diff --git a/protocol-testing/Cargo.lock b/protocol-testing/Cargo.lock
index 24e27f2..3cdc38d 100644
--- a/protocol-testing/Cargo.lock
+++ b/protocol-testing/Cargo.lock
@@ -596,7 +596,7 @@ dependencies = [
  "alloy-serde",
  "alloy-sol-types",
  "arbitrary",
- "itertools 0.13.0",
+ "itertools 0.14.0",
  "serde",
  "serde_json",
  "serde_with",
@@ -909,7 +909,7 @@ checksum = "710e8eae58854cdc1790fcb56cca04d712a17be849eeb81da2a724bf4bae2bc4"
 dependencies = [
  "anstyle",
  "memchr",
- "unicode-width",
+ "unicode-width 0.2.0",
 ]
 
 [[package]]
@@ -1752,7 +1752,7 @@ dependencies = [
  "strsim",
  "terminal_size",
  "unicase",
- "unicode-width",
+ "unicode-width 0.2.0",
 ]
 
 [[package]]
@@ -1870,7 +1870,7 @@ checksum = "4a65ebfec4fb190b6f90e944a817d60499ee0744e582530e2c9900a22e591d9a"
 dependencies = [
  "crossterm",
  "unicode-segmentation",
- "unicode-width",
+ "unicode-width 0.2.0",
 ]
 
 [[package]]
@@ -1882,7 +1882,7 @@ dependencies = [
  "encode_unicode",
  "libc",
  "once_cell",
- "unicode-width",
+ "unicode-width 0.2.0",
  "windows-sys 0.59.0",
 ]
 
@@ -2382,7 +2382,7 @@ dependencies = [
  "libc",
  "option-ext",
  "redox_users",
- "windows-sys 0.59.0",
+ "windows-sys 0.60.2",
 ]
 
 [[package]]
@@ -2919,7 +2919,7 @@ dependencies = [
  "foundry-compilers-core",
  "futures-util",
  "home",
- "itertools 0.13.0",
+ "itertools 0.14.0",
  "path-slash",
  "rayon",
  "semver 1.0.26",
@@ -4020,7 +4020,7 @@ dependencies = [
  "console",
  "number_prefix",
  "portable-atomic",
- "unicode-width",
+ "unicode-width 0.2.0",
  "web-time",
 ]
 
@@ -4493,6 +4493,28 @@ dependencies = [
  "thiserror 1.0.69",
 ]
 
+[[package]]
+name = "miette"
+version = "7.6.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "5f98efec8807c63c752b5bd61f862c165c115b0a35685bdcfd9238c7aeb592b7"
+dependencies = [
+ "cfg-if",
+ "miette-derive",
+ "unicode-width 0.1.14",
+]
+
+[[package]]
+name = "miette-derive"
+version = "7.6.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "db5b29714e950dbb20d5e6f74f9dcec4edbcc1067bb7f8ed198c097b8c1a818b"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn 2.0.99",
+]
+
 [[package]]
 name = "mime"
 version = "0.3.17"
@@ -5339,7 +5361,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "8a56d757972c98b346a9b766e3f02746cde6dd1cd1d1d563472929fdd74bec4d"
 dependencies = [
  "anyhow",
- "itertools 0.13.0",
+ "itertools 0.14.0",
  "proc-macro2",
  "quote",
  "syn 2.0.99",
@@ -5376,6 +5398,7 @@ dependencies = [
  "dotenv",
  "figment",
  "hex",
+ "miette",
  "postgres",
  "serde",
  "serde_json",
@@ -6723,7 +6746,7 @@ dependencies = [
  "derive_more 2.0.1",
  "dunce",
  "inturn",
- "itertools 0.13.0",
+ "itertools 0.14.0",
  "itoa",
  "match_cfg",
  "normalize-path",
@@ -6734,7 +6757,7 @@ dependencies = [
  "solar-macros",
  "thiserror 2.0.12",
  "tracing",
- "unicode-width",
+ "unicode-width 0.2.0",
 ]
 
 [[package]]
@@ -6757,7 +6780,7 @@ dependencies = [
  "alloy-primitives",
  "bitflags 2.9.4",
  "bumpalo",
- "itertools 0.13.0",
+ "itertools 0.14.0",
  "memchr",
  "num-bigint",
  "num-rational",
@@ -7122,7 +7145,7 @@ dependencies = [
  "getrandom 0.3.1",
  "once_cell",
  "rustix 1.0.1",
- "windows-sys 0.59.0",
+ "windows-sys 0.60.2",
 ]
 
 [[package]]
@@ -7891,6 +7914,12 @@ version = "1.12.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "f6ccf251212114b54433ec949fd6a7841275f9ada20dddd2f29e9ceea4501493"
 
+[[package]]
+name = "unicode-width"
+version = "0.1.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7dd6e30e90baa6f72411720665d41d89b9a3d039dc45b8faea1ddd07f617f6af"
+
 [[package]]
 name = "unicode-width"
 version = "0.2.0"
diff --git a/protocol-testing/Cargo.toml b/protocol-testing/Cargo.toml
index 23a0c30..786e93a 100644
--- a/protocol-testing/Cargo.toml
+++ b/protocol-testing/Cargo.toml
@@ -4,6 +4,7 @@ version = "0.1.0"
 edition = "2021"
 
 [dependencies]
+miette = "7.6.0"
 # Logging & Tracing
 tracing = "0.1.37"
 # Tycho dependencies
diff --git a/protocol-testing/src/main.rs b/protocol-testing/src/main.rs
index 89da115..76a4dda 100644
--- a/protocol-testing/src/main.rs
+++ b/protocol-testing/src/main.rs
@@ -30,7 +30,7 @@ struct Args {
     vm_traces: bool,
 }
 
-fn main() {
+fn main() -> miette::Result<()> {
     tracing_subscriber::fmt()
         .with_env_filter(EnvFilter::from_default_env())
         .with_target(false)
@@ -40,5 +40,5 @@ fn main() {
 
     let test_runner = TestRunner::new(args.package, args.tycho_logs, args.db_url, args.vm_traces);
 
-    test_runner.run_tests();
+    test_runner.run_tests()
 }
diff --git a/protocol-testing/src/test_runner.rs b/protocol-testing/src/test_runner.rs
index 36537e3..dd79b57 100644
--- a/protocol-testing/src/test_runner.rs
+++ b/protocol-testing/src/test_runner.rs
@@ -1,17 +1,19 @@
 use std::{collections::HashMap, env, path::PathBuf, str::FromStr};
-use alloy::{primitives::U256};
+
+use alloy::primitives::U256;
 use figment::{
     providers::{Format, Yaml},
     Figment,
 };
+use miette::{miette, IntoDiagnostic, WrapErr};
 use postgres::{Client, Error, NoTls};
 use tokio::runtime::Runtime;
 use tracing::{debug, info};
 use tycho_client::feed::BlockHeader;
 use tycho_common::{
     dto::{Chain, ProtocolComponent, ResponseAccount, ResponseProtocolState},
+    models::token::Token,
     Bytes,
-    models::token::Token
 };
 use tycho_simulation::{
     evm::{
@@ -47,7 +49,7 @@ impl TestRunner {
         Self { package, tycho_logs, db_url, vm_traces, substreams_path }
     }
 
-    pub fn run_tests(&self) {
+    pub fn run_tests(&self) -> miette::Result<()> {
         info!("Running tests...");
         let config_yaml_path = self
             .substreams_path
@@ -56,20 +58,21 @@ impl TestRunner {
         info!("Config YAML: {}", config_yaml_path.display());
         let figment = Figment::new().merge(Yaml::file(&config_yaml_path));
 
-        match figment.extract::<IntegrationTestsConfig>() {
-            Ok(config) => {
-                info!("Loaded test configuration:");
-                info!("Protocol types: {:?}", config.protocol_type_names);
-                info!("Found {} tests to run", config.tests.len());
+        let config = figment
+            .extract::<IntegrationTestsConfig>()
+            .into_diagnostic()
+            .wrap_err("Failed to load test configuration:")?;
+        info!("Loaded test configuration:");
+        info!("Protocol types: {:?}", config.protocol_type_names);
+        info!("Found {} tests to run", config.tests.len());
 
-                for test in &config.tests {
-                    self.run_test(test, &config, config.skip_balance_check);
-                }
-            }
-            Err(e) => {
-                eprintln!("Failed to load test configuration: {}", e);
+        for test in &config.tests {
+            if let Err(e) = self.run_test(test, &config, config.skip_balance_check) {
+                eprintln!("Test '{}' failed: {e}", test.name);
             }
         }
+
+        Ok(())
     }
 
     fn run_test(
@@ -77,10 +80,11 @@ impl TestRunner {
         test: &IntegrationTest,
         config: &IntegrationTestsConfig,
         skip_balance_check: bool,
-    ) {
+    ) -> miette::Result<()> {
         info!("Running test: {}", test.name);
         self.empty_database()
-            .expect("Failed to empty the database");
+            .into_diagnostic()
+            .wrap_err("Failed to empty the database")?;
 
         let substreams_yaml_path = self
             .substreams_path
@@ -98,7 +102,7 @@ impl TestRunner {
         );
 
         let spkg_path =
-            build_spkg(&substreams_yaml_path, test.start_block).expect("Failed to build spkg");
+            build_spkg(&substreams_yaml_path, test.start_block).wrap_err("Failed to build spkg")?;
 
         let tycho_runner =
             TychoRunner::new(self.db_url.clone(), initialized_accounts, self.tycho_logs);
@@ -110,15 +114,17 @@ impl TestRunner {
                 test.stop_block,
                 &config.protocol_type_names,
             )
-            .expect("Failed to run Tycho");
+            .wrap_err("Failed to run Tycho")?;
 
-        tycho_runner.run_with_rpc_server(
+        let _ = tycho_runner.run_with_rpc_server(
             validate_state,
             &test.expected_components,
             test.start_block,
             test.stop_block,
             skip_balance_check,
-        );
+        )?;
+
+        Ok(())
     }
 
     fn empty_database(&self) -> Result<(), Error> {
@@ -144,12 +150,13 @@ fn validate_state(
     start_block: u64,
     stop_block: u64,
     skip_balance_check: bool,
-) {
+) -> miette::Result<()> {
     let rt = Runtime::new().unwrap();
 
     // Create Tycho client for the RPC server
-    let tycho_client =
-        TychoClient::new("http://localhost:4242").expect("Failed to create Tycho client");
+    let tycho_client = TychoClient::new("http://localhost:4242")
+        .into_diagnostic()
+        .wrap_err("Failed to create Tycho client")?;
 
     let chain = Chain::Ethereum;
     let protocol_system = "test_protocol";
@@ -158,7 +165,8 @@ fn validate_state(
     // module, in order to simplify debugging
     let protocol_components = rt
         .block_on(tycho_client.get_protocol_components(protocol_system, chain))
-        .expect("Failed to get protocol components");
+        .into_diagnostic()
+        .wrap_err("Failed to get protocol components")?;
 
     let expected_ids = expected_components
         .iter()
@@ -167,11 +175,13 @@ fn validate_state(
 
     let protocol_states = rt
         .block_on(tycho_client.get_protocol_state(protocol_system, expected_ids, chain))
-        .expect("Failed to get protocol state");
+        .into_diagnostic()
+        .wrap_err("Failed to get protocol state")?;
 
     let vm_storages = rt
         .block_on(tycho_client.get_contract_state(protocol_system, chain))
-        .expect("Failed to get contract state");
+        .into_diagnostic()
+        .wrap_err("Failed to get contract state")?;
 
     // Create a map of component IDs to components for easy lookup
     let components_by_id: HashMap<String, ProtocolComponent> = protocol_components
@@ -210,7 +220,11 @@ fn validate_state(
             .compare(component, true);
         match diff {
             Some(diff) => {
-                panic!("Component {} does not match the expected state:\n{}", component_id, diff);
+                return Err(miette!(
+                    "Component {} does not match the expected state:\n{}",
+                    component_id,
+                    diff
+                ));
             }
             None => {
                 info!("Component {} matches the expected state", component_id);
@@ -222,7 +236,9 @@ fn validate_state(
     // Step 2: Validate Token Balances
     // In this step, we validate that the token balances of the components match the values
     // on-chain, extracted by querying the token balances using a node.
-    let rpc_url = env::var("RPC_URL").expect("Missing ETH_RPC_URL in environment");
+    let rpc_url = env::var("RPC_URL")
+        .into_diagnostic()
+        .wrap_err("Missing ETH_RPC_URL in environment")?;
     let rpc_provider = RPCProvider::new(rpc_url.to_string());
 
     for (id, component) in components_by_id.iter() {
@@ -280,9 +296,10 @@ fn validate_state(
         let component_id = &id.clone();
         let state = protocol_states_by_id
             .get(component_id)
-            .expect("Failed to get state for component")
+            .wrap_err("Failed to get state for component")?
             .clone();
-        let component_with_state = ComponentWithState { state, component, component_tvl: None, entrypoints: vec![] }; // TODO
+        let component_with_state =
+            ComponentWithState { state, component, component_tvl: None, entrypoints: vec![] }; // TODO
         states.insert(component_id.clone(), component_with_state);
     }
     let vm_storage: HashMap<Bytes, ResponseAccount> = vm_storages
@@ -311,7 +328,8 @@ fn validate_state(
 
     let all_tokens = rt
         .block_on(tycho_client.get_tokens(Chain::Ethereum, None, None))
-        .expect("Failed to get tokens");
+        .into_diagnostic()
+        .wrap_err("Failed to get tokens")?;
     info!("Loaded {} tokens", all_tokens.len());
 
     rt.block_on(decoder.set_tokens(all_tokens));
@@ -322,7 +340,8 @@ fn validate_state(
 
     let block_msg = rt
         .block_on(decoder.decode(message))
-        .expect("Failed to decode message");
+        .into_diagnostic()
+        .wrap_err("Failed to decode message")?;
 
     for (id, comp) in block_msg.new_pairs.iter() {
         pairs
@@ -333,8 +352,8 @@ fn validate_state(
     // This is where we get blocked. Currently, Tycho Simulation expects the runtime to be
     // prebuild and accessible from TychoSim - we should allow passing it when parsing the block
 
-    // TODO: Since we don't have balances on the VM State, we could try to use Limits, otherwise ask the user
-    // to specify a set of values on the YAML file.
+    // TODO: Since we don't have balances on the VM State, we could try to use Limits, otherwise ask
+    //  the user to specify a set of values on the YAML file.
     for (id, state) in block_msg.states.iter() {
         if let Some(tokens) = pairs.get(id) {
             let formatted_token_str = format!("{:}/{:}", &tokens[0].symbol, &tokens[1].symbol);
@@ -358,4 +377,5 @@ fn validate_state(
             // e))     .ok();
         }
     }
+    Ok(())
 }
diff --git a/protocol-testing/src/tycho_runner.rs b/protocol-testing/src/tycho_runner.rs
index cbd3c2d..1baeb3a 100644
--- a/protocol-testing/src/tycho_runner.rs
+++ b/protocol-testing/src/tycho_runner.rs
@@ -7,6 +7,7 @@ use std::{
 };
 
 use dotenv::dotenv;
+use miette::{miette, IntoDiagnostic, WrapErr};
 use tracing::debug;
 
 use crate::config::ProtocolComponentWithTestConfig;
@@ -30,7 +31,7 @@ impl TychoRunner {
         start_block: u64,
         end_block: u64,
         protocol_type_names: &[String],
-    ) -> Result<(), Box<dyn std::error::Error>> {
+    ) -> miette::Result<()> {
         // Expects a .env present in the same folder as package root (where Cargo.toml is)
         dotenv().ok();
 
@@ -67,28 +68,21 @@ impl TychoRunner {
         cmd.stdout(Stdio::piped())
             .stderr(Stdio::piped());
 
-        let mut process = match cmd.spawn() {
-            Ok(p) => p,
-            Err(e) => {
-                println!("Error running Tycho indexer: {}", e);
-                return Err(e.into());
-            }
-        };
+        let mut process = cmd
+            .spawn()
+            .into_diagnostic()
+            .wrap_err("Error running Tycho indexer")?;
 
         if self.with_binary_logs {
             Self::handle_process_output(&mut process);
         }
 
-        match process.wait() {
-            Ok(status) => {
-                if !status.success() {
-                    return Err(format!("Process exited with non-zero status: {}", status).into());
-                }
-            }
-            Err(e) => {
-                println!("Error waiting for Tycho indexer: {}", e);
-                return Err(e.into());
-            }
+        let status = process
+            .wait()
+            .into_diagnostic()
+            .wrap_err("Failed to wait on Tycho indexer process")?;
+        if !status.success() {
+            return Err(miette!("Process exited with non-zero status: {status}"));
         }
 
         Ok(())
@@ -101,7 +95,7 @@ impl TychoRunner {
         start_block: u64,
         stop_block: u64,
         skip_balance_check: bool,
-    ) -> R
+    ) -> miette::Result<R>
     where
         F: FnOnce(&Vec<ProtocolComponentWithTestConfig>, u64, u64, bool) -> R,
     {
@@ -152,7 +146,7 @@ impl TychoRunner {
             eprintln!("Failed to join RPC thread");
         }
 
-        result
+        Ok(result)
     }
 
     // Helper method to handle process output in separate threads
diff --git a/protocol-testing/src/utils.rs b/protocol-testing/src/utils.rs
index a9ba2a0..4810928 100644
--- a/protocol-testing/src/utils.rs
+++ b/protocol-testing/src/utils.rs
@@ -1,5 +1,4 @@
 use std::{
-    error::Error,
     fs,
     path::{Path, PathBuf},
     process::Command,
@@ -10,16 +9,17 @@ use figment::{
     value::Value,
     Figment,
 };
+use miette::IntoDiagnostic;
 use tracing::error;
 
 /// Build a Substreams package with modifications to the YAML file.
-pub fn build_spkg(yaml_file_path: &PathBuf, initial_block: u64) -> Result<String, Box<dyn Error>> {
+pub fn build_spkg(yaml_file_path: &PathBuf, initial_block: u64) -> miette::Result<String> {
     // Create a backup file of the unmodified Substreams protocol YAML config file.
     let backup_file_path = yaml_file_path.with_extension("backup");
-    fs::copy(yaml_file_path, &backup_file_path)?;
+    fs::copy(yaml_file_path, &backup_file_path).into_diagnostic()?;
 
     let figment = Figment::new().merge(Yaml::file(yaml_file_path));
-    let mut data: Value = figment.extract()?;
+    let mut data: Value = figment.extract().into_diagnostic()?;
 
     // Apply the modification function to update the YAML files
     modify_initial_block(&mut data, initial_block);
@@ -52,8 +52,8 @@ pub fn build_spkg(yaml_file_path: &PathBuf, initial_block: u64) -> Result<String
     let spkg_name = format!("{}/{}-{}.spkg", parent_dir, package_name, package_version);
 
     // Write the modified YAML back to the file
-    let yaml_string = serde_yaml::to_string(&data)?;
-    fs::write(yaml_file_path, yaml_string)?;
+    let yaml_string = serde_yaml::to_string(&data).into_diagnostic()?;
+    fs::write(yaml_file_path, yaml_string).into_diagnostic()?;
 
     // Run the substreams pack command to create the spkg
     // WARNING: Ensure substreams is in the PATH
@@ -71,15 +71,18 @@ pub fn build_spkg(yaml_file_path: &PathBuf, initial_block: u64) -> Result<String
             }
         }
         Err(e) => {
-            error!("Error running substreams pack command: {}. \
+            error!(
+                "Error running substreams pack command: {}. \
             Ensure that the wasm target was built and that substreams CLI\
-             is installed and exported on PATH", e);
+             is installed and exported on PATH",
+                e
+            );
         }
     }
 
     // Restore the original YAML from backup
-    fs::copy(&backup_file_path, yaml_file_path)?;
-    fs::remove_file(&backup_file_path)?;
+    fs::copy(&backup_file_path, yaml_file_path).into_diagnostic()?;
+    fs::remove_file(&backup_file_path).into_diagnostic()?;
 
     Ok(spkg_name)
 }