diff --git a/rust/crates/plugins/src/hooks.rs b/rust/crates/plugins/src/hooks.rs
index d473da8..a03e7e8 100644
--- a/rust/crates/plugins/src/hooks.rs
+++ b/rust/crates/plugins/src/hooks.rs
@@ -10,6 +10,7 @@ use crate::{PluginError, PluginHooks, PluginRegistry};
 pub enum HookEvent {
     PreToolUse,
     PostToolUse,
+    PostToolUseFailure,
 }
 
 impl HookEvent {
@@ -17,6 +18,7 @@ impl HookEvent {
         match self {
             Self::PreToolUse => "PreToolUse",
             Self::PostToolUse => "PostToolUse",
+            Self::PostToolUseFailure => "PostToolUseFailure",
         }
     }
 }
@@ -24,6 +26,7 @@ impl HookEvent {
 #[derive(Debug, Clone, PartialEq, Eq)]
 pub struct HookRunResult {
     denied: bool,
+    failed: bool,
     messages: Vec<String>,
 }
 
@@ -32,6 +35,7 @@ impl HookRunResult {
     pub fn allow(messages: Vec<String>) -> Self {
         Self {
             denied: false,
+            failed: false,
             messages,
         }
     }
@@ -41,6 +45,11 @@ impl HookRunResult {
         self.denied
     }
 
+    #[must_use]
+    pub fn is_failed(&self) -> bool {
+        self.failed
+    }
+
     #[must_use]
     pub fn messages(&self) -> &[String] {
         &self.messages
@@ -92,6 +101,23 @@ impl HookRunner {
         )
     }
 
+    #[must_use]
+    pub fn run_post_tool_use_failure(
+        &self,
+        tool_name: &str,
+        tool_input: &str,
+        tool_error: &str,
+    ) -> HookRunResult {
+        self.run_commands(
+            HookEvent::PostToolUseFailure,
+            &self.hooks.post_tool_use_failure,
+            tool_name,
+            tool_input,
+            Some(tool_error),
+            true,
+        )
+    }
+
     fn run_commands(
         &self,
         event: HookEvent,
@@ -105,15 +131,7 @@ impl HookRunner {
             return HookRunResult::allow(Vec::new());
         }
 
-        let payload = json!({
-            "hook_event_name": event.as_str(),
-            "tool_name": tool_name,
-            "tool_input": parse_tool_input(tool_input),
-            "tool_input_json": tool_input,
-            "tool_output": tool_output,
-            "tool_result_is_error": is_error,
-        })
-        .to_string();
+        let payload = hook_payload(event, tool_name, tool_input, tool_output, is_error).to_string();
 
         let mut messages = Vec::new();
 
@@ -138,10 +156,18 @@ impl HookRunner {
                     }));
                     return HookRunResult {
                         denied: true,
+                        failed: false,
+                        messages,
+                    };
+                }
+                HookCommandOutcome::Failed { message } => {
+                    messages.push(message);
+                    return HookRunResult {
+                        denied: false,
+                        failed: true,
                         messages,
                     };
                 }
-                HookCommandOutcome::Warn { message } => messages.push(message),
             }
         }
 
@@ -179,7 +205,7 @@ impl HookRunner {
                 match output.status.code() {
                     Some(0) => HookCommandOutcome::Allow { message },
                     Some(2) => HookCommandOutcome::Deny { message },
-                    Some(code) => HookCommandOutcome::Warn {
+                    Some(code) => HookCommandOutcome::Failed {
                         message: format_hook_warning(
                             command,
                             code,
@@ -187,7 +213,7 @@ impl HookRunner {
                             stderr.as_str(),
                         ),
                     },
-                    None => HookCommandOutcome::Warn {
+                    None => HookCommandOutcome::Failed {
                         message: format!(
                             "{} hook `{command}` terminated by signal while handling `{tool_name}`",
                             event.as_str()
@@ -195,7 +221,7 @@ impl HookRunner {
                     },
                 }
             }
-            Err(error) => HookCommandOutcome::Warn {
+            Err(error) => HookCommandOutcome::Failed {
                 message: format!(
                     "{} hook `{command}` failed to start for `{tool_name}`: {error}",
                     event.as_str()
@@ -208,7 +234,34 @@ impl HookRunner {
 enum HookCommandOutcome {
     Allow { message: Option<String> },
     Deny { message: Option<String> },
-    Warn { message: String },
+    Failed { message: String },
+}
+
+fn hook_payload(
+    event: HookEvent,
+    tool_name: &str,
+    tool_input: &str,
+    tool_output: Option<&str>,
+    is_error: bool,
+) -> serde_json::Value {
+    match event {
+        HookEvent::PostToolUseFailure => json!({
+            "hook_event_name": event.as_str(),
+            "tool_name": tool_name,
+            "tool_input": parse_tool_input(tool_input),
+            "tool_input_json": tool_input,
+            "tool_error": tool_output,
+            "tool_result_is_error": true,
+        }),
+        _ => json!({
+            "hook_event_name": event.as_str(),
+            "tool_name": tool_name,
+            "tool_input": parse_tool_input(tool_input),
+            "tool_input_json": tool_input,
+            "tool_output": tool_output,
+            "tool_result_is_error": is_error,
+        }),
+    }
 }
 
 fn parse_tool_input(tool_input: &str) -> serde_json::Value {
@@ -216,8 +269,7 @@ fn parse_tool_input(tool_input: &str) -> serde_json::Value {
 }
 
 fn format_hook_warning(command: &str, code: i32, stdout: Option<&str>, stderr: &str) -> String {
-    let mut message =
-        format!("Hook `{command}` exited with status {code}; allowing tool execution to continue");
+    let mut message = format!("Hook `{command}` exited with status {code}");
     if let Some(stdout) = stdout.filter(|stdout| !stdout.is_empty()) {
         message.push_str(": ");
         message.push_str(stdout);
@@ -309,7 +361,13 @@ mod tests {
         std::env::temp_dir().join(format!("plugins-hook-runner-{label}-{nanos}"))
     }
 
-    fn write_hook_plugin(root: &Path, name: &str, pre_message: &str, post_message: &str) {
+    fn write_hook_plugin(
+        root: &Path,
+        name: &str,
+        pre_message: &str,
+        post_message: &str,
+        failure_message: &str,
+    ) {
         fs::create_dir_all(root.join(".claude-plugin")).expect("manifest dir");
         fs::create_dir_all(root.join("hooks")).expect("hooks dir");
         fs::write(
@@ -322,10 +380,15 @@ mod tests {
             format!("#!/bin/sh\nprintf '%s\\n' '{post_message}'\n"),
         )
         .expect("write post hook");
+        fs::write(
+            root.join("hooks").join("failure.sh"),
+            format!("#!/bin/sh\nprintf '%s\\n' '{failure_message}'\n"),
+        )
+        .expect("write failure hook");
         fs::write(
             root.join(".claude-plugin").join("plugin.json"),
             format!(
-                "{{\n  \"name\": \"{name}\",\n  \"version\": \"1.0.0\",\n  \"description\": \"hook plugin\",\n  \"hooks\": {{\n    \"PreToolUse\": [\"./hooks/pre.sh\"],\n    \"PostToolUse\": [\"./hooks/post.sh\"]\n  }}\n}}"
+                "{{\n  \"name\": \"{name}\",\n  \"version\": \"1.0.0\",\n  \"description\": \"hook plugin\",\n  \"hooks\": {{\n    \"PreToolUse\": [\"./hooks/pre.sh\"],\n    \"PostToolUse\": [\"./hooks/post.sh\"],\n    \"PostToolUseFailure\": [\"./hooks/failure.sh\"]\n  }}\n}}"
             ),
         )
         .expect("write plugin manifest");
@@ -333,6 +396,7 @@ mod tests {
 
     #[test]
     fn collects_and_runs_hooks_from_enabled_plugins() {
+        // given
         let config_home = temp_dir("config");
         let first_source_root = temp_dir("source-a");
         let second_source_root = temp_dir("source-b");
@@ -341,12 +405,14 @@ mod tests {
             "first",
             "plugin pre one",
             "plugin post one",
+            "plugin failure one",
         );
         write_hook_plugin(
             &second_source_root,
             "second",
             "plugin pre two",
             "plugin post two",
+            "plugin failure two",
         );
 
         let mut manager = PluginManager::new(PluginManagerConfig::new(&config_home));
@@ -358,8 +424,10 @@ mod tests {
             .expect("second plugin install should succeed");
         let registry = manager.plugin_registry().expect("registry should build");
 
+        // when
         let runner = HookRunner::from_registry(&registry).expect("plugin hooks should load");
 
+        // then
         assert_eq!(
             runner.run_pre_tool_use("Read", r#"{"path":"README.md"}"#),
             HookRunResult::allow(vec![
@@ -374,6 +442,13 @@ mod tests {
                 "plugin post two".to_string(),
             ])
         );
+        assert_eq!(
+            runner.run_post_tool_use_failure("Read", r#"{"path":"README.md"}"#, "tool failed",),
+            HookRunResult::allow(vec![
+                "plugin failure one".to_string(),
+                "plugin failure two".to_string(),
+            ])
+        );
 
         let _ = fs::remove_dir_all(config_home);
         let _ = fs::remove_dir_all(first_source_root);
@@ -382,14 +457,45 @@ mod tests {
 
     #[test]
     fn pre_tool_use_denies_when_plugin_hook_exits_two() {
+        // given
         let runner = HookRunner::new(crate::PluginHooks {
             pre_tool_use: vec!["printf 'blocked by plugin'; exit 2".to_string()],
             post_tool_use: Vec::new(),
+            post_tool_use_failure: Vec::new(),
         });
 
+        // when
         let result = runner.run_pre_tool_use("Bash", r#"{"command":"pwd"}"#);
 
+        // then
         assert!(result.is_denied());
         assert_eq!(result.messages(), &["blocked by plugin".to_string()]);
     }
+
+    #[test]
+    fn propagates_plugin_hook_failures() {
+        // given
+        let runner = HookRunner::new(crate::PluginHooks {
+            pre_tool_use: vec![
+                "printf 'broken plugin hook'; exit 1".to_string(),
+                "printf 'later plugin hook'".to_string(),
+            ],
+            post_tool_use: Vec::new(),
+            post_tool_use_failure: Vec::new(),
+        });
+
+        // when
+        let result = runner.run_pre_tool_use("Bash", r#"{"command":"pwd"}"#);
+
+        // then
+        assert!(result.is_failed());
+        assert!(result
+            .messages()
+            .iter()
+            .any(|message| message.contains("broken plugin hook")));
+        assert!(!result
+            .messages()
+            .iter()
+            .any(|message| message == "later plugin hook"));
+    }
 }
diff --git a/rust/crates/plugins/src/lib.rs b/rust/crates/plugins/src/lib.rs
index 8ab819c..321070a 100644
--- a/rust/crates/plugins/src/lib.rs
+++ b/rust/crates/plugins/src/lib.rs
@@ -67,12 +67,16 @@ pub struct PluginHooks {
     pub pre_tool_use: Vec<String>,
     #[serde(rename = "PostToolUse", default)]
     pub post_tool_use: Vec<String>,
+    #[serde(rename = "PostToolUseFailure", default)]
+    pub post_tool_use_failure: Vec<String>,
 }
 
 impl PluginHooks {
     #[must_use]
     pub fn is_empty(&self) -> bool {
-        self.pre_tool_use.is_empty() && self.post_tool_use.is_empty()
+        self.pre_tool_use.is_empty()
+            && self.post_tool_use.is_empty()
+            && self.post_tool_use_failure.is_empty()
     }
 
     #[must_use]
@@ -85,6 +89,9 @@ impl PluginHooks {
             .post_tool_use
             .extend(other.post_tool_use.iter().cloned());
         merged
+            .post_tool_use_failure
+            .extend(other.post_tool_use_failure.iter().cloned());
+        merged
     }
 }
 
@@ -1691,6 +1698,11 @@ fn resolve_hooks(root: &Path, hooks: &PluginHooks) -> PluginHooks {
             .iter()
             .map(|entry| resolve_hook_entry(root, entry))
             .collect(),
+        post_tool_use_failure: hooks
+            .post_tool_use_failure
+            .iter()
+            .map(|entry| resolve_hook_entry(root, entry))
+            .collect(),
     }
 }
 
@@ -1739,7 +1751,12 @@ fn validate_hook_paths(root: Option<&Path>, hooks: &PluginHooks) -> Result<(), P
     let Some(root) = root else {
         return Ok(());
     };
-    for entry in hooks.pre_tool_use.iter().chain(hooks.post_tool_use.iter()) {
+    for entry in hooks
+        .pre_tool_use
+        .iter()
+        .chain(hooks.post_tool_use.iter())
+        .chain(hooks.post_tool_use_failure.iter())
+    {
         validate_command_path(root, entry, "hook")?;
     }
     Ok(())
diff --git a/rust/crates/runtime/src/conversation.rs b/rust/crates/runtime/src/conversation.rs
index 681c51f..c93e217 100644
--- a/rust/crates/runtime/src/conversation.rs
+++ b/rust/crates/runtime/src/conversation.rs
@@ -374,6 +374,13 @@ where
                             &format!("PreToolUse hook cancelled tool `{tool_name}`"),
                         ),
                     }
+                } else if pre_hook_result.is_failed() {
+                    PermissionOutcome::Deny {
+                        reason: format_hook_message(
+                            &pre_hook_result,
+                            &format!("PreToolUse hook failed for tool `{tool_name}`"),
+                        ),
+                    }
                 } else if pre_hook_result.is_denied() {
                     PermissionOutcome::Deny {
                         reason: format_hook_message(
@@ -421,13 +428,18 @@ where
                                 false,
                             )
                         };
-                        if post_hook_result.is_denied() || post_hook_result.is_cancelled() {
+                        if post_hook_result.is_denied()
+                            || post_hook_result.is_failed()
+                            || post_hook_result.is_cancelled()
+                        {
                             is_error = true;
                         }
                         output = merge_hook_feedback(
                             post_hook_result.messages(),
                             output,
-                            post_hook_result.is_denied() || post_hook_result.is_cancelled(),
+                            post_hook_result.is_denied()
+                                || post_hook_result.is_failed()
+                                || post_hook_result.is_cancelled(),
                         );
 
                         ConversationMessage::tool_result(tool_use_id, tool_name, output, is_error)
@@ -707,7 +719,7 @@ fn format_hook_message(result: &HookRunResult, fallback: &str) -> String {
     }
 }
 
-fn merge_hook_feedback(messages: &[String], output: String, denied: bool) -> String {
+fn merge_hook_feedback(messages: &[String], output: String, is_error: bool) -> String {
     if messages.is_empty() {
         return output;
     }
@@ -716,8 +728,8 @@ fn merge_hook_feedback(messages: &[String], output: String, denied: bool) -> Str
     if !output.trim().is_empty() {
         sections.push(output);
     }
-    let label = if denied {
-        "Hook feedback (denied)"
+    let label = if is_error {
+        "Hook feedback (error)"
     } else {
         "Hook feedback"
     };
@@ -1050,6 +1062,71 @@ mod tests {
         );
     }
 
+    #[test]
+    fn denies_tool_use_when_pre_tool_hook_fails() {
+        struct SingleCallApiClient;
+        impl ApiClient for SingleCallApiClient {
+            fn stream(&mut self, request: ApiRequest) -> Result<Vec<AssistantEvent>, RuntimeError> {
+                if request
+                    .messages
+                    .iter()
+                    .any(|message| message.role == MessageRole::Tool)
+                {
+                    return Ok(vec![
+                        AssistantEvent::TextDelta("failed".to_string()),
+                        AssistantEvent::MessageStop,
+                    ]);
+                }
+                Ok(vec![
+                    AssistantEvent::ToolUse {
+                        id: "tool-1".to_string(),
+                        name: "blocked".to_string(),
+                        input: r#"{"path":"secret.txt"}"#.to_string(),
+                    },
+                    AssistantEvent::MessageStop,
+                ])
+            }
+        }
+
+        // given
+        let mut runtime = ConversationRuntime::new_with_features(
+            Session::new(),
+            SingleCallApiClient,
+            StaticToolExecutor::new().register("blocked", |_input| {
+                panic!("tool should not execute when hook fails")
+            }),
+            PermissionPolicy::new(PermissionMode::DangerFullAccess),
+            vec!["system".to_string()],
+            &RuntimeFeatureConfig::default().with_hooks(RuntimeHookConfig::new(
+                vec![shell_snippet("printf 'broken hook'; exit 1")],
+                Vec::new(),
+                Vec::new(),
+            )),
+        );
+
+        // when
+        let summary = runtime
+            .run_turn("use the tool", None)
+            .expect("conversation should continue after hook failure");
+
+        // then
+        assert_eq!(summary.tool_results.len(), 1);
+        let ContentBlock::ToolResult {
+            is_error, output, ..
+        } = &summary.tool_results[0].blocks[0]
+        else {
+            panic!("expected tool result block");
+        };
+        assert!(
+            *is_error,
+            "hook failure should produce an error result: {output}"
+        );
+        assert!(
+            output.contains("exited with status 1") || output.contains("broken hook"),
+            "unexpected hook failure output: {output:?}"
+        );
+    }
+
     #[test]
     fn appends_post_tool_hook_feedback_to_tool_result() {
         struct TwoCallApiClient {
diff --git a/rust/crates/runtime/src/hooks.rs b/rust/crates/runtime/src/hooks.rs
index 739065d..f0a32fe 100644
--- a/rust/crates/runtime/src/hooks.rs
+++ b/rust/crates/runtime/src/hooks.rs
@@ -80,6 +80,7 @@ impl HookAbortSignal {
 #[derive(Debug, Clone, PartialEq, Eq)]
 pub struct HookRunResult {
     denied: bool,
+    failed: bool,
     cancelled: bool,
     messages: Vec<String>,
     permission_override: Option<PermissionOverride>,
@@ -92,6 +93,7 @@ impl HookRunResult {
     pub fn allow(messages: Vec<String>) -> Self {
         Self {
             denied: false,
+            failed: false,
             cancelled: false,
             messages,
             permission_override: None,
@@ -105,6 +107,11 @@ impl HookRunResult {
         self.denied
     }
 
+    #[must_use]
+    pub fn is_failed(&self) -> bool {
+        self.failed
+    }
+
     #[must_use]
     pub fn is_cancelled(&self) -> bool {
         self.cancelled
@@ -317,6 +324,7 @@ impl HookRunner {
         if abort_signal.is_some_and(HookAbortSignal::is_aborted) {
             return HookRunResult {
                 denied: false,
+                failed: false,
                 cancelled: true,
                 messages: vec![format!(
                     "{} hook cancelled before execution",
@@ -372,7 +380,7 @@ impl HookRunner {
                     result.denied = true;
                     return result;
                 }
-                HookCommandOutcome::Warn { message } => {
+                HookCommandOutcome::Failed { parsed } => {
                     if let Some(reporter) = reporter.as_deref_mut() {
                         reporter.on_event(&HookProgressEvent::Completed {
                             event,
@@ -380,7 +388,9 @@ impl HookRunner {
                             command: command.clone(),
                         });
                     }
-                    result.messages.push(message);
+                    merge_parsed_hook_output(&mut result, parsed);
+                    result.failed = true;
+                    return result;
                 }
                 HookCommandOutcome::Cancelled { message } => {
                     if let Some(reporter) = reporter.as_deref_mut() {
@@ -428,6 +438,7 @@ impl HookRunner {
                 let stdout = String::from_utf8_lossy(&output.stdout).trim().to_string();
                 let stderr = String::from_utf8_lossy(&output.stderr).trim().to_string();
                 let parsed = parse_hook_output(&stdout);
+                let primary_message = parsed.primary_message().map(ToOwned::to_owned);
                 match output.status.code() {
                     Some(0) => {
                         if parsed.deny {
@@ -442,20 +453,20 @@ impl HookRunner {
                             event.as_str()
                         )),
                     },
-                    Some(code) => HookCommandOutcome::Warn {
-                        message: format_hook_warning(
+                    Some(code) => HookCommandOutcome::Failed {
+                        parsed: parsed.with_fallback_message(format_hook_failure(
                             command,
                             code,
-                            parsed.primary_message(),
+                            primary_message.as_deref(),
                             stderr.as_str(),
-                        ),
+                        )),
                     },
-                    None => HookCommandOutcome::Warn {
-                        message: format!(
+                    None => HookCommandOutcome::Failed {
+                        parsed: parsed.with_fallback_message(format!(
                             "{} hook `{command}` terminated by signal while handling `{}`",
                             event.as_str(),
                             tool_name
-                        ),
+                        )),
                     },
                 }
             }
@@ -465,12 +476,15 @@ impl HookRunner {
                     event.as_str()
                 ),
             },
-            Err(error) => HookCommandOutcome::Warn {
-                message: format!(
-                    "{} hook `{command}` failed to start for `{}`: {error}",
-                    event.as_str(),
-                    tool_name
-                ),
+            Err(error) => HookCommandOutcome::Failed {
+                parsed: ParsedHookOutput {
+                    messages: vec![format!(
+                        "{} hook `{command}` failed to start for `{}`: {error}",
+                        event.as_str(),
+                        tool_name
+                    )],
+                    ..ParsedHookOutput::default()
+                },
             },
         }
     }
@@ -479,7 +493,7 @@ impl HookRunner {
 enum HookCommandOutcome {
     Allow { parsed: ParsedHookOutput },
     Deny { parsed: ParsedHookOutput },
-    Warn { message: String },
+    Failed { parsed: ParsedHookOutput },
     Cancelled { message: String },
 }
 
@@ -605,9 +619,8 @@ fn parse_tool_input(tool_input: &str) -> Value {
     serde_json::from_str(tool_input).unwrap_or_else(|_| json!({ "raw": tool_input }))
 }
 
-fn format_hook_warning(command: &str, code: i32, stdout: Option<&str>, stderr: &str) -> String {
-    let mut message =
-        format!("Hook `{command}` exited with status {code}; allowing tool execution to continue");
+fn format_hook_failure(command: &str, code: i32, stdout: Option<&str>, stderr: &str) -> String {
+    let mut message = format!("Hook `{command}` exited with status {code}");
     if let Some(stdout) = stdout.filter(|stdout| !stdout.is_empty()) {
         message.push_str(": ");
         message.push_str(stdout);
@@ -749,7 +762,7 @@ mod tests {
     }
 
     #[test]
-    fn warns_for_other_non_zero_statuses() {
+    fn propagates_other_non_zero_statuses_as_failures() {
         let runner = HookRunner::from_feature_config(&RuntimeFeatureConfig::default().with_hooks(
             RuntimeHookConfig::new(
                 vec![shell_snippet("printf 'warning hook'; exit 1")],
@@ -758,13 +771,16 @@ mod tests {
             ),
         ));
 
+        // given
+        // when
         let result = runner.run_pre_tool_use("Edit", r#"{"file":"src/lib.rs"}"#);
 
-        assert!(!result.is_denied());
+        // then
+        assert!(result.is_failed());
         assert!(result
             .messages()
             .iter()
-            .any(|message| message.contains("allowing tool execution to continue")));
+            .any(|message| message.contains("warning hook")));
     }
 
     #[test]
@@ -803,6 +819,91 @@ mod tests {
         assert_eq!(result.messages(), &["failure hook ran".to_string()]);
     }
 
+    #[test]
+    fn executes_hooks_in_configured_order() {
+        // given
+        let runner = HookRunner::new(RuntimeHookConfig::new(
+            vec![
+                shell_snippet("printf 'first'"),
+                shell_snippet("printf 'second'"),
+            ],
+            Vec::new(),
+            Vec::new(),
+        ));
+        let mut reporter = RecordingReporter { events: Vec::new() };
+
+        // when
+        let result = runner.run_pre_tool_use_with_context(
+            "Read",
+            r#"{"path":"README.md"}"#,
+            None,
+            Some(&mut reporter),
+        );
+
+        // then
+        assert_eq!(
+            result,
+            HookRunResult::allow(vec!["first".to_string(), "second".to_string()])
+        );
+        assert_eq!(reporter.events.len(), 4);
+        assert!(matches!(
+            &reporter.events[0],
+            HookProgressEvent::Started {
+                event: HookEvent::PreToolUse,
+                command,
+                ..
+            } if command == "printf 'first'"
+        ));
+        assert!(matches!(
+            &reporter.events[1],
+            HookProgressEvent::Completed {
+                event: HookEvent::PreToolUse,
+                command,
+                ..
+            } if command == "printf 'first'"
+        ));
+        assert!(matches!(
+            &reporter.events[2],
+            HookProgressEvent::Started {
+                event: HookEvent::PreToolUse,
+                command,
+                ..
+            } if command == "printf 'second'"
+        ));
+        assert!(matches!(
+            &reporter.events[3],
+            HookProgressEvent::Completed {
+                event: HookEvent::PreToolUse,
+                command,
+                ..
+            } if command == "printf 'second'"
+        ));
+    }
+
+    #[test]
+    fn stops_running_hooks_after_failure() {
+        // given
+        let runner = HookRunner::new(RuntimeHookConfig::new(
+            vec![
+                shell_snippet("printf 'broken'; exit 1"),
+                shell_snippet("printf 'later'"),
+            ],
+            Vec::new(),
+            Vec::new(),
+        ));
+
+        // when
+        let result = runner.run_pre_tool_use("Edit", r#"{"file":"src/lib.rs"}"#);
+
+        // then
+        assert!(result.is_failed());
+        assert!(result
+            .messages()
+            .iter()
+            .any(|message| message.contains("broken")));
+        assert!(!result.messages().iter().any(|message| message == "later"));
+    }
+
     #[test]
     fn abort_signal_cancels_long_running_hook_and_reports_progress() {
         let runner = HookRunner::new(RuntimeHookConfig::new(