diff --git a/tests/test_inter_peer_cancellation.py b/tests/test_inter_peer_cancellation.py
index e3c8a7d..470287f 100644
--- a/tests/test_inter_peer_cancellation.py
+++ b/tests/test_inter_peer_cancellation.py
@@ -16,6 +16,11 @@ from tractor import (  # typing
     Portal,
     Context,
     ContextCancelled,
+    RemoteActorError,
+)
+from tractor._testing import (
+    # tractor_test,
+    expect_ctxc,
 )
 
 # XXX TODO cases:
@@ -156,10 +161,11 @@ def test_do_not_swallow_error_before_started_by_remote_contextcancelled(
             ):
                 await trio.sleep_forever()
 
-    with pytest.raises(tractor.RemoteActorError) as excinfo:
+    with pytest.raises(RemoteActorError) as excinfo:
         trio.run(main)
 
-    assert excinfo.value.type == TypeError
+    rae = excinfo.value
+    assert rae.boxed_type == TypeError
 
 
 @tractor.context
@@ -739,14 +745,16 @@ def test_peer_canceller(
         with pytest.raises(ContextCancelled) as excinfo:
             trio.run(main)
 
-        assert excinfo.value.type == ContextCancelled
+        assert excinfo.value.boxed_type == ContextCancelled
         assert excinfo.value.canceller[0] == 'canceller'
 
 
 @tractor.context
 async def basic_echo_server(
     ctx: Context,
-    peer_name: str = 'stepbro',
+    peer_name: str = 'wittle_bruv',
+
+    err_after: int|None = None,
 
 ) -> None:
     '''
@@ -774,17 +782,31 @@ async def basic_echo_server(
             # assert 0
             await ipc.send(resp)
 
+            if (
+                err_after
+                and i > err_after
+            ):
+                raise RuntimeError(
+                    f'Simulated error in `{peer_name}`'
+                )
+
 
 @tractor.context
 async def serve_subactors(
     ctx: Context,
     peer_name: str,
+    debug_mode: bool,
 
 ) -> None:
     async with open_nursery() as an:
+
+        # sanity
+        if debug_mode:
+            assert tractor._state.debug_mode()
+
         await ctx.started(peer_name)
-        async with ctx.open_stream() as reqs:
-            async for msg in reqs:
+        async with ctx.open_stream() as ipc:
+            async for msg in ipc:
                 peer_name: str = msg
                 peer: Portal = await an.start_actor(
                     name=peer_name,
@@ -795,7 +817,7 @@ async def serve_subactors(
                     f'{peer_name}\n'
                     f'|_{peer}\n'
                 )
-                await reqs.send((
+                await ipc.send((
                     peer.chan.uid,
                     peer.chan.raddr,
                 ))
@@ -807,14 +829,20 @@ async def serve_subactors(
 async def client_req_subactor(
     ctx: Context,
     peer_name: str,
+    debug_mode: bool,
 
     # used to simulate a user causing an error to be raised
     # directly in thread (like a KBI) to better replicate the
     # case where a `modden` CLI client would hang afer requesting
     # a `Context.cancel()` to `bigd`'s wks spawner.
     reraise_on_cancel: str|None = None,
+    sub_err_after: int|None = None,
 
 ) -> None:
+    # sanity
+    if debug_mode:
+        assert tractor._state.debug_mode()
+
     # TODO: other cases to do with sub lifetimes:
     # -[ ] test that we can have the server spawn a sub
     #   that lives longer then ctx with this client.
@@ -836,6 +864,7 @@ async def client_req_subactor(
         spawner.open_context(
             serve_subactors,
             peer_name=peer_name,
+            debug_mode=debug_mode,
         ) as (spawner_ctx, first),
     ):
         assert first == peer_name
@@ -857,6 +886,7 @@ async def client_req_subactor(
             await tell_little_bro(
                 actor_name=sub_uid[0],
                 caller='client',
+                err_after=sub_err_after,
             )
 
             # TODO: test different scope-layers of
@@ -868,9 +898,7 @@ async def client_req_subactor(
             # TODO: would be super nice to have a special injected
             # cancel type here (maybe just our ctxc) but using
             # some native mechanism in `trio` :p
-            except (
-                trio.Cancelled
-            ) as err:
+            except trio.Cancelled as err:
                 _err = err
                 if reraise_on_cancel:
                     errtype = globals()['__builtins__'][reraise_on_cancel]
@@ -897,7 +925,9 @@ async def client_req_subactor(
 
 async def tell_little_bro(
     actor_name: str,
-    caller: str = ''
+
+    caller: str = '',
+    err_after: int|None = None,
 ):
     # contact target actor, do a stream dialog.
     async with (
@@ -906,10 +936,12 @@ async def tell_little_bro(
         ) as lb,
         lb.open_context(
             basic_echo_server,
+
+            # XXX proxy any delayed err condition
+            err_after=err_after,
         ) as (sub_ctx, first),
-        sub_ctx.open_stream(
-            basic_echo_server,
-        ) as echo_ipc,
+
+        sub_ctx.open_stream() as echo_ipc,
     ):
         actor: Actor = current_actor()
         uid: tuple = actor.uid
@@ -936,10 +968,15 @@ async def tell_little_bro(
     'raise_client_error',
     [None, 'KeyboardInterrupt'],
 )
+@pytest.mark.parametrize(
+    'raise_sub_spawn_error_after',
+    [None, 50],
+)
 def test_peer_spawns_and_cancels_service_subactor(
     debug_mode: bool,
     raise_client_error: str,
     reg_addr: tuple[str, int],
+    raise_sub_spawn_error_after: int|None,
 ):
     # NOTE: this tests for the modden `mod wks open piker` bug
     # discovered as part of implementing workspace ctx
@@ -953,6 +990,16 @@ def test_peer_spawns_and_cancels_service_subactor(
     #   and the server's spawned child should cancel and terminate!
     peer_name: str = 'little_bro'
 
+    def check_inner_rte(rae: RemoteActorError):
+        '''
+        Validate the little_bro's relayed inception!
+
+        '''
+        assert rae.boxed_type is RemoteActorError
+        assert rae.src_type is RuntimeError
+        assert 'client' in rae.relay_uid
+        assert peer_name in rae.src_uid
+
     async def main():
         async with tractor.open_nursery(
             # NOTE: to halt the peer tasks on ctxc, uncomment this.
@@ -976,14 +1023,24 @@ def test_peer_spawns_and_cancels_service_subactor(
                     server.open_context(
                         serve_subactors,
                         peer_name=peer_name,
+                        debug_mode=debug_mode,
+
                     ) as (spawn_ctx, first),
 
                     client.open_context(
                         client_req_subactor,
                         peer_name=peer_name,
+                        debug_mode=debug_mode,
                         reraise_on_cancel=raise_client_error,
+
+                        # trigger for error condition in sub
+                        # during streaming.
+                        sub_err_after=raise_sub_spawn_error_after,
+
                     ) as (client_ctx, client_says),
                 ):
+                    root: Actor = current_actor()
+                    spawner_uid: tuple = spawn_ctx.chan.uid
                     print(
                         f'Server says: {first}\n'
                         f'Client says: {client_says}\n'
@@ -993,6 +1050,7 @@ def test_peer_spawns_and_cancels_service_subactor(
                     # (grandchild of this root actor) "little_bro"
                     # and ensure we can also use it as an echo
                     # server.
+                    sub: Portal
                     async with tractor.wait_for_actor(
                         name=peer_name,
                     ) as sub:
@@ -1004,56 +1062,139 @@ def test_peer_spawns_and_cancels_service_subactor(
                         f'.uid: {sub.actor.uid}\n'
                         f'chan.raddr: {sub.chan.raddr}\n'
                     )
-                    await tell_little_bro(
-                        actor_name=peer_name,
-                        caller='root',
-                    )
 
-                    # signal client to raise a KBI
-                    await client_ctx.cancel()
-                    print('root cancelled client, checking that sub-spawn is down')
+                    async with expect_ctxc(
+                        yay=raise_sub_spawn_error_after,
+                        reraise=False,
+                    ):
+                        await tell_little_bro(
+                            actor_name=peer_name,
+                            caller='root',
+                        )
 
-                    async with tractor.find_actor(
-                        name=peer_name,
-                    ) as sub:
-                        assert not sub
+                    if not raise_sub_spawn_error_after:
 
-                    print('root cancelling server/client sub-actors')
+                        # signal client to cancel and maybe raise a KBI
+                        await client_ctx.cancel()
+                        print(
+                            '-> root cancelling client,\n'
+                            '-> root checking `client_ctx.result()`,\n'
+                            f'-> checking that sub-spawn {peer_name} is down\n'
+                        )
+                    # else:
 
-                    # await tractor.pause()
-                    res = await client_ctx.result(hide_tb=False)
-                    assert isinstance(res, ContextCancelled)
-                    assert client_ctx.cancel_acked
-                    assert res.canceller == current_actor().uid
+                    try:
+                        res = await client_ctx.result(hide_tb=False)
+
+                        # in remote (relayed inception) error
+                        # case, we should error on the line above!
+                        if raise_sub_spawn_error_after:
+                            pytest.fail(
+                                'Never rxed proxied `RemoteActorError[RuntimeError]` !?'
+                            )
+
+                        assert isinstance(res, ContextCancelled)
+                        assert client_ctx.cancel_acked
+                        assert res.canceller == root.uid
+
+                    except RemoteActorError as rae:
+                        _err = rae
+                        assert raise_sub_spawn_error_after
+
+                        # since this is a "relayed error" via the client
+                        # sub-actor, it is expected to be
+                        # a `RemoteActorError` boxing another
+                        # `RemoteActorError` otherwise known as
+                        #  an "inception" (from `trio`'s parlance)
+                        # ((or maybe a "Matryoshka" and/or "matron"
+                        # in our own working parlance)) which
+                        # contains the source error from the
+                        # little_bro: a `RuntimeError`.
+                        #
+                        check_inner_rte(rae)
+                        assert rae.relay_uid == client.chan.uid
+                        assert rae.src_uid == sub.chan.uid
+
+                        assert not client_ctx.cancel_acked
+                        assert (
+                            client_ctx.maybe_error
+                            is client_ctx.outcome
+                            is rae
+                        )
+                        raise
+                        # await tractor.pause()
+
+                    else:
+                        assert not raise_sub_spawn_error_after
+
+                        # cancelling the spawner sub should
+                        # transitively cancel it's sub, the little
+                        # bruv.
+                        print('root cancelling server/client sub-actors')
+                        await spawn_ctx.cancel()
+                        async with tractor.find_actor(
+                            name=peer_name,
+                        ) as sub:
+                            assert not sub
 
-                    await spawn_ctx.cancel()
                     # await server.cancel_actor()
 
+            except RemoteActorError as rae:
+                # XXX more-or-less same as above handler
+                # this is just making sure the error bubbles out
+                # of the 
+                _err = rae
+                assert raise_sub_spawn_error_after
+                raise
+
             # since we called `.cancel_actor()`, `.cancel_ack`
             # will not be set on the ctx bc `ctx.cancel()` was not
             # called directly fot this confext.
             except ContextCancelled as ctxc:
-                print('caught ctxc from contexts!')
-                assert ctxc.canceller == current_actor().uid
+                _ctxc = ctxc
+                print(
+                    f'{root.uid} caught ctxc from ctx with {client_ctx.chan.uid}\n'
+                    f'{repr(ctxc)}\n'
+                )
+
+                if not raise_sub_spawn_error_after:
+                    assert ctxc.canceller == root.uid
+                else:
+                    assert ctxc.canceller == spawner_uid
+
                 assert ctxc is spawn_ctx.outcome
                 assert ctxc is spawn_ctx.maybe_error
                 raise
 
-            # assert spawn_ctx.cancel_acked
-            assert spawn_ctx.cancel_acked
-            assert client_ctx.cancel_acked
+            if raise_sub_spawn_error_after:
+                pytest.fail(
+                    'context block(s) in PARENT never raised?!?'
+                )
 
-            await client.cancel_actor()
-            await server.cancel_actor()
+            if not raise_sub_spawn_error_after:
+                # assert spawn_ctx.cancel_acked
+                assert spawn_ctx.cancel_acked
+                assert client_ctx.cancel_acked
 
-            # WOA WOA WOA! we need this to close..!!!??
-            # that's super bad XD
+                await client.cancel_actor()
+                await server.cancel_actor()
 
-            # TODO: why isn't this working!?!?
-            # we're now outside the `.open_context()` block so
-            # the internal `Context._scope: CancelScope` should be
-            # gracefully "closed" ;)
+                # WOA WOA WOA! we need this to close..!!!??
+                # that's super bad XD
 
-            # assert spawn_ctx.cancelled_caught
+                # TODO: why isn't this working!?!?
+                # we're now outside the `.open_context()` block so
+                # the internal `Context._scope: CancelScope` should be
+                # gracefully "closed" ;)
 
-    trio.run(main)
+                # assert spawn_ctx.cancelled_caught
+
+    if raise_sub_spawn_error_after:
+        with pytest.raises(RemoteActorError) as excinfo:
+            trio.run(main)
+
+        rae: RemoteActorError = excinfo.value
+        check_inner_rte(rae)
+
+    else:
+        trio.run(main)