diff --git a/.changeset/lucky-sites-wash.md b/.changeset/lucky-sites-wash.md
new file mode 100644
index 000000000000..fc4a2f5fb6bb
--- /dev/null
+++ b/.changeset/lucky-sites-wash.md
@@ -0,0 +1,5 @@
+---
+'@sveltejs/kit': minor
+---
+
+feat: better server-side error logging
diff --git a/packages/kit/src/runtime/server/index.js b/packages/kit/src/runtime/server/index.js
index d6c27d7a3069..10052a10b49d 100644
--- a/packages/kit/src/runtime/server/index.js
+++ b/packages/kit/src/runtime/server/index.js
@@ -3,6 +3,7 @@ import { set_private_env, set_public_env } from '../shared-server.js';
 import { options, get_hooks } from '__SERVER__/internal.js';
 import { DEV } from 'esm-env';
 import { filter_env } from '../../utils/env.js';
+import { format_server_error } from './utils.js';
 import { set_read_implementation, set_manifest } from '__sveltekit/server';
 import { set_app } from './app.js';
 
@@ -87,8 +88,14 @@ export class Server {
 					handle: module.handle || (({ event, resolve }) => resolve(event)),
 					handleError:
 						module.handleError ||
-						(({ status, error }) =>
-							console.error((status === 404 && /** @type {Error} */ (error)?.message) || error)),
+						(({ status, error, event }) => {
+							const error_message = format_server_error(
+								status,
+								/** @type {Error} */ (error),
+								event
+							);
+							console.error(error_message);
+						}),
 					handleFetch: module.handleFetch || (({ request, fetch }) => fetch(request)),
 					handleValidationError:
 						module.handleValidationError ||
diff --git a/packages/kit/src/runtime/server/utils.js b/packages/kit/src/runtime/server/utils.js
index f8f49cef00bc..91dbd1cb8f99 100644
--- a/packages/kit/src/runtime/server/utils.js
+++ b/packages/kit/src/runtime/server/utils.js
@@ -186,6 +186,59 @@ export function has_prerendered_path(manifest, pathname) {
 	);
 }
 
+/**
+ * Formats the error into a nice message with sanitized stack trace
+ * @param {number} status
+ * @param {Error} error
+ * @param {import('@sveltejs/kit').RequestEvent} event
+ */
+export function format_server_error(status, error, event) {
+	const formatted_text = `\n\x1b[1;31m[${status}] ${event.request.method} ${event.url.pathname}\x1b[0m\n`;
+
+	if (status === 404) {
+		return formatted_text + error.message;
+	}
+
+	return formatted_text + (DEV ? clean_up_stack_trace(error) : error.stack);
+}
+
+/**
+ * In dev, tidy up stack traces by making paths relative to the current project directory
+ * @param {string} file
+ */
+let relative = (file) => file;
+
+if (DEV) {
+	try {
+		const path = await import('node:path');
+		const process = await import('node:process');
+
+		relative = (file) => path.relative(process.cwd(), file);
+	} catch {
+		// do nothing
+	}
+}
+
+/**
+ * Provides a refined stack trace by excluding lines following the last occurrence of a line containing +page. +layout. or +server.
+ * @param {Error} error
+ */
+export function clean_up_stack_trace(error) {
+	const stack_trace = (error.stack?.split('\n') ?? []).map((line) => {
+		return line.replace(/\((.+)(:\d+:\d+)\)$/, (_, file, loc) => `(${relative(file)}${loc})`);
+	});
+
+	// progressive enhancement for people who haven't configured kit.files.src to something else
+	const last_line_from_src_code = stack_trace.findLastIndex((line) => /\(src[\\/]/.test(line));
+
+	if (last_line_from_src_code === -1) {
+		// default to the whole stack trace
+		return error.stack;
+	}
+
+	return stack_trace.slice(0, last_line_from_src_code + 1).join('\n');
+}
+
 /**
  * Returns the filename without the extension. e.g., `+page.server`, `+page`, etc.
  * @param {string | undefined} node_id
diff --git a/packages/kit/tsconfig.json b/packages/kit/tsconfig.json
index 8b927b041456..f87ec5cfe3cb 100644
--- a/packages/kit/tsconfig.json
+++ b/packages/kit/tsconfig.json
@@ -4,7 +4,7 @@
 		"checkJs": true,
 		"noEmit": true,
 		"strict": true,
-		"target": "es2022",
+		"target": "es2023",
 		"module": "node16",
 		"moduleResolution": "node16",
 		"allowSyntheticDefaultImports": true,
diff --git a/playgrounds/basic/src/routes/+page.svelte b/playgrounds/basic/src/routes/+page.svelte
index 6cbe780c41be..1ce9b67c8dd5 100644
--- a/playgrounds/basic/src/routes/+page.svelte
+++ b/playgrounds/basic/src/routes/+page.svelte
@@ -6,6 +6,9 @@
 
 <h1>Welcome to SvelteKit</h1>
 
+<p><a href="images">images</a></p>
+<p><a href="force-error">force error</a></p>
+
 <h2>Todos</h2>
 
 <h3>todo via JS</h3>
diff --git a/playgrounds/basic/src/routes/force-error/+page.server.ts b/playgrounds/basic/src/routes/force-error/+page.server.ts
new file mode 100644
index 000000000000..5de264103568
--- /dev/null
+++ b/playgrounds/basic/src/routes/force-error/+page.server.ts
@@ -0,0 +1,5 @@
+export const actions = {
+	default: async () => {
+		throw new Error('test');
+	}
+};
diff --git a/playgrounds/basic/src/routes/force-error/+page.svelte b/playgrounds/basic/src/routes/force-error/+page.svelte
new file mode 100644
index 000000000000..96467abec651
--- /dev/null
+++ b/playgrounds/basic/src/routes/force-error/+page.svelte
@@ -0,0 +1,4 @@
+<br />
+<form method="post">
+	<button type="submit"> Trigger server error </button>
+</form>