diff --git a/v1/providers/shadeform/instance.go b/v1/providers/shadeform/instance.go
index 8175cd6..3a85d4d 100644
--- a/v1/providers/shadeform/instance.go
+++ b/v1/providers/shadeform/instance.go
@@ -2,6 +2,7 @@ package v1
 
 import (
 	"context"
+	"encoding/json"
 	"fmt"
 	"io"
 	"strings"
@@ -21,6 +22,15 @@ const (
 	instanceNameSeparator = "_"
 )
 
+const (
+	OutOfStockErrorCode = "OUT_OF_STOCK"
+)
+
+type DefaultErrorResponse struct {
+	ErrorCode string `json:"error_code"`
+	Error     string `json:"error"`
+}
+
 func (c *ShadeformClient) CreateInstance(ctx context.Context, attrs v1.CreateInstanceAttrs) (*v1.Instance, error) { //nolint:gocyclo,funlen // ok
 	authCtx := c.makeAuthContext(ctx)
 
@@ -110,8 +120,26 @@ func (c *ShadeformClient) CreateInstance(ctx context.Context, attrs v1.CreateIns
 		defer func() { _ = httpResp.Body.Close() }()
 	}
 	if err != nil {
-		httpMessage, _ := io.ReadAll(httpResp.Body)
-		return nil, errors.WrapAndTrace(fmt.Errorf("failed to create instance: %w, %s", err, string(httpMessage)))
+		if httpResp.StatusCode == 409 {
+			// Shadeform provides more details on 409 errors in the response body
+			httpMessage, _ := io.ReadAll(httpResp.Body)
+			jsonStr := string(httpMessage)
+
+			var errorResponse DefaultErrorResponse
+			err = json.Unmarshal([]byte(jsonStr), &errorResponse)
+			if err != nil {
+				return nil, errors.WrapAndTrace(fmt.Errorf("failed to create instance: %w, %s", err, string(httpMessage)))
+			}
+
+			if errorResponse.ErrorCode == OutOfStockErrorCode {
+				return nil, v1.ErrInsufficientResources
+			} else {
+				return nil, errors.WrapAndTrace(fmt.Errorf("failed to create instance: %w, %s", err, string(httpMessage)))
+			}
+		} else {
+			httpMessage, _ := io.ReadAll(httpResp.Body)
+			return nil, errors.WrapAndTrace(fmt.Errorf("failed to create instance: %w, %s", err, string(httpMessage)))
+		}
 	}
 
 	if resp == nil {
diff --git a/v1/providers/shadeform/validation_test.go b/v1/providers/shadeform/validation_test.go
index d62756b..65a5f60 100644
--- a/v1/providers/shadeform/validation_test.go
+++ b/v1/providers/shadeform/validation_test.go
@@ -2,14 +2,14 @@ package v1
 
 import (
 	"context"
+	"github.com/brevdev/cloud/internal/validation"
+	openapi "github.com/brevdev/cloud/v1/providers/shadeform/gen/shadeform"
 	"os"
 	"testing"
 	"time"
 
 	"github.com/brevdev/cloud/internal/ssh"
-	"github.com/brevdev/cloud/internal/validation"
 	v1 "github.com/brevdev/cloud/v1"
-	openapi "github.com/brevdev/cloud/v1/providers/shadeform/gen/shadeform"
 	"github.com/google/uuid"
 	"github.com/stretchr/testify/require"
 )
@@ -118,6 +118,59 @@ func TestInstanceTypeFilter(t *testing.T) {
 	})
 }
 
+func TestOutOfStockError(t *testing.T) {
+	checkSkip(t)
+	apiKey := getAPIKey()
+
+	ctx, cancel := context.WithTimeout(context.Background(), 15*time.Minute)
+	t.Cleanup(cancel)
+
+	client := NewShadeformClient("validation-test", apiKey)
+	client.WithConfiguration(Configuration{})
+
+	_, err := client.CreateInstance(ctx, v1.CreateInstanceAttrs{
+		RefID:        uuid.New().String(),
+		InstanceType: "datacrunch_H200x8",
+		Location:     "abc123", // Put a region that is not valid
+		PublicKey:    ssh.GetTestPublicKey(),
+		Name:         "test_name",
+		FirewallRules: v1.FirewallRules{
+			EgressRules: []v1.FirewallRule{
+				{
+					ID:       "test-rule1",
+					FromPort: 80,
+					ToPort:   8080,
+					IPRanges: []string{"127.0.0.1", "10.0.0.0/24"},
+				},
+				{
+					ID:       "test-rule2",
+					FromPort: 5432,
+					ToPort:   5432,
+					IPRanges: []string{"127.0.0.1", "10.0.0.0/24"},
+				},
+			},
+			IngressRules: []v1.FirewallRule{
+				{
+					ID:       "test-rule3",
+					FromPort: 80,
+					ToPort:   8080,
+					IPRanges: []string{"127.0.0.1", "10.0.0.0/24"},
+				},
+				{
+					ID:       "test-rule4",
+					FromPort: 5432,
+					ToPort:   5432,
+					IPRanges: []string{"127.0.0.1", "10.0.0.0/24"},
+				},
+			},
+		},
+	})
+	if err == nil {
+		t.Fatalf("ValidateCreateInstance failed: Should have resulted in an insufficientResourcesError")
+	}
+	require.True(t, err.Error() == v1.ErrInsufficientResources.Error(), "Error must be ErrInsufficientResources")
+}
+
 func checkSkip(t *testing.T) {
 	apiKey := getAPIKey()
 	isValidationTest := os.Getenv("VALIDATION_TEST")