diff --git a/internal/internal_nexus_task_handler.go b/internal/internal_nexus_task_handler.go
index 02ed585dc..55164b120 100644
--- a/internal/internal_nexus_task_handler.go
+++ b/internal/internal_nexus_task_handler.go
@@ -45,6 +45,11 @@ import (
 	"go.temporal.io/sdk/log"
 )
 
+// errNexusTaskTimeout is returned when the Nexus task handler times out.
+// It is used instead of context.DeadlineExceeded to allow the poller to differentiate between Nexus task handler
+// timeout and other errors.
+var errNexusTaskTimeout = errors.New("nexus task timeout")
+
 func nexusHandlerError(t nexus.HandlerErrorType, message string) *nexuspb.HandlerError {
 	return &nexuspb.HandlerError{
 		ErrorType: string(t),
@@ -211,7 +216,7 @@ func (h *nexusTaskHandler) handleStartOperation(
 		opres, err = h.nexusHandler.StartOperation(ctx, req.GetService(), req.GetOperation(), input, startOptions)
 	}()
 	if ctx.Err() != nil {
-		return nil, nil, ctx.Err()
+		return nil, nil, errNexusTaskTimeout
 	}
 	if err != nil {
 		var unsuccessfulOperationErr *nexus.UnsuccessfulOperationError
@@ -302,7 +307,7 @@ func (h *nexusTaskHandler) handleCancelOperation(ctx context.Context, nctx *Nexu
 		err = h.nexusHandler.CancelOperation(ctx, req.GetService(), req.GetOperation(), req.GetOperationId(), cancelOptions)
 	}()
 	if ctx.Err() != nil {
-		return nil, nil, ctx.Err()
+		return nil, nil, errNexusTaskTimeout
 	}
 	if err != nil {
 		err = convertKnownErrors(err)
diff --git a/internal/internal_nexus_task_poller.go b/internal/internal_nexus_task_poller.go
index 2fcf15c3c..39e515c71 100644
--- a/internal/internal_nexus_task_poller.go
+++ b/internal/internal_nexus_task_poller.go
@@ -158,8 +158,14 @@ func (ntp *nexusTaskPoller) ProcessTask(task interface{}) error {
 	// Failure from user handler.
 	// Special case for the start response with operation error.
 	if err != nil {
+		var failureTag string
+		if err == errNexusTaskTimeout {
+			failureTag = "timeout"
+		} else {
+			failureTag = "internal_sdk_error"
+		}
 		metricsHandler.
-			WithTags(metrics.NexusTaskFailureTags("internal_sdk_error")).
+			WithTags(metrics.NexusTaskFailureTags(failureTag)).
 			Counter(metrics.NexusTaskExecutionFailedCounter).
 			Inc(1)
 	} else if failure != nil {
diff --git a/test/nexus_test.go b/test/nexus_test.go
index 041a44bfd..bbe7c0bd1 100644
--- a/test/nexus_test.go
+++ b/test/nexus_test.go
@@ -194,6 +194,9 @@ var syncOp = temporalnexus.NewSyncOperation("sync-op", func(ctx context.Context,
 		return "", temporal.NewApplicationErrorWithOptions("fake app error for test", "FakeTestError", temporal.ApplicationErrorOptions{
 			NonRetryable: true,
 		})
+	case "timeout":
+		<-ctx.Done()
+		return "", ctx.Err()
 	case "panic":
 		panic("panic requested")
 	}
@@ -351,6 +354,23 @@ func TestNexusSyncOperation(t *testing.T) {
 			tc.requireFailureCounter(t, service.Name, syncOp.Name(), "handler_error_INTERNAL")
 		}, time.Second*3, time.Millisecond*100)
 	})
+
+	t.Run("timeout", func(t *testing.T) {
+		_, err := nexus.ExecuteOperation(ctx, nc, syncOp, "timeout", nexus.ExecuteOperationOptions{
+			// Force shorter timeout to speed up the test and get a response back.
+			Header: nexus.Header{nexus.HeaderRequestTimeout: "300ms"},
+		})
+		var handlerErr *nexus.HandlerError
+		require.ErrorAs(t, err, &handlerErr)
+		require.Equal(t, nexus.HandlerErrorTypeUpstreamTimeout, handlerErr.Type)
+
+		require.EventuallyWithT(t, func(t *assert.CollectT) {
+			// NOTE metrics.NexusTaskEndToEndLatency isn't recorded on timeouts.
+			tc.requireTimer(t, metrics.NexusTaskScheduleToStartLatency, service.Name, syncOp.Name())
+			tc.requireTimer(t, metrics.NexusTaskExecutionLatency, service.Name, syncOp.Name())
+			tc.requireFailureCounter(t, service.Name, syncOp.Name(), "timeout")
+		}, time.Second*3, time.Millisecond*100)
+	})
 }
 
 func TestNexusWorkflowRunOperation(t *testing.T) {