-Sent Events (SSE) integration
+        - `data-volt-flow` attribute for SSE endpoints
+    - v0.5.8
+        - Signal patching from backend (`data-signals-*` merge system)
+        - Backend action system with `$$spark()` syntax
+    - v0.5.9
+        - JSON Patch parser and DOM morphing engine
+        - `data-volt-ignore-morph` for selective patch exclusion
+    - v0.5.10
+        - WebSocket as alternative to SSE
 
 ### Persistence & Offline
 
@@ -122,43 +156,55 @@
 **Deliverables:**
     - ✓ Persistent signals (localStorage, sessionStorage, indexedDb)
     - ✓ Storage plugin (`data-volt-persist`)
-    - Storage modifiers on signals:
-        - `.local` modifier for localStorage persistence
-        - `.session` modifier for sessionStorage persistence
-        - `.ifmissing` modifier for conditional initialization
-    - Offline queue for deferred stream events and HTTP requests
-    - Sync strategy API (merge, overwrite, patch) for conflict resolution
-    - Service Worker integration for offline-first apps
-    - Background sync for deferred requests
-    - Cache invalidation strategies
-    - Cross-tab synchronization via `BroadcastChannel`
+    - v0.5.1
+        - Storage modifiers on signals:
+            - `.local` modifier for localStorage persistence
+            - `.session` modifier for sessionStorage persistence
+            - `.ifmissing` modifier for conditional initialization
+    - v0.5.2
+        - Sync strategy API (merge, overwrite, patch) for conflict resolution
+        - Cache invalidation strategies
+    - v0.5.3
+        - Offline queue for deferred stream events and HTTP requests
+        - Service Worker integration for offline-first apps
+        - Background sync for deferred requests
+        - Cross-tab synchronization via `BroadcastChannel`
 
 ### Background Requests & Reactive Polling
 
 **Goal:** Enable declarative background data fetching and periodic updates within the VoltX.js runtime.
 **Outcome:** VoltX.js elements can fetch or refresh data automatically based on time, visibility, or reactive conditions.
 **Deliverables:**
-    - `data-volt-visible` for fetching when an element enters the viewport (`IntersectionObserver`)
-    - `data-volt-fetch` attribute for declarative background requests
-        - Configurable polling intervals, delays, and signal-based triggers
-        - Automatic cancellation of requests when elements are unmounted
-        - Conditional execution tied to reactive signals
-        - Integration hooks for loading and pending states
-    - Background task scheduler with priority management
+    - v0.5.4
+        - `data-volt-visible` for fetching when an element enters the viewport (`IntersectionObserver`)
+    - v0.5.5
+        - `data-volt-fetch` attribute for declarative background requests
+            - Configurable polling intervals, delays, and signal-based triggers
+            - Automatic cancellation of requests when elements are unmounted
+            - Conditional execution tied to reactive signals
+            - Integration hooks for loading and pending states
+    - v0.5.6
+        - Background task scheduler with priority management
 
 ### Inspector & Developer Tools
 
 **Goal:** Improve developer experience and runtime introspection.
 **Outcome:** First-class developer ergonomics; VoltX.js is enjoyable to debug and extend.
 **Deliverables:**
-    - Developer overlay for inspecting signals, subscriptions, and effects
-    - Dev logging toggle (`Volt.debug = true`)
-    - Browser console integration (`window.$volt.inspect()`)
-    - Signal dependency graph visualization (graph data structure implemented in [proxy](#proxy-based-reactivity-enhancements) milestone)
-    - Performance profiling tools
-    - Request/response debugging (HTTP actions, SSE streams)
-    - Time-travel debugging for signal history
-    - Browser DevTools extension
+    - v0.9.1
+        - Developer overlay for inspecting signals, subscriptions, and effects
+        - Time-travel debugging for signal history
+    - v0.9.2
+        - Signal dependency graph visualization (graph data structure implemented in [proxy](#proxy-based-reactivity-enhancements) milestone)
+    - v0.9.3
+        - Browser console integration (`window.$volt.inspect()`)
+        - Dev logging toggle (`Volt.debug = true`)
+    - v0.9.4
+        - Request/response debugging (HTTP actions, SSE streams)
+    - v0.9.5
+        - Performance profiling tools
+    - v0.9.6 to v0.9.10
+        - Browser DevTools extension
 
 ### Stable Release
 
diff --git a/lib/src/index.ts b/lib/src/index.ts
--- a/lib/src/index.ts
+++ b/lib/src/index.ts
@@ -7,6 +7,8 @@
 export { asyncEffect } from "$core/async-effect";
 export { mount } from "$core/binder";
 export { charge } from "$core/charge";
+export { clearErrorHandlers, onError, report } from "$core/error";
+export type { VoltError } from "$core/error";
 export { parseHttpConfig, request, serializeForm, serializeFormToJSON, swap } from "$core/http";
 export {
   clearAllGlobalHooks,
@@ -53,7 +55,15 @@
   supportsViewTransitions,
   withViewTransition,
 } from "$core/view-transitions";
-export { goBack, goForward, getRouterMode, initNavigationListener, navigate, redirect, setRouterMode } from "$plugins/navigate";
+export {
+  getRouterMode,
+  goBack,
+  goForward,
+  initNavigationListener,
+  navigate,
+  redirect,
+  setRouterMode,
+} from "$plugins/navigate";
 export { persistPlugin, registerStorageAdapter } from "$plugins/persist";
 export { scrollPlugin } from "$plugins/scroll";
 export {
@@ -74,6 +84,9 @@
   ChargedRoot,
   ChargeResult,
   ComputedSignal,
+  ErrorContext,
+  ErrorHandler,
+  ErrorSource,
   GlobalHookName,
   GlobalStore,
   HydrateOptions,
diff --git a/lib/src/core/async-effect.ts b/lib/src/core/async-effect.ts
--- a/lib/src/core/async-effect.ts
+++ b/lib/src/core/async-effect.ts
@@ -4,6 +4,7 @@
 
 import type { Optional, Timer } from "$types/helpers";
 import type { AsyncEffectFunction, AsyncEffectOptions, ComputedSignal, Signal } from "$types/volt";
+import { report } from "./error";
 
 /**
  * Creates an async side effect that runs when dependencies change.
@@ -73,7 +74,7 @@
       try {
         cleanup();
       } catch (error) {
-        console.error("Error in async effect cleanup:", error);
+        report(error as Error, { source: "effect" });
       }
       cleanup = undefined;
     }
@@ -115,7 +116,7 @@
           await executeEffect(currentExecutionId);
         }
       } else {
-        console.error("Error in async effect:", err);
+        report(err as Error, { source: "effect" });
 
         if (onError) {
           const retry = () => {
@@ -198,7 +199,7 @@
       try {
         cleanup();
       } catch (error) {
-        console.error("Error during async effect unmount:", error);
+        report(error as Error, { source: "effect" });
       }
       cleanup = undefined;
     }
diff --git a/lib/src/core/binder.ts b/lib/src/core/binder.ts
--- a/lib/src/core/binder.ts
+++ b/lib/src/core/binder.ts
@@ -16,6 +16,7 @@
 } from "$types/volt";
 import { BOOLEAN_ATTRS } from "./constants";
 import { getVoltAttrs, parseClassBinding, setHTML, setText, toggleClass, walkDOM } from "./dom";
+import { report } from "./error";
 import { evaluate } from "./evaluator";
 import { execGlobalHooks, notifyBindingCreated, notifyElementMounted, notifyElementUnmounted } from "./lifecycle";
 import { debounce, getModifierValue, hasModifier, parseModifiers, throttle } from "./modifiers";
@@ -132,7 +133,7 @@
       try {
         cleanup();
       } catch (error) {
-        console.error("Error during unmount:", error);
+        report(error as Error, { source: "binding", element: root as HTMLElement });
       }
     }
 
@@ -145,7 +146,12 @@
   try {
     plugin(pluginCtx, val);
   } catch (error) {
-    console.error(`Error in plugin "${base}":`, error);
+    report(error as Error, {
+      source: "plugin",
+      element: ctx.element as HTMLElement,
+      directive: `data-volt-${base}`,
+      pluginName: base,
+    });
   }
 }
 
@@ -227,14 +233,12 @@
       break;
     }
     default: {
-      // Check directive registry first (for HTTP and other optional directives)
       const directiveHandler = directiveRegistry.get(baseName);
       if (directiveHandler) {
         directiveHandler(ctx, value, modifiers);
         return;
       }
 
-      // Then check plugin registry
       const plugin = getPlugin(baseName);
       if (plugin) {
         execPlugin(plugin, ctx, value, baseName);
@@ -374,7 +378,12 @@
           try {
             element.style.setProperty(cssKey, String(val));
           } catch (error) {
-            console.warn(`[Volt] Failed to set style property "${cssKey}":`, error);
+            report(error as Error, {
+              source: "binding",
+              element: element,
+              directive: "data-volt-style",
+              expression: expr,
+            });
           }
         }
       }
@@ -458,7 +467,12 @@
         result(event);
       }
     } catch (error) {
-      console.error(`Error in event handler (${eventName}):`, error);
+      report(error as Error, {
+        source: "binding",
+        element: ctx.element as HTMLElement,
+        directive: `data-volt-on-${eventName}`,
+        expression: expr,
+      });
     }
   };
 
@@ -598,7 +612,12 @@
 function bindModel(context: BindingContext, signalPath: string, modifiers: Modifier[] = []): void {
   const result = findModelSignal(context.scope, signalPath);
   if (!result) {
-    console.error(`Signal "${signalPath}" not found for data-volt-model`);
+    report(new Error(`Signal "${signalPath}" not found`), {
+      source: "binding",
+      element: context.element as HTMLElement,
+      directive: "data-volt-model",
+      expression: signalPath,
+    });
     return;
   }
 
@@ -766,7 +785,12 @@
       evaluate(stmt, ctx.scope, { unwrapSignals: false });
     }
   } catch (error) {
-    console.error("Error in data-volt-init:", error);
+    report(error as Error, {
+      source: "binding",
+      element: ctx.element as HTMLElement,
+      directive: "data-volt-init",
+      expression: expr,
+    });
   }
 }
 
@@ -791,7 +815,12 @@
 function bindFor(ctx: BindingContext, expr: string): void {
   const parsed = parseForExpr(expr);
   if (!parsed) {
-    console.error(`Invalid data-volt-for expression: "${expr}"`);
+    report(new Error(`Invalid data-volt-for expression: "${expr}"`), {
+      source: "binding",
+      element: ctx.element as HTMLElement,
+      directive: "data-volt-for",
+      expression: expr,
+    });
     return;
   }
 
@@ -800,7 +829,12 @@
   const parent = templ.parentElement;
 
   if (!parent) {
-    console.error("data-volt-for element must have a parent");
+    report(new Error("data-volt-for element must have a parent"), {
+      source: "binding",
+      element: ctx.element as HTMLElement,
+      directive: "data-volt-for",
+      expression: expr,
+    });
     return;
   }
 
@@ -863,7 +897,12 @@
   const parent = ifTempl.parentElement;
 
   if (!parent) {
-    console.error("data-volt-if element must have a parent");
+    report(new Error("data-volt-if element must have a parent"), {
+      source: "binding",
+      element: ctx.element as HTMLElement,
+      directive: "data-volt-if",
+      expression: expr,
+    });
     return;
   }
 
@@ -1034,7 +1073,7 @@
       try {
         cb();
       } catch (error) {
-        console.error("Error in plugin onMount hook:", error);
+        report(error as Error, { source: "plugin", element: ctx.element as HTMLElement, hookName: "onMount" });
       }
     },
     onUnmount: (cb: () => void) => {
@@ -1045,7 +1084,7 @@
       try {
         cb();
       } catch (error) {
-        console.error("Error in plugin beforeBinding hook:", error);
+        report(error as Error, { source: "plugin", element: ctx.element as HTMLElement, hookName: "beforeBinding" });
       }
     },
     afterBinding: (cb: () => void) => {
@@ -1054,7 +1093,7 @@
         try {
           cb();
         } catch (error) {
-          console.error("Error in plugin afterBinding hook:", error);
+          report(error as Error, { source: "plugin", element: ctx.element as HTMLElement, hookName: "afterBinding" });
         }
       });
     },
@@ -1065,7 +1104,7 @@
       try {
         cb();
       } catch (error) {
-        console.error("Error in plugin onUnmount hook:", error);
+        report(error as Error, { source: "plugin", element: ctx.element as HTMLElement, hookName: "onUnmount" });
       }
     }
   });
diff --git a/lib/src/core/charge.ts b/lib/src/core/charge.ts
--- a/lib/src/core/charge.ts
+++ b/lib/src/core/charge.ts
@@ -6,6 +6,7 @@
 
 import type { ChargedRoot, ChargeResult, Scope } from "$types/volt";
 import { mount } from "./binder";
+import { report } from "./error";
 import { evaluate } from "./evaluator";
 import { getComputedAttributes, isNil } from "./shared";
 import { computed, signal } from "./signal";
@@ -13,6 +14,7 @@
 
 /**
  * Discover and mount all Volt roots in the document.
+ *
  * Parses data-volt-state for initial state and data-volt-computed for derived values.
  * Also parses declarative global store from script[data-volt-store] elements.
  *
@@ -54,7 +56,7 @@
 
       chargedRoots.push({ element, scope, cleanup });
     } catch (error) {
-      console.error("Error charging Volt root:", element, error);
+      report(error as Error, { source: "charge", element: element as HTMLElement });
     }
   }
 
@@ -65,7 +67,7 @@
         try {
           root.cleanup();
         } catch (error) {
-          console.error("Error cleaning up Volt root:", root.element, error);
+          report(error as Error, { source: "charge", element: root.element as HTMLElement });
         }
       }
     },
@@ -84,15 +86,24 @@
       const stateData = JSON.parse(stateAttr);
 
       if (typeof stateData !== "object" || isNil(stateData) || Array.isArray(stateData)) {
-        console.error(`data-volt-state must be a JSON object, got ${typeof stateData}:`, el);
+        report(new Error(`data-volt-state must be a JSON object, got ${typeof stateData}`), {
+          source: "charge",
+          element: el as HTMLElement,
+          directive: "data-volt-state",
+          expression: stateAttr,
+        });
       } else {
         for (const [key, value] of Object.entries(stateData)) {
           scope[key] = signal(value);
         }
       }
     } catch (error) {
-      console.error("Failed to parse data-volt-state JSON:", stateAttr, error);
-      console.error("Element:", el);
+      report(error as Error, {
+        source: "charge",
+        element: el as HTMLElement,
+        directive: "data-volt-state",
+        expression: stateAttr,
+      });
     }
   }
 
@@ -101,7 +112,12 @@
     try {
       scope[name] = computed(() => evaluate(expression, scope));
     } catch (error) {
-      console.error(`Failed to create computed "${name}" with expression "${expression}":`, error);
+      report(error as Error, {
+        source: "charge",
+        element: el as HTMLElement,
+        directive: `data-volt-computed:${name}`,
+        expression: expression,
+      });
     }
   }
 
@@ -125,14 +141,17 @@
       const data = JSON.parse(content);
 
       if (typeof data !== "object" || isNil(data) || Array.isArray(data)) {
-        console.error("data-volt-store script must contain a JSON object, got:", typeof data);
+        report(new Error(`data-volt-store script must contain a JSON object, got: ${typeof data}`), {
+          source: "charge",
+          element: script as HTMLElement,
+          directive: "data-volt-store",
+        });
         continue;
       }
 
       registerStore(data);
     } catch (error) {
-      console.error("Failed to parse data-volt-store script:", error);
-      console.error("Script element:", script);
+      report(error as Error, { source: "charge", element: script as HTMLElement, directive: "data-volt-store" });
     }
   }
 }
diff --git a/lib/src/core/error.ts b/lib/src/core/error.ts
new file mode 100644
--- /dev/null
+++ b/lib/src/core/error.ts
@@ -0,0 +1,246 @@
+/**
+ * Core error handling and reporting system for VoltX.js
+ *
+ * Provides centralized error boundary with rich contextual information
+ * for debugging directives, expressions, effects, and HTTP operations.
+ *
+ * @module core/error
+ */
+import type { ErrorContext, ErrorHandler, ErrorSource } from "$types/volt";
+
+/**
+ * Enhanced error class with VoltX context
+ *
+ * Wraps original errors with rich debugging information including
+ * source, element, directive, and expression details.
+ */
+export class VoltError extends Error {
+  /** Error source category */
+  public readonly source: ErrorSource;
+  /** DOM element where error occurred */
+  public readonly element?: HTMLElement;
+  /** Directive name */
+  public readonly directive?: string;
+  /** Expression that failed */
+  public readonly expression?: string;
+  /** Original error */
+  public readonly cause: Error;
+  /** When error occurred */
+  public readonly timestamp: number;
+  /** Full error context */
+  public readonly context: ErrorContext;
+  /** Whether propagation was stopped */
+  private _stopped: boolean = false;
+
+  constructor(cause: Error, context: ErrorContext) {
+    const message = VoltError.buildMessage(cause, context);
+    super(message);
+    this.name = "VoltError";
+    this.cause = cause;
+    this.source = context.source;
+    this.element = context.element;
+    this.directive = context.directive;
+    this.expression = context.expression;
+    this.context = context;
+    this.timestamp = Date.now();
+
+    if (Error.captureStackTrace) {
+      Error.captureStackTrace(this);
+    }
+  }
+
+  /**
+   * Stop propagation to subsequent error handlers
+   */
+  public stopPropagation(): void {
+    this._stopped = true;
+  }
+
+  /**
+   * Check if propagation was stopped
+   */
+  public get stopped(): boolean {
+    return this._stopped;
+  }
+
+  private static buildMessage(cause: Error, context: ErrorContext): string {
+    const parts: string[] = [];
+
+    parts.push(`[${context.source}] ${cause.message}`);
+
+    if (context.directive) {
+      parts.push(`Directive: ${context.directive}`);
+    }
+
+    if (context.expression) {
+      const truncated = context.expression.length > 100 ? `${context.expression.slice(0, 100)}...` : context.expression;
+      parts.push(`Expression: ${truncated}`);
+    }
+
+    if (context.pluginName) {
+      parts.push(`Plugin: ${context.pluginName}`);
+    }
+
+    if (context.httpMethod && context.httpUrl) {
+      parts.push(`HTTP: ${context.httpMethod} ${context.httpUrl}`);
+      if (context.httpStatus) {
+        parts.push(`Status: ${context.httpStatus}`);
+      }
+    }
+
+    if (context.hookName) {
+      parts.push(`Hook: ${context.hookName}`);
+    }
+
+    if (context.element) {
+      const tag = context.element.tagName.toLowerCase();
+      const id = context.element.id ? `#${context.element.id}` : "";
+      const cls = context.element.className ? `.${context.element.className.split(" ").join(".")}` : "";
+      parts.push(`Element: <${tag}${id}${cls}>`);
+    }
+
+    return parts.join(" | ");
+  }
+
+  /**
+   * Serialize error for logging/reporting
+   */
+  public toJSON(): Record<string, unknown> {
+    return {
+      name: this.name,
+      message: this.message,
+      source: this.source,
+      directive: this.directive,
+      expression: this.expression,
+      timestamp: this.timestamp,
+      context: this.context,
+      cause: { name: this.cause.name, message: this.cause.message, stack: this.cause.stack },
+      stack: this.stack,
+    };
+  }
+}
+
+/**
+ * Global error handler registry
+ */
+let errorHandlers: ErrorHandler[] = [];
+
+/**
+ * Register an error handler
+ *
+ * Multiple handlers can be registered and will be called in registration order.
+ * Handlers can call `error.stopPropagation()` to prevent subsequent handlers
+ * from being called.
+ *
+ * @param handler - Error handler function
+ * @returns Cleanup function to unregister the handler
+ *
+ * @example
+ * ```ts
+ * const cleanup = onError((error) => {
+ *   console.log('Error source:', error.source);
+ *   console.log('Element:', error.element);
+ *   console.log('Expression:', error.expression);
+ *
+ *   // Stop other handlers from running
+ *   if (error.source === "http") {
+ *     error.stopPropagation();
+ *   }
+ * });
+ *
+ * // Later: cleanup()
+ * ```
+ */
+export function onError(handler: ErrorHandler): () => void {
+  errorHandlers.push(handler);
+  return () => {
+    errorHandlers = errorHandlers.filter((h) => h !== handler);
+  };
+}
+
+/**
+ * Clear all registered error handlers
+ *
+ * Useful for testing or when you want to reset error handling state.
+ *
+ * @example
+ * ```ts
+ * clearErrorHandlers();
+ * ```
+ */
+export function clearErrorHandlers(): void {
+  errorHandlers = [];
+}
+
+/**
+ * Report an error through the centralized error boundary
+ *
+ * This function is used both internally by VoltX and externally by user code.
+ * All errors flow through this unified system.
+ *
+ * If no error handlers are registered, errors are logged to console as fallback.
+ * Once handlers are registered, console logging is disabled.
+ *
+ * @param error - Error to report (can be Error, unknown, or string)
+ * @param context - Error context with source and additional details
+ *
+ * @example
+ * ```ts
+ * // Internal usage (by VoltX)
+ * try {
+ *   evaluate(expression, scope);
+ * } catch (err) {
+ *   report(err, {
+ *     source: ErrorSource.Evaluator,
+ *     element: ctx.element,
+ *     directive: 'data-volt-text',
+ *     expression: expression
+ *   });
+ * }
+ *
+ * // External usage (by plugins/apps)
+ * try {
+ *   myCustomLogic();
+ * } catch (err) {
+ *   report(err, {
+ *     source: ErrorSource.User,
+ *     customContext: 'My feature failed'
+ *   });
+ * }
+ * ```
+ */
+export function report(error: unknown, context: ErrorContext): void {
+  const errorObj = error instanceof Error ? error : new Error(String(error));
+  const voltError = new VoltError(errorObj, context);
+
+  if (errorHandlers.length === 0) {
+    console.error(voltError.message);
+    console.error("Caused by:", voltError.cause);
+    if (voltError.element) {
+      console.error("Element:", voltError.element);
+    }
+    return;
+  }
+
+  for (const handler of errorHandlers) {
+    try {
+      handler(voltError);
+      if (voltError.stopped) {
+        break;
+      }
+    } catch (handlerError) {
+      console.error("Error in error handler:", handlerError);
+    }
+  }
+}
+
+/**
+ * Get count of registered error handlers
+ *
+ * Useful for testing and debugging error handling setup.
+ *
+ * @returns Number of registered error handlers
+ */
+export function getErrorHandlerCount(): number {
+  return errorHandlers.length;
+}
diff --git a/lib/src/core/http.ts b/lib/src/core/http.ts
--- a/lib/src/core/http.ts
+++ b/lib/src/core/http.ts
@@ -17,6 +17,7 @@
   SwapStrategy,
 } from "$types/volt";
 import { registerDirective } from "./binder";
+import { report } from "./error";
 import { evaluate } from "./evaluator";
 import { sleep } from "./shared";
 
@@ -228,7 +229,10 @@
       break;
     }
     default: {
-      console.error(`Unknown swap strategy: ${strategy as string}`);
+      report(new Error(`Unknown swap strategy: ${strategy as string}`), {
+        source: "http",
+        element: target as HTMLElement,
+      });
     }
   }
 }
@@ -308,7 +312,12 @@
         headers = headersValue as Record<string, string>;
       }
     } catch (error) {
-      console.error("Failed to parse data-volt-headers:", error);
+      report(error as Error, {
+        source: "http",
+        element: el as HTMLElement,
+        directive: "data-volt-headers",
+        expression: dataset.voltHeaders,
+      });
     }
   }
 
@@ -499,7 +508,11 @@
 
   const target = document.querySelector(targetConf);
   if (!target) {
-    console.warn(`Target element not found: ${targetConf}`);
+    report(new Error(`Target element not found: ${targetConf}`), {
+      source: "http",
+      element: defaultEl as HTMLElement,
+      directive: "data-volt-target",
+    });
     return undefined;
   }
 
@@ -630,7 +643,7 @@
 
   const errorMessage = lastError instanceof Error ? lastError.message : String(lastError);
   setErrorState(target, errorMessage, conf.indicator);
-  console.error("HTTP request failed:", lastError);
+  report(lastError as Error, { source: "http", element: el as HTMLElement, httpMethod: method, httpUrl: url });
 }
 
 export function bindGet(ctx: BindingContext, url: string): void {
diff --git a/lib/src/core/lifecycle.ts b/lib/src/core/lifecycle.ts
--- a/lib/src/core/lifecycle.ts
+++ b/lib/src/core/lifecycle.ts
@@ -4,6 +4,7 @@
  */
 
 import type { ElementLifecycleState, GlobalHookName, MountHookCallback, Scope, UnmountHookCallback } from "$types/volt";
+import { report } from "./error";
 
 /**
  * Global lifecycle hooks registry
@@ -124,7 +125,7 @@
         (callback as UnmountHookCallback)(root);
       }
     } catch (error) {
-      console.error(`Error in global ${hookName} hook:`, error);
+      report(error as Error, { source: "lifecycle", element: root as HTMLElement, hookName: hookName });
     }
   }
 }
@@ -181,7 +182,7 @@
     try {
       callback();
     } catch (error) {
-      console.error("Error in element onMount hook:", error);
+      report(error as Error, { source: "lifecycle", element: el as HTMLElement, hookName: "onMount" });
     }
   }
 }
@@ -205,7 +206,7 @@
     try {
       callback();
     } catch (error) {
-      console.error("Error in element onUnmount hook:", error);
+      report(error as Error, { source: "lifecycle", element: el as HTMLElement, hookName: "onUnmount" });
     }
   }
 
diff --git a/lib/src/core/signal.ts b/lib/src/core/signal.ts
--- a/lib/src/core/signal.ts
+++ b/lib/src/core/signal.ts
@@ -1,4 +1,5 @@
 import type { ComputedSignal, Signal } from "$types/volt";
+import { report } from "./error";
 import { recordDep, startTracking, stopTracking } from "./tracker";
 
 /**
@@ -25,7 +26,7 @@
       try {
         callback(value);
       } catch (error) {
-        console.error("Error in signal subscriber:", error);
+        report(error as Error, { source: "effect" });
       }
     }
   };
@@ -87,7 +88,7 @@
       try {
         cb(value);
       } catch (error) {
-        console.error("Error in computed subscriber:", error);
+        report(error as Error, { source: "effect" });
       }
     }
   };
@@ -116,7 +117,7 @@
           shouldNotify = subs.size > 0;
         }
       } catch (error) {
-        console.error("Error in computed:", error);
+        report(error as Error, { source: "effect" });
         throw error;
       } finally {
         const deps = stopTracking();
@@ -196,7 +197,7 @@
       try {
         cleanup();
       } catch (error) {
-        console.error("Error in effect cleanup:", error);
+        report(error as Error, { source: "effect" });
       }
       cleanup = undefined;
     }
@@ -205,7 +206,7 @@
     try {
       cleanup = cb();
     } catch (error) {
-      console.error("Error in effect:", error);
+      report(error as Error, { source: "effect" });
     } finally {
       const deps = stopTracking();
 
@@ -225,7 +226,7 @@
       try {
         cleanup();
       } catch (error) {
-        console.error("Error in effect cleanup:", error);
+        report(error as Error, { source: "effect" });
       }
     }
 
@@ -233,7 +234,7 @@
       try {
         unsubscribe();
       } catch (error) {
-        console.error("Error unsubscribing effect:", error);
+        report(error as Error, { source: "effect" });
       }
     }
   };
diff --git a/lib/src/types/volt.d.ts b/lib/src/types/volt.d.ts
--- a/lib/src/types/volt.d.ts
+++ b/lib/src/types/volt.d.ts
@@ -552,3 +552,37 @@
    */
   forceFallback?: boolean;
 };
+
+/**
+ * Error source categories for identifying where errors occurred
+ */
+export type ErrorSource = "evaluator" | "binding" | "effect" | "http" | "plugin" | "lifecycle" | "charge" | "user";
+
+/**
+ * Context information for error reporting
+ */
+export type ErrorContext = {
+  /** Error source category */
+  source: ErrorSource;
+  /** DOM element where error occurred */
+  element?: HTMLElement;
+  /** Directive name (e.g., "data-volt-text", "data-volt-on-click") */
+  directive?: string;
+  /** Expression that failed */
+  expression?: string;
+  /** Plugin name (for plugin errors) */
+  pluginName?: string;
+  /** HTTP method and URL (for HTTP errors) */
+  httpMethod?: string;
+  httpUrl?: string;
+  httpStatus?: number;
+  /** Lifecycle hook name (for lifecycle errors) */
+  hookName?: string;
+  /** Additional custom context */
+  [key: string]: unknown;
+};
+
+/**
+ * Error handler function signature
+ */
+export type ErrorHandler = (error: VoltError) => void;
diff --git a/lib/test/core/async-effect.test.ts b/lib/test/core/async-effect.test.ts
--- a/lib/test/core/async-effect.test.ts
+++ b/lib/test/core/async-effect.test.ts
@@ -385,7 +385,9 @@
 
       await vi.runAllTimersAsync();
 
-      expect(consoleErrorSpy).toHaveBeenCalledWith("Error in async effect:", expect.any(Error));
+      expect(consoleErrorSpy).toHaveBeenCalledTimes(2);
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(1, expect.stringContaining("[effect]"));
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(2, "Caused by:", expect.any(Error));
 
       consoleErrorSpy.mockRestore();
     });
diff --git a/lib/test/core/error.test.ts b/lib/test/core/error.test.ts
new file mode 100644
--- /dev/null
+++ b/lib/test/core/error.test.ts
@@ -0,0 +1,300 @@
+import { clearErrorHandlers, getErrorHandlerCount, onError, report, VoltError } from "$core/error";
+import type { ErrorContext, ErrorSource } from "$types/volt";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
+
+describe("VoltError", () => {
+  it("creates error with basic context", () => {
+    const cause = new Error("Test error");
+    const context: ErrorContext = { source: "binding" };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError).toBeInstanceOf(Error);
+    expect(voltError).toBeInstanceOf(VoltError);
+    expect(voltError.name).toBe("VoltError");
+    expect(voltError.source).toBe("binding");
+    expect(voltError.cause).toBe(cause);
+    expect(voltError.stopped).toBe(false);
+  });
+
+  it("includes directive and expression in context", () => {
+    const cause = new Error("Evaluation failed");
+    const context: ErrorContext = { source: "evaluator", directive: "data-volt-text", expression: "count * 2" };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.directive).toBe("data-volt-text");
+    expect(voltError.expression).toBe("count * 2");
+    expect(voltError.message).toContain("[evaluator]");
+    expect(voltError.message).toContain("Directive: data-volt-text");
+    expect(voltError.message).toContain("Expression: count * 2");
+  });
+
+  it("includes element information in message", () => {
+    const div = document.createElement("div");
+    div.id = "test";
+    div.className = "foo bar";
+
+    const cause = new Error("DOM error");
+    const context: ErrorContext = { source: "binding", element: div };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.element).toBe(div);
+    expect(voltError.message).toContain("Element: <div#test.foo.bar>");
+  });
+
+  it("includes HTTP context in message", () => {
+    const cause = new Error("Request failed");
+    const context: ErrorContext = { source: "http", httpMethod: "POST", httpUrl: "/api/users", httpStatus: 500 };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.message).toContain("HTTP: POST /api/users");
+    expect(voltError.message).toContain("Status: 500");
+  });
+
+  it("includes plugin name in message", () => {
+    const cause = new Error("Plugin failed");
+    const context: ErrorContext = { source: "plugin", pluginName: "persist" };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.message).toContain("Plugin: persist");
+  });
+
+  it("includes lifecycle hook name in message", () => {
+    const cause = new Error("Hook failed");
+    const context: ErrorContext = { source: "lifecycle", hookName: "onMount" };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.message).toContain("Hook: onMount");
+  });
+
+  it("stopPropagation prevents handler chain", () => {
+    const cause = new Error("Test");
+    const context: ErrorContext = { source: "binding" };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.stopped).toBe(false);
+    voltError.stopPropagation();
+    expect(voltError.stopped).toBe(true);
+  });
+
+  it("serializes to JSON", () => {
+    const cause = new Error("Test error");
+    const context: ErrorContext = { source: "effect", directive: "data-volt-on-click", expression: "count++" };
+
+    const voltError = new VoltError(cause, context);
+    const json = voltError.toJSON();
+
+    expect(json.name).toBe("VoltError");
+    expect(json.source).toBe("effect");
+    expect(json.directive).toBe("data-volt-on-click");
+    expect(json.expression).toBe("count++");
+    expect(json.cause).toEqual({ name: "Error", message: "Test error", stack: cause.stack });
+  });
+
+  it("truncates long expressions in message", () => {
+    const longExpr = "a".repeat(150);
+    const cause = new Error("Test");
+    const context: ErrorContext = { source: "evaluator", expression: longExpr };
+
+    const voltError = new VoltError(cause, context);
+
+    expect(voltError.message).toContain("Expression: " + "a".repeat(100) + "...");
+    expect(voltError.message).not.toContain("a".repeat(101));
+  });
+});
+
+describe("Error Handler Registration", () => {
+  beforeEach(() => {
+    clearErrorHandlers();
+  });
+
+  afterEach(() => {
+    clearErrorHandlers();
+  });
+
+  it("registers error handler", () => {
+    expect(getErrorHandlerCount()).toBe(0);
+
+    const handler = vi.fn();
+    onError(handler);
+
+    expect(getErrorHandlerCount()).toBe(1);
+  });
+
+  it("returns cleanup function", () => {
+    const handler = vi.fn();
+    const cleanup = onError(handler);
+
+    expect(getErrorHandlerCount()).toBe(1);
+
+    cleanup();
+
+    expect(getErrorHandlerCount()).toBe(0);
+  });
+
+  it("registers multiple handlers", () => {
+    const handler1 = vi.fn();
+    const handler2 = vi.fn();
+
+    onError(handler1);
+    onError(handler2);
+
+    expect(getErrorHandlerCount()).toBe(2);
+  });
+
+  it("clears all handlers", () => {
+    onError(vi.fn());
+    onError(vi.fn());
+    onError(vi.fn());
+
+    expect(getErrorHandlerCount()).toBe(3);
+
+    clearErrorHandlers();
+
+    expect(getErrorHandlerCount()).toBe(0);
+  });
+});
+
+describe("Error Reporting", () => {
+  beforeEach(() => {
+    clearErrorHandlers();
+    vi.spyOn(console, "error").mockImplementation(() => {});
+  });
+
+  afterEach(() => {
+    clearErrorHandlers();
+    vi.restoreAllMocks();
+  });
+
+  it("calls registered handler with VoltError", () => {
+    const handler = vi.fn();
+    onError(handler);
+
+    const error = new Error("Test");
+    const context: ErrorContext = { source: "binding" };
+
+    report(error, context);
+
+    expect(handler).toHaveBeenCalledTimes(1);
+    expect(handler).toHaveBeenCalledWith(expect.any(VoltError));
+
+    const voltError = handler.mock.calls[0][0];
+    expect(voltError.cause).toBe(error);
+    expect(voltError.source).toBe("binding");
+  });
+
+  it("calls multiple handlers in order", () => {
+    const callOrder: number[] = [];
+
+    const handler1 = vi.fn(() => callOrder.push(1));
+    const handler2 = vi.fn(() => callOrder.push(2));
+    const handler3 = vi.fn(() => callOrder.push(3));
+
+    onError(handler1);
+    onError(handler2);
+    onError(handler3);
+
+    report(new Error("Test"), { source: "effect" });
+
+    expect(callOrder).toEqual([1, 2, 3]);
+  });
+
+  it("stops propagation when stopPropagation is called", () => {
+    const handler1 = vi.fn((error: VoltError) => {
+      error.stopPropagation();
+    });
+    const handler2 = vi.fn();
+    const handler3 = vi.fn();
+
+    onError(handler1);
+    onError(handler2);
+    onError(handler3);
+
+    report(new Error("Test"), { source: "effect" });
+
+    expect(handler1).toHaveBeenCalledTimes(1);
+    expect(handler2).not.toHaveBeenCalled();
+    expect(handler3).not.toHaveBeenCalled();
+  });
+
+  it("falls back to console.error when no handlers registered", () => {
+    const error = new Error("Test error");
+    const context: ErrorContext = { source: "http", httpMethod: "GET", httpUrl: "/api/data" };
+
+    report(error, context);
+
+    expect(console.error).toHaveBeenCalledTimes(2);
+    expect(console.error).toHaveBeenCalledWith(expect.stringContaining("[http]"));
+    expect(console.error).toHaveBeenCalledWith("Caused by:", error);
+  });
+
+  it("converts non-Error values to Error", () => {
+    const handler = vi.fn();
+    onError(handler);
+
+    report("string error", { source: "user" });
+
+    expect(handler).toHaveBeenCalledTimes(1);
+    const voltError: VoltError = handler.mock.calls[0][0];
+    expect(voltError.cause).toBeInstanceOf(Error);
+    expect(voltError.cause.message).toBe("string error");
+  });
+
+  it("catches errors in error handlers", () => {
+    const handler1 = vi.fn(() => {
+      throw new Error("Handler error");
+    });
+    const handler2 = vi.fn();
+
+    onError(handler1);
+    onError(handler2);
+
+    report(new Error("Test"), { source: "effect" });
+
+    expect(handler1).toHaveBeenCalledTimes(1);
+    expect(handler2).toHaveBeenCalledTimes(1);
+    expect(console.error).toHaveBeenCalledWith("Error in error handler:", expect.any(Error));
+  });
+
+  it("includes element in console fallback", () => {
+    const div = document.createElement("div");
+    div.id = "test-element";
+
+    report(new Error("Test"), { source: "binding", element: div });
+
+    expect(console.error).toHaveBeenCalledWith("Element:", div);
+  });
+
+  it("handles all error sources", () => {
+    const handler = vi.fn();
+    onError(handler);
+
+    const sources: Array<ErrorSource> = [
+      "evaluator",
+      "binding",
+      "effect",
+      "http",
+      "plugin",
+      "lifecycle",
+      "charge",
+      "user",
+    ];
+
+    for (const source of sources) {
+      report(new Error(`Test ${source}`), { source });
+    }
+
+    expect(handler).toHaveBeenCalledTimes(sources.length);
+
+    for (const [i, source] of sources.entries()) {
+      const voltError: VoltError = handler.mock.calls[i][0];
+      expect(voltError.source).toBe(source);
+    }
+  });
+});
diff --git a/lib/test/core/lifecycle.test.ts b/lib/test/core/lifecycle.test.ts
--- a/lib/test/core/lifecycle.test.ts
+++ b/lib/test/core/lifecycle.test.ts
@@ -245,7 +245,10 @@
           mount(root, {});
         }).not.toThrow();
 
-        expect(consoleErrorSpy).toHaveBeenCalledWith("Error in global beforeMount hook:", expect.any(Error));
+        expect(consoleErrorSpy).toHaveBeenCalledTimes(3);
+        expect(consoleErrorSpy).toHaveBeenNthCalledWith(1, expect.stringContaining("[lifecycle]"));
+        expect(consoleErrorSpy).toHaveBeenNthCalledWith(2, "Caused by:", expect.any(Error));
+        expect(consoleErrorSpy).toHaveBeenNthCalledWith(3, "Element:", root);
 
         consoleErrorSpy.mockRestore();
       });
@@ -331,7 +334,10 @@
       });
 
       notifyElementMounted(element);
-      expect(consoleErrorSpy).toHaveBeenCalledWith("Error in element onMount hook:", expect.any(Error));
+      expect(consoleErrorSpy).toHaveBeenCalledTimes(3);
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(1, expect.stringContaining("[lifecycle]"));
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(2, "Caused by:", expect.any(Error));
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(3, "Element:", element);
 
       consoleErrorSpy.mockRestore();
     });
diff --git a/lib/test/integration/global-state.test.ts b/lib/test/integration/global-state.test.ts
--- a/lib/test/integration/global-state.test.ts
+++ b/lib/test/integration/global-state.test.ts
@@ -449,8 +449,7 @@
     });
 
     it("handles errors gracefully", () => {
-      const consoleError = vi.spyOn(console, "error").mockImplementation(() => {});
-
+      const consoleErrorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
       document.body.innerHTML = `
         <div data-volt data-volt-init="nonExistentVariable.doSomething()">
           <p>Content</p>
@@ -458,10 +457,11 @@
       `;
 
       charge();
-
-      expect(consoleError).toHaveBeenCalledWith(expect.stringContaining("Error in data-volt-init"), expect.any(Error));
-
-      consoleError.mockRestore();
+      expect(consoleErrorSpy).toHaveBeenCalledTimes(3);
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(1, expect.stringContaining("[binding]"));
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(2, "Caused by:", expect.any(Error));
+      expect(consoleErrorSpy).toHaveBeenNthCalledWith(3, "Element:", expect.any(HTMLElement));
+      consoleErrorSpy.mockRestore();
     });
   });
 
diff --git a/lib/test/integration/plugins.test.ts b/lib/test/integration/plugins.test.ts
--- a/lib/test/integration/plugins.test.ts
+++ b/lib/test/integration/plugins.test.ts
@@ -32,15 +32,13 @@
   });
 
   it("warns when unknown binding is used without plugin", () => {
-    const warnSpy = vi.spyOn(console, "warn").mockImplementation(() => {});
+    const consoleWarnSpy = vi.spyOn(console, "warn").mockImplementation(() => {});
     const element = document.createElement("div");
     element.dataset.voltUnknown = "value";
 
     mount(element, {});
-
-    expect(warnSpy).toHaveBeenCalledWith("Unknown binding: data-volt-unknown");
-
-    warnSpy.mockRestore();
+    expect(consoleWarnSpy).toHaveBeenCalledWith("Unknown binding: data-volt-unknown");
+    consoleWarnSpy.mockRestore();
   });
 
   it("provides working findSignal utility to plugin", () => {
@@ -124,7 +122,7 @@
   });
 
   it("handles plugin errors gracefully", () => {
-    const errorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
+    const consoleErrorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
     const badPlugin = vi.fn(() => {
       throw new Error("Plugin error");
     });
@@ -135,10 +133,11 @@
     element.dataset.voltBad = "value";
 
     mount(element, {});
-
-    expect(errorSpy).toHaveBeenCalledWith(expect.stringContaining("Error in plugin \"bad\""), expect.any(Error));
-
-    errorSpy.mockRestore();
+    expect(consoleErrorSpy).toHaveBeenCalledTimes(3);
+    expect(consoleErrorSpy).toHaveBeenNthCalledWith(1, expect.stringContaining("[plugin]"));
+    expect(consoleErrorSpy).toHaveBeenNthCalledWith(2, "Caused by:", expect.any(Error));
+    expect(consoleErrorSpy).toHaveBeenNthCalledWith(3, "Element:", element);
+    consoleErrorSpy.mockRestore();
   });
 
   it("supports reactive updates from plugins", () => {