diff --git a/.changeset/blue-ravens-smile.md b/.changeset/blue-ravens-smile.md
new file mode 100644
index 0000000000..945f4dc47b
--- /dev/null
+++ b/.changeset/blue-ravens-smile.md
@@ -0,0 +1,5 @@
+---
+"hardhat": patch
+---
+
+Fixed an issue with `debug_traceTransaction` when large responses were generated
diff --git a/packages/hardhat-core/src/internal/hardhat-network/provider/provider.ts b/packages/hardhat-core/src/internal/hardhat-network/provider/provider.ts
index 939ca6b3b7..c48c51cfb7 100644
--- a/packages/hardhat-core/src/internal/hardhat-network/provider/provider.ts
+++ b/packages/hardhat-core/src/internal/hardhat-network/provider/provider.ts
@@ -354,7 +354,13 @@ export class EdrProviderWrapper
     const responseObject: Response = await this._provider.handleRequest(
       stringifiedArgs
     );
-    const response = JSON.parse(responseObject.json);
+
+    let response;
+    if (typeof responseObject.data === "string") {
+      response = JSON.parse(responseObject.data);
+    } else {
+      response = responseObject.data;
+    }
 
     const needsTraces =
       this._node._vm.evm.events.eventNames().length > 0 ||
diff --git a/packages/hardhat-core/src/internal/hardhat-network/provider/vm/minimal-vm.ts b/packages/hardhat-core/src/internal/hardhat-network/provider/vm/minimal-vm.ts
index bf75d7d30a..f80fa55d61 100644
--- a/packages/hardhat-core/src/internal/hardhat-network/provider/vm/minimal-vm.ts
+++ b/packages/hardhat-core/src/internal/hardhat-network/provider/vm/minimal-vm.ts
@@ -82,7 +82,12 @@ export function getMinimalEthereumJsVm(
           })
         );
 
-        const response = JSON.parse(responseObject.json);
+        let response;
+        if (typeof responseObject.data === "string") {
+          response = JSON.parse(responseObject.data);
+        } else {
+          response = responseObject.data;
+        }
 
         return Buffer.from(response.result.slice(2), "hex");
       },