diff --git a/bedlam/compiler/compiler_test.go b/bedlam/compiler/compiler_test.go
index 0c73a79..40338fd 100644
--- a/bedlam/compiler/compiler_test.go
+++ b/bedlam/compiler/compiler_test.go
@@ -7,6 +7,7 @@
 package compiler
 
 import (
+	"fmt"
 	"math"
 	"math/big"
 	"math/rand"
@@ -268,3 +269,82 @@ func main(a, b uint64) uint64 {
 		}
 	}
 }
+
+type parseErrorTestData struct {
+	code         string
+	errorMessage string
+}
+
+var compileErrorTests = []parseErrorTestData{
+	{
+		code: `packag main`,
+		errorMessage: `Compile error [parse]: unexpected token 'packag': expected 'package', {data}:1:0
+packag main
+^`,
+	},
+	{
+		code:         `package mai`,
+		errorMessage: `found packages mai and main`,
+	},
+	{
+		code: `
+	package main
+	func main1(a, b int4) int4 {
+	    return Sum2(MinMax(a, b))
+	}
+	`,
+		errorMessage: `no main function defined`,
+	},
+	{
+		code: `
+	package main
+	fun main(a, b int4) int4 {
+		return Sum2(MinMax(a, b))
+	}`,
+		errorMessage: `Compile error [parse]: unexpected token 'identifier', {data}:3:1
+	fun main(a, b int4) int4 {
+	^`,
+	},
+	{
+		code: `package main
+		func main(a, b) int4 {
+			return Sum2(MinMax(a, b))
+		}`,
+
+		errorMessage: `Compile error [parse]: unexpected token ')' while parsing type, {data}:2:16
+		func main(a, b) int4 {
+		              ^`,
+	},
+	{
+		code: `package main
+		func main(a, b int4 int4 {
+			return Sum2(MinMax(a, b))
+		}`,
+
+		errorMessage: `Compile error [parse]: unexpected token 'int4': expected ',', {data}:2:22
+		func main(a, b int4 int4 {
+		                    ^`,
+	},
+	{
+		code: `package main
+		func main(a, b int4) int4 {
+			a+b
+		}`,
+
+		errorMessage: `missing return at the end of function`,
+	},
+}
+
+func TestCompileErrorMessage(t *testing.T) {
+	for idx, testData := range compileErrorTests {
+		t.Run(fmt.Sprintf("test parse %d", idx), func(t *testing.T) {
+			_, _, err := New(utils.NewParams()).Compile(testData.code, nil)
+			if err == nil {
+				t.Fatalf("Parse test %d failed: expected error", idx)
+			}
+			if err.Error() != testData.errorMessage {
+				t.Fatalf("Parse test %d failed: expected error message %s, got %s", idx, testData.errorMessage, err.Error())
+			}
+		})
+	}
+}
diff --git a/bedlam/compiler/errors.go b/bedlam/compiler/errors.go
new file mode 100644
index 0000000..ff2c555
--- /dev/null
+++ b/bedlam/compiler/errors.go
@@ -0,0 +1,43 @@
+package compiler
+
+import (
+	"fmt"
+
+	"source.quilibrium.com/quilibrium/monorepo/bedlam/compiler/utils"
+)
+
+type CompileError struct {
+	Stage     CompileStage // "parse", "compile", "circuit"
+	SourcePos string
+	Location  *utils.Point
+	Err       error // origin error
+}
+
+type CompileStage int
+
+const (
+	CompileStageParse CompileStage = iota
+	CompileStageCompile
+	CompileStageCircuit
+)
+
+var stateName = map[CompileStage]string{
+	CompileStageParse:   "parse",
+	CompileStageCompile: "compile",
+	CompileStageCircuit: "circuit",
+}
+
+func (cs CompileStage) String() string {
+	return stateName[cs]
+}
+
+func (e *CompileError) Error() string {
+	msg := fmt.Sprintf("Compile error [%s]: %v", e.Stage, e.Err)
+	if e.Location != nil {
+		msg += fmt.Sprintf(", %s", e.Location)
+	}
+	if e.SourcePos != "" {
+		msg += fmt.Sprintf("\n%s", e.SourcePos)
+	}
+	return msg
+}
diff --git a/bedlam/compiler/errors_test.go b/bedlam/compiler/errors_test.go
new file mode 100644
index 0000000..d82cae7
--- /dev/null
+++ b/bedlam/compiler/errors_test.go
@@ -0,0 +1,36 @@
+package compiler
+
+import (
+	"fmt"
+	"testing"
+
+	"source.quilibrium.com/quilibrium/monorepo/bedlam/compiler/utils"
+)
+
+func TestCompileError(t *testing.T) {
+	t.Run("test compile error message without location", func(t *testing.T) {
+		err := CompileError{
+			Stage:     CompileStageParse,
+			SourcePos: "file:1:1",
+			Err:       fmt.Errorf("error message"),
+		}
+		want := "Compile error [parse]: error message\nfile:1:1"
+		got := err.Error()
+		if got != want {
+			t.Errorf("got %q, want %q", got, want)
+		}
+	})
+	t.Run("test compile error message with location", func(t *testing.T) {
+		err := CompileError{
+			Stage:     CompileStageParse,
+			SourcePos: "func main(a, b int4 int4",
+			Location:  &utils.Point{Source: "file", Line: 1, Col: 1},
+			Err:       fmt.Errorf("error message"),
+		}
+		want := "Compile error [parse]: error message, file:1:1\nfunc main(a, b int4 int4"
+		got := err.Error()
+		if got != want {
+			t.Errorf("got %q, want %q", got, want)
+		}
+	})
+}
diff --git a/bedlam/compiler/parser.go b/bedlam/compiler/parser.go
index 272b309..9acf919 100644
--- a/bedlam/compiler/parser.go
+++ b/bedlam/compiler/parser.go
@@ -168,13 +168,26 @@ func (p *Parser) errf(loc utils.Point, format string, a ...interface{}) error {
 			indicator = append(indicator, r)
 		}
 		indicator = append(indicator, '^')
+		pos := fmt.Sprintf("%s\n%s", string(line), string(indicator))
+		compilerError := &CompileError{
+			Stage:     CompileStageParse,
+			SourcePos: pos,
+			Location:  &loc,
+			Err:       errors.New(msg),
+		}
 		p.logger.Errorf(loc, "%s\n%s\n%s\n",
 			msg, string(line), string(indicator))
 
-		return errors.New(msg)
+		return compilerError
 	}
 	p.logger.Errorf(loc, "%s", msg)
-	return errors.New(msg)
+	compilerError := &CompileError{
+		Stage:     CompileStageParse,
+		SourcePos: fmt.Sprintf("%s:%d:%d", p.lexer.Source(), loc.Line, loc.Col),
+		Location:  &loc,
+		Err:       errors.New(msg),
+	}
+	return compilerError
 }
 
 func (p *Parser) errUnexpected(offending *Token, expected TokenType) error {