In NestJS, when a controller detects an error, it throws a built-in HTTP exception like NotFoundException. This stops the controller method immediately. NestJS framework catches this exception and converts it into an HTTP response with the correct status code and message. For example, throwing NotFoundException sends a 404 status with a message. This flow helps developers handle errors cleanly without manually crafting responses. The execution table shows each step: request received, exception thrown, NestJS catching it, sending response, and client receiving it. The variable tracker shows the exception variable state changes. Key moments clarify why throwing exceptions is preferred and what happens if no exception is thrown. The visual quiz tests understanding of when exceptions are caught and how variables change. This method makes error handling in NestJS simple and consistent.