diff --git a/README.md b/README.md
index 7a387fc..f062c7c 100644
--- a/README.md
+++ b/README.md
@@ -150,11 +150,11 @@ Diagnostic data from the server itself is written to the log file `out/out.log`.
 
 ### Connect protocol conformance tests status
 
-Current status: __77/79__ tests pass.
+✅ JSON codec conformance status: __79/79__ tests pass.
 
 Known issues:
 
-* Response headers are ignored in case of an error from the server
+~~* Response headers are ignored in case of an error from the server~~
 
 ## Future improvements
 
diff --git a/conformance/src/main/scala/org/ivovk/connect_rpc_scala/conformance/ConformanceServiceImpl.scala b/conformance/src/main/scala/org/ivovk/connect_rpc_scala/conformance/ConformanceServiceImpl.scala
index 22207ea..87d571e 100644
--- a/conformance/src/main/scala/org/ivovk/connect_rpc_scala/conformance/ConformanceServiceImpl.scala
+++ b/conformance/src/main/scala/org/ivovk/connect_rpc_scala/conformance/ConformanceServiceImpl.scala
@@ -60,6 +60,11 @@ class ConformanceServiceImpl[F[_] : Async] extends ConformanceServiceFs2GrpcTrai
       requests = requests
     )
 
+    val trailers = mkMetadata(Seq.concat(
+      responseDefinition.responseHeaders,
+      responseDefinition.responseTrailers.map(h => h.copy(name = s"trailer-${h.name}")),
+    ))
+
     val responseData = responseDefinition.response match {
       case UnaryResponseDefinition.Response.ResponseData(bs) =>
         bs.some
@@ -72,22 +77,22 @@ class ConformanceServiceImpl[F[_] : Async] extends ConformanceServiceFs2GrpcTrai
             TextFormat.printToSingleLineUnicodeString(requestInfo.toProtoErrorDetailsAny)
           )
 
-        throw new StatusRuntimeException(status)
+        throw new StatusRuntimeException(status, trailers)
     }
 
-    val trailers = mkMetadata(Seq.concat(
-      responseDefinition.responseHeaders,
-      responseDefinition.responseTrailers.map(h => h.copy(name = s"trailer-${h.name}")),
-    ))
+    val sleep = Duration(responseDefinition.responseDelayMs, TimeUnit.MILLISECONDS)
 
-    Async[F].sleep(Duration(responseDefinition.responseDelayMs, TimeUnit.MILLISECONDS)) *>
-      Async[F].pure(UnaryHandlerResponse(
-        payload = ConformancePayload(
+    Async[F].delayBy(
+      UnaryHandlerResponse(
+        ConformancePayload(
           responseData.getOrElse(ByteString.EMPTY),
           requestInfo.some
         ),
-        trailers = trailers
-      ))
+        trailers
+      ).pure[F],
+      sleep
+    )
+
   }
 
   private def keyof(key: String): Metadata.Key[String] =
diff --git a/core/src/main/scala/org/ivovk/connect_rpc_scala/ConnectHandler.scala b/core/src/main/scala/org/ivovk/connect_rpc_scala/ConnectHandler.scala
index 2c79181..57edb4a 100644
--- a/core/src/main/scala/org/ivovk/connect_rpc_scala/ConnectHandler.scala
+++ b/core/src/main/scala/org/ivovk/connect_rpc_scala/ConnectHandler.scala
@@ -7,7 +7,7 @@ import io.grpc.*
 import io.grpc.MethodDescriptor.MethodType
 import io.grpc.stub.MetadataUtils
 import org.http4s.dsl.Http4sDsl
-import org.http4s.{Header, MediaType, MessageFailure, Method, Response}
+import org.http4s.{Header, Headers, MediaType, MessageFailure, Method, Response}
 import org.ivovk.connect_rpc_scala.Mappings.*
 import org.ivovk.connect_rpc_scala.grpc.{GrpcClientCalls, MethodName, MethodRegistry}
 import org.ivovk.connect_rpc_scala.http.Headers.`X-Test-Case-Name`
@@ -150,6 +150,12 @@ class ConnectHandler[F[_] : Async](
           case e => e.getMessage
         })
 
+        val headers = e match {
+          case e: StatusRuntimeException => e.getTrailers.toHeaders(trailing = !treatTrailersAsHeaders)
+          case e: StatusException => e.getTrailers.toHeaders(trailing = !treatTrailersAsHeaders)
+          case _ => Headers.empty
+        }
+
         val messageWithDetails = rawMessage
           .map(
             _.split("\n").partition(m => !m.startsWith("type: "))
@@ -179,7 +185,7 @@ class ConnectHandler[F[_] : Async](
           logger.trace(s"<<< Http Status: $httpStatus, Connect Error Code: $connectCode, Message: ${rawMessage.orNull}")
         }
 
-        Response[F](httpStatus).withEntity(connectrpc.Error(
+        Response[F](httpStatus, headers = headers).withEntity(connectrpc.Error(
           code = connectCode,
           message = message,
           details = details
diff --git a/core/src/main/scala/org/ivovk/connect_rpc_scala/grpc/GrpcClientCalls.scala b/core/src/main/scala/org/ivovk/connect_rpc_scala/grpc/GrpcClientCalls.scala
index eb27679..1bee183 100644
--- a/core/src/main/scala/org/ivovk/connect_rpc_scala/grpc/GrpcClientCalls.scala
+++ b/core/src/main/scala/org/ivovk/connect_rpc_scala/grpc/GrpcClientCalls.scala
@@ -59,8 +59,8 @@ object GrpcClientCalls {
   }
 
   /**
-   * [[CallbackObserver]] either executes [[onNext]] -> [[onCompleted]] during the happy path or just [[onError]] in case of
-   * an error.
+   * [[StreamObserverToCallListenerAdapter]] either executes [[onNext]] -> [[onCompleted]] during the happy path
+   * or just [[onError]] in case of an error.
    */
   private class CallbackObserver[F[_] : Async, Resp](cb: Either[Throwable, Resp] => Unit) extends StreamObserver[Resp] {
     private var value: Option[Either[Throwable, Resp]] = None