diff --git a/olive/cli/run_pass.py b/olive/cli/run_pass.py
index 3ed269185..18f2076b5 100644
--- a/olive/cli/run_pass.py
+++ b/olive/cli/run_pass.py
@@ -198,6 +198,7 @@ def _list_passes(self):
         except Exception as e:
             print(f"Error loading pass configurations: {e}")
             print("Unable to list available passes.")
+            raise SystemExit(1) from e
 
 
 # Template configuration for the one command
diff --git a/test/cli/test_run_pass_exit_status.py b/test/cli/test_run_pass_exit_status.py
new file mode 100644
index 000000000..7cb7c5167
--- /dev/null
+++ b/test/cli/test_run_pass_exit_status.py
@@ -0,0 +1,26 @@
+# -------------------------------------------------------------------------
+# Copyright (c) Microsoft Corporation. All rights reserved.
+# Licensed under the MIT License.
+# --------------------------------------------------------------------------
+from argparse import ArgumentParser
+from unittest.mock import patch
+
+import pytest
+
+from olive.cli.run_pass import RunPassCommand
+
+
+def test_list_passes_failure_exits_nonzero():
+    parser = ArgumentParser()
+    sub_parsers = parser.add_subparsers()
+    RunPassCommand.register_subcommand(sub_parsers)
+    args = parser.parse_args(["run-pass", "--list-passes"])
+    command = RunPassCommand(parser, args)
+
+    config_error = patch(
+        "olive.package_config.OlivePackageConfig.load_default_config", side_effect=RuntimeError("broken config")
+    )
+    with config_error, pytest.raises(SystemExit) as exc_info:
+        command.run()
+
+    assert exc_info.value.code == 1