diff --git a/Example/ExampleService.cs b/Example/ExampleService.cs
index 382b6a3..3ba0e6d 100644
--- a/Example/ExampleService.cs
+++ b/Example/ExampleService.cs
@@ -379,6 +379,19 @@ private async Task ErrorHandlingExamples()
         logger.LogWarning("Legacy format: Error {0} occurred in method {1} at line {2}",
             "ValidationFailed", "ProcessData", 42);
 
+        // LogError with exception parameter examples (demonstrates exception parameter highlighting)
+        var userId = 42;
+        var errorCode = "E123";
+        var errorMessage = "Something went wrong";
+        
+        // Example 1: Exception with string literal constructor
+        logger.LogError(new Exception("Database connection failed"), "Error processing {UserId} with {ErrorCode} and {Message}",
+            userId, errorCode, errorMessage);
+        
+        // Example 2: Exception with variable constructor  
+        logger.LogError(new Exception(errorMessage), "Failed to validate {UserId} with status {ErrorCode} and details {Message}",
+            userId, errorCode, errorMessage);
+
         await Task.Delay(100);
     }
 
diff --git a/SerilogSyntax.Tests/Classification/SerilogClassifierTests.cs b/SerilogSyntax.Tests/Classification/SerilogClassifierTests.cs
index b508407..3ad4629 100644
--- a/SerilogSyntax.Tests/Classification/SerilogClassifierTests.cs
+++ b/SerilogSyntax.Tests/Classification/SerilogClassifierTests.cs
@@ -219,5 +219,122 @@ public void GetClassificationSpans_OutputTemplateWithNewLine_HighlightsPropertie
                 c.ClassificationType.Classification == SerilogClassificationTypes.FormatSpecifier).ToList();
             Assert.True(formatSpecifiers.Count >= 3, $"Expected at least 3 format specifiers but found {formatSpecifiers.Count}");
         }
+
+        [Fact]
+        public void GetClassificationSpans_LogErrorWithExceptionParameter_HighlightsMessageTemplateProperties()
+        {
+            // Arrange - LogError with exception parameter followed by message template and arguments
+            var code = @"logger.LogError(new Exception(""foo""), ""Error processing {UserId} with {ErrorCode} and {Message}"", userId, errorCode, errorMessage);";
+            var textBuffer = MockTextBuffer.Create(code);
+            var classifier = CreateClassifier(textBuffer);
+            var span = new SnapshotSpan(textBuffer.CurrentSnapshot, 0, textBuffer.CurrentSnapshot.Length);
+
+            // Act
+            var result = classifier.GetClassificationSpans(span);
+
+            // Assert - should find classifications for message template properties, not exception constructor
+            var classifications = result.ToList();
+            Assert.NotEmpty(classifications);
+            
+            // Should find property names for UserId, ErrorCode, Message from the message template
+            var properties = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyName).ToList();
+            Assert.Equal(3, properties.Count); // UserId, ErrorCode, Message
+            
+            // Should find braces for the three properties
+            var braces = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyBrace).ToList();
+            Assert.Equal(6, braces.Count); // 3 opening + 3 closing braces
+        }
+
+        [Fact]
+        public void GetClassificationSpans_LogErrorWithExceptionVariable_HighlightsMessageTemplateProperties()
+        {
+            // Arrange - LogError with exception variable (not string literal) followed by message template
+            var code = @"logger.LogError(new Exception(errorMessage), ""Error processing {UserId} with {ErrorCode} and {Message}"", userId, errorCode, errorMessage);";
+            var textBuffer = MockTextBuffer.Create(code);
+            var classifier = CreateClassifier(textBuffer);
+            var span = new SnapshotSpan(textBuffer.CurrentSnapshot, 0, textBuffer.CurrentSnapshot.Length);
+
+            // Act
+            var result = classifier.GetClassificationSpans(span);
+
+            // Assert - should find classifications for message template properties
+            var classifications = result.ToList();
+            Assert.NotEmpty(classifications);
+            
+            // Should find property names for UserId, ErrorCode, Message from the message template
+            var properties = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyName).ToList();
+            Assert.Equal(3, properties.Count); // UserId, ErrorCode, Message
+            
+            // Should find braces for the three properties
+            var braces = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyBrace).ToList();
+            Assert.Equal(6, braces.Count); // 3 opening + 3 closing braces
+        }
+
+        [Fact]
+        public void GetClassificationSpans_LogErrorWithRawStringException_HighlightsMessageTemplateProperties()
+        {
+            // Arrange - LogError with raw string literal in exception parameter
+            var code = "logger.LogError(new Exception(\"\"\"Database connection failed\"\"\"), \"Error processing {UserId} with {ErrorCode}\", userId, errorCode);";
+            var textBuffer = MockTextBuffer.Create(code);
+            var classifier = CreateClassifier(textBuffer);
+            var span = new SnapshotSpan(textBuffer.CurrentSnapshot, 0, textBuffer.CurrentSnapshot.Length);
+
+            // Act
+            var result = classifier.GetClassificationSpans(span);
+
+            // Assert - should find classifications for message template properties, not exception raw string
+            var classifications = result.ToList();
+            Assert.NotEmpty(classifications);
+            
+            // Should find property names for UserId, ErrorCode from the message template
+            var properties = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyName).ToList();
+            Assert.Equal(2, properties.Count); // UserId, ErrorCode
+            
+            // Should find braces for the two properties
+            var braces = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyBrace).ToList();
+            Assert.Equal(4, braces.Count); // 2 opening + 2 closing braces
+        }
+
+        [Fact]
+        public void GetClassificationSpans_LogErrorWithRawStringContainingProperties_DoesNotHighlightExceptionProperties()
+        {
+            // Arrange - LogError with raw string literal containing template-like syntax in exception parameter
+            // This tests that the raw string properties {ErrorId} and {Details} are NOT highlighted,
+            // while the actual message template properties {UserId} and {Action} ARE highlighted
+            var code = "logger.LogError(new Exception(\"\"\"Error {ErrorId} occurred with details {Details}\"\"\"), \"User {UserId} performed {Action}\", userId, action);";
+            var textBuffer = MockTextBuffer.Create(code);
+            var classifier = CreateClassifier(textBuffer);
+            var span = new SnapshotSpan(textBuffer.CurrentSnapshot, 0, textBuffer.CurrentSnapshot.Length);
+
+            // Act
+            var result = classifier.GetClassificationSpans(span);
+
+            // Assert
+            var classifications = result.ToList();
+            Assert.NotEmpty(classifications);
+            
+            // Should find property names for UserId, Action from the message template (not ErrorId, Details from exception)
+            var properties = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyName).ToList();
+            Assert.Equal(2, properties.Count); // UserId, Action
+            
+            // Verify the specific property names found
+            var propertyTexts = properties.Select(p => textBuffer.CurrentSnapshot.GetText(p.Span)).ToList();
+            Assert.Contains("UserId", propertyTexts);
+            Assert.Contains("Action", propertyTexts);
+            Assert.DoesNotContain("ErrorId", propertyTexts); // Should NOT highlight properties from raw string exception
+            Assert.DoesNotContain("Details", propertyTexts); // Should NOT highlight properties from raw string exception
+            
+            // Should find braces for the two properties
+            var braces = classifications.Where(c => 
+                c.ClassificationType.Classification == SerilogClassificationTypes.PropertyBrace).ToList();
+            Assert.Equal(4, braces.Count); // 2 opening + 2 closing braces for message template only
+        }
     }
 }
\ No newline at end of file
diff --git a/SerilogSyntax/Classification/SerilogClassifier.cs b/SerilogSyntax/Classification/SerilogClassifier.cs
index d205956..8e1318b 100644
--- a/SerilogSyntax/Classification/SerilogClassifier.cs
+++ b/SerilogSyntax/Classification/SerilogClassifier.cs
@@ -850,8 +850,15 @@ public IList<ClassificationSpan> GetClassificationSpans(SnapshotSpan span)
                     }
                     else
                     {
+                        // Check if this is LogError with exception parameter
+                        bool skipFirstString = IsLogErrorWithExceptionParameter(text, match, searchStart);
+                        
+#if DEBUG
+                        DiagnosticLogger.Log($"  IsLogErrorWithException: {skipFirstString}");
+#endif
+                        
                         // Find just the first string literal (simple case)
-                        var stringLiteral = _stringLiteralParser.FindStringLiteral(text, searchStart, span.Start);
+                        var stringLiteral = _stringLiteralParser.FindStringLiteral(text, searchStart, span.Start, skipFirstString);
                         allStringLiterals = stringLiteral.HasValue ? new List<(int, int, string, bool, int)> { stringLiteral.Value } : [];
                     }
                 }
@@ -1033,6 +1040,79 @@ private bool IsInsideRawStringLiteral(SnapshotSpan span)
         return _multiLineStringDetector.IsInsideRawStringLiteral(span);
     }
 
+    /// <summary>
+    /// Determines if a LogError call has an exception parameter before the message template.
+    /// Pattern: LogError(exception, "message template", args...) vs LogError("message template", args...)
+    /// </summary>
+    /// <param name="text">The line of text containing the LogError call.</param>
+    /// <param name="match">The regex match for the LogError method.</param>
+    /// <param name="searchStart">The position to start searching from.</param>
+    /// <returns>True if this is LogError with exception parameter, false otherwise.</returns>
+    private bool IsLogErrorWithExceptionParameter(string text, Match match, int searchStart)
+    {
+        // Only check LogError calls
+        if (!match.Value.Contains("LogError"))
+            return false;
+
+        // Look for the parameter structure by finding the first comma at depth 1
+        // LogError(exception, "message", args...) has a comma before the first string
+        // LogError("message", args...) has the string as the first parameter
+        
+        int pos = searchStart;
+        int parenDepth = 1; // We start after LogError(
+        bool foundCommaBeforeString = false;
+        
+        while (pos < text.Length && parenDepth > 0)
+        {
+            char c = text[pos];
+            
+            // Skip whitespace
+            if (char.IsWhiteSpace(c))
+            {
+                pos++;
+                continue;
+            }
+            
+            // Track parentheses depth
+            if (c == '(')
+            {
+                parenDepth++;
+                pos++;
+                continue;
+            }
+            else if (c == ')')
+            {
+                parenDepth--;
+                if (parenDepth == 0)
+                    break;
+                pos++;
+                continue;
+            }
+            
+            // At depth 1 (LogError's parameters)
+            if (parenDepth == 1)
+            {
+                // Check for string literal
+                if (c == '"' || (c == '@' && pos + 1 < text.Length && text[pos + 1] == '"'))
+                {
+                    // If we found a comma before this string, it means there's an exception parameter
+                    return foundCommaBeforeString;
+                }
+                else if (c == ',')
+                {
+                    foundCommaBeforeString = true;
+                    pos++;
+                    continue;
+                }
+            }
+            
+            pos++;
+        }
+        
+        // If we never found a string literal, default to false
+        return false;
+    }
+
     /// <summary>
     /// Finds the position of the actual string literal when we're inside a multi-line string.
     /// This is needed because line-by-line processing passes positions that may not be inside
diff --git a/SerilogSyntax/Parsing/StringLiteralParser.cs b/SerilogSyntax/Parsing/StringLiteralParser.cs
index 9491b60..e0f3084 100644
--- a/SerilogSyntax/Parsing/StringLiteralParser.cs
+++ b/SerilogSyntax/Parsing/StringLiteralParser.cs
@@ -222,6 +222,7 @@ public bool TryParseRawStringLiteral(string text, int startIndex, out (int Start
     /// <param name="text">The text to search in.</param>
     /// <param name="startIndex">The index to start searching from.</param>
     /// <param name="spanStart">The absolute position of the span start in the document.</param>
+    /// <param name="skipFirstString">If true, skips the first string literal found (used for LogError with exception parameter).</param>
     /// <returns>
     /// A tuple containing the start position, end position, content, whether it's a verbatim string,
     /// and the quote count for raw strings, or null if not found.
@@ -229,10 +230,12 @@ public bool TryParseRawStringLiteral(string text, int startIndex, out (int Start
     public (int start, int end, string text, bool isVerbatim, int quoteCount)? FindStringLiteral(
         string text,
         int startIndex,
-        int spanStart)
+        int spanStart,
+        bool skipFirstString = false)
     {
         // Look for string literal after Serilog method call
         int parenDepth = 1;
+        bool firstStringSkipped = !skipFirstString; // If we don't need to skip, act as if we already skipped
 
         while (startIndex < text.Length && parenDepth > 0)
         {
@@ -246,6 +249,14 @@ public bool TryParseRawStringLiteral(string text, int startIndex, out (int Start
             // Check for different string literal types
             if (TryParseStringLiteral(text, startIndex, out var result))
             {
+                if (!firstStringSkipped)
+                {
+                    // Skip this string literal and continue looking for the next one
+                    firstStringSkipped = true;
+                    startIndex = result.End + 1;
+                    continue;
+                }
+
                 // Determine string type
                 bool isVerbatim = startIndex < text.Length - 1 && text[startIndex] == '@' && text[startIndex + 1] == '"';
 
@@ -269,6 +280,19 @@ public bool TryParseRawStringLiteral(string text, int startIndex, out (int Start
                 return (spanStart + result.Start, spanStart + result.End, result.Content, isVerbatim, quoteCount);
             }
 
+            // If we're looking to skip the first string but haven't found any string yet,
+            // check if we've passed the first parameter (comma or end of parameters)
+            if (!firstStringSkipped && parenDepth == 1)
+            {
+                if (text[startIndex] == ',')
+                {
+                    // Found a comma - we've passed the first parameter without finding a string
+                    firstStringSkipped = true;
+                    startIndex++;
+                    continue;
+                }
+            }
+
             // Track parenthesis depth
             if (text[startIndex] == '(')
                 parenDepth++;