diff --git a/CHANGELOG.md b/CHANGELOG.md
index 33374dd7dd..3145adec2c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,17 @@ This affects the following commands:
 - `dfx canister update-settings`
 - `dfx ledger fabricate-cycles`
 
+### chore: improve `dfx deploy` messages.
+
+If users run `dfx deploy` without enough cycles, show additional messages to indicate what to do next.
+```
+Error explanation:
+Insufficient cycles balance to create the canister.
+How to resolve the error:
+Please top up your cycles balance by converting ICP to cycles like below:
+'dfx cycles convert --amount=0.123'.
+```
+
 # 0.24.3
 
 ### feat: Bitcoin support in PocketIC
diff --git a/e2e/tests-dfx/cycles-ledger.bash b/e2e/tests-dfx/cycles-ledger.bash
index 3a279b6c0b..83fa0ddd99 100644
--- a/e2e/tests-dfx/cycles-ledger.bash
+++ b/e2e/tests-dfx/cycles-ledger.bash
@@ -591,9 +591,22 @@ current_time_nanoseconds() {
 
   assert_command dfx deploy
 
+  # Test canister creation failure before topping up cycles.
+  cd ..
+  dfx_new canister_creation_failed
+
+  # shellcheck disable=SC2030,SC2031
+  export DFX_DISABLE_AUTO_WALLET=1
+  assert_command_fail dfx canister create canister_creation_failed_backend --with-cycles 1T --identity alice
+  assert_contains "Insufficient cycles balance to create the canister."
+
+  ## Back to top up cycles.
+  cd ../temporary
+
   assert_command dfx canister call depositor deposit "(record {to = record{owner = principal \"$ALICE\";};cycles = 13_400_000_000_000;})" --identity cycle-giver
   assert_command dfx canister call depositor deposit "(record {to = record{owner = principal \"$ALICE\"; subaccount = opt blob \"$ALICE_SUBACCT1_CANDID\"};cycles = 2_600_000_000_000;})" --identity cycle-giver
 
+  # shellcheck disable=SC2103
   cd ..
   dfx_new
   # setup done
diff --git a/src/dfx/src/lib/diagnosis.rs b/src/dfx/src/lib/diagnosis.rs
index 150f1c9b56..b346341cf7 100644
--- a/src/dfx/src/lib/diagnosis.rs
+++ b/src/dfx/src/lib/diagnosis.rs
@@ -1,6 +1,8 @@
+use crate::lib::cycles_ledger_types::create_canister::CreateCanisterError;
 use crate::lib::error_code;
 use anyhow::Error as AnyhowError;
 use dfx_core::error::root_key::FetchRootKeyError;
+use dfx_core::network::provider::get_network_context;
 use ic_agent::agent::{RejectCode, RejectResponse};
 use ic_agent::AgentError;
 use ic_asset::error::{GatherAssetDescriptorsError, SyncError, UploadContentError};
@@ -72,6 +74,12 @@ pub fn diagnose(err: &AnyhowError) -> Diagnosis {
         }
     }
 
+    if let Some(create_canister_err) = err.downcast_ref::<CreateCanisterError>() {
+        if insufficient_cycles(create_canister_err) {
+            return diagnose_insufficient_cycles();
+        }
+    }
+
     NULL_DIAGNOSIS
 }
 
@@ -262,3 +270,28 @@ fn diagnose_ledger_not_found() -> Diagnosis {
 
     (Some(explanation.to_string()), Some(suggestion.to_string()))
 }
+
+fn insufficient_cycles(err: &CreateCanisterError) -> bool {
+    matches!(err, CreateCanisterError::InsufficientFunds { balance: _ })
+}
+
+fn diagnose_insufficient_cycles() -> Diagnosis {
+    let network = match get_network_context() {
+        Ok(value) => {
+            if value == "local" {
+                "".to_string()
+            } else {
+                format!(" --network {}", value)
+            }
+        }
+        Err(_) => "".to_string(),
+    };
+
+    let explanation = "Insufficient cycles balance to create the canister.";
+    let suggestion = format!(
+        "Please top up your cycles balance by converting ICP to cycles like below:
+'dfx cycles convert --amount=0.123{}'",
+        network
+    );
+    (Some(explanation.to_string()), Some(suggestion))
+}