diff --git a/scripts/build-setup.sh b/scripts/build-setup.sh
index c95056db..3624b5e7 100755
--- a/scripts/build-setup.sh
+++ b/scripts/build-setup.sh
@@ -109,8 +109,31 @@ if [ $TOOLCHAIN_TYPE == "esp-tools" ]; then
     done
 fi
 
+
+#######################################
+###### BEGIN STEP-BY-STEP SETUP #######
+#######################################
+
+# In order to run code on error, we must handle errors manually
+set +e;
+
+function begin_step
+{
+    thisStepNum=$1;
+    thisStepDesc=$2;
+    echo " ========== BEGINNING STEP $thisStepNum: $thisStepDesc =========="
+}
+function exit_if_last_command_failed
+{
+    local exitcode=$?;
+    if [ $exitcode -ne 0 ]; then
+        die "Build script failed with exit code $exitcode at step $thisStepNum: $thisStepDesc" $exitcode;
+    fi
+}
+
 # setup and install conda environment
 if run_step "1"; then
+    begin_step "1" "Conda environment setup"
     # note: lock file must end in .conda-lock.yml - see https://github.com/conda-incubator/conda-lock/issues/154
     CONDA_REQS=$CYDIR/conda-reqs
     CONDA_LOCK_REQS=$CONDA_REQS/conda-lock-reqs
@@ -120,13 +143,15 @@ if run_step "1"; then
     if [ "$USE_UNPINNED_DEPS" = true ]; then
         # auto-gen the lockfiles
         $CYDIR/scripts/generate-conda-lockfiles.sh
+        exit_if_last_command_failed
     fi
 
     # use conda-lock to create env
-    conda-lock install --conda $(which conda) -p $CYDIR/.conda-env $LOCKFILE
+    conda-lock install --conda $(which conda) -p $CYDIR/.conda-env $LOCKFILE &&
 
-    source $CYDIR/.conda-env/etc/profile.d/conda.sh
+    source $CYDIR/.conda-env/etc/profile.d/conda.sh &&
     conda activate $CYDIR/.conda-env
+    exit_if_last_command_failed
 fi
 
 if [ -z "$FORCE_FLAG" ]; then
@@ -138,11 +163,14 @@ fi
 
 # initialize all submodules (without the toolchain submodules)
 if run_step "2"; then
+    begin_step "2" "Initializing Chipyard submodules"
     $CYDIR/scripts/init-submodules-no-riscv-tools.sh $FORCE_FLAG
+    exit_if_last_command_failed
 fi
 
 # build extra toolchain collateral (i.e. spike, pk, riscv-tests, libgloss)
 if run_step "3"; then
+    begin_step "3" "Building toolchain collateral"
     if run_step "1"; then
         PREFIX=$CONDA_PREFIX/$TOOLCHAIN_TYPE
     else
@@ -153,57 +181,73 @@ if run_step "3"; then
         PREFIX=$RISCV
     fi
     $CYDIR/scripts/build-toolchain-extra.sh $TOOLCHAIN_TYPE -p $PREFIX
+    exit_if_last_command_failed
 fi
 
 # run ctags for code navigation
 if run_step "4"; then
+    begin_step "4" "Running ctags for code navigation"
     $CYDIR/scripts/gen-tags.sh
+    exit_if_last_command_failed
 fi
 
 # precompile chipyard scala sources
 if run_step "5"; then
-    pushd $CYDIR/sims/verilator
-    make launch-sbt SBT_COMMAND=";project chipyard; compile"
-    make launch-sbt SBT_COMMAND=";project tapeout; compile"
+    begin_step "5" "Pre-compiling Chipyard Scala sources"
+    pushd $CYDIR/sims/verilator &&
+    make launch-sbt SBT_COMMAND=";project chipyard; compile" &&
+    make launch-sbt SBT_COMMAND=";project tapeout; compile" &&
     popd
+    exit_if_last_command_failed
 fi
 
 # setup firesim
 if run_step "6"; then
-    $CYDIR/scripts/firesim-setup.sh
+    begin_step "6" "Setting up FireSim"
+    $CYDIR/scripts/firesim-setup.sh &&
     $CYDIR/sims/firesim/gen-tags.sh
+    exit_if_last_command_failed
 
     # precompile firesim scala sources
     if run_step "7"; then
-        pushd $CYDIR/sims/firesim
+        begin_step "7" "Pre-compiling Firesim Scala sources"
+        pushd $CYDIR/sims/firesim &&
         (
+            set -e # Subshells un-set "set -e" so it must be re enabled
             echo $CYDIR
             source sourceme-manager.sh --skip-ssh-setup
             pushd sim
             make sbt SBT_COMMAND="project {file:$CYDIR}firechip; compile" TARGET_PROJECT=firesim
             popd
         )
+        exit_if_last_command_failed
         popd
     fi
 fi
 
 # setup firemarshal
 if run_step "8"; then
-    pushd $CYDIR/software/firemarshal
+    begin_step "8" "Setting up FireMarshal"
+    pushd $CYDIR/software/firemarshal &&
     ./init-submodules.sh
+    exit_if_last_command_failed
 
     # precompile firemarshal buildroot sources
     if run_step "9"; then
-        source $CYDIR/scripts/fix-open-files.sh
-        ./marshal $VERBOSE_FLAG build br-base.json
+        begin_step "9" "Pre-compiling FireMarshal buildroot sources"
+        source $CYDIR/scripts/fix-open-files.sh &&
+        ./marshal $VERBOSE_FLAG build br-base.json &&
         ./marshal $VERBOSE_FLAG clean br-base.json
+        exit_if_last_command_failed
     fi
     popd
 fi
 
 # do misc. cleanup for a "clean" git status
 if run_step "10"; then
+    begin_step "10" "Cleaning up repository"
     $CYDIR/scripts/repo-clean.sh
+    exit_if_last_command_failed
 fi
 
 cat <<EOT >> env.sh