diff --git a/engine/apps/grafana_plugin/tests/test_install_v2.py b/engine/apps/grafana_plugin/tests/test_install_v2.py
new file mode 100644
index 00000000..ed76d726
--- /dev/null
+++ b/engine/apps/grafana_plugin/tests/test_install_v2.py
@@ -0,0 +1,25 @@
+from unittest.mock import patch
+
+import pytest
+from django.urls import reverse
+from rest_framework import status
+from rest_framework.test import APIClient
+
+from apps.grafana_plugin.views.sync_v2 import SyncException
+from common.api_helpers.errors import INVALID_SELF_HOSTED_ID
+
+
+@pytest.mark.django_db
+def test_install_v2_error_encoding(make_organization_and_user_with_plugin_token, make_user_auth_headers):
+    organization, user, token = make_organization_and_user_with_plugin_token()
+    client = APIClient()
+
+    auth_headers = make_user_auth_headers(user, token)
+
+    exc = SyncException(INVALID_SELF_HOSTED_ID)
+
+    with patch("apps.grafana_plugin.views.InstallV2View.do_sync", side_effect=exc):
+        response = client.post(reverse("grafana-plugin:install-v2"), format="json", **auth_headers)
+        assert response.data["code"] == INVALID_SELF_HOSTED_ID.code
+        assert response.data["message"] == INVALID_SELF_HOSTED_ID.message
+        assert response.status_code == status.HTTP_400_BAD_REQUEST
diff --git a/engine/apps/grafana_plugin/views/install_v2.py b/engine/apps/grafana_plugin/views/install_v2.py
index 7223adb0..02b19ef9 100644
--- a/engine/apps/grafana_plugin/views/install_v2.py
+++ b/engine/apps/grafana_plugin/views/install_v2.py
@@ -1,5 +1,5 @@
 import logging
-from dataclasses import asdict
+from dataclasses import asdict, is_dataclass
 
 from django.conf import settings
 from rest_framework import status
@@ -23,7 +23,10 @@ class InstallV2View(SyncV2View):
         try:
             organization = self.do_sync(request)
         except SyncException as e:
-            return Response(data=e.error_data, status=status.HTTP_400_BAD_REQUEST)
+            return Response(
+                data=asdict(e.error_data) if is_dataclass(e.error_data) else e.error_data,
+                status=status.HTTP_400_BAD_REQUEST,
+            )
 
         organization.revoke_plugin()
         provisioned_data = organization.provision_plugin()