diff --git a/AGENTS.md b/AGENTS.md
index ca840376b5..13cb5ac870 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -7,7 +7,7 @@ You are a senior Cal.com engineer working in a Yarn/Turbo monorepo. You prioriti
 - Use `select` instead of `include` in Prisma queries for performance and security
 - Use `import type { X }` for TypeScript type imports
 - Use early returns to reduce nesting: `if (!booking) return null;`
-- Use TRPCError with proper error codes for API errors
+- Use `ErrorWithCode` for errors in non-tRPC files (services, repositories, utilities); use `TRPCError` only in tRPC routers
 - Use conventional commits: `feat:`, `fix:`, `refactor:`
 - Create PRs in draft mode by default
 - Run `yarn type-check:ci --force` before concluding CI failures are unrelated to your changes
@@ -131,15 +131,14 @@ packages/lib/                # Shared utilities
 
 ```typescript
 // Good - Descriptive error with context
-throw new TRPCError({
-  code: "BAD_REQUEST",
-  message: `Unable to create booking: User ${userId} has no available time slots for ${date}`,
-});
+throw new Error(`Unable to create booking: User ${userId} has no available time slots for ${date}`);
 
 // Bad - Generic error
 throw new Error("Booking failed");
 ```
 
+For which error class to use (`ErrorWithCode` vs `TRPCError`) and concrete examples, see [Error Types in knowledge-base.md](agents/knowledge-base.md#error-types).
+
 ### Good Prisma query
 
 ```typescript
diff --git a/agents/knowledge-base.md b/agents/knowledge-base.md
index 22163f3ea3..ed94725bdd 100644
--- a/agents/knowledge-base.md
+++ b/agents/knowledge-base.md
@@ -225,16 +225,38 @@ throw new Error("Booking failed");
 
 ### Error Types
 
+Use `ErrorWithCode` for files that are not directly coupled to tRPC. The tRPC package has a middleware called `errorConversionMiddleware` that automatically converts `ErrorWithCode` instances into `TRPCError` instances.
+
 ```typescript
-// ✅ Good - Use proper error classes
+// ✅ Good - Use ErrorWithCode in non-tRPC files (services, repositories, utilities)
+import { ErrorCode } from "@calcom/lib/errorCodes";
+import { ErrorWithCode } from "@calcom/lib/errors";
+
+// Option 1: Using constructor with ErrorCode enum
+throw new ErrorWithCode(ErrorCode.BookingNotFound, "Booking not found");
+
+// Option 2: Using the Factory pattern for common HTTP errors
+throw ErrorWithCode.Factory.Forbidden("You don't have permission to view this");
+throw ErrorWithCode.Factory.NotFound("Resource not found");
+throw ErrorWithCode.Factory.BadRequest("Invalid input");
+
+// ✅ Good - Use TRPCError only in tRPC routers/procedures
 import { TRPCError } from "@trpc/server";
 
 throw new TRPCError({
   code: "BAD_REQUEST",
   message: "Invalid booking time slot",
 });
+
+// ❌ Bad - Using TRPCError in non-tRPC files
+import { TRPCError } from "@trpc/server";
+// Don't use TRPCError in services, repositories, or utility files
 ```
 
+### packages/features Import Restrictions
+
+Files in `packages/features/**` should NOT import from `trpc`. This keeps the features package decoupled from the tRPC layer, making the code more reusable and testable. Use `ErrorWithCode` for error handling in these files, and let the tRPC middleware handle the conversion.
+
 ## Basic Performance Guidelines
 
 - Aim for O(n) or O(n log n) complexity, avoid O(n²)