diff --git a/CHANGELOG.md b/CHANGELOG.md
index 11f5cfc0ab..85611bbdfb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -32,6 +32,7 @@ Our versioning strategy is as follows:
 * `[sitecore-jss-nextjs]` Fix redirects middleware when source URL contains query string. ([#1696](https://github.com/Sitecore/jss/pull/1702))
 * `[templates/nextjs-sxa]` Fix feature `show Grid column` in Experience Editor. ([#1704](https://github.com/Sitecore/jss/pull/1704))
 * `[templates/nextjs-xmcloud]` Fix double registration of BYOC components ([#1707](https://github.com/Sitecore/jss/pull/1707)) ([#1709](https://github.com/Sitecore/jss/pull/1709))
+* `[sitecore-jss-nextjs] [templates/nextjs-xmcloud]` SDK initialization rejections are now correctly handled. Errors should no longer occur after getSDK() promises resolve when they shouldn't (for example, getting Events SDK in development environment) ([#1712](https://github.com/Sitecore/jss/pull/1712))
 
 ### 🛠 Breaking Changes
 
diff --git a/packages/create-sitecore-jss/src/templates/nextjs-xmcloud/src/lib/context/sdk/events.ts b/packages/create-sitecore-jss/src/templates/nextjs-xmcloud/src/lib/context/sdk/events.ts
index 4d23ba17a2..a9faf3d12a 100644
--- a/packages/create-sitecore-jss/src/templates/nextjs-xmcloud/src/lib/context/sdk/events.ts
+++ b/packages/create-sitecore-jss/src/templates/nextjs-xmcloud/src/lib/context/sdk/events.ts
@@ -6,8 +6,11 @@ const sdkModule: SDK<typeof Events> = {
   init: async (props) => {
     // Events module can't be initialized on the server side
     // We also don't want to initialize it in development mode
-    if (typeof window === 'undefined' || process.env.NODE_ENV === 'development') return;
-
+    if (typeof window === 'undefined') 
+      throw 'Browser Events SDK is not initialized in server context';
+    if (process.env.NODE_ENV === 'development')
+      throw 'Browser Events SDK is not initialized in development environment';
+    
     await Events.init({
       siteName: props.siteName,
       sitecoreEdgeUrl: props.sitecoreEdgeUrl,
diff --git a/packages/sitecore-jss-nextjs/src/context/context.test.ts b/packages/sitecore-jss-nextjs/src/context/context.test.ts
index 912dd48323..7f1838265e 100644
--- a/packages/sitecore-jss-nextjs/src/context/context.test.ts
+++ b/packages/sitecore-jss-nextjs/src/context/context.test.ts
@@ -28,6 +28,17 @@ describe('Context', () => {
     },
   };
 
+  const errorSdk = {
+    Error: {
+      sdk: { error: 'yes' },
+      init: () => {
+        return new Promise<void>((_, reject) => {
+          reject('Cannot init Error');
+        });
+      },
+    },
+  };
+
   const fooInitSpy = sinon.spy(sdks.Foo, 'init');
   const barInitSpy = sinon.spy(sdks.Bar, 'init');
 
@@ -159,6 +170,32 @@ describe('Context', () => {
 
       expect(context.siteName).to.equal('website-1');
     });
+
+    it('should catch and log when SDK initialization rejects', () => {
+      const consoleSpy = sinon.spy(console, 'log');
+      const localProps = { ...props, sdks: errorSdk };
+      const context = new Context<typeof errorSdk>(localProps);
+      context.init();
+      expect(
+        consoleSpy.calledWith('Initialization for SDK Error skipped. Reason: \n Cannot init Error')
+      );
+      consoleSpy.restore();
+    });
+
+    it('should reject when getting SDK that rejected initialization', (done) => {
+      const localProps = { ...props, sdks: errorSdk };
+      const context = new Context<typeof errorSdk>(localProps);
+      context.init();
+      context
+        .getSDK('Error')
+        .then(() => {
+          throw new Error('should not resolve');
+        })
+        .catch((e) => {
+          expect(e).to.be.equal('Cannot init Error');
+          done();
+        });
+    });
   });
 
   describe('getSDK', () => {
diff --git a/packages/sitecore-jss-nextjs/src/context/context.ts b/packages/sitecore-jss-nextjs/src/context/context.ts
index 61cc0f46d2..93767fbef5 100644
--- a/packages/sitecore-jss-nextjs/src/context/context.ts
+++ b/packages/sitecore-jss-nextjs/src/context/context.ts
@@ -137,12 +137,17 @@ export class Context<SDKModules extends SDKModulesType> {
    * @returns {void}
    */
   protected initSDK<T extends keyof SDKModules>(name: T): void {
-    this.sdkPromises[name] = new Promise((resolve) => {
-      this.props.sdks[name].init(this).then(() => {
-        this.sdks[name] = this.props.sdks[name].sdk;
-
-        resolve(this.sdks[name]);
-      });
+    this.sdkPromises[name] = new Promise((resolve, reject) => {
+      this.props.sdks[name]
+        .init(this)
+        .then(() => {
+          this.sdks[name] = this.props.sdks[name].sdk;
+          resolve(this.sdks[name]);
+        })
+        .catch((e) => {
+          // if init rejects, getSDK will reject too now
+          reject(e);
+        });
     });
   }
 }