diff --git a/lms/djangoapps/instructor/tests/views/test_special_exams_api_v2.py b/lms/djangoapps/instructor/tests/views/test_special_exams_api_v2.py
index f59b68773291..c054afdaa6aa 100644
--- a/lms/djangoapps/instructor/tests/views/test_special_exams_api_v2.py
+++ b/lms/djangoapps/instructor/tests/views/test_special_exams_api_v2.py
@@ -13,6 +13,7 @@
     create_exam_attempt,
     get_allowances_for_course,
 )
+from edx_proctoring.exceptions import ProctoredBaseException
 from edx_proctoring.models import ProctoredExamStudentAttempt
 from rest_framework import status
 from rest_framework.test import APIClient
@@ -217,6 +218,30 @@ def test_reset_no_attempts(self):
         response = self.client.post(self._url())
         assert response.status_code == status.HTTP_404_NOT_FOUND
 
+    def test_reset_provider_unavailable_returns_descriptive_error(self):
+        """
+        When removing the attempt raises a ProctoredBaseException (e.g. the proctoring
+        provider is unavailable), the view surfaces the exception's HTTP status and
+        message so the instructor dashboard shows a descriptive error rather than a 500.
+        """
+        create_exam_attempt(self.exam_id, self.student.id)
+        message = (
+            'The proctoring provider is temporarily unavailable, so this attempt '
+            'could not be fully reset. Please try again in a few minutes.'
+        )
+        # Simulate a proctoring-provider failure during removal (e.g. edx-proctoring's
+        # BackendProviderCannotRemoveAttempt), which resolves to a 502. Using a base
+        # ProctoredBaseException keeps the test independent of the edx-proctoring release.
+        provider_error = ProctoredBaseException(message)
+        provider_error.http_status = status.HTTP_502_BAD_GATEWAY
+        with patch(
+            'lms.djangoapps.instructor.views.api_v2.remove_exam_attempt',
+            side_effect=provider_error,
+        ):
+            response = self.client.post(self._url())
+        assert response.status_code == status.HTTP_502_BAD_GATEWAY
+        assert response.json()['detail'] == message
+
 
 @override_settings(**PROCTORING_SETTINGS)
 @override_settings(ENABLE_SPECIAL_EXAMS=True)
diff --git a/lms/djangoapps/instructor/views/api_v2.py b/lms/djangoapps/instructor/views/api_v2.py
index 871aa90cf961..e63a66b0bb7c 100644
--- a/lms/djangoapps/instructor/views/api_v2.py
+++ b/lms/djangoapps/instructor/views/api_v2.py
@@ -4270,8 +4270,15 @@ def post(self, request, course_id, exam_id, username):
                 status=status.HTTP_404_NOT_FOUND,
             )
 
-        for attempt in user_attempts:
-            remove_exam_attempt(attempt['id'], requesting_user=request.user)
+        try:
+            for attempt in user_attempts:
+                remove_exam_attempt(attempt['id'], requesting_user=request.user)
+        except ProctoredBaseException as err:
+            # The proctoring provider (or another proctoring-layer error) prevented the
+            # attempt from being removed. Surface the typed exception's status and message
+            # (e.g. a 502 when the provider is unavailable) so the instructor dashboard can
+            # display a descriptive error instead of a generic 500.
+            return Response({'detail': str(err)}, status=err.http_status)
 
         return Response(
             {'success': True, 'message': f'Exam attempt reset for user {username}'},