diff --git a/cmd/conduit/main.go b/cmd/conduit/main.go
index 0e83b8d95..83e6eeb84 100644
--- a/cmd/conduit/main.go
+++ b/cmd/conduit/main.go
@@ -71,7 +71,16 @@ func parseConfig() conduit.Config {
 
 		connectorsDir = flags.String("connectors.path", "./connectors", "path to standalone connectors directory")
 
-		pipelinesDir = flags.String("pipelines.path", "./pipelines", "path to the directory that has the yaml pipeline configuration files, or a single pipeline configuration file")
+		pipelinesDir = flags.String(
+			"pipelines.path",
+			"./pipelines",
+			"path to the directory that has the yaml pipeline configuration files, or a single pipeline configuration file",
+		)
+		pipelinesExitOnError = flags.Bool(
+			"pipelines.exit-on-error",
+			false,
+			"exit Conduit if a pipeline experiences an error while running",
+		)
 	)
 
 	// flags is set up to exit on error, we can safely ignore the error
@@ -94,7 +103,7 @@ func parseConfig() conduit.Config {
 	cfg.Log.Format = strings.ToLower(stringPtrToVal(logFormat))
 	cfg.Connectors.Path = stringPtrToVal(connectorsDir)
 	cfg.Pipelines.Path = strings.ToLower(stringPtrToVal(pipelinesDir))
-
+	cfg.Pipelines.ExitOnError = *pipelinesExitOnError
 	return cfg
 }
 
@@ -116,6 +125,7 @@ func cancelOnInterrupt(ctx context.Context) context.Context {
 		<-signalChan // second interrupt signal
 		os.Exit(exitCodeInterrupt)
 	}()
+
 	return ctx
 }
 
diff --git a/pkg/conduit/config.go b/pkg/conduit/config.go
index 3f87c44f4..1b8e8ea35 100644
--- a/pkg/conduit/config.go
+++ b/pkg/conduit/config.go
@@ -58,7 +58,8 @@ type Config struct {
 	}
 
 	Pipelines struct {
-		Path string
+		Path        string
+		ExitOnError bool
 	}
 }
 
diff --git a/pkg/conduit/runtime.go b/pkg/conduit/runtime.go
index 3de6cc6c3..f90526a6e 100644
--- a/pkg/conduit/runtime.go
+++ b/pkg/conduit/runtime.go
@@ -217,6 +217,16 @@ func (r *Runtime) Run(ctx context.Context) (err error) {
 	if err != nil {
 		return cerrors.Errorf("failed to init connector service: %w", err)
 	}
+
+	if r.Config.Pipelines.ExitOnError {
+		r.pipelineService.OnFailure(func(e pipeline.FailureEvent) {
+			r.logger.Warn(ctx).
+				Err(e.Error).
+				Str(log.PipelineIDField, e.ID).
+				Msg("Conduit will shut down due to a pipeline failure and 'exit on error' enabled")
+			t.Kill(cerrors.Errorf("shut down due to 'exit on error' enabled: %w", e.Error))
+		})
+	}
 	err = r.pipelineService.Init(ctx)
 	if err != nil {
 		return cerrors.Errorf("failed to init pipeline service: %w", err)
@@ -227,6 +237,13 @@ func (r *Runtime) Run(ctx context.Context) (err error) {
 		multierror.ForEach(err, func(err error) {
 			r.logger.Err(ctx, err).Msg("provisioning failed")
 		})
+		if r.Config.Pipelines.ExitOnError {
+			r.logger.Warn(ctx).
+				Err(err).
+				Msg("Conduit will shut down due to a pipeline provisioning failure and 'exit on error' enabled")
+			err = cerrors.Errorf("shut down due to 'exit on error' enabled: %w", err)
+			return err
+		}
 	}
 
 	err = r.pipelineService.Run(ctx, r.connectorService, r.processorService, r.pluginService)
diff --git a/pkg/conduit/runtime_test.go b/pkg/conduit/runtime_test.go
index 284d9ba86..57d113665 100644
--- a/pkg/conduit/runtime_test.go
+++ b/pkg/conduit/runtime_test.go
@@ -20,13 +20,11 @@ import (
 	"time"
 
 	"github.com/conduitio/conduit/pkg/conduit"
+	"github.com/conduitio/conduit/pkg/foundation/cchan"
 	"github.com/conduitio/conduit/pkg/foundation/cerrors"
 	"github.com/matryer/is"
 )
 
-// path where tests store their data during runs.
-const delay = 500 * time.Millisecond
-
 func TestRuntime(t *testing.T) {
 	is := is.New(t)
 
@@ -44,14 +42,18 @@ func TestRuntime(t *testing.T) {
 	is.True(r != nil)
 
 	// set a cancel on a trigger to kill the context after THRESHOLD duration.
-	ctx, cancel := context.WithCancel(context.TODO())
+	ctx, cancel := context.WithCancel(context.Background())
 	go func() {
-		time.Sleep(delay)
+		time.Sleep(500 * time.Millisecond)
 		cancel()
 	}()
 
-	// wait on Run and assert that the context was canceled and no other error
-	// occurred.
-	err = r.Run(ctx)
+	errC := make(chan error)
+	go func() {
+		errC <- r.Run(ctx)
+	}()
+	err, got, recvErr := cchan.ChanOut[error](errC).RecvTimeout(context.Background(), time.Second)
+	is.NoErr(recvErr)
+	is.True(got)
 	is.True(cerrors.Is(err, context.Canceled)) // expected error to be context.Cancelled
 }
diff --git a/pkg/pipeline/lifecycle.go b/pkg/pipeline/lifecycle.go
index a112cb6e5..335ffd7dd 100644
--- a/pkg/pipeline/lifecycle.go
+++ b/pkg/pipeline/lifecycle.go
@@ -75,7 +75,8 @@ func (s *Service) Run(
 	return err
 }
 
-// Start builds and starts a pipeline instance.
+// Start builds and starts a pipeline with the given ID.
+// If the pipeline is already running, Start returns ErrPipelineRunning.
 func (s *Service) Start(
 	ctx context.Context,
 	connFetcher ConnectorFetcher,
@@ -623,6 +624,7 @@ func (s *Service) runPipeline(ctx context.Context, pl *Instance) error {
 			Str(log.PipelineIDField, pl.ID).
 			Msg("pipeline stopped")
 
+		s.notify(pl.ID, err)
 		// It's important to update the metrics before we handle the error from s.Store.Set() (if any),
 		// since the source of the truth is the actual pipeline (stored in memory).
 		measure.PipelinesGauge.WithValues(strings.ToLower(pl.Status.String())).Inc()
diff --git a/pkg/pipeline/lifecycle_test.go b/pkg/pipeline/lifecycle_test.go
index bf490bfd2..9d2da3d94 100644
--- a/pkg/pipeline/lifecycle_test.go
+++ b/pkg/pipeline/lifecycle_test.go
@@ -24,6 +24,7 @@ import (
 	"time"
 
 	"github.com/conduitio/conduit/pkg/connector"
+	"github.com/conduitio/conduit/pkg/foundation/cchan"
 	"github.com/conduitio/conduit/pkg/foundation/cerrors"
 	"github.com/conduitio/conduit/pkg/foundation/database/inmemory"
 	"github.com/conduitio/conduit/pkg/foundation/log"
@@ -203,6 +204,10 @@ func TestServiceLifecycle_PipelineError(t *testing.T) {
 	pl, err = ps.AddConnector(ctx, pl.ID, destination.ID)
 	is.NoErr(err)
 
+	events := make(chan FailureEvent, 1)
+	ps.OnFailure(func(e FailureEvent) {
+		events <- e
+	})
 	// start the pipeline now that everything is set up
 	err = ps.Start(
 		ctx,
@@ -233,6 +238,12 @@ func TestServiceLifecycle_PipelineError(t *testing.T) {
 	is.True(
 		strings.Contains(pl.Error, wantErr.Error()),
 	) // expected error message to contain "source connector error"
+
+	event, eventReceived, err := cchan.Chan[FailureEvent](events).RecvTimeout(ctx, 200*time.Millisecond)
+	is.NoErr(err)
+	is.True(eventReceived)
+	is.Equal(pl.ID, event.ID)
+	is.True(cerrors.Is(event.Error, wantErr))
 }
 
 func TestServiceLifecycle_PipelineStop(t *testing.T) {
diff --git a/pkg/pipeline/service.go b/pkg/pipeline/service.go
index db2148911..3e7f56a18 100644
--- a/pkg/pipeline/service.go
+++ b/pkg/pipeline/service.go
@@ -25,6 +25,14 @@ import (
 	"github.com/conduitio/conduit/pkg/foundation/metrics/measure"
 )
 
+type FailureEvent struct {
+	// ID is the ID of the pipeline which failed.
+	ID    string
+	Error error
+}
+
+type FailureHandler func(FailureEvent)
+
 // Service manages pipelines.
 type Service struct {
 	logger log.CtxLogger
@@ -33,6 +41,7 @@ type Service struct {
 
 	instances     map[string]*Instance
 	instanceNames map[string]bool
+	handlers      []FailureHandler
 }
 
 // NewService initializes and returns a pipeline Service.
@@ -296,3 +305,24 @@ func (s *Service) Delete(ctx context.Context, pipelineID string) error {
 
 	return nil
 }
+
+// OnFailure registers a handler for a pipeline.FailureEvent.
+// Only errors which happen after a pipeline has been started
+// are being sent.
+func (s *Service) OnFailure(handler FailureHandler) {
+	s.handlers = append(s.handlers, handler)
+}
+
+// notify notifies all registered FailureHandlers about an error.
+func (s *Service) notify(pipelineID string, err error) {
+	if err == nil {
+		return
+	}
+	e := FailureEvent{
+		ID:    pipelineID,
+		Error: err,
+	}
+	for _, handler := range s.handlers {
+		handler(e)
+	}
+}