diff --git a/docs/how-to/resource-routes.md b/docs/how-to/resource-routes.md
index d3ccb1a52f..dc682de1f8 100644
--- a/docs/how-to/resource-routes.md
+++ b/docs/how-to/resource-routes.md
@@ -65,3 +65,62 @@ export function action(_: Route.ActionArgs) {
   });
 }
 ```
+
+## Return Types
+
+Resource Routes are flexible when it comes to the return type - you can return [`Response`][Response] instances or [`data()`][data] objects. A good general rule of thumb when deciding which type to use is:
+
+- If you're using resource routes intended for external consumption, return `Response` instances
+  - Keeps the resulting response encoding explicit in your code rather than having to wonder how React Router might convert `data() -> Response` under the hood
+- If you're accessing resource routes from [fetchers][fetcher] or [`<Form>`][form] submissions, return `data()`
+  - Keeps things consistent with the loaders/actions in your UI routes
+  - Allows you to stream promises down to your UI through `data()`/[`Await`][await]
+
+## Error Handling
+
+Throwing an `Error` from Resource route (or anything other than a `Response`/`data()`) will trigger [`handleError`][handleError] and result in a 500 HTTP Response:
+
+```tsx
+export function action() {
+  let db = await getDb();
+  if (!db) {
+    // Fatal error - return a 500 response and trigger `handleError`
+    throw new Error("Could not connect to DB");
+  }
+  // ...
+}
+```
+
+If a resource route generates a `Response` (via `new Response()` or `data()`), it is considered a successful execution and will not trigger `handleError` because the API has successfully produced a Response for the HTTP request. This applies to thrown responses as well as returned responses with a 4xx/5xx status code. This behavior aligns with `fetch()` which does not return a rejected promise on 4xx/5xx Responses.
+
+```tsx
+export function action() {
+  // Non-fatal error - don't trigger `handleError`:
+  throw new Response(
+    { error: "Unauthorized" },
+    { status: 401 },
+  );
+
+  // These 3 are equivalent to the above
+  return new Response(
+    { error: "Unauthorized" },
+    { status: 401 },
+  );
+
+  throw data({ error: "Unauthorized" }, { status: 401 });
+
+  return data({ error: "Unauthorized" }, { status: 401 });
+}
+```
+
+### Error Boundaries
+
+[Error Boundaries][error-boundary] are only applicable when a resource route is accessed from a UI, such as from a [`fetcher`][fetcher] call or a [`<Form>`][form] submission. If you `throw` from your resource route in these cases, it will bubble to the nearest `ErrorBoundary` in the UI.
+
+[handleError]: ../api/framework-conventions/entry.server.tsx#handleerror
+[data]: ../api/utils/data
+[Response]: https://developer.mozilla.org/en-US/docs/Web/API/Response
+[fetcher]: ../api/hooks/useFetcher
+[form]: ../api/components/Form
+[await]: ../api/components/Await
+[error-boundary]: ../start/framework/route-module#errorboundary