diff --git a/temporalio/converter.py b/temporalio/converter.py
index 3849a47f4..a488c7e48 100644
--- a/temporalio/converter.py
+++ b/temporalio/converter.py
@@ -1118,9 +1118,12 @@ def from_failure(
         err: temporalio.exceptions.FailureError | nexusrpc.HandlerError
         if failure.HasField("application_failure_info"):
             app_info = failure.application_failure_info
-            err = temporalio.exceptions.ApplicationError(
+            err = temporalio.exceptions.ApplicationError._from_failure(
                 failure.message or "Application error",
-                *payload_converter.from_payloads_wrapper(app_info.details),
+                app_info.details
+                if app_info.details and app_info.details.payloads
+                else None,
+                payload_converter,
                 type=app_info.type or None,
                 non_retryable=app_info.non_retryable,
                 next_retry_delay=app_info.next_retry_delay.ToTimedelta(),
diff --git a/temporalio/exceptions.py b/temporalio/exceptions.py
index f8f8ca20c..3e04b084f 100644
--- a/temporalio/exceptions.py
+++ b/temporalio/exceptions.py
@@ -1,6 +1,7 @@
 """Common Temporal exceptions."""
 
 import asyncio
+import typing
 from collections.abc import Sequence
 from datetime import timedelta
 from enum import IntEnum
@@ -8,6 +9,10 @@
 
 import temporalio.api.enums.v1
 import temporalio.api.failure.v1
+from temporalio.api.common.v1.message_pb2 import Payloads
+
+if typing.TYPE_CHECKING:
+    from temporalio.converter import PayloadConverter
 
 
 class TemporalError(Exception):
@@ -102,14 +107,55 @@ def __init__(
             exc_args=(message if not type else f"{type}: {message}",),
         )
         self._details = details
+        self._payloads: Payloads | None = None
         self._type = type
         self._non_retryable = non_retryable
         self._next_retry_delay = next_retry_delay
         self._category = category
+        self._payload_converter: "PayloadConverter | None" = None
+
+    @classmethod
+    def _from_failure(
+        cls,
+        message: str,
+        payloads: Payloads | None,
+        payload_converter: "PayloadConverter",
+        *,
+        type: str | None = None,
+        non_retryable: bool = False,
+        next_retry_delay: timedelta | None = None,
+        category: ApplicationErrorCategory = ApplicationErrorCategory.UNSPECIFIED,
+    ) -> "ApplicationError":
+        """Create an ApplicationError from failure payloads (internal use only)."""
+        # Create instance using regular constructor first
+        instance = cls(
+            message,
+            type=type,
+            non_retryable=non_retryable,
+            next_retry_delay=next_retry_delay,
+            category=category,
+        )
+        # Override details and payload converter for lazy loading if payloads exist
+        if payloads is not None:
+            instance._payloads = payloads
+            instance._payload_converter = payload_converter
+        return instance
 
     @property
     def details(self) -> Sequence[Any]:
         """User-defined details on the error."""
+        return self.details_with_type_hints()
+
+    def details_with_type_hints(
+        self, type_hints: list[type] | None = None
+    ) -> Sequence[Any]:
+        """User-defined details on the error with type hints for deserialization."""
+        if self._payload_converter and self._payloads is not None:
+            if not self._payloads or not self._payloads.payloads:
+                return []
+            return self._payload_converter.from_payloads(
+                self._payloads.payloads, type_hints
+            )
         return self._details
 
     @property
diff --git a/tests/test_converter.py b/tests/test_converter.py
index bb5b3c8bc..426f7607e 100644
--- a/tests/test_converter.py
+++ b/tests/test_converter.py
@@ -684,3 +684,176 @@ def test_value_to_type_literal_key():
 
     # Function executes without error
     value_to_type(hint_with_bug, value_to_convert, custom_converters)
+
+
+@dataclass
+class MyCustomDetail:
+    name: str
+    value: int
+    timestamp: datetime
+
+
+async def test_application_error_details_with_type_hints():
+    """Test ApplicationError details with type hints functionality."""
+
+    # Test data
+    detail_str = "error detail"
+    detail_int = 123
+    detail_custom = MyCustomDetail("test", 42, datetime(2023, 1, 1, 12, 0, 0))
+
+    # Create an ApplicationError directly with various details
+    original_error = ApplicationError(
+        "Test error message", detail_str, detail_int, detail_custom, type="TestError"
+    )
+
+    # Convert to failure and back through the converter (simulating round-trip)
+    failure = Failure()
+    converter = DataConverter.default
+    await converter.encode_failure(original_error, failure)
+    decoded_error = await converter.decode_failure(failure)
+
+    assert isinstance(decoded_error, ApplicationError)
+    assert decoded_error.message == "Test error message"
+    assert decoded_error.type == "TestError"
+
+    # Test accessing details without type hints (default behavior)
+    details = decoded_error.details
+    assert len(details) == 3
+    assert details[0] == detail_str
+    assert details[1] == detail_int
+    # Custom object becomes a dict when no type hint is provided
+    assert isinstance(details[2], dict)
+    assert details[2]["name"] == "test"
+    assert details[2]["value"] == 42
+    assert details[2]["timestamp"] == "2023-01-01T12:00:00"
+
+    # Test accessing details with type hints
+    typed_details = decoded_error.details_with_type_hints([str, int, MyCustomDetail])
+    assert len(typed_details) == 3
+    assert typed_details[0] == detail_str
+    assert typed_details[1] == detail_int
+    # Custom object is properly reconstructed with type hint
+    assert isinstance(typed_details[2], MyCustomDetail)
+    assert typed_details[2].name == "test"
+    assert typed_details[2].value == 42
+    assert typed_details[2].timestamp == datetime(2023, 1, 1, 12, 0, 0)
+
+
+async def test_application_error_details_empty():
+    """Test ApplicationError with no details."""
+
+    error = ApplicationError("No details error", type="NoDetails")
+
+    failure = Failure()
+    converter = DataConverter.default
+    await converter.encode_failure(error, failure)
+    decoded_error = await converter.decode_failure(failure)
+
+    assert isinstance(decoded_error, ApplicationError)
+    assert len(decoded_error.details) == 0
+    assert len(decoded_error.details_with_type_hints([])) == 0
+
+
+async def test_application_error_details_partial_type_hints():
+    """Test ApplicationError details with partial type hints."""
+
+    detail1 = "string detail"
+    detail2 = 456
+    detail3 = MyCustomDetail("partial", 99, datetime(2023, 6, 15, 9, 30, 0))
+
+    error = ApplicationError(
+        "Partial hints error", detail1, detail2, detail3, type="PartialHints"
+    )
+
+    failure = Failure()
+    converter = DataConverter.default
+    await converter.encode_failure(error, failure)
+    decoded_error = await converter.decode_failure(failure)
+
+    # Provide type hints for only the first two details
+    assert isinstance(decoded_error, ApplicationError)
+    typed_details = decoded_error.details_with_type_hints([str, int])
+    assert len(typed_details) == 3
+    assert typed_details[0] == detail1
+    assert typed_details[1] == detail2
+    # Third detail has no type hint, so it remains as dict
+    assert isinstance(typed_details[2], dict)
+    assert typed_details[2]["name"] == "partial"
+
+
+async def test_application_error_details_direct_creation():
+    """Test ApplicationError created directly with payload converter."""
+
+    detail1 = "direct detail"
+    detail2 = MyCustomDetail("direct", 777, datetime(2023, 12, 25, 14, 15, 0))
+
+    # Create error with payload converter directly
+    converter = DataConverter.default.payload_converter
+    payloads_wrapper = converter.to_payloads_wrapper([detail1, detail2])
+
+    error = ApplicationError._from_failure(
+        "Direct creation error",
+        payloads_wrapper,
+        converter,
+        type="Direct",
+    )
+
+    # Test default details access
+    details = error.details
+    assert len(details) == 2
+    assert details[0] == detail1
+    assert isinstance(details[1], dict)  # No type hint
+
+    # Test with type hints
+    typed_details = error.details_with_type_hints([str, MyCustomDetail])
+    assert len(typed_details) == 2
+    assert typed_details[0] == detail1
+    assert isinstance(typed_details[1], MyCustomDetail)
+    assert typed_details[1].name == "direct"
+    assert typed_details[1].value == 777
+
+
+async def test_application_error_details_none_payload_converter():
+    """Test ApplicationError when no payload converter is set."""
+
+    detail1 = "no converter detail"
+    detail2 = 999
+
+    # Create error without payload converter
+    error = ApplicationError("No converter error", detail1, detail2, type="NoConverter")
+
+    # Both methods should return the same result - the raw details tuple
+    details = error.details
+    typed_details = error.details_with_type_hints([str, int])
+
+    assert details == (detail1, detail2)
+    assert typed_details == (detail1, detail2)
+
+
+def test_application_error_details_edge_cases():
+    """Test edge cases for ApplicationError details."""
+
+    # Test with None payload converter and empty Payloads
+    from temporalio.api.common.v1 import Payloads
+
+    empty_payloads = Payloads()
+
+    error = ApplicationError._from_failure(
+        "Empty payloads",
+        empty_payloads,
+        DataConverter.default.payload_converter,
+    )
+
+    assert len(error.details) == 0
+    assert len(error.details_with_type_hints([str])) == 0
+
+    # Test with non-Payloads details when payload_converter is set
+    error2 = ApplicationError(
+        "Non-payloads details",
+        "string",
+        123,
+    )
+
+    # Should return the raw details since they're not Payloads
+    assert error2.details == ("string", 123)
+    assert error2.details_with_type_hints([str, int]) == ("string", 123)