diff --git a/tests/tools/test_image_generation_env.py b/tests/tools/test_image_generation_env.py
index fc4e6553346..56c9741617f 100644
--- a/tests/tools/test_image_generation_env.py
+++ b/tests/tools/test_image_generation_env.py
@@ -37,3 +37,62 @@ def test_fal_key_empty_is_unset(monkeypatch):
     )
 
     assert image_generation_tool.check_fal_api_key() is False
+
+
+# ---------------------------------------------------------------------------
+# Actionable setup message when no FAL backend is reachable.
+# Regression for the silent-drop UX gap described in issue #2543.
+# ---------------------------------------------------------------------------
+
+
+def test_no_backend_message_mentions_fal_signup_and_plugins(monkeypatch):
+    from tools import image_generation_tool
+
+    monkeypatch.setattr(
+        image_generation_tool, "managed_nous_tools_enabled", lambda: False
+    )
+
+    msg = image_generation_tool._build_no_backend_setup_message()
+
+    assert "FAL_KEY" in msg
+    assert "https://fal.ai" in msg
+    # Plugin pointer so users on a stale image_gen.provider know where to look.
+    assert "hermes tools" in msg or "hermes plugins" in msg
+
+
+def test_no_backend_message_mentions_managed_gateway_when_enabled(monkeypatch):
+    from tools import image_generation_tool
+
+    monkeypatch.setattr(
+        image_generation_tool, "managed_nous_tools_enabled", lambda: True
+    )
+
+    msg = image_generation_tool._build_no_backend_setup_message()
+
+    assert "managed FAL gateway" in msg
+    assert "Nous account" in msg or "hermes setup" in msg
+
+
+def test_image_generate_tool_returns_actionable_error_when_no_backend(monkeypatch):
+    """End-to-end: handler must surface the actionable message, not a bare string."""
+    import json
+
+    from tools import image_generation_tool
+
+    monkeypatch.setattr(
+        image_generation_tool, "fal_key_is_configured", lambda: False
+    )
+    monkeypatch.setattr(
+        image_generation_tool, "_resolve_managed_fal_gateway", lambda: None
+    )
+    monkeypatch.setattr(
+        image_generation_tool, "managed_nous_tools_enabled", lambda: False
+    )
+
+    result = json.loads(
+        image_generation_tool.image_generate_tool(prompt="a cat")
+    )
+
+    assert result["success"] is False
+    assert "https://fal.ai" in result["error"]
+    assert "FAL_KEY" in result["error"]
diff --git a/tools/image_generation_tool.py b/tools/image_generation_tool.py
index c496166ec98..3d171f093c9 100644
--- a/tools/image_generation_tool.py
+++ b/tools/image_generation_tool.py
@@ -698,10 +698,7 @@ def image_generate_tool(
             raise ValueError("Prompt is required and must be a non-empty string")
 
         if not (fal_key_is_configured() or _resolve_managed_fal_gateway()):
-            message = "FAL_KEY environment variable not set"
-            if managed_nous_tools_enabled():
-                message += " and managed FAL gateway is unavailable"
-            raise ValueError(message)
+            raise ValueError(_build_no_backend_setup_message())
 
         aspect_lc = (aspect_ratio or DEFAULT_ASPECT_RATIO).lower().strip()
         if aspect_lc not in VALID_ASPECT_RATIOS:
@@ -811,6 +808,42 @@ def check_fal_api_key() -> bool:
     return bool(fal_key_is_configured() or _resolve_managed_fal_gateway())
 
 
+def _build_no_backend_setup_message() -> str:
+    """Build an actionable error string when no FAL backend is reachable.
+
+    Used by the in-tree FAL path. Mentions:
+      - FAL_KEY signup link
+      - managed-gateway status (if Nous tools are enabled)
+      - plugin alternative pointer (so users on a stale ``image_gen.provider``
+        know the registry exists and how to inspect it)
+    """
+    lines = ["Image generation is unavailable in this environment.", ""]
+    lines.append("Missing requirements:")
+    if managed_nous_tools_enabled():
+        lines.append(
+            "  - FAL_KEY is not set and the managed FAL gateway is unreachable"
+        )
+    else:
+        lines.append("  - FAL_KEY environment variable is not set")
+    lines.append("")
+    lines.append("To enable image generation, do one of:")
+    lines.append(
+        "  1. Get a free API key at https://fal.ai and set "
+        "FAL_KEY=<your-key> (then restart the session)"
+    )
+    if managed_nous_tools_enabled():
+        lines.append(
+            "  2. Sign in to a Nous account that has the managed FAL "
+            "gateway enabled (`hermes setup`)"
+        )
+    lines.append(
+        "  3. Configure a different image_gen provider via `hermes tools` "
+        "→ Image Generation (run `hermes plugins list` to see installed "
+        "backends)"
+    )
+    return "\n".join(lines)
+
+
 def check_image_generation_requirements() -> bool:
     """True if any image gen backend is available.