diff --git a/apps/remix-ide-e2e/src/tests/transactionExecution.spec.ts b/apps/remix-ide-e2e/src/tests/transactionExecution.spec.ts
index 17fb82c644..be8c0b936e 100644
--- a/apps/remix-ide-e2e/src/tests/transactionExecution.spec.ts
+++ b/apps/remix-ide-e2e/src/tests/transactionExecution.spec.ts
@@ -137,6 +137,21 @@ module.exports = {
       .selectAccount('0xCA35b7d915458EF540aDe6068dFe2F44E8fa733c') // this account will be used for this test suite
       .click('#runTabView button[class^="instanceButton"]')
       .waitForElementPresent('.instance:nth-of-type(2)')
+  },
+
+  'Should Compile and Deploy a contract which define a custom error, the error should be logged in the terminal': function (browser: NightwatchBrowser) {
+    browser.testContracts('customError.sol', sources[4]['customError.sol'], ['C'])
+      .clickLaunchIcon('udapp')
+      .selectAccount('0xCA35b7d915458EF540aDe6068dFe2F44E8fa733c') // this account will be used for this test suite
+      .click('#runTabView button[class^="instanceButton"]')
+      .waitForElementPresent('.instance:nth-of-type(3)')
+      .click('.instance:nth-of-type(3) > div > button')
+      .clickFunction('g - transact (not payable)')
+      .journalLastChildIncludes('Error provided by the contract:')
+      .journalLastChildIncludes('CustomError')
+      .journalLastChildIncludes('Parameters:')
+      .journalLastChildIncludes('2,3,error_string_2')
+      .journalLastChildIncludes('Debug the transaction to get more information.')
       .end()
   }
 }
@@ -218,5 +233,23 @@ contract C {
     event Test(function() external);
 }`
     }
+  },
+  // https://github.com/ethereum/remix-project/issues/1152
+  {
+    'customError.sol': {
+      content: `// SPDX-License-Identifier: GPL-3.0
+
+      pragma solidity ^0.8.4;
+      
+      error CustomError(uint a, uint b, string c);
+      contract C {
+          function f() public pure {
+              revert CustomError(2, 3, "error_string");
+          }
+          function g() public {
+              revert CustomError(2, 3, "error_string_2");
+          }          
+      }`
+    }
   }
 ]
diff --git a/apps/remix-ide/src/app/udapp/run-tab.js b/apps/remix-ide/src/app/udapp/run-tab.js
index cc0d2f6ab6..b966287690 100644
--- a/apps/remix-ide/src/app/udapp/run-tab.js
+++ b/apps/remix-ide/src/app/udapp/run-tab.js
@@ -41,7 +41,7 @@ export class RunTab extends ViewPlugin {
     this.blockchain = blockchain
     this.fileManager = fileManager
     this.editor = editor
-    this.logCallback = (msg) => { mainView.getTerminal().logHtml(msg) }
+    this.logCallback = (msg) => { mainView.getTerminal().logHtml(yo`<pre>${msg}</pre>`) }
     this.filePanel = filePanel
     this.compilersArtefacts = compilersArtefacts
     this.networkModule = networkModule
diff --git a/apps/remix-ide/src/app/ui/universal-dapp-ui.js b/apps/remix-ide/src/app/ui/universal-dapp-ui.js
index 0af660c010..17fe7058c8 100644
--- a/apps/remix-ide/src/app/ui/universal-dapp-ui.js
+++ b/apps/remix-ide/src/app/ui/universal-dapp-ui.js
@@ -253,7 +253,7 @@ UniversalDAppUI.prototype.runTransaction = function (lookupOnly, args, valArr, i
   const params = args.funABI.type !== 'fallback' ? inputsValues : ''
   this.blockchain.runOrCallContractMethod(
     args.contractName,
-    args.contractAbi,
+    args.contractABI,
     args.funABI,
     inputsValues,
     args.address,
diff --git a/apps/remix-ide/src/blockchain/blockchain.js b/apps/remix-ide/src/blockchain/blockchain.js
index 27f9be195d..a5afab15c5 100644
--- a/apps/remix-ide/src/blockchain/blockchain.js
+++ b/apps/remix-ide/src/blockchain/blockchain.js
@@ -262,6 +262,10 @@ class Blockchain {
       }
       if (funABI.type === 'fallback') data.dataHex = value
 
+      if (data) {
+        data.contractName = contractName
+        data.contractABI = contractAbi
+      }
       const useCall = funABI.stateMutability === 'view' || funABI.stateMutability === 'pure'
       this.runTx({ to: address, data, useCall }, confirmationCb, continueCb, promptCb, (error, txResult, _address, returnValue) => {
         if (error) {
@@ -477,7 +481,7 @@ class Blockchain {
         if (execResult) {
           // if it's not the VM, we don't have return value. We only have the transaction, and it does not contain the return value.
           returnValue = (execResult && isVM) ? execResult.returnValue : txResult
-          const vmError = txExecution.checkVMError(execResult)
+          const vmError = txExecution.checkVMError(execResult, args.data.contractABI)
           if (vmError.error) {
             return cb(vmError.message)
           }
diff --git a/libs/remix-lib/src/execution/txExecution.ts b/libs/remix-lib/src/execution/txExecution.ts
index 8eb1c927dd..639151c781 100644
--- a/libs/remix-lib/src/execution/txExecution.ts
+++ b/libs/remix-lib/src/execution/txExecution.ts
@@ -1,5 +1,6 @@
 'use strict'
 import { ethers } from 'ethers'
+import { getFunctionFragment } from './txHelper'
 
 /**
   * deploy the given contract
@@ -56,7 +57,7 @@ export function callFunction (from, to, data, value, gasLimit, funAbi, txRunner,
   * @param {Object} execResult    - execution result given by the VM
   * @return {Object} -  { error: true/false, message: DOMNode }
   */
-export function checkVMError (execResult) {
+export function checkVMError (execResult, abi) {
   const errorCode = {
     OUT_OF_GAS: 'out of gas',
     STACK_UNDERFLOW: 'stack underflow',
@@ -88,19 +89,48 @@ export function checkVMError (execResult) {
     ret.error = true
   } else if (exceptionError === errorCode.REVERT) {
     const returnData = execResult.returnValue
-    // It is the hash of Error(string)
-    if (returnData && (returnData.slice(0, 4).toString('hex') === '08c379a0')) {
-      const abiCoder = new ethers.utils.AbiCoder()
-      const reason = abiCoder.decode(['string'], returnData.slice(4))[0]
-      msg = `\tThe transaction has been reverted to the initial state.\nReason provided by the contract: "${reason}".`
-    } else {
-      msg = '\tThe transaction has been reverted to the initial state.\nNote: The called function should be payable if you send value and the value you send should be less than your current balance.'
+    const returnDataHex = returnData.slice(0, 4).toString('hex')
+    let customError
+    if (abi) {
+      let decodedCustomErrorInputs
+      for (const item of abi) {
+        if (item.type === 'error') {
+          // ethers doesn't crash anymore if "error" type is specified, but it doesn't extract the errors. see:
+          // https://github.com/ethers-io/ethers.js/commit/bd05aed070ac9e1421a3e2bff2ceea150bedf9b7
+          // we need here to fake the type, so the "getSighash" function works properly
+          const fn = getFunctionFragment({ ...item, type: 'function', stateMutability: 'nonpayable' })
+          if (!fn) continue
+          const sign = fn.getSighash(item.name)
+          if (!sign) continue
+          if (returnDataHex === sign.replace('0x', '')) {
+            customError = item.name
+            decodedCustomErrorInputs = fn.decodeFunctionData(fn.getFunction(item.name), returnData)
+            break
+          }
+        }
+      }
+      if (decodedCustomErrorInputs) {
+        msg = '\tThe transaction has been reverted to the initial state.\nError provided by the contract:'
+        msg += `\n${customError}`
+        msg += '\nParameters:'
+        msg += `\n${decodedCustomErrorInputs}`
+      }
+    }
+    if (!customError) {
+      // It is the hash of Error(string)
+      if (returnData && (returnDataHex === '08c379a0')) {
+        const abiCoder = new ethers.utils.AbiCoder()
+        const reason = abiCoder.decode(['string'], returnData.slice(4))[0]
+        msg = `\tThe transaction has been reverted to the initial state.\nReason provided by the contract: "${reason}".`
+      } else {
+        msg = '\tThe transaction has been reverted to the initial state.\nNote: The called function should be payable if you send value and the value you send should be less than your current balance.'
+      }
     }
     ret.error = true
   } else if (exceptionError === errorCode.STATIC_STATE_CHANGE) {
     msg = '\tState changes is not allowed in Static Call context\n'
     ret.error = true
   }
-  ret.message = `${error}${exceptionError}${msg}\tDebug the transaction to get more information.`
+  ret.message = `${error}\n${exceptionError}\n${msg}\nDebug the transaction to get more information.`
   return ret
 }
diff --git a/libs/remix-lib/src/execution/txHelper.ts b/libs/remix-lib/src/execution/txHelper.ts
index 1ee42e14bb..099e57868b 100644
--- a/libs/remix-lib/src/execution/txHelper.ts
+++ b/libs/remix-lib/src/execution/txHelper.ts
@@ -38,6 +38,11 @@ export function encodeFunctionId (funABI) {
   return abi.getSighash(funABI.name)
 }
 
+export function getFunctionFragment (funABI): ethers.utils.Interface {
+  if (funABI.type === 'fallback' || funABI.type === 'receive') return null
+  return new ethers.utils.Interface([funABI])
+}
+
 export function sortAbiFunction (contractabi) {
   // Check if function is constant (introduced with Solidity 0.6.0)
   const isConstant = ({ stateMutability }) => stateMutability === 'view' || stateMutability === 'pure'