diff --git a/.changes/v1.15/BUG FIXES-20260105-170648.yaml b/.changes/v1.15/BUG FIXES-20260105-170648.yaml
new file mode 100644
index 0000000000..d0764cfb66
--- /dev/null
+++ b/.changes/v1.15/BUG FIXES-20260105-170648.yaml	
@@ -0,0 +1,5 @@
+kind: BUG FIXES
+body: 'stacks: send progress events if the plan fails for better UI integration'
+time: 2026-01-05T17:06:48.252069+01:00
+custom:
+    Issue: "38039"
diff --git a/internal/rpcapi/stacks_test.go b/internal/rpcapi/stacks_test.go
index cd094b98f8..f12e259cb3 100644
--- a/internal/rpcapi/stacks_test.go
+++ b/internal/rpcapi/stacks_test.go
@@ -810,6 +810,69 @@ func TestStackChangeProgress(t *testing.T) {
 				},
 			},
 		},
+		"invalid": {
+			source: "git::https://example.com/invalid.git",
+			store: stacks_testing_provider.NewResourceStoreBuilder().
+				AddResource("resource", cty.ObjectVal(map[string]cty.Value{
+					"id":    cty.StringVal("resource"),
+					"value": cty.NullVal(cty.String),
+				})).
+				Build(),
+			state: []stackstate.AppliedChange{
+				&stackstate.AppliedChangeComponentInstance{
+					ComponentAddr:         mustAbsComponent(t, "component.self"),
+					ComponentInstanceAddr: mustAbsComponentInstance(t, "component.self"),
+				},
+				&stackstate.AppliedChangeResourceInstanceObject{
+					ResourceInstanceObjectAddr: mustAbsResourceInstanceObject(t, "component.self.testing_resource.resource"),
+					NewStateSrc: &states.ResourceInstanceObjectSrc{
+						AttrsJSON: mustMarshalJSONAttrs(map[string]interface{}{
+							"id":    "resource",
+							"value": nil,
+						}),
+						Status: states.ObjectReady,
+					},
+					ProviderConfigAddr: mustDefaultRootProvider("testing"),
+					Schema:             stacks_testing_provider.TestingResourceSchema,
+				},
+			},
+			want: []*stacks.StackChangeProgress{
+				{
+					Event: &stacks.StackChangeProgress_ResourceInstanceStatus_{
+						ResourceInstanceStatus: &stacks.StackChangeProgress_ResourceInstanceStatus{
+							Addr: &stacks.ResourceInstanceObjectInStackAddr{
+								ComponentInstanceAddr: "component.self",
+								ResourceInstanceAddr:  "testing_resource.resource",
+							},
+							Status: stacks.StackChangeProgress_ResourceInstanceStatus_ERRORED,
+						},
+					},
+				},
+				{
+					Event: &stacks.StackChangeProgress_ComponentInstanceStatus_{
+						ComponentInstanceStatus: &stacks.StackChangeProgress_ComponentInstanceStatus{
+							Addr: &stacks.ComponentInstanceInStackAddr{
+								ComponentAddr:         "component.self",
+								ComponentInstanceAddr: "component.self",
+							},
+							Status: stacks.StackChangeProgress_ComponentInstanceStatus_ERRORED,
+						},
+					},
+				},
+			},
+			diagnostics: []*terraform1.Diagnostic{
+				{
+					Severity: terraform1.Diagnostic_ERROR,
+					Summary:  "invalid configuration",
+					Detail:   "configure_error attribute was set",
+				},
+				{
+					Severity: terraform1.Diagnostic_ERROR,
+					Summary:  "Provider configuration is invalid",
+					Detail:   "Cannot decode the prior state for this resource instance because its provider configuration is invalid.",
+				},
+			},
+		},
 	}
 
 	for name, tc := range tcs {
diff --git a/internal/rpcapi/testdata/sourcebundle/invalid/invalid.tf b/internal/rpcapi/testdata/sourcebundle/invalid/invalid.tf
new file mode 100644
index 0000000000..d787664fa8
--- /dev/null
+++ b/internal/rpcapi/testdata/sourcebundle/invalid/invalid.tf
@@ -0,0 +1,10 @@
+terraform {
+  required_providers {
+    testing = {
+      source  = "hashicorp/testing"
+      version = "0.1.0"
+    }
+  }
+}
+
+resource "testing_resource" "resource" {}
diff --git a/internal/rpcapi/testdata/sourcebundle/invalid/invalid.tfcomponent.hcl b/internal/rpcapi/testdata/sourcebundle/invalid/invalid.tfcomponent.hcl
new file mode 100644
index 0000000000..88aadd6ee6
--- /dev/null
+++ b/internal/rpcapi/testdata/sourcebundle/invalid/invalid.tfcomponent.hcl
@@ -0,0 +1,21 @@
+required_providers {
+  testing = {
+    source  = "hashicorp/testing"
+    version = "0.1.0"
+  }
+}
+
+provider "testing" "default" {
+    config {
+      // This provider is going to fail to configure.
+      configure_error = "invalid configuration"
+    }
+}
+
+component "self" {
+  source = "./"
+
+  providers = {
+    testing = provider.testing.default
+  }
+}
diff --git a/internal/rpcapi/testdata/sourcebundle/terraform-sources.json b/internal/rpcapi/testdata/sourcebundle/terraform-sources.json
index aba8a33459..7d48c58bf4 100644
--- a/internal/rpcapi/testdata/sourcebundle/terraform-sources.json
+++ b/internal/rpcapi/testdata/sourcebundle/terraform-sources.json
@@ -30,6 +30,11 @@
       "source": "git::https://example.com/removed.git",
       "local": "removed",
       "meta": {}
+    },
+    {
+      "source": "git::https://example.com/invalid.git",
+      "local": "invalid",
+      "meta": {}
     }
   ]
 }
diff --git a/internal/stacks/stackruntime/internal/stackeval/component_instance.go b/internal/stacks/stackruntime/internal/stackeval/component_instance.go
index 2c330e9635..6fcf25cbe2 100644
--- a/internal/stacks/stackruntime/internal/stackeval/component_instance.go
+++ b/internal/stacks/stackruntime/internal/stackeval/component_instance.go
@@ -351,6 +351,8 @@ func (c *ComponentInstance) CheckModuleTreePlan(ctx context.Context) (*plans.Pla
 				ReportComponentInstance(ctx, plan, h, seq, c)
 				if plan.Complete {
 					hookMore(ctx, seq, h.EndComponentInstancePlan, c.Addr())
+				} else if plan.Errored {
+					hookMore(ctx, seq, h.ErrorComponentInstancePlan, c.Addr())
 				} else {
 					hookMore(ctx, seq, h.DeferComponentInstancePlan, c.Addr())
 				}