diff --git a/src/libstore/build-result.hh b/src/libstore/build-result.hh
index 8c66cfeb353..88d9a739743 100644
--- a/src/libstore/build-result.hh
+++ b/src/libstore/build-result.hh
@@ -36,6 +36,7 @@ struct BuildResult
         NotDeterministic,
         ResolvesToAlreadyValid,
         NoSubstituters,
+        NoCompatibleBuilder,
     } status = MiscFailure;
 
     /**
@@ -64,6 +65,7 @@ struct BuildResult
                 case NotDeterministic: return "NotDeterministic";
                 case ResolvesToAlreadyValid: return "ResolvesToAlreadyValid";
                 case NoSubstituters: return "NoSubstituters";
+                case NoCompatibleBuilder: return "NoCompatibleBuilder";
                 default: return "Unknown";
             };
         }();
diff --git a/src/libstore/build/worker.cc b/src/libstore/build/worker.cc
index dbe86f43f6a..56bb9fcccd7 100644
--- a/src/libstore/build/worker.cc
+++ b/src/libstore/build/worker.cc
@@ -339,7 +339,7 @@ void Worker::run(const Goals & _topGoals)
             waitForInput();
         else if (awake.empty() && 0U == settings.maxBuildJobs) {
             if (getMachines().empty())
-               throw Error(
+               throw NoCompatibleBuilder(
                     R"(
                     Unable to start any build;
                     either increase '--max-jobs' or enable remote builds.
@@ -348,7 +348,7 @@ void Worker::run(const Goals & _topGoals)
                     )"
                 );
             else
-               throw Error(
+               throw NoCompatibleBuilder(
                     R"(
                     Unable to start any build;
                     remote machines may not have all required system features.
diff --git a/src/libstore/store-api.hh b/src/libstore/store-api.hh
index f45012061ff..cfd0f943625 100644
--- a/src/libstore/store-api.hh
+++ b/src/libstore/store-api.hh
@@ -61,6 +61,7 @@ MakeError(InvalidPath, Error);
 MakeError(Unsupported, Error);
 MakeError(SubstituteGone, Error);
 MakeError(SubstituterDisabled, Error);
+MakeError(NoCompatibleBuilder, Error);
 
 MakeError(InvalidStoreReference, Error);
 
diff --git a/src/libstore/unix/build/local-derivation-goal.cc b/src/libstore/unix/build/local-derivation-goal.cc
index 06a2f85be84..1c686b9eade 100644
--- a/src/libstore/unix/build/local-derivation-goal.cc
+++ b/src/libstore/unix/build/local-derivation-goal.cc
@@ -264,6 +264,10 @@ Goal::Co LocalDerivationGoal::tryLocalBuild()
         buildUser.reset();
         worker.permanentFailure = true;
         co_return done(BuildResult::InputRejected, {}, std::move(e));
+    } catch (NoCompatibleBuilder & e) {
+        outputLocks.unlock();
+        buildUser.reset();
+        co_return done(BuildResult::NoCompatibleBuilder, {}, std::move(e));
     }
 
     started();
@@ -532,7 +536,7 @@ void LocalDerivationGoal::startBuilder()
 
     /* Right platform? */
     if (!parsedDrv->canBuildLocally(worker.store))
-        throw Error("a '%s' with features {%s} is required to build '%s', but I am a '%s' with features {%s}",
+        throw NoCompatibleBuilder("a '%s' with features {%s} is required to build '%s', but I am a '%s' with features {%s}",
             drv->platform,
             concatStringsSep(", ", parsedDrv->getRequiredSystemFeatures()),
             worker.store.printStorePath(drvPath),
diff --git a/tests/functional/keep-going.nix b/tests/functional/keep-going.nix
new file mode 100644
index 00000000000..b95acc57240
--- /dev/null
+++ b/tests/functional/keep-going.nix
@@ -0,0 +1,33 @@
+with import ./config.nix;
+
+rec {
+
+  # Hack to get the scheduler to do what we want: The `good` derivation can
+  # only be built after `delay_good` (which takes a long time to build) while
+  # the others don't have any dependency.
+  # This means that if we build this with parallelism (`-j2`), then we can be
+  # reasonably sure that the failing derivations will be scheduled _before_ the
+  # `good` one (and so we can check that `--keep-going` works fine)
+  delay_good = mkDerivation {
+    name = "delay-good";
+    buildCommand = "sleep 3; touch $out";
+  };
+
+  good = mkDerivation {
+    name = "good";
+    buildCommand = "mkdir $out; echo foo > $out/bar";
+    delay = delay_good;
+  };
+
+  failing = mkDerivation {
+    name = "failing";
+    buildCommand = false;
+  };
+
+  requiresFooSystemFeature = mkDerivation {
+    name = "requires-foo-system-feature";
+    buildCommand = "mkdir $out; echo foo > $out/bar";
+    requiredSystemFeatures = [ "foo" ];
+  };
+
+}
diff --git a/tests/functional/keep-going.sh b/tests/functional/keep-going.sh
new file mode 100644
index 00000000000..94b3be7b14c
--- /dev/null
+++ b/tests/functional/keep-going.sh
@@ -0,0 +1,23 @@
+#!/usr/bin/env bash
+
+source common.sh
+
+clearStore
+
+mkdir -p "$TEST_ROOT/sync"
+# XXX: These invocations of nix-build should always return 100 according to the manpage, but often return 1
+(! nix-build ./keep-going.nix -j2 --extra-sandbox-paths "$TEST_ROOT/sync" --no-out-link 2>&1 \
+  | while read -r ln; do
+    echo "nix build: $ln"
+    if echo "$ln" | grepQuiet ...; then
+      touch "$TEST_ROOT/sync/failing-drv-failed"
+    fi
+  done)
+(! nix-build ./keep-going.nix -A good -j0 --no-out-link) || \
+    fail "Hello shouldn't have been built because of earlier errors"
+
+clearStore
+
+(! nix-build ./keep-going.nix --keep-going -j2 --no-out-link)
+nix-build ./keep-going.nix -A good -j0 --no-out-link || \
+    fail "Hello should have been built despite the errors because of '--keep-going'"
diff --git a/tests/functional/meson.build b/tests/functional/meson.build
index 83e08c4f5ad..bb78cadb1ad 100644
--- a/tests/functional/meson.build
+++ b/tests/functional/meson.build
@@ -164,6 +164,7 @@ suites = [
       'debugger.sh',
       'extra-sandbox-profile.sh',
       'help.sh',
+      'keep-going.sh',
     ],
     'workdir': meson.current_source_dir(),
   },