diff --git a/packages/ui/src/forms/Form/fieldReducer.ts b/packages/ui/src/forms/Form/fieldReducer.ts
index 7ed0bc78e..143dbf41a 100644
--- a/packages/ui/src/forms/Form/fieldReducer.ts
+++ b/packages/ui/src/forms/Form/fieldReducer.ts
@@ -47,6 +47,68 @@ export function fieldReducer(state: FormState, action: FieldAction): FormState {
       return newState
     }
 
+    case 'ADD_SERVER_ERRORS': {
+      let newState = { ...state }
+
+      const errorPaths: { fieldErrorPath: string; parentPath: string }[] = []
+
+      action.errors.forEach(({ field, message }) => {
+        newState[field] = {
+          ...(newState[field] || {
+            initialValue: null,
+            value: null,
+          }),
+          errorMessage: message,
+          valid: false,
+        }
+
+        const segments = field.split('.')
+        if (segments.length > 1) {
+          errorPaths.push({
+            fieldErrorPath: field,
+            parentPath: segments.slice(0, segments.length - 1).join('.'),
+          })
+        }
+      })
+
+      newState = Object.entries(newState).reduce((acc, [path, fieldState]) => {
+        const fieldErrorPaths = errorPaths.reduce((errorACC, { fieldErrorPath, parentPath }) => {
+          if (parentPath.startsWith(path)) {
+            errorACC.push(fieldErrorPath)
+          }
+          return errorACC
+        }, [])
+
+        let changed = false
+
+        if (fieldErrorPaths.length > 0) {
+          const newErrorPaths = Array.isArray(fieldState.errorPaths) ? fieldState.errorPaths : []
+
+          fieldErrorPaths.forEach((fieldErrorPath) => {
+            if (!newErrorPaths.includes(fieldErrorPath)) {
+              newErrorPaths.push(fieldErrorPath)
+              changed = true
+            }
+          })
+
+          if (changed) {
+            acc[path] = {
+              ...fieldState,
+              errorPaths: newErrorPaths,
+            }
+          }
+        }
+
+        if (!changed) {
+          acc[path] = fieldState
+        }
+
+        return acc
+      }, {})
+
+      return newState
+    }
+
     case 'UPDATE': {
       const newField = Object.entries(action).reduce(
         (field, [key, value]) => {
diff --git a/packages/ui/src/forms/Form/index.tsx b/packages/ui/src/forms/Form/index.tsx
index 7ab6ddacd..23d81406d 100644
--- a/packages/ui/src/forms/Form/index.tsx
+++ b/packages/ui/src/forms/Form/index.tsx
@@ -317,14 +317,9 @@ export const Form: React.FC<FormProps> = (props) => {
               [[], []],
             )
 
-            fieldErrors.forEach((err) => {
-              dispatchFields({
-                type: 'UPDATE',
-                ...(contextRef.current?.fields?.[err.field] || {}),
-                errorMessage: err.message,
-                path: err.field,
-                valid: false,
-              })
+            dispatchFields({
+              type: 'ADD_SERVER_ERRORS',
+              errors: fieldErrors,
             })
 
             nonFieldErrors.forEach((err) => {
diff --git a/packages/ui/src/forms/Form/types.ts b/packages/ui/src/forms/Form/types.ts
index ec48eb4a4..fbaef4366 100644
--- a/packages/ui/src/forms/Form/types.ts
+++ b/packages/ui/src/forms/Form/types.ts
@@ -129,6 +129,14 @@ export type MOVE_ROW = {
   type: 'MOVE_ROW'
 }
 
+export type ADD_SERVER_ERRORS = {
+  errors: {
+    field: string
+    message: string
+  }[]
+  type: 'ADD_SERVER_ERRORS'
+}
+
 export type SET_ROW_COLLAPSED = {
   collapsed: boolean
   path: string
@@ -146,6 +154,7 @@ export type SET_ALL_ROWS_COLLAPSED = {
 
 export type FieldAction =
   | ADD_ROW
+  | ADD_SERVER_ERRORS
   | DUPLICATE_ROW
   | MODIFY_CONDITION
   | MOVE_ROW
diff --git a/test/fields/e2e.spec.ts b/test/fields/e2e.spec.ts
index 291a9c46c..c40595acc 100644
--- a/test/fields/e2e.spec.ts
+++ b/test/fields/e2e.spec.ts
@@ -254,7 +254,7 @@ describe('fields', () => {
     })
 
     // TODO - This test is flaky. Rarely, but sometimes it randomly fails.
-    test.skip('should display unique constraint error in ui', async () => {
+    test('should display unique constraint error in ui', async () => {
       const uniqueText = 'uniqueText'
       await payload.create({
         collection: 'indexed-fields',
diff --git a/test/tsconfig.json b/test/tsconfig.json
index 209f12718..1c52f71df 100644
--- a/test/tsconfig.json
+++ b/test/tsconfig.json
@@ -40,8 +40,12 @@
       "@payloadcms/ui/scss": ["../packages/ui/src/scss.scss"],
       "@payloadcms/ui/scss/app.scss": ["../packages/ui/src/scss/app.scss"],
       "payload/types": ["../packages/payload/src/exports/types/index.ts"],
-      "@payloadcms/next/*": ["../packages/next/src/*"],
-      "@payloadcms/next": ["../packages/next/src/exports/*"],
+      "@payloadcms/next/*": [
+        "./packages/next/src/exports/*"
+      ],
+      "@payloadcms/next": [
+        "./packages/next/src/exports/*"
+      ],
       "@payload-config": ["./_community/config.ts"]
     }
   },