diff --git a/test/falco_tests.yaml b/test/falco_tests.yaml
index 2cb6075a..aecc1a9a 100644
--- a/test/falco_tests.yaml
+++ b/test/falco_tests.yaml
@@ -242,8 +242,9 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Rules content is not yaml
+      ---
       This is not yaml
-      ^
+      ---
     validate_rules_file:
       - rules/invalid_not_yaml.yaml
     trace_file: trace_files/cat_write.scap
@@ -252,8 +253,9 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Rules content is not yaml array of objects
+      ---
       foo: bar
-      ^
+      ---
     validate_rules_file:
       - rules/invalid_not_array.yaml
     trace_file: trace_files/cat_write.scap
@@ -262,8 +264,9 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Unexpected element of type string. Each element should be a yaml associative array.
+      ---
       - foo
-      ^
+      ---
     validate_rules_file:
       - rules/invalid_array_item_not_object.yaml
     trace_file: trace_files/cat_write.scap
@@ -272,8 +275,9 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Unknown rule object: {foo="bar"}
+      ---
       - foo: bar
-      ^
+      ---
     validate_rules_file:
       - rules/invalid_unexpected_object.yaml
     trace_file: trace_files/cat_write.scap
@@ -282,8 +286,9 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Value of required_engine_version must be a number
+      ---
       - required_engine_version: not-a-number
-      ^
+      ---
     validate_rules_file:
       - rules/invalid_engine_version_not_number.yaml
     trace_file: trace_files/cat_write.scap
@@ -292,8 +297,9 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       mapping values are not allowed in this context
+      ---
       this : is : not : yaml
-             ^
+      ---
     validate_rules_file:
       - rules/invalid_yaml_parse_error.yaml
     trace_file: trace_files/cat_write.scap
@@ -302,8 +308,10 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       List must have property items
+      ---
       - list: bad_list
-        ^
+        no_items: foo
+      ---
     validate_rules_file:
       - rules/invalid_list_without_items.yaml
     trace_file: trace_files/cat_write.scap
@@ -312,8 +320,10 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Macro must have property condition
+      ---
       - macro: bad_macro
-        ^
+        nope: 1
+      ---
     validate_rules_file:
       - rules/invalid_macro_without_condition.yaml
     trace_file: trace_files/cat_write.scap
@@ -322,8 +332,12 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Rule must have property output
+      ---
       - rule: no output rule
-        ^
+        desc: some desc
+        condition: evt.type=fork
+        priority: INFO
+      ---
     validate_rules_file:
       - rules/invalid_rule_without_output.yaml
     trace_file: trace_files/cat_write.scap
@@ -332,8 +346,10 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Rule must have property condition
+      ---
       - rule: no condition rule
-        ^
+        append: true
+      ---
     validate_rules_file:
       - rules/invalid_append_rule_without_condition.yaml
     trace_file: trace_files/cat_write.scap
@@ -342,8 +358,11 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Macro dangling append has 'append' key but no macro by that name already exists
+      ---
       - macro: dangling append
-      ^
+        condition: and evt.type=execve
+        append: true
+      ---
     validate_rules_file:
       - rules/invalid_append_macro_dangling.yaml
     trace_file: trace_files/cat_write.scap
@@ -352,8 +371,11 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       List my_list has 'append' key but no list by that name already exists
+      ---
       - list: my_list
-      ^
+        items: [not-cat]
+        append: true
+      ---
     validate_rules_file:
       - rules/list_append_failure.yaml
     trace_file: trace_files/cat_write.scap
@@ -362,8 +384,11 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Rule my_rule has 'append' key but no rule by that name already exists
+      ---
       - rule: my_rule
-      ^
+        condition: evt.type=open
+        append: true
+      ---
     validate_rules_file:
       - rules/rule_append_failure.yaml
     trace_file: trace_files/cat_write.scap
@@ -372,8 +397,12 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Rule name is empty
+      ---
       - rule:
-        ^
+        desc: some desc
+        condition: evt.type=execve
+        output: some output
+      ---
     validate_rules_file:
       - rules/invalid_missing_rule_name.yaml
     trace_file: trace_files/cat_write.scap
@@ -382,8 +411,10 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       List name is empty
+      ---
       - list:
-        ^
+        items: [foo]
+      ---
     validate_rules_file:
       - rules/invalid_missing_list_name.yaml
     trace_file: trace_files/cat_write.scap
@@ -392,8 +423,10 @@ trace_files: !mux
     exit_status: 1
     stdout_is: |+
       Macro name is empty
+      ---
       - macro:
-        ^
+        condition: evt.type=execve
+      ---
     validate_rules_file:
       - rules/invalid_missing_macro_name.yaml
     trace_file: trace_files/cat_write.scap
diff --git a/userspace/engine/lua/rule_loader.lua b/userspace/engine/lua/rule_loader.lua
index 6c91842e..6e1698f4 100644
--- a/userspace/engine/lua/rule_loader.lua
+++ b/userspace/engine/lua/rule_loader.lua
@@ -179,29 +179,70 @@ function table.tostring( tbl )
   return "{" .. table.concat( result, "," ) .. "}"
 end
 
-function find_indices(rules_content)
-   -- To provide context when iterating over the objects in the list,
-   -- record the line numbers of all top-level objects in the
-   -- file. This doesn't actually use a yaml parser but simply looks
-   -- for lines starting with '-'.
+-- Split rules_content by lines and also remember the line numbers for
+-- each top -level object. Returns a table of lines and a table of
+-- line numbers for objects.
+
+function split_lines(rules_content)
+   lines = {}
    indices = {}
 
-   line = 1
-   if string.sub(rules_content, 1, 1) == '-' then
-      indices[#indices+1] = line
-   end
-
+   idx = 1
+   last_pos = 1
    pos = string.find(rules_content, "\n", 1, true)
 
    while pos ~= nil do
-      line = line + 1
-      if string.sub(rules_content, pos+1, pos+1) == '-' then
-	 indices[#indices+1] = line
+      line = string.sub(rules_content, last_pos, pos-1)
+      if line ~= "" then
+	 lines[#lines+1] = line
+	 if string.sub(line, 1, 1) == '-' then
+	    indices[#indices+1] = idx
+	 end
+
+	 idx = idx + 1
       end
+
+      last_pos = pos+1
       pos = string.find(rules_content, "\n", pos+1, true)
    end
 
-   return indices
+   if last_pos < string.len(rules_content) then
+      line = string.sub(rules_content, last_pos)
+      lines[#lines+1] = line
+      if string.sub(line, 1, 1) == '-' then
+	 indices[#indices+1] = idx
+      end
+
+      idx = idx + 1
+   end
+
+   -- Add a final index for last line in document
+   indices[#indices+1] = idx
+
+   return lines, indices
+end
+
+function get_context(rules_lines, row, num_lines)
+
+   local ret = "---\n"
+
+   idx = row
+   while (idx < (row + num_lines) and idx <= #rules_lines) do
+      ret = ret..rules_lines[idx].."\n"
+      idx = idx + 1
+   end
+
+   ret = ret.."---"
+
+   return ret
+
+end
+
+function build_error(rules_lines, row, num_lines, err)
+
+   local ret = err.."\n"..get_context(rules_lines, row, num_lines)
+
+   return ret
 end
 
 function load_rules(sinsp_lua_parser,
@@ -216,6 +257,8 @@ function load_rules(sinsp_lua_parser,
 
    local required_engine_version = 0
 
+   local lines, indices = split_lines(rules_content)
+
    local status, rules = pcall(yaml.load, rules_content)
 
    if status == false then
@@ -230,7 +273,10 @@ function load_rules(sinsp_lua_parser,
 	 rules = string.gsub(rules, pat, "")
       end
 
-      return false, row, col, rules
+      row = tonumber(row)
+      col = tonumber(col)
+
+      return false, build_error(lines, row, 3, rules)
    end
 
    if rules == nil then
@@ -239,19 +285,17 @@ function load_rules(sinsp_lua_parser,
    end
 
    if type(rules) ~= "table" then
-      return false, 1, 1, "Rules content is not yaml"
+      return false, build_error(lines, 1, 1, "Rules content is not yaml")
    end
 
    -- Look for non-numeric indices--implies that document is not array
    -- of objects.
    for key, val in pairs(rules) do
       if type(key) ~= "number" then
-	 return false, 1, 1, "Rules content is not yaml array of objects"
+	 return false, build_error(lines, 1, 1, "Rules content is not yaml array of objects")
       end
    end
 
-   indices = find_indices(rules_content)
-
    -- Iterate over yaml list. In this pass, all we're doing is
    -- populating the set of rules, macros, and lists. We're not
    -- expanding/compiling anything yet. All that will happen in a
@@ -259,23 +303,23 @@ function load_rules(sinsp_lua_parser,
    for i,v in ipairs(rules) do
 
       if (not (type(v) == "table")) then
-	 return false, indices[i], 1, "Unexpected element of type " ..type(v)..". Each element should be a yaml associative array."
+	 return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Unexpected element of type " ..type(v)..". Each element should be a yaml associative array.")
       end
 
       if (v['required_engine_version']) then
 	 required_engine_version = v['required_engine_version']
 	 if type(required_engine_version) ~= "number" then
-	    return false, indices[i], 1, "Value of required_engine_version must be a number"
+	    return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Value of required_engine_version must be a number")
 	 end
 
 	 if falco_rules.engine_version(rules_mgr) < v['required_engine_version'] then
-	    return false, indices[i], 1, "Rules require engine version "..v['required_engine_version']..", but engine version is "..falco_rules.engine_version(rules_mgr)
+	    return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Rules require engine version "..v['required_engine_version']..", but engine version is "..falco_rules.engine_version(rules_mgr))
 	 end
 
       elseif (v['macro']) then
 
 	 if (v['macro'] == nil or type(v['macro']) == "table") then
-	    return false, indices[i], 3, "Macro name is empty"
+	    return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Macro name is empty")
 	 end
 
 	 if v['source'] == nil then
@@ -288,7 +332,7 @@ function load_rules(sinsp_lua_parser,
 
 	 for j, field in ipairs({'condition'}) do
 	    if (v[field] == nil) then
-	       return false, indices[i], 3, "Macro must have property "..field
+	       return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Macro must have property "..field)
 	    end
 	 end
 
@@ -301,7 +345,7 @@ function load_rules(sinsp_lua_parser,
 
 	 if append then
 	    if state.macros_by_name[v['macro']] == nil then
-	       return false, indices[i], 1, "Macro " ..v['macro'].. " has 'append' key but no macro by that name already exists"
+	       return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Macro " ..v['macro'].. " has 'append' key but no macro by that name already exists")
 	    end
 
 	    state.macros_by_name[v['macro']]['condition'] = state.macros_by_name[v['macro']]['condition'] .. " " .. v['condition']
@@ -313,7 +357,7 @@ function load_rules(sinsp_lua_parser,
       elseif (v['list']) then
 
 	 if (v['list'] == nil or type(v['list']) == "table") then
-	    return false, indices[i], 3, "List name is empty"
+	    return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "List name is empty")
 	 end
 
 	 if state.lists_by_name[v['list']] == nil then
@@ -322,7 +366,7 @@ function load_rules(sinsp_lua_parser,
 
 	 for j, field in ipairs({'items'}) do
 	    if (v[field] == nil) then
-	       return false, indices[i], 3, "List must have property "..field
+	       return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "List must have property "..field)
 	    end
 	 end
 
@@ -335,7 +379,7 @@ function load_rules(sinsp_lua_parser,
 
 	 if append then
 	    if state.lists_by_name[v['list']] == nil then
-	       return false, indices[i], 1, "List " ..v['list'].. " has 'append' key but no list by that name already exists"
+	       return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "List " ..v['list'].. " has 'append' key but no list by that name already exists")
 	    end
 
 	    for j, elem in ipairs(v['items']) do
@@ -348,7 +392,7 @@ function load_rules(sinsp_lua_parser,
       elseif (v['rule']) then
 
 	 if (v['rule'] == nil or type(v['rule']) == "table") then
-	    return false, indices[i], 3, "Rule name is empty"
+	    return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Rule name is empty")
 	 end
 
 	 -- By default, if a rule's condition refers to an unknown
@@ -373,13 +417,13 @@ function load_rules(sinsp_lua_parser,
 	    -- For append rules, all you need is the condition
 	    for j, field in ipairs({'condition'}) do
 	       if (v[field] == nil) then
-		  return false, indices[i], 3, "Rule must have property "..field
+		  return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Rule must have property "..field)
 	       end
 	    end
 
 	    if state.rules_by_name[v['rule']] == nil then
 	       if state.skipped_rules_by_name[v['rule']] == nil then
-		  return false, indices[i], 1, "Rule " ..v['rule'].. " has 'append' key but no rule by that name already exists"
+		  return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Rule " ..v['rule'].. " has 'append' key but no rule by that name already exists")
 	       end
 	    else
 	       state.rules_by_name[v['rule']]['condition'] = state.rules_by_name[v['rule']]['condition'] .. " " .. v['condition']
@@ -389,7 +433,7 @@ function load_rules(sinsp_lua_parser,
 
 	    for j, field in ipairs({'condition', 'output', 'desc', 'priority'}) do
 	       if (v[field] == nil) then
-		  return false, indices[i], 3, "Rule must have property "..field
+		  return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Rule must have property "..field)
 	       end
 	    end
 
@@ -418,7 +462,7 @@ function load_rules(sinsp_lua_parser,
 	    end
 	 end
       else
-	 return false, indices[i], 1, "Unknown rule object: "..table.tostring(v)
+	 return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Unknown rule object: "..table.tostring(v))
       end
    end
 
@@ -458,7 +502,7 @@ function load_rules(sinsp_lua_parser,
       local status, ast = compiler.compile_macro(v['condition'], state.macros, state.lists)
 
       if status == false then
-	 return false, indices[i], 1, ast
+	 return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), ast)
       end
 
       if v['source'] == "syscall" then
@@ -483,7 +527,7 @@ function load_rules(sinsp_lua_parser,
 								  state.macros, state.lists)
 
       if status == false then
-	 return false, indices[i], 1, filter_ast
+	 return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), filter_ast)
       end
 
       local evtttypes = {}
@@ -621,7 +665,7 @@ function load_rules(sinsp_lua_parser,
 	 formatter = formats.formatter(v['source'], v['output'])
 	 formats.free_formatter(v['source'], formatter)
       else
-	 return false, indices[i], 1, "Unexpected type in load_rule: "..filter_ast.type
+	 return false, build_error(lines, indices[i], (indices[i+1]-indices[i]), "Unexpected type in load_rule: "..filter_ast.type)
       end
 
       ::next_rule::
diff --git a/userspace/engine/rules.cpp b/userspace/engine/rules.cpp
index da2a5f2d..610c6230 100644
--- a/userspace/engine/rules.cpp
+++ b/userspace/engine/rules.cpp
@@ -207,31 +207,6 @@ void falco_rules::enable_rule(string &rule, bool enabled)
 	m_engine->enable_rule(rule, enabled);
 }
 
-std::string falco_rules::get_context(const std::string &content, uint64_t lineno, uint64_t colno)
-{
-	istringstream ctx(content);
-	std::string line;
-	std::string ret;
-
-	for(uint32_t i=1; ctx && i<=lineno;  i++)
-	{
-		getline(ctx, line);
-		if(i == lineno)
-		{
-			ret += line + "\n";
-			break;
-		}
-	}
-
-	for(uint32_t j=1; j<colno; j++)
-	{
-		ret += " ";
-	}
-	ret += "^";
-
-	return ret;
-}
-
 int falco_rules::engine_version(lua_State *ls)
 {
 	if (! lua_islightuserdata(ls, -1))
@@ -452,7 +427,7 @@ void falco_rules::load_rules(const string &rules_content,
 		lua_pushstring(m_ls, extra.c_str());
 		lua_pushboolean(m_ls, (replace_container_info ? 1 : 0));
 		lua_pushnumber(m_ls, min_priority);
-		if(lua_pcall(m_ls, 9, 4, 0) != 0)
+		if(lua_pcall(m_ls, 9, 2, 0) != 0)
 		{
 			const char* lerr = lua_tostring(m_ls, -1);
 
@@ -461,27 +436,16 @@ void falco_rules::load_rules(const string &rules_content,
 			throw falco_exception(err);
 		}
 
-		// Either returns (true, required_engine_version), or (false, row, col, error string)
-		bool successful = lua_toboolean(m_ls, -4);
+		// Either returns (true, required_engine_version), or (false, error string)
+		bool successful = lua_toboolean(m_ls, -2);
 
 		if(successful)
 		{
-			required_engine_version = lua_tonumber(m_ls, -3);
+			required_engine_version = lua_tonumber(m_ls, -1);
 		}
 		else
 		{
-			int line = lua_tonumber(m_ls, -3);
-			int col = lua_tonumber(m_ls, -2);
 			std::string err = lua_tostring(m_ls, -1);
-
-			// If the line/columns are >= 0, use them to
-			// extract meaninful context from the result.
-			if(line >= 1 && col >= 1)
-			{
-				err += "\n";
-				err += get_context(rules_content, line, col);
-			}
-
 			throw falco_exception(err);
 		}