diff --git a/tests/fixtures/ship/validate_ship_install_failfast.stderr b/tests/fixtures/ship/validate_ship_install_failfast.stderr
new file mode 100644
index 0000000..2235aee
--- /dev/null
+++ b/tests/fixtures/ship/validate_ship_install_failfast.stderr
@@ -0,0 +1,16 @@
+ INFO  cargo_liner::cargo > Installing `abc`...
+    Updating `dummy-registry` index
+error: could not find `abc` in registry `crates-io` with version `*`
+Error: 
+   0: Failed to install or update the configured packages.
+   1: Failed to install "abc".
+   2: Cargo process finished unsuccessfully: exit status: 101
+
+Location:
+   src/cargo.rs:[..]
+
+Note: This can happen for many reasons.
+Suggestion: Read Cargo's output.
+
+Backtrace omitted. Run with RUST_BACKTRACE=1 environment variable to display it.
+Run with RUST_BACKTRACE=full to include source snippets.
diff --git a/tests/ship.rs b/tests/ship.rs
index 39c677e..fdb81c8 100644
--- a/tests/ship.rs
+++ b/tests/ship.rs
@@ -1044,3 +1044,22 @@ fn validate_ship_cargotermcolor_supported() {
         ]);
     assert_installed("pkg");
 }
+
+#[cargo_test]
+fn validate_ship_install_failfast() {
+    let _reg = init_registry();
+    fake_install_self();
+    fake_publish("def", "0.0.0");
+    write_user_config(&["[packages]", "abc = '*'", "def = '*'"]);
+
+    cargo_liner()
+        .args(["ship", "--skip-check", "--no-self"])
+        .assert()
+        .failure()
+        .stdout_eq_("".into_data().raw())
+        .stderr_eq_(snapbox::file![
+            "fixtures/ship/validate_ship_install_failfast.stderr"
+        ]);
+    assert_not_installed("abc");
+    assert_not_installed("def");
+}