diff --git a/packages/core/src/core/coreToolScheduler.test.ts b/packages/core/src/core/coreToolScheduler.test.ts
index 3b582abe89..6a5e3524a0 100644
--- a/packages/core/src/core/coreToolScheduler.test.ts
+++ b/packages/core/src/core/coreToolScheduler.test.ts
@@ -8,7 +8,6 @@ import { describe, it, expect, vi } from 'vitest';
 import type { Mock } from 'vitest';
 import type { CallableTool } from '@google/genai';
 import { CoreToolScheduler } from './coreToolScheduler.js';
-import { PLAN_MODE_DENIAL_MESSAGE } from '../scheduler/policy.js';
 import type {
   ToolCall,
   WaitingToolCall,
@@ -2161,7 +2160,7 @@ describe('CoreToolScheduler Sequential Execution', () => {
   });
 
   describe('Policy Decisions in Plan Mode', () => {
-    it('should return STOP_EXECUTION error type and informative message when denied in Plan Mode', async () => {
+    it('should return POLICY_VIOLATION error type and informative message when denied in Plan Mode', async () => {
       const mockTool = new MockTool({
         name: 'dangerous_tool',
         displayName: 'Dangerous Tool',
@@ -2205,8 +2204,64 @@ describe('CoreToolScheduler Sequential Execution', () => {
       const result = reportedTools[0];
 
       expect(result.status).toBe('error');
-      expect(result.response.errorType).toBe(ToolErrorType.STOP_EXECUTION);
-      expect(result.response.error.message).toBe(PLAN_MODE_DENIAL_MESSAGE);
+      expect(result.response.errorType).toBe(ToolErrorType.POLICY_VIOLATION);
+      expect(result.response.error.message).toBe(
+        'Tool execution denied by policy.',
+      );
+    });
+
+    it('should return custom deny message when denied in Plan Mode with a specific rule message', async () => {
+      const mockTool = new MockTool({
+        name: 'dangerous_tool',
+        displayName: 'Dangerous Tool',
+        description: 'Does risky stuff',
+      });
+      const mockToolRegistry = {
+        getTool: () => mockTool,
+        getAllToolNames: () => ['dangerous_tool'],
+      } as unknown as ToolRegistry;
+
+      const onAllToolCallsComplete = vi.fn();
+      const customDenyMessage = 'Custom denial message for testing';
+
+      const mockConfig = createMockConfig({
+        getToolRegistry: () => mockToolRegistry,
+        getApprovalMode: () => ApprovalMode.PLAN,
+        getPolicyEngine: () =>
+          ({
+            check: async () => ({
+              decision: PolicyDecision.DENY,
+              rule: { denyMessage: customDenyMessage },
+            }),
+          }) as unknown as PolicyEngine,
+      });
+      mockConfig.getHookSystem = vi.fn().mockReturnValue(undefined);
+
+      const scheduler = new CoreToolScheduler({
+        config: mockConfig,
+        onAllToolCallsComplete,
+        getPreferredEditor: () => 'vscode',
+      });
+
+      const request = {
+        callId: 'call-1',
+        name: 'dangerous_tool',
+        args: {},
+        isClientInitiated: false,
+        prompt_id: 'prompt-1',
+      };
+
+      await scheduler.schedule(request, new AbortController().signal);
+
+      expect(onAllToolCallsComplete).toHaveBeenCalledTimes(1);
+      const reportedTools = onAllToolCallsComplete.mock.calls[0][0];
+      const result = reportedTools[0];
+
+      expect(result.status).toBe('error');
+      expect(result.response.errorType).toBe(ToolErrorType.POLICY_VIOLATION);
+      expect(result.response.error.message).toBe(
+        `Tool execution denied by policy. ${customDenyMessage}`,
+      );
     });
   });
 });
diff --git a/packages/core/src/policy/policies/plan.toml b/packages/core/src/policy/policies/plan.toml
index 4fbcb6c376..4bcecab29f 100644
--- a/packages/core/src/policy/policies/plan.toml
+++ b/packages/core/src/policy/policies/plan.toml
@@ -31,6 +31,7 @@
 decision = "deny"
 priority = 20
 modes = ["plan"]
+deny_message = "You are in Plan Mode - adjust your prompt to only use read and search tools."
 
 # Explicitly Allow Read-Only Tools in Plan mode.
 
diff --git a/packages/core/src/scheduler/policy.test.ts b/packages/core/src/scheduler/policy.test.ts
index ad32b93f93..a076e4c44f 100644
--- a/packages/core/src/scheduler/policy.test.ts
+++ b/packages/core/src/scheduler/policy.test.ts
@@ -13,11 +13,7 @@ import {
   beforeEach,
   afterEach,
 } from 'vitest';
-import {
-  checkPolicy,
-  updatePolicy,
-  PLAN_MODE_DENIAL_MESSAGE,
-} from './policy.js';
+import { checkPolicy, updatePolicy, getPolicyDenialError } from './policy.js';
 import type { Config } from '../config/config.js';
 import type { MessageBus } from '../confirmation-bus/message-bus.js';
 import { MessageBusType } from '../confirmation-bus/types.js';
@@ -441,6 +437,37 @@ describe('policy.ts', () => {
       );
     });
   });
+
+  describe('getPolicyDenialError', () => {
+    it('should return default denial message when no rule provided', () => {
+      const mockConfig = {
+        getApprovalMode: vi.fn().mockReturnValue(ApprovalMode.DEFAULT),
+      } as unknown as Config;
+
+      const { errorMessage, errorType } = getPolicyDenialError(mockConfig);
+
+      expect(errorMessage).toBe('Tool execution denied by policy.');
+      expect(errorType).toBe(ToolErrorType.POLICY_VIOLATION);
+    });
+
+    it('should return custom deny message if provided', () => {
+      const mockConfig = {
+        getApprovalMode: vi.fn().mockReturnValue(ApprovalMode.DEFAULT),
+      } as unknown as Config;
+      const rule = {
+        decision: PolicyDecision.DENY,
+        denyMessage: 'Custom Deny',
+      };
+
+      const { errorMessage, errorType } = getPolicyDenialError(
+        mockConfig,
+        rule,
+      );
+
+      expect(errorMessage).toBe('Tool execution denied by policy. Custom Deny');
+      expect(errorType).toBe(ToolErrorType.POLICY_VIOLATION);
+    });
+  });
 });
 
 describe('Plan Mode Denial Consistency', () => {
@@ -547,8 +574,8 @@ describe('Plan Mode Denial Consistency', () => {
         }
       }
 
-      expect(resultMessage).toBe(PLAN_MODE_DENIAL_MESSAGE);
-      expect(resultErrorType).toBe(ToolErrorType.STOP_EXECUTION);
+      expect(resultMessage).toBe('Tool execution denied by policy.');
+      expect(resultErrorType).toBe(ToolErrorType.POLICY_VIOLATION);
     });
   });
 });
diff --git a/packages/core/src/scheduler/policy.ts b/packages/core/src/scheduler/policy.ts
index 279dea85c7..247b696f22 100644
--- a/packages/core/src/scheduler/policy.ts
+++ b/packages/core/src/scheduler/policy.ts
@@ -26,23 +26,13 @@ import { DiscoveredMCPTool } from '../tools/mcp-tool.js';
 import { EDIT_TOOL_NAMES } from '../tools/tool-names.js';
 import type { ValidatingToolCall } from './types.js';
 
-export const PLAN_MODE_DENIAL_MESSAGE =
-  'You are in Plan Mode - adjust your prompt to only use read and search tools.';
-
 /**
- * Helper to determine the error message and type for a policy denial.
+ * Helper to format the policy denial error.
  */
 export function getPolicyDenialError(
   config: Config,
   rule?: PolicyRule,
 ): { errorMessage: string; errorType: ToolErrorType } {
-  if (config.getApprovalMode() === ApprovalMode.PLAN) {
-    return {
-      errorMessage: PLAN_MODE_DENIAL_MESSAGE,
-      errorType: ToolErrorType.STOP_EXECUTION,
-    };
-  }
-
   const denyMessage = rule?.denyMessage ? ` ${rule.denyMessage}` : '';
   return {
     errorMessage: `Tool execution denied by policy.${denyMessage}`,
diff --git a/packages/core/src/scheduler/scheduler.test.ts b/packages/core/src/scheduler/scheduler.test.ts
index 7fd815a597..a3979f43a6 100644
--- a/packages/core/src/scheduler/scheduler.test.ts
+++ b/packages/core/src/scheduler/scheduler.test.ts
@@ -745,6 +745,63 @@ describe('Scheduler (Orchestrator)', () => {
       );
     });
 
+    it('should return POLICY_VIOLATION error type when denied in Plan Mode', async () => {
+      vi.mocked(checkPolicy).mockResolvedValue({
+        decision: PolicyDecision.DENY,
+        rule: { decision: PolicyDecision.DENY },
+      });
+
+      mockConfig.getApprovalMode.mockReturnValue(ApprovalMode.PLAN);
+
+      await scheduler.schedule(req1, signal);
+
+      expect(mockStateManager.updateStatus).toHaveBeenCalledWith(
+        'call-1',
+        'error',
+        expect.objectContaining({
+          errorType: ToolErrorType.POLICY_VIOLATION,
+          responseParts: expect.arrayContaining([
+            expect.objectContaining({
+              functionResponse: expect.objectContaining({
+                response: {
+                  error: 'Tool execution denied by policy.',
+                },
+              }),
+            }),
+          ]),
+        }),
+      );
+    });
+
+    it('should return POLICY_VIOLATION and custom deny message when denied in Plan Mode with rule message', async () => {
+      const customMessage = 'Custom Plan Mode Deny';
+      vi.mocked(checkPolicy).mockResolvedValue({
+        decision: PolicyDecision.DENY,
+        rule: { decision: PolicyDecision.DENY, denyMessage: customMessage },
+      });
+
+      mockConfig.getApprovalMode.mockReturnValue(ApprovalMode.PLAN);
+
+      await scheduler.schedule(req1, signal);
+
+      expect(mockStateManager.updateStatus).toHaveBeenCalledWith(
+        'call-1',
+        'error',
+        expect.objectContaining({
+          errorType: ToolErrorType.POLICY_VIOLATION,
+          responseParts: expect.arrayContaining([
+            expect.objectContaining({
+              functionResponse: expect.objectContaining({
+                response: {
+                  error: `Tool execution denied by policy. ${customMessage}`,
+                },
+              }),
+            }),
+          ]),
+        }),
+      );
+    });
+
     it('should bypass confirmation and ProceedOnce if Policy returns ALLOW (YOLO/AllowedTools)', async () => {
       vi.mocked(checkPolicy).mockResolvedValue({
         decision: PolicyDecision.ALLOW,