diff --git a/kapitan/targets.py b/kapitan/targets.py
index 8e1388029..c06485f36 100644
--- a/kapitan/targets.py
+++ b/kapitan/targets.py
@@ -445,6 +445,7 @@ def compile_target(target_obj, search_paths, compile_path, ref_controller, globa
         input_type = comp_obj["input_type"]
         output_path = comp_obj["output_path"]
         input_params = comp_obj.setdefault("input_params", {})
+        continue_on_compile_error = comp_obj.get("continue_on_compile_error", False)
 
         if input_type == "jinja2":
             input_compiler = Jinja2(compile_path, search_paths, ref_controller, comp_obj)
@@ -470,7 +471,14 @@ def compile_target(target_obj, search_paths, compile_path, ref_controller, globa
             raise CompileError(err_msg.format(input_type))
 
         input_compiler.make_compile_dirs(target_name, output_path, **kwargs)
-        input_compiler.compile_obj(comp_obj, ext_vars, **kwargs)
+        try:
+            input_compiler.compile_obj(comp_obj, ext_vars, **kwargs)
+        except Exception as e:
+            if continue_on_compile_error:
+                logger.error("Error compiling %s: %s", target_name, e)
+                continue
+            else:
+                raise CompileError(f"Error compiling {target_name}: {e}")
 
     logger.info("Compiled %s (%.2fs)", target_obj["target_full_path"], time.time() - start)
 
@@ -559,6 +567,7 @@ def valid_target_obj(target_obj, require_compile=True):
                         "name": {"type": "string"},
                         "input_paths": {"type": "array"},
                         "input_type": {"type": "string"},
+                        "continue_on_compile_error": {"type": "boolean"},
                         "output_path": {"type": "string"},
                         "output_type": {"type": "string"},
                         "helm_values": {"type": "object"},
diff --git a/tests/test_compile.py b/tests/test_compile.py
index 4d8975e74..11bb5e716 100644
--- a/tests/test_compile.py
+++ b/tests/test_compile.py
@@ -74,7 +74,18 @@ def tearDown(self):
         os.chdir(os.getcwd() + "/../../")
         reset_cache()
 
+class FailCompileTestResourcesTestKadet(unittest.TestCase):
+    def setUp(self):
+        os.chdir(os.getcwd() + "/tests/test_resources/")
+
+    def test_compile(self):
+        sys.argv = ["kapitan", "compile", "-t", "fail-compile"]
+        main()
 
+    def tearDown(self):
+        os.chdir(os.getcwd() + "/../../")
+        reset_cache()
+        
 class CompileTestResourcesTestJinja2InputParams(unittest.TestCase):
     def setUp(self):
         os.chdir(os.getcwd() + "/tests/test_resources/")
diff --git a/tests/test_resources/inventory/targets/fail-compile.yml b/tests/test_resources/inventory/targets/fail-compile.yml
new file mode 100644
index 000000000..0b41d4777
--- /dev/null
+++ b/tests/test_resources/inventory/targets/fail-compile.yml
@@ -0,0 +1,14 @@
+parameters:
+  kapitan:
+    vars:
+      target: fail-compile
+    compile:
+      - name: fail_compile
+        input_type: kadet
+        output_path: file_compile
+        continue_on_compile_error: True
+        input_paths:
+          - kadet_functions/fail_compile
+
+
+        
diff --git a/tests/test_resources/kadet_functions/fail_compile/__init__.py b/tests/test_resources/kadet_functions/fail_compile/__init__.py
new file mode 100644
index 000000000..726d1561a
--- /dev/null
+++ b/tests/test_resources/kadet_functions/fail_compile/__init__.py
@@ -0,0 +1,5 @@
+from kapitan.inputs import kadet
+
+
+def main(input_params):
+    raise ValueError("This function will fail to compile")