diff --git a/go.mod b/go.mod
index f221ec5ae1691..c6af6b3c51810 100644
--- a/go.mod
+++ b/go.mod
@@ -126,7 +126,7 @@ require (
 	github.com/gravitational/license v0.0.0-20240313232707-8312e719d624
 	github.com/gravitational/roundtrip v1.0.2
 	github.com/gravitational/teleport/api v0.0.0
-	github.com/gravitational/trace v1.4.0
+	github.com/gravitational/trace v1.4.1-0.20241128213428-353656d83c45
 	github.com/grpc-ecosystem/go-grpc-middleware/providers/prometheus v1.0.1
 	github.com/grpc-ecosystem/go-grpc-middleware/v2 v2.1.0
 	github.com/guptarohit/asciigraph v0.7.3
diff --git a/go.sum b/go.sum
index e1626f33fbcba..3a39d5a2b3dbf 100644
--- a/go.sum
+++ b/go.sum
@@ -1536,6 +1536,8 @@ github.com/gravitational/saml v0.4.15-teleport.1 h1:kYSLpxEBEc7JLJJ+VjsZU8PbWI4g
 github.com/gravitational/saml v0.4.15-teleport.1/go.mod h1:S4+611dxnKt8z/ulbvaJzcgSHsuhjVc1QHNTcr1R7Fw=
 github.com/gravitational/trace v1.4.0 h1:TtTeMElVwMX21Udb1nmK2tpWYAAMJoyjevzKOaxIFZQ=
 github.com/gravitational/trace v1.4.0/go.mod h1:g79NZzwCjWS/VVubYowaFAQsTjVTohGi0hFbIWSyGoY=
+github.com/gravitational/trace v1.4.1-0.20241128213428-353656d83c45 h1:bHx88VKuCfy7ALJ0YZ5RSC7KJAbncaz3277Kr2ONLaE=
+github.com/gravitational/trace v1.4.1-0.20241128213428-353656d83c45/go.mod h1:g79NZzwCjWS/VVubYowaFAQsTjVTohGi0hFbIWSyGoY=
 github.com/gregjones/httpcache v0.0.0-20180305231024-9cad4c3443a7 h1:pdN6V1QBWetyv/0+wjACpqVH+eVULgEjkurDLq3goeM=
 github.com/gregjones/httpcache v0.0.0-20180305231024-9cad4c3443a7/go.mod h1:FecbI9+v66THATjSRHfNgh1IVFe/9kFxbXtjV0ctIMA=
 github.com/grpc-ecosystem/go-grpc-middleware/providers/prometheus v1.0.1 h1:qnpSQwGEnkcRpTqNOIR6bJbR0gAorgP9CSALpRcKoAA=
diff --git a/lib/utils/log/slog_handler.go b/lib/utils/log/slog_handler.go
index b69b83d2a1adb..9763ae84ad469 100644
--- a/lib/utils/log/slog_handler.go
+++ b/lib/utils/log/slog_handler.go
@@ -20,6 +20,7 @@ package log
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"io"
 	"log/slog"
@@ -95,6 +96,39 @@ type SlogTextHandlerConfig struct {
 	ReplaceAttr func(groups []string, a slog.Attr) slog.Attr
 }
 
+func CompactErrors(groups []string, a slog.Attr) slog.Attr {
+	if err, ok := a.Value.Any().(error); ok {
+		var traceErr trace.Error
+		if errors.As(err, &traceErr) {
+			return slog.Attr{Key: a.Key, Value: slog.StringValue(traceErr.CompactUserMessage())}
+		}
+		return slog.Attr{Key: a.Key, Value: slog.StringValue(err.Error())}
+	}
+	return a
+}
+
+func funcTraceOnly(traces trace.Traces) []string {
+	s := make([]string, len(traces))
+	for i, t := range traces {
+		s[i] = t.Func
+	}
+	return s
+}
+
+func CompactErrorsWithStackTrace(groups []string, a slog.Attr) slog.Attr {
+	if err, ok := a.Value.Any().(error); ok {
+		var traceErr trace.Error
+		if errors.As(err, &traceErr) {
+			return slog.Group("",
+				a.Key, traceErr.CompactUserMessage(), // display single-lien error
+				a.Key+"_trace", funcTraceOnly(traceErr.StackTraceReport()), // enrich with stacktrace
+			)
+		}
+		return slog.Attr{Key: a.Key, Value: slog.StringValue(err.Error())}
+	}
+	return a
+}
+
 // NewSlogTextHandler creates a SlogTextHandler that writes messages to w.
 func NewSlogTextHandler(w io.Writer, cfg SlogTextHandlerConfig) *SlogTextHandler {
 	if cfg.Padding == 0 {
@@ -204,7 +238,7 @@ func (s *SlogTextHandler) appendAttr(buf []byte, a slog.Attr) []byte {
 			buf = s.appendAttr(buf, ga)
 		}
 		if a.Key != "" {
-			s.groupPrefix = s.groupPrefix[:len(s.groupPrefix)-len(a.Key)-1 /* for keyComponentSep */]
+			s.groupPrefix = s.groupPrefix[:len(s.groupPrefix)-len(a.Key)-1 /* for keyComponentSep */ ]
 			if s.groups != nil {
 				s.groups = (s.groups)[:len(s.groups)-1]
 			}
@@ -490,6 +524,7 @@ func NewSlogJSONHandler(w io.Writer, cfg SlogJSONHandlerConfig) *SlogJSONHandler
 			AddSource: true,
 			Level:     cfg.Level,
 			ReplaceAttr: func(groups []string, a slog.Attr) slog.Attr {
+				a = cfg.ReplaceAttr(groups, a)
 				switch a.Key {
 				case teleport.ComponentKey:
 					if !withComponent {