diff --git a/src/v0/destinations/reddit/networkHandler.js b/src/v0/destinations/reddit/networkHandler.js
index d51c8b1ea1..e691255a26 100644
--- a/src/v0/destinations/reddit/networkHandler.js
+++ b/src/v0/destinations/reddit/networkHandler.js
@@ -12,7 +12,6 @@ const redditRespHandler = (destResponse) => {
   // to handle the case when authorization-token is invalid
   if (status === 401) {
     let errorMessage = 'Authorization failed';
-    let errorDetails = response;
     let authErrorCategory = '';
 
     if (isString(response) && response.includes('Authorization Required')) {
@@ -20,14 +19,13 @@ const redditRespHandler = (destResponse) => {
       authErrorCategory = REFRESH_TOKEN;
     } else if (response?.error?.reason === 'UNAUTHORIZED') {
       errorMessage = response.error.explanation || errorMessage;
-      errorDetails = response.error;
       authErrorCategory = REFRESH_TOKEN;
     }
 
     throw new RetryableError(
-      `${errorMessage} 'during reddit response transformation'`,
+      `${errorMessage} during reddit response transformation`,
       status,
-      errorDetails,
+      destResponse,
       authErrorCategory,
     );
   }
diff --git a/test/integrations/destinations/reddit/dataDelivery/oauth.ts b/test/integrations/destinations/reddit/dataDelivery/oauth.ts
index 90368cd60b..8c0d486a7a 100644
--- a/test/integrations/destinations/reddit/dataDelivery/oauth.ts
+++ b/test/integrations/destinations/reddit/dataDelivery/oauth.ts
@@ -81,7 +81,7 @@ export const v0oauthScenarios = [
     },
     output: {
       response: {
-        status: 500,
+        status: 401,
         body: {
           output: {
             authErrorCategory: 'REFRESH_TOKEN',
@@ -90,9 +90,53 @@ export const v0oauthScenarios = [
               status: 401,
             },
             message:
-              "Request failed due to Authorization Required 'during reddit response transformation'",
+              'Request failed due to Authorization Required during reddit response transformation',
             statTags: expectedStatTags,
-            status: 500,
+            status: 401,
+          },
+        },
+      },
+    },
+  },
+  {
+    id: 'reddit_v0_oauth_scenario_2',
+    name: 'reddit',
+    description: '[Proxy v0 API] :: Oauth where error response is an object from destination',
+    successCriteria: 'Should return 401 with authErrorCategory as REFRESH_TOKEN',
+    scenario: 'Oauth',
+    feature: 'dataDelivery',
+    module: 'destination',
+    version: 'v0',
+    input: {
+      request: {
+        body: generateProxyV0Payload({
+          ...commonRequestParameters,
+          endpoint: 'https://ads-api.reddit.com/api/v2.0/conversions/events/a2_objResp_401',
+        }),
+        method: 'POST',
+      },
+    },
+    output: {
+      response: {
+        status: 401,
+        body: {
+          output: {
+            authErrorCategory: 'REFRESH_TOKEN',
+            destinationResponse: {
+              response: {
+                success: false,
+                error: {
+                  reason: 'UNAUTHORIZED',
+                  explanation:
+                    'This server could not verify that you are authorized to access the document you requested.',
+                },
+              },
+              status: 401,
+            },
+            message:
+              'This server could not verify that you are authorized to access the document you requested. during reddit response transformation',
+            statTags: expectedStatTags,
+            status: 401,
           },
         },
       },
@@ -124,21 +168,65 @@ export const v1oauthScenarios = [
     },
     output: {
       response: {
-        status: 500,
+        status: 401,
         body: {
           output: {
             authErrorCategory: 'REFRESH_TOKEN',
             message:
-              "Request failed due to Authorization Required 'during reddit response transformation'",
+              'Request failed due to Authorization Required during reddit response transformation',
             response: [
               {
                 error: '"Authorization Required"',
                 metadata: generateMetadata(1),
-                statusCode: 500,
+                statusCode: 401,
+              },
+            ],
+            statTags: expectedStatTags,
+            status: 401,
+          },
+        },
+      },
+    },
+  },
+  {
+    id: 'reddit_v1_oauth_scenario_2',
+    name: 'reddit',
+    description: '[Proxy v1 API] :: Oauth where error response is an object from destination',
+    successCriteria: 'Should return 401 with authErrorCategory as REFRESH_TOKEN',
+    scenario: 'Oauth',
+    feature: 'dataDelivery',
+    module: 'destination',
+    version: 'v1',
+    input: {
+      request: {
+        body: generateProxyV1Payload(
+          {
+            ...commonRequestParameters,
+            endpoint: 'https://ads-api.reddit.com/api/v2.0/conversions/events/a2_objResp_401',
+          },
+          [generateMetadata(1)],
+        ),
+        method: 'POST',
+      },
+    },
+    output: {
+      response: {
+        status: 401,
+        body: {
+          output: {
+            authErrorCategory: 'REFRESH_TOKEN',
+            message:
+              'This server could not verify that you are authorized to access the document you requested. during reddit response transformation',
+            response: [
+              {
+                error:
+                  '{"success":false,"error":{"reason":"UNAUTHORIZED","explanation":"This server could not verify that you are authorized to access the document you requested."}}',
+                metadata: generateMetadata(1),
+                statusCode: 401,
               },
             ],
             statTags: expectedStatTags,
-            status: 500,
+            status: 401,
           },
         },
       },
diff --git a/test/integrations/destinations/reddit/network.ts b/test/integrations/destinations/reddit/network.ts
index 7c436e8fb8..562c8e95ad 100644
--- a/test/integrations/destinations/reddit/network.ts
+++ b/test/integrations/destinations/reddit/network.ts
@@ -97,4 +97,61 @@ export const networkCallsData = [
     },
     httpRes: { data: 'Authorization Required', status: 401, statusText: 'Unauthorized' },
   },
+  {
+    httpReq: {
+      url: 'https://ads-api.reddit.com/api/v2.0/conversions/events/a2_objResp_401',
+      data: {
+        events: [
+          {
+            event_at: '2019-10-14T09:03:17.562Z',
+            event_type: {
+              tracking_type: 'ViewContent',
+            },
+            user: {
+              aaid: 'c12d34889302d3c656b5699fa9190b51c50d6f62fce57e13bd56b503d66c487a',
+              email: 'ac144532d9e4efeab19475d9253a879173ea12a3d2238d1cb8a332a7b3a105f2',
+              external_id: '7b023241a3132b792a5a33915a5afb3133cbb1e13d72879689bf6504de3b036d',
+              ip_address: 'e80bd55a3834b7c2a34ade23c7ecb54d2a49838227080f50716151e765a619db',
+              user_agent:
+                'Mozilla/5.0 (Macintosh; Intel Mac OS X 10_14_5) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/77.0.3865.90 Safari/537.36',
+              screen_dimensions: {},
+            },
+            event_metadata: {
+              item_count: 3,
+              products: [
+                {
+                  id: '123',
+                  name: 'Monopoly',
+                  category: 'Games',
+                },
+                {
+                  id: '345',
+                  name: 'UNO',
+                  category: 'Games',
+                },
+              ],
+            },
+          },
+        ],
+      },
+      params: { destination: 'reddit' },
+      headers: {
+        Authorization: 'Bearer dummyAccessToken',
+        'Content-Type': 'application/json',
+      },
+      method: 'POST',
+    },
+    httpRes: {
+      data: {
+        success: false,
+        error: {
+          reason: 'UNAUTHORIZED',
+          explanation:
+            'This server could not verify that you are authorized to access the document you requested.',
+        },
+      },
+      status: 401,
+      statusText: 'Unauthorized',
+    },
+  },
 ];