diff --git a/langfuse/_client/observe.py b/langfuse/_client/observe.py
index 64882a20f..6d0ce60e0 100644
--- a/langfuse/_client/observe.py
+++ b/langfuse/_client/observe.py
@@ -26,6 +26,7 @@
     ObservationTypeLiteralNoEvent,
     get_observation_types_list,
 )
+from langfuse._utils.control_flow import get_error_level
 from langfuse._client.environment_variables import (
     LANGFUSE_OBSERVE_DECORATOR_IO_CAPTURE_ENABLED,
 )
@@ -302,7 +303,8 @@ async def async_wrapper(*args: Tuple[Any], **kwargs: Dict[str, Any]) -> Any:
                         return result
                     except (Exception, asyncio.CancelledError) as e:
                         langfuse_span_or_generation.update(
-                            level="ERROR", status_message=str(e) or type(e).__name__
+                            level=get_error_level(e),
+                            status_message=str(e) or type(e).__name__,
                         )
 
                         raise e
@@ -393,7 +395,8 @@ def sync_wrapper(*args: Any, **kwargs: Any) -> Any:
                         return result
                     except (Exception, asyncio.CancelledError) as e:
                         langfuse_span_or_generation.update(
-                            level="ERROR", status_message=str(e) or type(e).__name__
+                            level=get_error_level(e),
+                            status_message=str(e) or type(e).__name__,
                         )
 
                         raise e
@@ -591,7 +594,8 @@ def _finalize_with_error(self, error: BaseException) -> None:
             return
 
         self.span.update(
-            level="ERROR", status_message=str(error) or type(error).__name__
+            level=get_error_level(error),
+            status_message=str(error) or type(error).__name__,
         ).end()
         self._span_ended = True
 
@@ -686,7 +690,8 @@ def _finalize_with_error(self, error: BaseException) -> None:
             return
 
         self.span.update(
-            level="ERROR", status_message=str(error) or type(error).__name__
+            level=get_error_level(error),
+            status_message=str(error) or type(error).__name__,
         ).end()
         self._span_ended = True
 
diff --git a/langfuse/_utils/control_flow.py b/langfuse/_utils/control_flow.py
new file mode 100644
index 000000000..eb1e68c4b
--- /dev/null
+++ b/langfuse/_utils/control_flow.py
@@ -0,0 +1,30 @@
+"""Utilities for detecting control-flow exceptions that should not be marked as errors.
+
+LangGraph uses GraphBubbleUp subclasses (e.g. GraphInterrupt, NodeInterrupt) for
+expected control flow such as human-in-the-loop interrupts and handoffs.  These are
+not real errors and should be recorded at "DEFAULT" level in Langfuse, not "ERROR".
+"""
+
+from typing import Literal, Set, Type
+
+CONTROL_FLOW_EXCEPTION_TYPES: Set[Type[BaseException]] = set()
+
+try:
+    from langgraph.errors import GraphBubbleUp
+
+    CONTROL_FLOW_EXCEPTION_TYPES.add(GraphBubbleUp)
+except ImportError:
+    pass
+
+
+def get_error_level(
+    error: BaseException,
+) -> Literal["DEFAULT", "ERROR"]:
+    """Return the appropriate Langfuse observation level for *error*.
+
+    Returns ``"DEFAULT"`` for known control-flow exceptions (e.g.
+    ``GraphInterrupt``) and ``"ERROR"`` for everything else.
+    """
+    if any(isinstance(error, t) for t in CONTROL_FLOW_EXCEPTION_TYPES):
+        return "DEFAULT"
+    return "ERROR"
diff --git a/langfuse/langchain/CallbackHandler.py b/langfuse/langchain/CallbackHandler.py
index 1349f6ae0..5660b34a2 100644
--- a/langfuse/langchain/CallbackHandler.py
+++ b/langfuse/langchain/CallbackHandler.py
@@ -85,16 +85,11 @@
     )
 
 LANGSMITH_TAG_HIDDEN: str = "langsmith:hidden"
-CONTROL_FLOW_EXCEPTION_TYPES: Set[Type[BaseException]] = set()
-LANGGRAPH_COMMAND_TYPE: Optional[Type[Any]] = None
 MAX_PENDING_RESUME_TRACE_CONTEXTS = 1024
 
-try:
-    from langgraph.errors import GraphBubbleUp
+from langfuse._utils.control_flow import CONTROL_FLOW_EXCEPTION_TYPES, get_error_level
 
-    CONTROL_FLOW_EXCEPTION_TYPES.add(GraphBubbleUp)
-except ImportError:
-    pass
+LANGGRAPH_COMMAND_TYPE: Optional[Type[Any]] = None
 
 try:
     from langgraph.types import Command as LangGraphCommand
@@ -358,10 +353,11 @@ def _get_error_level_and_status_message(
     ) -> tuple[Literal["DEFAULT", "ERROR"], str]:
         # LangGraph uses GraphBubbleUp subclasses for expected control flow such as
         # interrupts and handoffs, so they should stay visible without being errors.
-        if any(isinstance(error, t) for t in CONTROL_FLOW_EXCEPTION_TYPES):
-            return "DEFAULT", str(error) or type(error).__name__
+        level = get_error_level(error)
+        if level == "DEFAULT":
+            return level, str(error) or type(error).__name__
 
-        return "ERROR", str(error)
+        return level, str(error)
 
     def _get_observation_type_from_serialized(
         self, serialized: Optional[Dict[str, Any]], callback_type: str, **kwargs: Any