diff --git a/CHANGELOG.md b/CHANGELOG.md
index fd6d2f173..e951229f4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -12,6 +12,7 @@
 ## [10.0.4] IN PROGRESS
 
 * Fetch sharing of local instance status in the context of member tenant. Refs UIIN-2680.
+* Handle errors when sharing local instances failed. Refs UIIN-2682.
 
 ## [10.0.3] IN PROGRESS
 
diff --git a/src/ViewInstance.js b/src/ViewInstance.js
index 03d57e728..3802edda1 100644
--- a/src/ViewInstance.js
+++ b/src/ViewInstance.js
@@ -443,20 +443,23 @@ class ViewInstance extends React.Component {
     this.setState({ isImportRecordModalOpened: false });
   }
 
+  showUnsuccessfulShareInstanceCallout = (instanceTitle) => {
+    this.calloutRef.current?.sendCallout({
+      type: 'error',
+      message: <FormattedMessage id="ui-inventory.shareLocalInstance.toast.unsuccessful" values={{ instanceTitle }} />,
+    });
+  }
+
   checkInstanceSharingProgress = ({ sourceTenantId, instanceIdentifier }) => {
     return this.props.mutator.shareInstance.GET({
       params: { sourceTenantId, instanceIdentifier },
     });
   }
 
-  waitForInstanceSharingComplete = ({ sourceTenantId, instanceIdentifier, instanceTitle }) => {
+  waitForInstanceSharingComplete = ({ sourceTenantId, instanceIdentifier }) => {
     return new Promise((resolve, reject) => {
       this.intervalId = setInterval(() => {
         const onError = error => {
-          this.calloutRef.current.sendCallout({
-            type: 'error',
-            message: <FormattedMessage id="ui-inventory.shareLocalInstance.toast.unsuccessful" values={{ instanceTitle }} />,
-          });
           clearInterval(this.intervalId);
           reject(error);
         };
@@ -498,7 +501,7 @@ class ViewInstance extends React.Component {
           isInstanceSharing: true,
         });
 
-        await this.waitForInstanceSharingComplete({ sourceTenantId, instanceIdentifier, instanceTitle });
+        await this.waitForInstanceSharingComplete({ sourceTenantId, instanceIdentifier });
       })
       .then(async () => {
         await this.props.refetchInstance();
@@ -512,11 +515,9 @@ class ViewInstance extends React.Component {
         this.setState({
           isUnlinkAuthoritiesModalOpen: false,
           isShareLocalInstanceModalOpen: false,
+          isInstanceSharing: false,
         });
-        this.calloutRef.current?.sendCallout({
-          type: 'error',
-          message: <FormattedMessage id="ui-inventory.shareLocalInstance.toast.unsuccessful" values={{ instanceTitle }} />,
-        });
+        this.showUnsuccessfulShareInstanceCallout(instanceTitle);
       });
   }
 
@@ -545,6 +546,13 @@ class ViewInstance extends React.Component {
       } else {
         this.handleShareLocalInstance(selectedInstance);
       }
+    }).catch(() => {
+      this.setState({ isShareLocalInstanceModalOpen: false });
+
+      this.calloutRef.current.sendCallout({
+        type: 'error',
+        message: <FormattedMessage id="ui-inventory.communicationProblem" />,
+      });
     });
   }
 
@@ -931,27 +939,59 @@ class ViewInstance extends React.Component {
     const isInstanceLoading = isLoading || !instance || isCentralTenantPermissionsLoading;
     const keyInStorageToHoldingsAccsState = ['holdings'];
 
-    if (isUserLacksPermToViewSharedInstance) {
-      return (
-        <InstanceWarningPane
-          onClose={onClose}
-          messageBannerText={<FormattedMessage id="ui-inventory.warning.instance.accessSharedInstance" />}
-        />
-      );
-    }
+    const getDetails = (data) => {
+      if (isUserLacksPermToViewSharedInstance) {
+        return (
+          <InstanceWarningPane
+            onClose={onClose}
+            messageBannerText={<FormattedMessage id="ui-inventory.warning.instance.accessSharedInstance" />}
+          />
+        );
+      }
+
+      if (isInstanceSharing) {
+        return (
+          <InstanceWarningPane
+            onClose={onClose}
+            messageBannerText={<FormattedMessage id="ui-inventory.warning.instance.sharingLocalInstance" />}
+          />
+        );
+      }
+
+      if (isInstanceLoading) {
+        return <InstanceLoadingPane onClose={onClose} />;
+      }
 
-    if (isInstanceSharing) {
       return (
-        <InstanceWarningPane
+        <InstanceDetails
+          id="pane-instancedetails"
           onClose={onClose}
-          messageBannerText={<FormattedMessage id="ui-inventory.warning.instance.sharingLocalInstance" />}
-        />
+          actionMenu={this.createActionMenuGetter(instance, data)}
+          instance={instance}
+          tagsEnabled={tagsEnabled}
+          ref={this.accordionStatusRef}
+          userTenantPermissions={this.state.userTenantPermissions}
+          isShared={isShared}
+        >
+          {
+            (!holdingsrecordid && !itemid) ?
+              (
+                <MoveItemsContext>
+                  <HoldingsListContainer
+                    instance={instance}
+                    draggable={this.state.isItemsMovement}
+                    tenantId={okapi.tenant}
+                    pathToAccordionsState={keyInStorageToHoldingsAccsState}
+                    droppable
+                  />
+                </MoveItemsContext>
+              )
+              :
+              null
+          }
+        </InstanceDetails>
       );
-    }
-
-    if (isInstanceLoading) {
-      return <InstanceLoadingPane onClose={onClose} />;
-    }
+    };
 
     return (
       <DataContext.Consumer>
@@ -961,34 +1001,7 @@ class ViewInstance extends React.Component {
             isWithinScope={checkScope}
             scope={document.body}
           >
-            <InstanceDetails
-              id="pane-instancedetails"
-              onClose={onClose}
-              actionMenu={this.createActionMenuGetter(instance, data)}
-              instance={instance}
-              tagsEnabled={tagsEnabled}
-              ref={this.accordionStatusRef}
-              userTenantPermissions={this.state.userTenantPermissions}
-              isShared={isShared}
-            >
-              {
-                (!holdingsrecordid && !itemid) ?
-                  (
-                    <MoveItemsContext>
-                      <HoldingsListContainer
-                        instance={instance}
-                        draggable={this.state.isItemsMovement}
-                        tenantId={okapi.tenant}
-                        pathToAccordionsState={keyInStorageToHoldingsAccsState}
-                        droppable
-                      />
-                    </MoveItemsContext>
-                  )
-                  :
-                  null
-              }
-            </InstanceDetails>
-
+            {getDetails(data)}
             <Callout ref={this.calloutRef} />
 
             {this.state.afterCreate && !isEmpty(instance) &&