diff --git a/images/dvcr-artifact/pkg/registry/registry.go b/images/dvcr-artifact/pkg/registry/registry.go
index 20e613e3ce..03fb693d9f 100644
--- a/images/dvcr-artifact/pkg/registry/registry.go
+++ b/images/dvcr-artifact/pkg/registry/registry.go
@@ -24,6 +24,7 @@ import (
 	"crypto/tls"
 	"encoding/hex"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"io"
 	"net/http"
@@ -40,7 +41,6 @@ import (
 	"github.com/google/go-containerregistry/pkg/v1/mutate"
 	"github.com/google/go-containerregistry/pkg/v1/remote"
 	"github.com/google/go-containerregistry/pkg/v1/stream"
-	"github.com/pkg/errors"
 	"golang.org/x/sync/errgroup"
 	"k8s.io/klog/v2"
 	"kubevirt.io/containerized-data-importer/pkg/importer"
@@ -140,17 +140,51 @@ func (p DataProcessor) Process(ctx context.Context) (ImportRes, error) {
 
 	informer := NewImageInformer()
 
-	errsGroup, ctx := errgroup.WithContext(ctx)
-	errsGroup.Go(func() error {
-		return p.inspectAndStreamSourceImage(ctx, sourceImageFilename, sourceImageSize, progressMeter, pipeWriter, informer)
-	})
-	errsGroup.Go(func() error {
+	ctx, cancel := context.WithCancel(ctx)
+	defer cancel()
+
+	errsCh := make(chan error, 2)
+
+	go func() {
+		err := p.inspectAndStreamSourceImage(
+			ctx, sourceImageFilename, sourceImageSize,
+			progressMeter, pipeWriter, informer,
+		)
+		if err != nil {
+			if errors.Is(err, io.ErrClosedPipe) {
+				klog.Infof("source streaming: pipe is closed by upload: %s", err.Error())
+				err = nil
+			} else {
+				if ctx.Err() != context.Canceled {
+					cancel()
+				}
+				err = fmt.Errorf("source streaming error: %w", err)
+				klog.Errorln(err)
+			}
+		}
+		errsCh <- err
+	}()
+
+	go func() {
 		defer pipeReader.Close()
-		return p.uploadLayersAndImage(ctx, pipeReader, sourceImageSize, informer)
-	})
 
-	err = errsGroup.Wait()
-	if err != nil {
+		err := p.uploadLayersAndImage(
+			ctx, pipeReader, sourceImageSize, informer,
+		)
+		if err != nil {
+			if ctx.Err() != context.Canceled {
+				cancel()
+			}
+			err = fmt.Errorf("layers uploading error: %w", err)
+			klog.Errorln(err)
+		}
+		errsCh <- err
+	}()
+
+	err1 := <-errsCh
+	err2 := <-errsCh
+
+	if err := errors.Join(err1, err2); err != nil {
 		return ImportRes{}, err
 	}
 
diff --git a/images/virtualization-artifact/pkg/controller/service/stat_service.go b/images/virtualization-artifact/pkg/controller/service/stat_service.go
index efa67b5dcf..7974be0ab2 100644
--- a/images/virtualization-artifact/pkg/controller/service/stat_service.go
+++ b/images/virtualization-artifact/pkg/controller/service/stat_service.go
@@ -19,7 +19,11 @@ package service
 import (
 	"errors"
 	"fmt"
+	"net/http"
+	"regexp"
 	"strconv"
+	"strings"
+	"syscall"
 	"time"
 
 	corev1 "k8s.io/api/core/v1"
@@ -99,9 +103,12 @@ func (s StatService) GetSize(pod *corev1.Pod) v1alpha2.ImageStatusSize {
 }
 
 var (
-	ErrNotInitialized     = errors.New("not initialized")
-	ErrNotScheduled       = errors.New("not scheduled")
-	ErrProvisioningFailed = errors.New("provisioning failed")
+	ErrNotInitialized        = errors.New("not initialized")
+	ErrNotScheduled          = errors.New("not scheduled")
+	ErrProvisioningFailed    = errors.New("provisioning failed")
+	ErrDVCRNoSpaceImageError = errors.New("DVCR is out of space; please contact the cluster administrator")
+	// ErrDVCRNoSpaceDiskError is intended to avoid confusion by clarifying that DVCR is needed as an intermediary when creating a virtual disk.
+	ErrDVCRNoSpaceDiskError = errors.New("DVCR is out of space to create the virtual disk; please contact the cluster administrator")
 )
 
 func (s StatService) CheckPod(pod *corev1.Pod) error {
@@ -125,6 +132,12 @@ func (s StatService) CheckPod(pod *corev1.Pod) error {
 	}
 
 	if report != nil && report.ErrMessage != "" {
+		if s.isDVCRNoSpaceError(report.ErrMessage) {
+			if strings.HasPrefix(pod.Name, "d8v-vd-") {
+				return fmt.Errorf("%w: %w", ErrProvisioningFailed, ErrDVCRNoSpaceDiskError)
+			}
+			return fmt.Errorf("%w: %w", ErrProvisioningFailed, ErrDVCRNoSpaceImageError)
+		}
 		return fmt.Errorf("%w: Pod %s/%s termination message: %s", ErrProvisioningFailed, pod.Namespace, pod.Name, report.ErrMessage)
 	}
 
@@ -135,6 +148,22 @@ func (s StatService) CheckPod(pod *corev1.Pod) error {
 	return nil
 }
 
+func (s StatService) isDVCRNoSpaceError(terminationMessage string) bool {
+	dvcrSvc := "dvcr.d8-virtualization.svc"
+
+	noSpaceErrorPattern := fmt.Sprintf("Err:%d", syscall.ENOSPC)
+	noDigitPattern := `\D`
+	re := regexp.MustCompile(noSpaceErrorPattern + noDigitPattern)
+
+	if strings.Contains(terminationMessage, dvcrSvc) &&
+		strings.Contains(terminationMessage, http.MethodPost) &&
+		re.MatchString(terminationMessage) {
+		return true
+	}
+
+	return false
+}
+
 func (s StatService) GetDownloadSpeed(ownerUID types.UID, pod *corev1.Pod) *v1alpha2.StatusSpeed {
 	report, err := monitoring.GetFinalReportFromPod(pod)
 	if err != nil && !errors.Is(err, monitoring.ErrTerminationMessageNotFound) {