diff --git a/src/library-authoring/add-content/AddContentContainer.test.tsx b/src/library-authoring/add-content/AddContentContainer.test.tsx
index a67c4f995..5832b6f66 100644
--- a/src/library-authoring/add-content/AddContentContainer.test.tsx
+++ b/src/library-authoring/add-content/AddContentContainer.test.tsx
@@ -77,7 +77,7 @@ describe('<AddContentContainer />', () => {
   });
 
   it('should handle failure to paste content', async () => {
-    const { axiosMock } = initializeMocks();
+    const { axiosMock, mockShowToast } = initializeMocks();
     // Simulate having an HTML block in the clipboard:
     mockClipboardHtml.applyMock();
 
@@ -89,8 +89,36 @@ describe('<AddContentContainer />', () => {
     const pasteButton = await screen.findByRole('button', { name: /paste from clipboard/i });
     fireEvent.click(pasteButton);
 
-    await waitFor(() => expect(axiosMock.history.post[0].url).toEqual(pasteUrl));
+    await waitFor(() => {
+      expect(axiosMock.history.post[0].url).toEqual(pasteUrl);
+      expect(mockShowToast).toHaveBeenCalledWith('There was an error pasting the content.');
+    });
+  });
+
+  it('should handle failure to paste content and show server error if available', async () => {
+    const { axiosMock, mockShowToast } = initializeMocks();
+    // Simulate having an HTML block in the clipboard:
+    mockClipboardHtml.applyMock();
+
+    const errMsg = 'Libraries do not support this type of content yet.';
+    const pasteUrl = getLibraryPasteClipboardUrl(libraryId);
+
+    // eslint-disable-next-line prefer-promise-reject-errors
+    axiosMock.onPost(pasteUrl).reply(() => Promise.reject({
+      customAttributes: {
+        httpErrorStatus: 400,
+        httpErrorResponseData: JSON.stringify({ block_type: errMsg }),
+      },
+    }));
+
+    render();
+
+    const pasteButton = await screen.findByRole('button', { name: /paste from clipboard/i });
+    fireEvent.click(pasteButton);
 
-    // TODO: check that an actual error message is shown?!
+    await waitFor(() => {
+      expect(axiosMock.history.post[0].url).toEqual(pasteUrl);
+      expect(mockShowToast).toHaveBeenCalledWith(errMsg);
+    });
   });
 });
diff --git a/src/library-authoring/add-content/AddContentContainer.tsx b/src/library-authoring/add-content/AddContentContainer.tsx
index d37fd75f0..ab1956320 100644
--- a/src/library-authoring/add-content/AddContentContainer.tsx
+++ b/src/library-authoring/add-content/AddContentContainer.tsx
@@ -73,6 +73,17 @@ const AddContentContainer = () => {
     openComponentEditor,
   } = useLibraryContext();
 
+  const parsePasteErrorMsg = (error) => {
+    let errMsg: string;
+    try {
+      const { customAttributes: { httpErrorResponseData } } = error;
+      errMsg = JSON.parse(httpErrorResponseData).block_type;
+    } catch (_err) {
+      errMsg = intl.formatMessage(messages.errorPasteClipboardMessage);
+    }
+    return errMsg;
+  };
+
   const collectionButtonData = {
     name: intl.formatMessage(messages.collectionButton),
     disabled: false,
@@ -138,8 +149,8 @@ const AddContentContainer = () => {
           blockId: `${uuid4()}`,
         }).then(() => {
           showToast(intl.formatMessage(messages.successPasteClipboardMessage));
-        }).catch(() => {
-          showToast(intl.formatMessage(messages.errorPasteClipboardMessage));
+        }).catch((error) => {
+          showToast(parsePasteErrorMsg(error));
         });
       } else if (blockType === 'collection') {
         openCreateCollectionModal();