diff --git a/backend/windmill-worker/src/ai_executor.rs b/backend/windmill-worker/src/ai_executor.rs
index fabbbe9eb1..001b930c6b 100644
--- a/backend/windmill-worker/src/ai_executor.rs
+++ b/backend/windmill-worker/src/ai_executor.rs
@@ -762,8 +762,10 @@ pub async fn run_agent(
         .map(|m| m.clamp(1, HARD_MAX_AGENT_ITERATIONS))
         .unwrap_or(DEFAULT_MAX_AGENT_ITERATIONS);
 
+
     // Main agent loop
     for i in 0..max_iterations {
+
         if used_structured_output_tool {
             break;
         }
@@ -1036,10 +1038,13 @@ pub async fn run_agent(
                 if tool_calls.is_empty() {
                     break;
                 } else if i == max_iterations - 1 {
-                    return Err(Error::internal_err(
-                        "AI agent reached max iterations, but there are still tool calls"
-                            .to_string(),
-                    ));
+                    let partial_result = serde_json::to_string(&serde_json::json!({
+                        "messages": messages,
+                    })).unwrap_or_default();
+                    return Err(Error::internal_err(format!(
+                        "AI agent reached max iterations ({}), you can either increase max_iterations or enable the \"continue on error\" option from the advanced options of the step. Partial result:\n{}",
+                        max_iterations, partial_result
+                    )));
                 }
 
                 messages.push(OpenAIMessage {
diff --git a/frontend/src/lib/components/flows/content/FlowModuleComponent.svelte b/frontend/src/lib/components/flows/content/FlowModuleComponent.svelte
index d9da29f01e..126f0056f0 100644
--- a/frontend/src/lib/components/flows/content/FlowModuleComponent.svelte
+++ b/frontend/src/lib/components/flows/content/FlowModuleComponent.svelte
@@ -1111,8 +1111,8 @@
 											<Tabs bind:selected={advancedSelected} wrapperClass="shrink-0">
 												<Tab
 													value="retries"
-													active={flowModule.retry !== undefined}
-													label="Retries"
+													active={flowModule.retry !== undefined || flowModule.continue_on_error}
+													label="Error handling"
 												/>
 												{#if !selectedId.includes('failure')}
 													<Tab value="runtime" label="Runtime" />
@@ -1152,6 +1152,22 @@
 											{/if}
 											<div class="flex-1 overflow-auto p-4">
 												{#if advancedSelected === 'retries'}
+													<Section label="Continue on error">
+														{#snippet header()}
+															<Tooltip>
+																When enabled, the flow will continue to the next step even if this step fails (after exhausting all retries, if any). This enables to process the error in a branch one for instance.
+															</Tooltip>
+														{/snippet}
+														<Toggle
+															size="xs"
+															bind:checked={flowModule.continue_on_error}
+															options={{
+																left: 'Stop on error and propagate error up',
+																right: "Continue on error with error as step's return"
+															}}
+														/>
+													</Section>
+													<div class="mt-4"></div>
 													<Section label="Retries">
 														{#snippet header()}
 															<Tooltip
@@ -1161,19 +1177,6 @@
 																maximum number of attempts as defined below.
 															</Tooltip>
 														{/snippet}
-														<Label label="After all retries attempts have been exhausted:">
-															<Toggle
-																size="xs"
-																bind:checked={flowModule.continue_on_error}
-																options={{
-																	left: 'Stop on error and propagate error up',
-																	right: "Continue on error with error as step's return",
-																	rightTooltip:
-																		'When enabled, the flow will continue to the next step after going through all the retries (if any) even if this step fails. This enables to process the error in a branch one for instance.'
-																}}
-															/>
-														</Label>
-														<div class="my-8"></div>
 														<FlowRetries bind:flowModuleRetry={flowModule.retry} bind:flowModule />
 													</Section>
 												{:else if advancedSelected === 'runtime' && advancedRuntimeSelected === 'concurrency'}
diff --git a/frontend/src/lib/components/flows/content/FlowRetries.svelte b/frontend/src/lib/components/flows/content/FlowRetries.svelte
index 6a59b4fbc7..71e4d67f09 100644
--- a/frontend/src/lib/components/flows/content/FlowRetries.svelte
+++ b/frontend/src/lib/components/flows/content/FlowRetries.svelte
@@ -110,7 +110,7 @@
 	const u32Max = 4294967295
 </script>
 
-<div class="h-full flex flex-col gap-4">
+<div class="flex flex-col gap-4">
 	<ToggleButtonGroup
 		bind:selected={delayType}
 		class={`${disabled ? 'disabled' : ''}`}
@@ -216,6 +216,7 @@
 		</Section>
 	{/if}
 
+	{#if delayType === 'constant' || delayType === 'exponential'}
 	<div class="flex h-[calc(100%-22px)]">
 		<div class="w-1/2 h-full overflow-auto pr-2">
 			{#if delayType === 'constant'}
@@ -296,66 +297,65 @@
 		</div>
 		<div class="w-1/2 h-full overflow-auto pl-2">
 			{#if true}
-				{@const { attempts: cAttempts, seconds: cSeconds } = flowModuleRetry?.constant || {}}
-				{@const {
-					attempts: eAttempts,
-					seconds: eSeconds,
-					multiplier,
-					random_factor
-				} = flowModuleRetry?.exponential || {}}
-				{@const cArray = Array.from({ length: Math.min(cAttempts || 0, 100) }, () => cSeconds)}
-				{@const eArray = Array.from(
-					{ length: Math.min(eAttempts || 0, 100) },
-					(_, i) => (multiplier || 0) * (eSeconds || 0) ** (i + cArray.length + 1)
-				)}
-				{@const array = [...cArray, ...eArray]}
-				<div class="bg-surface-secondary border rounded px-4 py-2">
-					<div class="text-xs font-medium mb-2">Retry attempts</div>
-					{#if array.length > 0}
-						<table class="text-xs">
-							<thead>
+			{@const { attempts: cAttempts, seconds: cSeconds } = flowModuleRetry?.constant || {}}
+			{@const {
+				attempts: eAttempts,
+				seconds: eSeconds,
+				multiplier,
+				random_factor
+			} = flowModuleRetry?.exponential || {}}
+			{@const cArray = Array.from({ length: Math.min(cAttempts || 0, 100) }, () => cSeconds)}
+			{@const eArray = Array.from(
+				{ length: Math.min(eAttempts || 0, 100) },
+				(_, i) => (multiplier || 0) * (eSeconds || 0) ** (i + cArray.length + 1)
+			)}
+			{@const array = [...cArray, ...eArray]}
+			<div class="bg-surface-secondary border rounded px-4 py-2">
+				<div class="text-xs font-medium mb-2">Retry attempts</div>
+				{#if array.length > 0}
+					<table class="text-xs">
+						<thead>
+							<tr>
+								<td class="font-semibold pr-1 pb-1">1:</td>
+								<td class="pb-1"
+									>After {array[0]} second{array[0] === 1 ? '' : 's'}
+									{#if (random_factor ?? 0) > 0}(+/- {((array[0] ?? 0) * (random_factor ?? 0)) /
+											100}
+										seconds){/if}</td
+								>
+							</tr>
+						</thead>
+						<tbody>
+							{#each array.slice(1, 100) as delay, i}
+								{@const index = i + 2}
 								<tr>
-									<td class="font-semibold pr-1 pb-1">1:</td>
-									<td class="pb-1"
-										>After {array[0]} second{array[0] === 1 ? '' : 's'}
-										{#if (random_factor ?? 0) > 0}(+/- {((array[0] ?? 0) * (random_factor ?? 0)) /
+									<td class="font-semibold pr-1 align-top">{index}:</td>
+									<td class="pb-1 whitespace-nowrap">
+										{delay} second{delay === 1 ? '' : 's'}
+										{#if (random_factor ?? 0) > 0}(+/- {((delay ?? 0) * (random_factor ?? 0)) /
 												100}
-											seconds){/if}</td
-									>
+											seconds){/if}
+										after attempt #{index - 1}
+										{#if i > cArray.length - 2}
+											<span class="text-gray-400 pl-2">
+												({multiplier} * {eSeconds}<sup>{index}</sup>)
+											</span>
+										{/if}
+									</td>
 								</tr>
-							</thead>
-							<tbody>
-								{#each array.slice(1, 100) as delay, i}
-									{@const index = i + 2}
-									<tr>
-										<td class="font-semibold pr-1 align-top">{index}:</td>
-										<td class="pb-1 whitespace-nowrap">
-											{delay} second{delay === 1 ? '' : 's'}
-											{#if (random_factor ?? 0) > 0}(+/- {((delay ?? 0) * (random_factor ?? 0)) /
-													100}
-												seconds){/if}
-											after attempt #{index - 1}
-											{#if i > cArray.length - 2}
-												<span class="text-gray-400 pl-2">
-													({multiplier} * {eSeconds}<sup>{index}</sup>)
-												</span>
-											{/if}
-										</td>
-									</tr>
-								{/each}
-								{#if (cAttempts ?? 0) > 100 || (eAttempts ?? 0) > 100}
-									<tr>
-										<td class="font-semibold pr-1 align-top">...</td>
-										<td class="pb-1">...</td>
-									</tr>
-								{/if}
-							</tbody>
-						</table>
-					{:else}
-						<div class="text-xs">No retries</div>
-					{/if}
-				</div>
+							{/each}
+							{#if (cAttempts ?? 0) > 100 || (eAttempts ?? 0) > 100}
+								<tr>
+									<td class="font-semibold pr-1 align-top">...</td>
+									<td class="pb-1">...</td>
+								</tr>
+							{/if}
+						</tbody>
+					</table>
+				{/if}
+			</div>
 			{/if}
 		</div>
 	</div>
+	{/if}
 </div>