diff --git a/.changeset/quiet-insects-shake.md b/.changeset/quiet-insects-shake.md
new file mode 100644
index 0000000000..0c2c4c29b6
--- /dev/null
+++ b/.changeset/quiet-insects-shake.md
@@ -0,0 +1,5 @@
+---
+'@lion/ajax': minor
+---
+
+Parses response body automatically for fetchJson failed responses. Add test for reading out the response body in cases of a failed response in regular fetch call.
diff --git a/package-lock.json b/package-lock.json
index 199ea2f40c..9dfcb0addc 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -22384,7 +22384,7 @@
     },
     "packages/ajax": {
       "name": "@lion/ajax",
-      "version": "1.1.3",
+      "version": "1.1.4",
       "license": "MIT"
     },
     "packages/singleton-manager": {
diff --git a/packages/ajax/src/Ajax.js b/packages/ajax/src/Ajax.js
index 4b6e5e1a1d..933c6794dd 100644
--- a/packages/ajax/src/Ajax.js
+++ b/packages/ajax/src/Ajax.js
@@ -124,9 +124,10 @@ export class Ajax {
    *
    * @param {RequestInfo} info
    * @param {RequestInit & Partial<CacheRequestExtension>} [init]
+   * @param {Boolean} [parseErrorResponse]
    * @returns {Promise<Response>}
    */
-  async fetch(info, init) {
+  async fetch(info, init, parseErrorResponse = false) {
     const request = /** @type {CacheRequest} */ (new Request(info, { ...init }));
     request.cacheOptions = init?.cacheOptions;
     request.params = init?.params;
@@ -137,7 +138,11 @@ export class Ajax {
       const response = /** @type {CacheResponse} */ (interceptedRequestOrResponse);
       response.request = request;
       if (isFailedResponse(interceptedRequestOrResponse)) {
-        throw new AjaxFetchError(request, response);
+        throw new AjaxFetchError(
+          request,
+          response,
+          parseErrorResponse ? await this.__attemptParseFailedResponseBody(response) : undefined,
+        );
       }
       // prevent network request, return cached response
       return response;
@@ -149,7 +154,11 @@ export class Ajax {
     const interceptedResponse = await this.__interceptResponse(response);
 
     if (isFailedResponse(interceptedResponse)) {
-      throw new AjaxFetchError(request, interceptedResponse);
+      throw new AjaxFetchError(
+        request,
+        response,
+        parseErrorResponse ? await this.__attemptParseFailedResponseBody(response) : undefined,
+      );
     }
     return interceptedResponse;
   }
@@ -163,8 +172,7 @@ export class Ajax {
    *
    * @param {RequestInfo} info
    * @param {LionRequestInit} [init]
-   * @template T
-   * @returns {Promise<{ response: Response, body: T }>}
+   * @returns {Promise<{ response: Response, body: string|Object }>}
    */
   async fetchJson(info, init) {
     const lionInit = {
@@ -183,7 +191,18 @@ export class Ajax {
 
     // typecast LionRequestInit back to RequestInit
     const jsonInit = /** @type {RequestInit} */ (lionInit);
-    const response = await this.fetch(info, jsonInit);
+    const response = await this.fetch(info, jsonInit, true);
+
+    const body = await this.__parseBody(response);
+
+    return { response, body };
+  }
+
+  /**
+   * @param {Response} response
+   * @returns {Promise<string|Object>}
+   */
+  async __parseBody(response) {
     let responseText = await response.text();
 
     const { jsonPrefix } = this.__config;
@@ -191,7 +210,6 @@ export class Ajax {
       responseText = responseText.substring(jsonPrefix.length);
     }
 
-    /** @type {any} */
     let body = responseText;
 
     if (
@@ -207,8 +225,21 @@ export class Ajax {
     } else {
       body = responseText;
     }
+    return body;
+  }
 
-    return { response, body };
+  /**
+   * @param {Response} response
+   * @returns {Promise<string|Object|undefined>}
+   */
+  async __attemptParseFailedResponseBody(response) {
+    let body;
+    try {
+      body = await this.__parseBody(response);
+    } catch (e) {
+      // no need to throw/log, failed responses often don't have a body
+    }
+    return body;
   }
 
   /**
diff --git a/packages/ajax/src/AjaxFetchError.js b/packages/ajax/src/AjaxFetchError.js
index 258bfe6729..7fbd66e949 100644
--- a/packages/ajax/src/AjaxFetchError.js
+++ b/packages/ajax/src/AjaxFetchError.js
@@ -2,10 +2,12 @@ export class AjaxFetchError extends Error {
   /**
    * @param {Request} request
    * @param {Response} response
+   * @param {string|Object} [body]
    */
-  constructor(request, response) {
+  constructor(request, response, body) {
     super(`Fetch request to ${request.url} failed.`);
     this.request = request;
     this.response = response;
+    this.body = body;
   }
 }
diff --git a/packages/ajax/test/Ajax.test.js b/packages/ajax/test/Ajax.test.js
index 1a4b88c45d..d990cfa164 100644
--- a/packages/ajax/test/Ajax.test.js
+++ b/packages/ajax/test/Ajax.test.js
@@ -139,6 +139,25 @@ describe('Ajax', () => {
       }
       expect(thrown).to.be.true;
     });
+
+    it('throws on 4xx responses, will allow parsing response manually', async () => {
+      ajax.addRequestInterceptor(async () => new Response('my response', { status: 400 }));
+
+      let thrown = false;
+      try {
+        await ajax.fetch('/foo');
+      } catch (e) {
+        // https://github.com/microsoft/TypeScript/issues/20024 open issue, can't type catch clause in param
+        const _e = /** @type {AjaxFetchError} */ (e);
+        expect(_e).to.be.an.instanceOf(AjaxFetchError);
+        expect(_e.request).to.be.an.instanceOf(Request);
+        expect(_e.response).to.be.an.instanceOf(Response);
+        const body = await _e.response.text();
+        expect(body).to.equal('my response');
+        thrown = true;
+      }
+      expect(thrown).to.be.true;
+    });
   });
 
   describe('fetchJson', () => {
@@ -183,6 +202,24 @@ describe('Ajax', () => {
       expect(response.body).to.eql({ a: 1, b: 2 });
     });
 
+    it('throws on 4xx responses, but still attempts parsing response body when using fetchJson', async () => {
+      ajax.addRequestInterceptor(async () => new Response('my response', { status: 400 }));
+
+      let thrown = false;
+      try {
+        await ajax.fetchJson('/foo');
+      } catch (e) {
+        // https://github.com/microsoft/TypeScript/issues/20024 open issue, can't type catch clause in param
+        const _e = /** @type {AjaxFetchError} */ (e);
+        expect(_e).to.be.an.instanceOf(AjaxFetchError);
+        expect(_e.request).to.be.an.instanceOf(Request);
+        expect(_e.response).to.be.an.instanceOf(Response);
+        expect(_e.body).to.equal('my response');
+        thrown = true;
+      }
+      expect(thrown).to.be.true;
+    });
+
     describe('given a request body', () => {
       it('encodes the request body as json', async () => {
         await ajax.fetchJson('/foo', { method: 'POST', body: { a: 1, b: 2 } });