diff --git a/src/livepeer_gateway/byoc.py b/src/livepeer_gateway/byoc.py
index 4d27781..9fe46e8 100644
--- a/src/livepeer_gateway/byoc.py
+++ b/src/livepeer_gateway/byoc.py
@@ -31,6 +31,7 @@
 from __future__ import annotations
 
 import base64
+import http.client
 import json
 import logging
 import ssl
@@ -210,8 +211,27 @@ def _create_byoc_payment(
     try:
         with urlopen(payment_req, timeout=timeout) as resp:
             payment_data = json.loads(resp.read())
+    except http.client.IncompleteRead as e:
+        # The signer advertises a Content-Length but closes the connection
+        # early, so urllib raises IncompleteRead and discards the partial
+        # body — which usually contains the real signer error
+        # (e.g. {"error":{"message":"..."}}). Surface the partial bytes so
+        # the underlying signer failure is legible instead of an opaque
+        # "IncompleteRead(85 bytes read, 108 more expected)".
+        partial = e.partial.decode("utf-8", errors="replace")
+        expected = len(e.partial) + e.expected
+        raise LivepeerGatewayError(
+            f"BYOC payment: signer truncated response "
+            f"({len(e.partial)} of {expected} bytes); "
+            f"partial body: {partial!r}"
+        ) from e
     except HTTPError as e:
-        body = e.read().decode("utf-8", errors="replace")[:200]
+        try:
+            body = e.read().decode("utf-8", errors="replace")[:200]
+        except http.client.IncompleteRead as ie:
+            # Error responses can be truncated too — keep whatever bytes the
+            # signer managed to send rather than losing the message entirely.
+            body = ie.partial.decode("utf-8", errors="replace")
         raise LivepeerGatewayError(f"BYOC payment generation failed: HTTP {e.code}: {body}") from e
 
     result = {}
diff --git a/tests/test_byoc_payment_truncation.py b/tests/test_byoc_payment_truncation.py
new file mode 100644
index 0000000..d1cf00f
--- /dev/null
+++ b/tests/test_byoc_payment_truncation.py
@@ -0,0 +1,87 @@
+"""
+Unit tests for the diagnostic surfacing of a truncated signer response in
+``_create_byoc_payment``.
+
+Background: the remote signer (/generate-live-payment) can advertise a
+Content-Length but close the connection early, so urllib raises
+``http.client.IncompleteRead`` and the partial body — which carries the real
+signer error, e.g. ``{"error":{"message":"..."}}`` — is discarded. These tests
+pin the behaviour that the partial bytes are captured and surfaced in the raised
+``LivepeerGatewayError`` instead of the opaque ``IncompleteRead(85, 108)``.
+"""
+from __future__ import annotations
+
+import http.client
+from unittest.mock import MagicMock, patch
+from urllib.error import HTTPError
+
+import pytest
+
+from livepeer_gateway.byoc import _create_byoc_payment
+from livepeer_gateway.errors import LivepeerGatewayError
+
+
+def _stub_orch_info():
+    """OrchestratorInfo with a non-zero face_value so payment is attempted."""
+    info = MagicMock()
+    tp = MagicMock()
+    tp.face_value = b"\x01\x00"  # non-zero
+    info.ticket_params = tp
+    info.HasField = lambda field: field == "ticket_params"
+    info.SerializeToString = lambda: b"stub-orch-info-protobuf"
+    return info
+
+
+def _call():
+    return _create_byoc_payment(
+        orch_origin="https://orch.test:8936",
+        capability="nano-banana",
+        livepeer_hdr="stub-livepeer-header",
+        signer_url="https://signer.test",
+        signer_headers={"Authorization": "Bearer sk_test"},
+    )
+
+
+def test_incomplete_read_surfaces_partial_signer_body():
+    """A truncated 200 response surfaces the partial body, not IncompleteRead."""
+    partial = b'{"error":{"message":"ticket sender has insufficient funds'
+    expected_more = 108
+
+    def _fake_urlopen(req, *args, **kwargs):
+        raise http.client.IncompleteRead(partial, expected_more)
+
+    with patch("livepeer_gateway.byoc.urlopen", side_effect=_fake_urlopen), \
+         patch("livepeer_gateway.orch_info.get_orch_info",
+               side_effect=lambda *a, **k: _stub_orch_info()):
+        with pytest.raises(LivepeerGatewayError) as excinfo:
+            _call()
+
+    msg = str(excinfo.value)
+    assert "signer truncated response" in msg
+    assert f"{len(partial)} of {len(partial) + expected_more} bytes" in msg
+    # The real signer error text must now be legible in the raised error.
+    assert "ticket sender has insufficient funds" in msg
+    # Chained from the original IncompleteRead for traceability.
+    assert isinstance(excinfo.value.__cause__, http.client.IncompleteRead)
+
+
+def test_http_error_with_truncated_body_still_surfaces_partial():
+    """An error status whose body is ALSO truncated keeps the partial bytes."""
+    partial = b'{"error":{"message":"wallet panic"}'
+
+    def _fake_urlopen(req, *args, **kwargs):
+        err = HTTPError(req.full_url, 500, "internal error", {}, None)
+        err.read = lambda: (_ for _ in ()).throw(
+            http.client.IncompleteRead(partial, 40)
+        )
+        raise err
+
+    with patch("livepeer_gateway.byoc.urlopen", side_effect=_fake_urlopen), \
+         patch("livepeer_gateway.orch_info.get_orch_info",
+               side_effect=lambda *a, **k: _stub_orch_info()):
+        with pytest.raises(LivepeerGatewayError) as excinfo:
+            _call()
+
+    msg = str(excinfo.value)
+    assert "HTTP 500" in msg
+    assert "wallet panic" in msg