diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/EnvironmentBackedRecursivePackageProvider.java b/src/main/java/com/google/devtools/build/lib/skyframe/EnvironmentBackedRecursivePackageProvider.java
index 8f3f4e8a8417cc..d42057382fe0e6 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/EnvironmentBackedRecursivePackageProvider.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/EnvironmentBackedRecursivePackageProvider.java
@@ -39,6 +39,7 @@
 import java.util.LinkedHashSet;
 import java.util.List;
 import java.util.Map;
+import java.util.concurrent.atomic.AtomicBoolean;
 
 /**
  * A {@link RecursivePackageProvider} backed by an {@link Environment}. Its methods may throw {@link
@@ -52,11 +53,18 @@ public final class EnvironmentBackedRecursivePackageProvider
     extends AbstractRecursivePackageProvider {
 
   private final Environment env;
+  private final AtomicBoolean encounteredPackageErrors = new AtomicBoolean(false);
 
   EnvironmentBackedRecursivePackageProvider(Environment env) {
     this.env = env;
   }
 
+  // TODO(nharmata): Audit the rest of the codebase to determine if we should be calling this method
+  // in more places.
+  boolean encounteredPackageErrors() {
+    return encounteredPackageErrors.get();
+  }
+
   @Override
   public Package getPackage(ExtendedEventHandler eventHandler, PackageIdentifier packageName)
       throws NoSuchPackageException, MissingDepException, InterruptedException {
@@ -77,7 +85,11 @@ public Package getPackage(ExtendedEventHandler eventHandler, PackageIdentifier p
         Preconditions.checkState(env.valuesMissing(), "Should have thrown for %s", packageName);
         throw new MissingDepException();
       } catch (BuildFileContainsErrorsException e) {
-        // Expected.
+        // If this is a keep_going build, then the user of this RecursivePackageProvider has two
+        // options for handling the "package in error" case. The user must either inspect the
+        // package returned by this method, or else determine whether any errors have been seen via
+        // the "encounteredPackageErrors" method.
+        encounteredPackageErrors.set(true);
       }
     }
     return pkgValue.getPackage();
@@ -107,6 +119,7 @@ public boolean isPackage(ExtendedEventHandler eventHandler, PackageIdentifier pa
       return packageLookupValue.packageExists();
     } catch (NoSuchPackageException | InconsistentFilesystemException e) {
       env.getListener().handle(Event.error(e.getMessage()));
+      encounteredPackageErrors.set(true);
       return false;
     }
   }
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/PackageErrorFunction.java b/src/main/java/com/google/devtools/build/lib/skyframe/PackageErrorFunction.java
index acef91d2dfad14..3ede380c49588d 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/PackageErrorFunction.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/PackageErrorFunction.java
@@ -33,10 +33,11 @@
 
 /**
  * SkyFunction that throws a {@link BuildFileContainsErrorsException} for {@link Package} that
- * loaded, but was in error. Must only be requested when a SkyFunction wishes to ignore the errors
- * in a {@link Package} in keep_going mode, but to shut down the build in nokeep_going mode. Thus,
- * this SkyFunction should only be requested when the corresponding {@link PackageFunction} has
- * already been successfully called and the resulting Package contains an error.
+ * loaded, but was in error. Must only be requested when a SkyFunction wishes to ignore the Skyframe
+ * error from a {@link PackageValue} in keep_going mode, but to shut down the build in nokeep_going
+ * mode. Thus, this SkyFunction should only be requested when the corresponding {@link
+ * PackageFunction} has already been successfully called and the resulting Package contains an
+ * error.
  *
  * <p>This SkyFunction never returns a value, only throws a {@link BuildFileNotFoundException}, and
  * should never return null, since all of its dependencies should already be present.
diff --git a/src/main/java/com/google/devtools/build/lib/skyframe/TargetPatternFunction.java b/src/main/java/com/google/devtools/build/lib/skyframe/TargetPatternFunction.java
index 52308fd69850b9..b195308dcb1de3 100644
--- a/src/main/java/com/google/devtools/build/lib/skyframe/TargetPatternFunction.java
+++ b/src/main/java/com/google/devtools/build/lib/skyframe/TargetPatternFunction.java
@@ -82,7 +82,12 @@ public void process(Iterable<Target> partialResult) {
           // The exception type here has to match the one on the BatchCallback. Since the callback
           // defined above never throws, the exact type here is not really relevant.
           RuntimeException.class);
-      resolvedTargets = ResolvedTargets.<Target>builder().addAll(results).build();
+      ResolvedTargets.Builder<Target> resolvedTargetsBuilder =
+          ResolvedTargets.<Target>builder().addAll(results);
+      if (provider.encounteredPackageErrors()) {
+        resolvedTargetsBuilder.setError();
+      }
+      resolvedTargets = resolvedTargetsBuilder.build();
     } catch (TargetParsingException e) {
       env.getListener().post(new ParsingFailedEvent(patternKey.getPattern(),  e.getMessage()));
       throw new TargetPatternFunctionException(e);
@@ -96,6 +101,9 @@ public void process(Iterable<Target> partialResult) {
     }
     Preconditions.checkNotNull(resolvedTargets, key);
     ResolvedTargets.Builder<Label> resolvedLabelsBuilder = ResolvedTargets.builder();
+    if (resolvedTargets.hasError()) {
+      resolvedLabelsBuilder.setError();
+    }
     for (Target target : resolvedTargets.getTargets()) {
       resolvedLabelsBuilder.add(target.getLabel());
     }
diff --git a/src/test/java/com/google/devtools/build/lib/pkgcache/LoadingPhaseRunnerTest.java b/src/test/java/com/google/devtools/build/lib/pkgcache/LoadingPhaseRunnerTest.java
index 090988bb9262d6..93e8ff2dd858a3 100644
--- a/src/test/java/com/google/devtools/build/lib/pkgcache/LoadingPhaseRunnerTest.java
+++ b/src/test/java/com/google/devtools/build/lib/pkgcache/LoadingPhaseRunnerTest.java
@@ -43,6 +43,7 @@
 import com.google.devtools.build.lib.events.EventKind;
 import com.google.devtools.build.lib.events.ExtendedEventHandler.Postable;
 import com.google.devtools.build.lib.events.StoredEventHandler;
+import com.google.devtools.build.lib.packages.BuildFileContainsErrorsException;
 import com.google.devtools.build.lib.packages.ConstantRuleVisibility;
 import com.google.devtools.build.lib.packages.PackageFactory;
 import com.google.devtools.build.lib.packages.SkylarkSemanticsOptions;
@@ -1003,6 +1004,51 @@ public void testPatternStartingWithDotDotSlash() throws Exception {
         "Bad target pattern '../foo': package name component contains only '.' characters");
   }
 
+  private void runTestPackageLoadingError(boolean keepGoing, String... patterns) throws Exception {
+    tester.addFile("bad/BUILD", "nope");
+    if (keepGoing) {
+      TargetPatternPhaseValue value = tester.loadKeepGoing(patterns);
+      assertThat(value.hasError()).isTrue();
+      tester.assertContainsWarning("Target pattern parsing failed");
+    } else {
+      TargetParsingException exn =
+          assertThrows(TargetParsingException.class, () -> tester.load(patterns));
+      assertThat(exn).hasCauseThat().isInstanceOf(BuildFileContainsErrorsException.class);
+      assertThat(exn).hasCauseThat().hasMessageThat().contains("Package 'bad' contains errors");
+    }
+    tester.assertContainsError("/workspace/bad/BUILD:1:1: name 'nope' is not defined");
+  }
+
+  @Test
+  public void testPackageLoadingError_KeepGoing_ExplicitTarget() throws Exception {
+    runTestPackageLoadingError(/*keepGoing=*/ true, "//bad:BUILD");
+  }
+
+  @Test
+  public void testPackageLoadingError_NoKeepGoing_ExplicitTarget() throws Exception {
+    runTestPackageLoadingError(/*keepGoing=*/ false, "//bad:BUILD");
+  }
+
+  @Test
+  public void testPackageLoadingError_KeepGoing_TargetsInPackage() throws Exception {
+    runTestPackageLoadingError(/*keepGoing=*/ true, "//bad:all");
+  }
+
+  @Test
+  public void testPackageLoadingError_NoKeepGoing_TargetsInPackage() throws Exception {
+    runTestPackageLoadingError(/*keepGoing=*/ false, "//bad:all");
+  }
+
+  @Test
+  public void testPackageLoadingError_KeepGoing_TargetsBeneathDirectory() throws Exception {
+    runTestPackageLoadingError(/*keepGoing=*/ true, "//bad/...");
+  }
+
+  @Test
+  public void testPackageLoadingError_NoKeepGoing_TargetsBeneathDirectory() throws Exception {
+    runTestPackageLoadingError(/*keepGoing=*/ false, "//bad/...");
+  }
+
   private static class LoadingPhaseTester {
     private final ManualClock clock = new ManualClock();
     private final Path workspace;
diff --git a/src/test/shell/integration/loading_phase_test.sh b/src/test/shell/integration/loading_phase_test.sh
index 8c7344d921116e..2fc74af0e10301 100755
--- a/src/test/shell/integration/loading_phase_test.sh
+++ b/src/test/shell/integration/loading_phase_test.sh
@@ -377,4 +377,19 @@ function test_incompatible_disallow_load_labels_to_cross_package_boundaries() {
   expect_log "//$pkg/foo:BUILD"
 }
 
+function test_package_loading_errors_in_target_parsing() {
+  mkdir bad || fail "mkdir failed"
+  echo "nope" > bad/BUILD || fail "echo failed"
+
+  for keep_going in "--keep_going" "--nokeep_going"
+  do
+    for target_pattern in "//bad:BUILD" "//bad:all" "//bad/..."
+    do
+      bazel build --nobuild "$target_pattern" >& "$TEST_log" \
+        && fail "Expected failure"
+      expect_log "Build did NOT complete successfully"
+    done
+  done
+}
+
 run_suite "Integration tests of ${PRODUCT_NAME} using loading/analysis phases."