diff --git a/src/libexpr-c/nix_api_value.cc b/src/libexpr-c/nix_api_value.cc
index 093daf2f8..ba0dfea7f 100644
--- a/src/libexpr-c/nix_api_value.cc
+++ b/src/libexpr-c/nix_api_value.cc
@@ -177,6 +177,8 @@ ValueType nix_get_type(nix_c_context * context, const nix_value * value)
         switch (v.type()) {
         case nThunk:
             return NIX_TYPE_THUNK;
+        case nFailed:
+            return NIX_TYPE_FAILED;
         case nInt:
             return NIX_TYPE_INT;
         case nFloat:
diff --git a/src/libexpr-c/nix_api_value.h b/src/libexpr-c/nix_api_value.h
index 7cd6ad180..263ca526e 100644
--- a/src/libexpr-c/nix_api_value.h
+++ b/src/libexpr-c/nix_api_value.h
@@ -32,7 +32,8 @@ typedef enum {
     NIX_TYPE_ATTRS,
     NIX_TYPE_LIST,
     NIX_TYPE_FUNCTION,
-    NIX_TYPE_EXTERNAL
+    NIX_TYPE_EXTERNAL,
+    NIX_TYPE_FAILED,
 } ValueType;
 
 // forward declarations
diff --git a/src/libexpr/eval.cc b/src/libexpr/eval.cc
index df4e52e5d..545bb6cd9 100644
--- a/src/libexpr/eval.cc
+++ b/src/libexpr/eval.cc
@@ -124,6 +124,8 @@ std::string_view showType(ValueType type, bool withArticle)
         return WA("a", "float");
     case nThunk:
         return WA("a", "thunk");
+    case nFailed:
+        return WA("a", "failure");
     }
     unreachable();
 }
@@ -2693,8 +2695,11 @@ void EvalState::assertEqValues(Value & v1, Value & v2, const PosIdx pos, std::st
         }
         return;
 
-    case nThunk: // Must not be left by forceValue
-        assert(false);
+    // Cannot be returned by forceValue().
+    case nThunk:
+    case nFailed:
+        unreachable();
+
     default: // Note that we pass compiler flags that should make `default:` unreachable.
         // Also note that this probably ran after `eqValues`, which implements
         // the same logic more efficiently (without having to unwind stacks),
@@ -2786,8 +2791,11 @@ bool EvalState::eqValues(Value & v1, Value & v2, const PosIdx pos, std::string_v
         // !!!
         return v1.fpoint() == v2.fpoint();
 
-    case nThunk: // Must not be left by forceValue
-        assert(false);
+    // Cannot be returned by forceValue().
+    case nThunk:
+    case nFailed:
+        unreachable();
+
     default: // Note that we pass compiler flags that should make `default:` unreachable.
         error<EvalError>("eqValues: cannot compare %1% with %2%", showType(v1), showType(v2))
             .withTrace(pos, errorCtx)
diff --git a/src/libexpr/include/nix/expr/eval-inline.hh b/src/libexpr/include/nix/expr/eval-inline.hh
index 749e51537..558fb748c 100644
--- a/src/libexpr/include/nix/expr/eval-inline.hh
+++ b/src/libexpr/include/nix/expr/eval-inline.hh
@@ -97,12 +97,19 @@ void EvalState::forceValue(Value & v, const PosIdx pos)
             else
                 ExprBlackHole::throwInfiniteRecursionError(*this, v);
         } catch (...) {
-            v.mkThunk(env, expr);
             tryFixupBlackHolePos(v, pos);
+            v.mkFailed();
             throw;
         }
-    } else if (v.isApp())
-        callFunction(*v.app().left, *v.app().right, v, pos);
+    } else if (v.isApp()) {
+        try {
+            callFunction(*v.app().left, *v.app().right, v, pos);
+        } catch (...) {
+            v.mkFailed();
+            throw;
+        }
+    } else if (v.isFailed())
+        std::rethrow_exception(v.failed()->ex);
 }
 
 [[gnu::always_inline]]
diff --git a/src/libexpr/include/nix/expr/value.hh b/src/libexpr/include/nix/expr/value.hh
index 82db1a775..e11d0b528 100644
--- a/src/libexpr/include/nix/expr/value.hh
+++ b/src/libexpr/include/nix/expr/value.hh
@@ -35,6 +35,7 @@ typedef enum {
     tBool,
     tNull,
     tFloat,
+    tFailed,
     tExternal,
     tPrimOp,
     tAttrs,
@@ -57,6 +58,7 @@ typedef enum {
  */
 typedef enum {
     nThunk,
+    nFailed,
     nInt,
     nFloat,
     nBool,
@@ -265,6 +267,11 @@ struct ValueBase
         size_t size;
         Value * const * elems;
     };
+
+    struct Failed : gc
+    {
+        std::exception_ptr ex;
+    };
 };
 
 template<typename T>
@@ -291,6 +298,7 @@ struct PayloadTypeToInternalType
     MACRO(PrimOp *, primOp, tPrimOp)                                \
     MACRO(ValueBase::PrimOpApplicationThunk, primOpApp, tPrimOpApp) \
     MACRO(ExternalValueBase *, external, tExternal)                 \
+    MACRO(ValueBase::Failed *, failed, tFailed)                     \
     MACRO(NixFloat, fpoint, tFloat)
 
 #define NIX_VALUE_PAYLOAD_TYPE(T, FIELD_NAME, DISCRIMINATOR) \
@@ -595,6 +603,11 @@ protected:
         path.path = std::bit_cast<const char *>(payload[1]);
     }
 
+    void getStorage(Failed *& failed) const noexcept
+    {
+        failed = std::bit_cast<Failed *>(payload[1]);
+    }
+
     void setStorage(NixInt integer) noexcept
     {
         setSingleDWordPayload<tInt>(integer.value);
@@ -644,6 +657,11 @@ protected:
     {
         setUntaggablePayload<pdPath>(path.accessor, path.path);
     }
+
+    void setStorage(Failed * failed) noexcept
+    {
+        setSingleDWordPayload<tFailed>(std::bit_cast<PackedPointer>(failed));
+    }
 };
 
 /**
@@ -866,12 +884,12 @@ public:
     inline bool isThunk() const
     {
         return isa<tThunk>();
-    };
+    }
 
     inline bool isApp() const
     {
         return isa<tApp>();
-    };
+    }
 
     inline bool isBlackhole() const;
 
@@ -879,17 +897,22 @@ public:
     inline bool isLambda() const
     {
         return isa<tLambda>();
-    };
+    }
 
     inline bool isPrimOp() const
     {
         return isa<tPrimOp>();
-    };
+    }
 
     inline bool isPrimOpApp() const
     {
         return isa<tPrimOpApp>();
-    };
+    }
+
+    inline bool isFailed() const
+    {
+        return isa<tFailed>();
+    }
 
     /**
      * Returns the normal type of a Value. This only returns nThunk if
@@ -926,6 +949,8 @@ public:
             return nExternal;
         case tFloat:
             return nFloat;
+        case tFailed:
+            return nFailed;
         case tThunk:
         case tApp:
             return nThunk;
@@ -1048,6 +1073,11 @@ public:
         setStorage(n);
     }
 
+    inline void mkFailed() noexcept
+    {
+        setStorage(new Value::Failed{.ex = std::current_exception()});
+    }
+
     bool isList() const noexcept
     {
         return isa<tListSmall, tListN>();
@@ -1151,6 +1181,11 @@ public:
     {
         return getStorage<Path>().accessor;
     }
+
+    Failed * failed() const noexcept
+    {
+        return getStorage<Failed *>();
+    }
 };
 
 extern ExprBlackHole eBlackHole;
diff --git a/src/libexpr/primops.cc b/src/libexpr/primops.cc
index 9ba417c32..ec6424f8f 100644
--- a/src/libexpr/primops.cc
+++ b/src/libexpr/primops.cc
@@ -515,6 +515,7 @@ static void prim_typeOf(EvalState & state, const PosIdx pos, Value ** args, Valu
         v.mkStringNoCopy("float");
         break;
     case nThunk:
+    case nFailed:
         unreachable();
     }
 }
diff --git a/src/libexpr/print-ambiguous.cc b/src/libexpr/print-ambiguous.cc
index 8b80e2a66..f164fc46c 100644
--- a/src/libexpr/print-ambiguous.cc
+++ b/src/libexpr/print-ambiguous.cc
@@ -75,6 +75,9 @@ void printAmbiguous(
             str << "«potential infinite recursion»";
         }
         break;
+    case nFailed:
+        str << "«failed»";
+        break;
     case nFunction:
         if (v.isLambda()) {
             str << "<LAMBDA>";
diff --git a/src/libexpr/print.cc b/src/libexpr/print.cc
index 5338e365e..27c951432 100644
--- a/src/libexpr/print.cc
+++ b/src/libexpr/print.cc
@@ -508,6 +508,11 @@ private:
         }
     }
 
+    void printFailed(Value & v)
+    {
+        output << "«failed»";
+    }
+
     void printExternal(Value & v)
     {
         v.external()->print(output);
@@ -583,6 +588,10 @@ private:
                 printThunk(v);
                 break;
 
+            case nFailed:
+                printFailed(v);
+                break;
+
             case nExternal:
                 printExternal(v);
                 break;
diff --git a/src/libexpr/value-to-json.cc b/src/libexpr/value-to-json.cc
index 2cd853f60..458733214 100644
--- a/src/libexpr/value-to-json.cc
+++ b/src/libexpr/value-to-json.cc
@@ -96,6 +96,7 @@ json printValueAsJSON(
         break;
 
     case nThunk:
+    case nFailed:
     case nFunction:
         state.error<TypeError>("cannot convert %1% to JSON", showType(v)).atPos(v.determinePos(pos)).debugThrow();
     }
diff --git a/src/libexpr/value-to-xml.cc b/src/libexpr/value-to-xml.cc
index 31400e439..74529d5c0 100644
--- a/src/libexpr/value-to-xml.cc
+++ b/src/libexpr/value-to-xml.cc
@@ -170,6 +170,11 @@ static void printValueAsXML(
 
     case nThunk:
         doc.writeEmptyElement("unevaluated");
+        break;
+
+    case nFailed:
+        doc.writeEmptyElement("failed");
+        break;
     }
 }