diff --git a/skyvern/exceptions.py b/skyvern/exceptions.py
index f3db518d..f3f80ce7 100644
--- a/skyvern/exceptions.py
+++ b/skyvern/exceptions.py
@@ -266,7 +266,12 @@ class UnknownElementTreeFormat(SkyvernException):
 
 class StepTerminationError(SkyvernException):
     def __init__(self, step_id: str, reason: str) -> None:
-        super().__init__(f"Step {step_id} cannot be executed and task is terminated. Reason: {reason}")
+        super().__init__(f"Step {step_id} cannot be executed and task is failed. Reason: {reason}")
+
+
+class StepUnableToExecuteError(SkyvernException):
+    def __init__(self, step_id: str, reason: str) -> None:
+        super().__init__(f"Step {step_id} cannot be executed and task execution is stopped. Reason: {reason}")
 
 
 class UnsupportedActionType(SkyvernException):
diff --git a/skyvern/forge/agent.py b/skyvern/forge/agent.py
index c7aac774..4c6bb5d1 100644
--- a/skyvern/forge/agent.py
+++ b/skyvern/forge/agent.py
@@ -18,6 +18,7 @@ from skyvern.exceptions import (
     InvalidWorkflowTaskURLState,
     MissingBrowserStatePage,
     StepTerminationError,
+    StepUnableToExecuteError,
     TaskNotFound,
 )
 from skyvern.forge import app
@@ -328,9 +329,16 @@ class ForgeAgent:
 
             return step, detailed_output, next_step
         # TODO (kerem): Let's add other exceptions that we know about here as custom exceptions as well
+        except StepUnableToExecuteError:
+            LOG.error(
+                "Step cannot be executed. Task execution stopped",
+                task_id=task.task_id,
+                step_id=step.step_id,
+            )
+            raise
         except StepTerminationError as e:
             LOG.error(
-                "Step cannot be executed. Task terminated",
+                "Step cannot be executed. Task failed.",
                 task_id=task.task_id,
                 step_id=step.step_id,
             )
diff --git a/skyvern/forge/agent_functions.py b/skyvern/forge/agent_functions.py
index cc51a561..9e704ffa 100644
--- a/skyvern/forge/agent_functions.py
+++ b/skyvern/forge/agent_functions.py
@@ -1,6 +1,6 @@
 from playwright.async_api import Page
 
-from skyvern.exceptions import StepTerminationError
+from skyvern.exceptions import StepUnableToExecuteError
 from skyvern.forge import app
 from skyvern.forge.async_operations import AsyncOperation
 from skyvern.forge.sdk.models import Organization, Step, StepStatus
@@ -34,7 +34,7 @@ class AgentFunction:
 
         can_execute = has_valid_task_status and has_valid_step_status and has_no_running_steps
         if not can_execute:
-            raise StepTerminationError(step_id=step.step_id, reason="Cannot execute step. Reasons: {reasons}")
+            raise StepUnableToExecuteError(step_id=step.step_id, reason=f"Cannot execute step. Reasons: {reasons}")
 
     def generate_async_operations(
         self,