diff --git a/logic/src/commonMain/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepository.kt b/logic/src/commonMain/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepository.kt
index 9b89cc90082..e02fa479b99 100644
--- a/logic/src/commonMain/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepository.kt
+++ b/logic/src/commonMain/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepository.kt
@@ -181,7 +181,9 @@ internal class ConversationGroupRepositoryImpl(
                     Either.Right(Unit)
                 } else {
                     newGroupConversationSystemMessagesCreator.value.conversationFailedToAddMembers(
-                        conversationEntity.id.toModel(), protocolSpecificAdditionFailures.toList(), FailedToAdd.Type.Unknown
+                        conversationId = conversationEntity.id.toModel(),
+                        userIdList = protocolSpecificAdditionFailures.toList(),
+                        type = FailedToAdd.Type.Federation
                     )
                 }
             }.flatMap {
@@ -427,7 +429,7 @@ internal class ConversationGroupRepositoryImpl(
                     }
                 }
         } else {
-            val failType = (lastUsersAttempt as? LastUsersAttempt.Failed)?.failType ?: FailedToAdd.Type.Unknown
+            val failType = apiResult.value.toFailedToAddType()
             newGroupConversationSystemMessagesCreator.value.conversationFailedToAddMembers(
                 conversationId, userIdList + lastUsersAttempt.failedUsers, failType
             ).flatMap {
@@ -597,6 +599,12 @@ internal class ConversationGroupRepositoryImpl(
             Either.Right(ValidToInvalidUsers(userIdList, emptyList(), FailedToAdd.Type.Unknown))
     }
 
+    private fun CoreFailure.toFailedToAddType() = when {
+        this is NetworkFailure.FederatedBackendFailure -> FailedToAdd.Type.Federation
+        this.isMissingLegalHoldConsentError -> FailedToAdd.Type.LegalHold
+        else -> FailedToAdd.Type.Unknown
+    }
+
     /**
      * Filter the initial [userIdList] into valid and invalid users where valid users are only team members.
      */
diff --git a/logic/src/commonTest/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepositoryTest.kt b/logic/src/commonTest/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepositoryTest.kt
index 2fb0a6f96a1..23ea9e22075 100644
--- a/logic/src/commonTest/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepositoryTest.kt
+++ b/logic/src/commonTest/kotlin/com/wire/kalium/logic/data/conversation/ConversationGroupRepositoryTest.kt
@@ -333,7 +333,7 @@ class ConversationGroupRepositoryTest {
                     arrangement.newGroupConversationSystemMessagesCreator.conversationFailedToAddMembers(
                         any(),
                         matches { it.containsAll(missingMembersFromMLSGroup) },
-                        any()
+                        eq(MessageContent.MemberChange.FailedToAdd.Type.Federation)
                     )
                 }.wasInvoked(once)
             }
@@ -1162,6 +1162,43 @@ class ConversationGroupRepositoryTest {
             }.wasInvoked(once)
         }
 
+    @Test
+    fun givenAConversationFailsWithGeneralFederationError_whenAddingMembers_thenRetryIsNotExecutedAndCreateSysMessage() =
+        runTest {
+            // given
+            val (arrangement, conversationGroupRepository) = Arrangement()
+                .withConversationDetailsById(TestConversation.CONVERSATION)
+                .withProtocolInfoById(PROTEUS_PROTOCOL_INFO)
+                .withFetchUsersIfUnknownByIdsSuccessful()
+                .withAddMemberAPIFailsFirstWithUnreachableThenSucceed(arrayOf(FEDERATION_ERROR_GENERAL, FEDERATION_ERROR_GENERAL))
+                .withSuccessfulHandleMemberJoinEvent()
+                .withInsertFailedToAddSystemMessageSuccess()
+                .arrange()
+
+            // when
+            val expectedInitialUsersNotFromUnreachableInformed = listOf(TestConversation.USER_1)
+            conversationGroupRepository.addMembers(expectedInitialUsersNotFromUnreachableInformed, TestConversation.ID).shouldFail()
+
+            // then
+            coVerify {
+                arrangement.conversationApi.addMember(any(), any())
+            }.wasInvoked(exactly = once)
+
+            coVerify {
+                arrangement.memberJoinEventHandler.handle(any())
+            }.wasNotInvoked()
+
+            coVerify {
+                arrangement.newGroupConversationSystemMessagesCreator.conversationFailedToAddMembers(
+                    conversationId = any(),
+                    userIdList = matches {
+                        it.containsAll(expectedInitialUsersNotFromUnreachableInformed)
+                    },
+                    type = eq(MessageContent.MemberChange.FailedToAdd.Type.Federation)
+                )
+            }.wasInvoked(once)
+        }
+
     @Test
     fun givenAValidConversation_whenCreating_thenConversationIsCreatedAndUnverifiedWarningSystemMessagePersisted() = runTest {
         val (arrangement, conversationGroupRepository) = Arrangement()
@@ -1887,6 +1924,10 @@ class ConversationGroupRepositoryTest {
             )
         )
 
+        val FEDERATION_ERROR_GENERAL = NetworkResponse.Error(
+            KaliumException.FederationError(ErrorResponse(422, "", "federation-remote-error"))
+        )
+
         val ERROR_MISSING_LEGALHOLD_CONSENT = NetworkResponse.Error(
             KaliumException.InvalidRequestError(
                 ErrorResponse(