diff --git a/docs/agent-training/stage1_foundation.json b/docs/agent-training/stage1_foundation.json
index 77ef5cc9..50bde605 100644
--- a/docs/agent-training/stage1_foundation.json
+++ b/docs/agent-training/stage1_foundation.json
@@ -352,6 +352,42 @@
     "coverage_report": true,
     "passing_score": 80
   },
+  "failure_simulation": [
+    {
+      "test_name": "Insufficient funds error",
+      "operation": "wallet_send",
+      "failure_type": "insufficient_funds",
+      "test_case": {
+        "wallet": "training-wallet",
+        "to": "recipient-address",
+        "amount": "1000000",
+        "password": "training123"
+      },
+      "expected_error": "Insufficient funds",
+      "recovery_operation": "wallet_balance"
+    },
+    {
+      "test_name": "Invalid password error",
+      "operation": "wallet_send",
+      "failure_type": "invalid_password",
+      "test_case": {
+        "wallet": "training-wallet",
+        "to": "recipient-address",
+        "amount": "10",
+        "password": "wrong-password"
+      },
+      "expected_error": "Invalid password"
+    },
+    {
+      "test_name": "Invalid wallet error",
+      "operation": "wallet_balance",
+      "failure_type": "invalid_resource",
+      "test_case": {
+        "wallet": "non-existent-wallet"
+      },
+      "expected_error": "Wallet not found"
+    }
+  ],
   "mock_data": {
     "wallets": ["test-wallet-1", "test-wallet-2"],
     "addresses": ["0x1234567890abcdef", "0x0987654321fedcba"],
diff --git a/docs/agent-training/training_schema.json b/docs/agent-training/training_schema.json
index 427d5022..56bcb306 100644
--- a/docs/agent-training/training_schema.json
+++ b/docs/agent-training/training_schema.json
@@ -238,6 +238,40 @@
       "type": "object",
       "required": ["exam_tests", "passing_score"],
       "properties": {
+        "failure_simulation": {
+          "type": "array",
+          "description": "Failure simulation tests to verify error handling",
+          "items": {
+            "type": "object",
+            "properties": {
+              "test_name": {
+                "type": "string",
+                "description": "Failure simulation test name"
+              },
+              "operation": {
+                "type": "string",
+                "description": "Operation to test with failure conditions"
+              },
+              "failure_type": {
+                "type": "string",
+                "enum": ["insufficient_funds", "invalid_password", "network_failure", "invalid_resource", "permission_denied", "timeout"],
+                "description": "Type of failure to simulate"
+              },
+              "test_case": {
+                "type": "object",
+                "description": "Test input parameters designed to trigger failure"
+              },
+              "expected_error": {
+                "type": "string",
+                "description": "Expected error message or error code"
+              },
+              "recovery_operation": {
+                "type": "string",
+                "description": "Operation to recover from failure (optional)"
+              }
+            }
+          }
+        },
         "exam_tests": {
           "type": "array",
           "items": {