diff --git a/build.gradle.kts b/build.gradle.kts
index 77ff0325..e8105050 100644
--- a/build.gradle.kts
+++ b/build.gradle.kts
@@ -149,6 +149,7 @@ tasks {
   runIde {
     enabled = true
     environment("ENVIRONMENT", "LOCAL")
+    autoReloadPlugins.set(false) // is triggered when building llama server
   }
 
   test {
diff --git a/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerAgent.java b/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerAgent.java
index 6e3ac219..a837150a 100644
--- a/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerAgent.java
+++ b/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerAgent.java
@@ -14,14 +14,17 @@ import com.intellij.openapi.Disposable;
 import com.intellij.openapi.application.ApplicationManager;
 import com.intellij.openapi.components.Service;
 import com.intellij.openapi.diagnostic.Logger;
+import com.intellij.openapi.ui.MessageType;
 import com.intellij.openapi.util.Key;
 import ee.carlrobert.codegpt.CodeGPTBundle;
 import ee.carlrobert.codegpt.CodeGPTPlugin;
 import ee.carlrobert.codegpt.settings.service.llama.LlamaSettings;
 import ee.carlrobert.codegpt.settings.service.llama.form.ServerProgressPanel;
+import ee.carlrobert.codegpt.ui.OverlayUtil;
 import java.nio.charset.StandardCharsets;
 import java.util.List;
 import java.util.concurrent.CopyOnWriteArrayList;
+import java.util.function.Consumer;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 
@@ -32,65 +35,94 @@ public final class LlamaServerAgent implements Disposable {
 
   private @Nullable OSProcessHandler makeProcessHandler;
   private @Nullable OSProcessHandler startServerProcessHandler;
+  private ServerProgressPanel activeServerProgressPanel;
+  private boolean stoppedByUser;
 
   public void startAgent(
       LlamaServerStartupParams params,
       ServerProgressPanel serverProgressPanel,
       Runnable onSuccess,
-      Runnable onServerTerminated) {
+      Consumer<ServerProgressPanel> onServerTerminated) {
+    this.activeServerProgressPanel = serverProgressPanel;
     ApplicationManager.getApplication().invokeLater(() -> {
       try {
-        serverProgressPanel.updateText(
+        stoppedByUser = false;
+        serverProgressPanel.displayText(
             CodeGPTBundle.get("llamaServerAgent.buildingProject.description"));
-        makeProcessHandler = new OSProcessHandler(getMakeCommandLinde());
+        makeProcessHandler = new OSProcessHandler(
+            getMakeCommandLine(params.additionalBuildParameters()));
         makeProcessHandler.addProcessListener(
-            getMakeProcessListener(params, serverProgressPanel, onSuccess, onServerTerminated));
+            getMakeProcessListener(params, onSuccess, onServerTerminated));
         makeProcessHandler.startNotify();
       } catch (ExecutionException e) {
-        throw new RuntimeException(e);
+        showServerError(e.getMessage(), onServerTerminated);
       }
     });
   }
 
   public void stopAgent() {
+    stoppedByUser = true;
+    if (makeProcessHandler != null) {
+      makeProcessHandler.destroyProcess();
+    }
     if (startServerProcessHandler != null) {
       startServerProcessHandler.destroyProcess();
     }
   }
 
   public boolean isServerRunning() {
-    return startServerProcessHandler != null
+    return (makeProcessHandler != null
+        && makeProcessHandler.isStartNotified()
+        && !makeProcessHandler.isProcessTerminated())
+        || (startServerProcessHandler != null
         && startServerProcessHandler.isStartNotified()
-        && !startServerProcessHandler.isProcessTerminated();
+        && !startServerProcessHandler.isProcessTerminated());
   }
 
   private ProcessListener getMakeProcessListener(
       LlamaServerStartupParams params,
-      ServerProgressPanel serverProgressPanel,
       Runnable onSuccess,
-      Runnable onServerTerminated) {
+      Consumer<ServerProgressPanel> onServerTerminated) {
     LOG.info("Building llama project");
 
     return new ProcessAdapter() {
+
+      private final List<String> errorLines = new CopyOnWriteArrayList<>();
+
       @Override
       public void onTextAvailable(@NotNull ProcessEvent event, @NotNull Key outputType) {
+        if (ProcessOutputType.isStderr(outputType)) {
+          errorLines.add(event.getText());
+          return;
+        }
         LOG.info(event.getText());
       }
 
       @Override
       public void processTerminated(@NotNull ProcessEvent event) {
+        int exitCode = event.getExitCode();
+        LOG.info(format("Server build exited with code %d", exitCode));
+        if (stoppedByUser) {
+          onServerTerminated.accept(activeServerProgressPanel);
+          return;
+        }
+        if (exitCode != 0) {
+          showServerError(String.join(",", errorLines), onServerTerminated);
+          return;
+        }
+
         try {
           LOG.info("Booting up llama server");
 
-          serverProgressPanel.updateText(
+          activeServerProgressPanel.displayText(
               CodeGPTBundle.get("llamaServerAgent.serverBootup.description"));
           startServerProcessHandler = new OSProcessHandler.Silent(getServerCommandLine(params));
           startServerProcessHandler.addProcessListener(
-              getProcessListener(params.port(), onSuccess, onServerTerminated));
+              getProcessListener(params.port(), onSuccess,
+                  onServerTerminated));
           startServerProcessHandler.startNotify();
         } catch (ExecutionException ex) {
-          LOG.error("Unable to start llama server", ex);
-          throw new RuntimeException(ex);
+          showServerError(ex.getMessage(), onServerTerminated);
         }
       }
     };
@@ -99,27 +131,25 @@ public final class LlamaServerAgent implements Disposable {
   private ProcessListener getProcessListener(
       int port,
       Runnable onSuccess,
-      Runnable onServerTerminated) {
+      Consumer<ServerProgressPanel> onServerTerminated) {
     return new ProcessAdapter() {
       private final ObjectMapper objectMapper = new ObjectMapper();
       private final List<String> errorLines = new CopyOnWriteArrayList<>();
 
       @Override
       public void processTerminated(@NotNull ProcessEvent event) {
-        if (errorLines.isEmpty()) {
-          LOG.info(format("Server terminated with code %d", event.getExitCode()));
+        LOG.info(format("Server terminated with code %d", event.getExitCode()));
+        if (stoppedByUser) {
+          onServerTerminated.accept(activeServerProgressPanel);
         } else {
-          LOG.info(String.join("", errorLines));
+          showServerError(String.join(",", errorLines), onServerTerminated);
         }
-
-        onServerTerminated.run();
       }
 
       @Override
       public void onTextAvailable(@NotNull ProcessEvent event, @NotNull Key outputType) {
         if (ProcessOutputType.isStderr(outputType)) {
           errorLines.add(event.getText());
-          return;
         }
 
         if (ProcessOutputType.isStdout(outputType)) {
@@ -141,11 +171,18 @@ public final class LlamaServerAgent implements Disposable {
     };
   }
 
-  private static GeneralCommandLine getMakeCommandLinde() {
+  private void showServerError(String errorText, Consumer<ServerProgressPanel> onServerTerminated) {
+    onServerTerminated.accept(activeServerProgressPanel);
+    LOG.info("Unable to start llama server:\n" + errorText);
+    OverlayUtil.showClosableBalloon(errorText, MessageType.ERROR, activeServerProgressPanel);
+  }
+
+  private static GeneralCommandLine getMakeCommandLine(List<String> additionalCompileParameters) {
     GeneralCommandLine commandLine = new GeneralCommandLine().withCharset(StandardCharsets.UTF_8);
     commandLine.setExePath("make");
     commandLine.withWorkDirectory(CodeGPTPlugin.getLlamaSourcePath());
     commandLine.addParameters("-j");
+    commandLine.addParameters(additionalCompileParameters);
     commandLine.setRedirectErrorStream(false);
     return commandLine;
   }
@@ -159,11 +196,16 @@ public final class LlamaServerAgent implements Disposable {
         "-c", String.valueOf(params.contextLength()),
         "--port", String.valueOf(params.port()),
         "-t", String.valueOf(params.threads()));
-    commandLine.addParameters(params.additionalParameters());
+    commandLine.addParameters(params.additionalRunParameters());
     commandLine.setRedirectErrorStream(false);
     return commandLine;
   }
 
+  public void setActiveServerProgressPanel(
+      ServerProgressPanel activeServerProgressPanel) {
+    this.activeServerProgressPanel = activeServerProgressPanel;
+  }
+
   @Override
   public void dispose() {
     if (makeProcessHandler != null && !makeProcessHandler.isProcessTerminated()) {
diff --git a/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerStartupParams.java b/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerStartupParams.java
index 7b259a1f..d15c274f 100644
--- a/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerStartupParams.java
+++ b/src/main/java/ee/carlrobert/codegpt/completions/llama/LlamaServerStartupParams.java
@@ -3,5 +3,6 @@ package ee.carlrobert.codegpt.completions.llama;
 import java.util.List;
 
 public record LlamaServerStartupParams(String modelPath, int contextLength, int threads, int port,
-                                       List<String> additionalParameters) {
+                                       List<String> additionalRunParameters,
+                                       List<String> additionalBuildParameters) {
 }
diff --git a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/LlamaSettingsState.java b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/LlamaSettingsState.java
index cb81c722..fc3ca47b 100644
--- a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/LlamaSettingsState.java
+++ b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/LlamaSettingsState.java
@@ -23,6 +23,7 @@ public class LlamaSettingsState {
   private int contextSize = 2048;
   private int threads = 8;
   private String additionalParameters = "";
+  private String additionalBuildParameters = "";
   private int topK = 40;
   private double topP = 0.9;
   private double minP = 0.05;
@@ -138,6 +139,14 @@ public class LlamaSettingsState {
     this.additionalParameters = additionalParameters;
   }
 
+  public String getAdditionalBuildParameters() {
+    return additionalBuildParameters;
+  }
+
+  public void setAdditionalBuildParameters(String additionalBuildParameters) {
+    this.additionalBuildParameters = additionalBuildParameters;
+  }
+
   public int getTopK() {
     return topK;
   }
@@ -220,6 +229,7 @@ public class LlamaSettingsState {
         && Objects.equals(baseHost, that.baseHost)
         && Objects.equals(serverPort, that.serverPort)
         && Objects.equals(additionalParameters, that.additionalParameters)
+        && Objects.equals(additionalBuildParameters, that.additionalBuildParameters)
         && codeCompletionsEnabled == that.codeCompletionsEnabled
         && codeCompletionMaxTokens == that.codeCompletionMaxTokens;
   }
@@ -229,7 +239,7 @@ public class LlamaSettingsState {
     return Objects.hash(runLocalServer, useCustomModel, customLlamaModelPath, huggingFaceModel,
         localModelPromptTemplate, remoteModelPromptTemplate, localModelInfillPromptTemplate,
         remoteModelInfillPromptTemplate, baseHost, serverPort, contextSize, threads,
-        additionalParameters, topK, topP, minP, repeatPenalty, codeCompletionsEnabled,
-        codeCompletionMaxTokens);
+        additionalParameters, additionalBuildParameters, topK, topP, minP, repeatPenalty,
+        codeCompletionsEnabled, codeCompletionMaxTokens);
   }
 }
diff --git a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaServerPreferencesForm.java b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaServerPreferencesForm.java
index 1935c74e..cbd2bae3 100644
--- a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaServerPreferencesForm.java
+++ b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaServerPreferencesForm.java
@@ -57,6 +57,7 @@ public class LlamaServerPreferencesForm {
   private final IntegerField maxTokensField;
   private final IntegerField threadsField;
   private final JBTextField additionalParametersField;
+  private final JBTextField additionalBuildParametersField;
   private final ChatPromptTemplatePanel remotePromptTemplatePanel;
   private final InfillPromptTemplatePanel infillPromptTemplatePanel;
 
@@ -79,6 +80,9 @@ public class LlamaServerPreferencesForm {
     additionalParametersField = new JBTextField(settings.getAdditionalParameters(), 30);
     additionalParametersField.setEnabled(!serverRunning);
 
+    additionalBuildParametersField = new JBTextField(settings.getAdditionalBuildParameters(), 30);
+    additionalBuildParametersField.setEnabled(!serverRunning);
+
     baseHostField = new JBTextField(settings.getBaseHost(), 30);
     apiKeyField = new JBPasswordField();
     apiKeyField.setColumns(30);
@@ -124,6 +128,7 @@ public class LlamaServerPreferencesForm {
     maxTokensField.setValue(state.getContextSize());
     threadsField.setValue(state.getThreads());
     additionalParametersField.setText(state.getAdditionalParameters());
+    additionalBuildParametersField.setText(state.getAdditionalBuildParameters());
     remotePromptTemplatePanel.setPromptTemplate(state.getRemoteModelPromptTemplate()); // ?
     infillPromptTemplatePanel.setPromptTemplate(state.getRemoteModelInfillPromptTemplate());
     apiKeyField.setText(CredentialsStore.INSTANCE.getCredential(LLAMA_API_KEY));
@@ -184,9 +189,17 @@ public class LlamaServerPreferencesForm {
                 createComment("settingsConfigurable.service.llama.threads.comment"))
             .addLabeledComponent(
                 CodeGPTBundle.get("settingsConfigurable.service.llama.additionalParameters.label"),
-                additionalParametersField)
-            .addComponentToRightColumn(
-                createComment("settingsConfigurable.service.llama.additionalParameters.comment"))
+                    additionalParametersField)
+                .addComponentToRightColumn(
+                        createComment(
+                            "settingsConfigurable.service.llama.additionalParameters.comment"))
+                .addLabeledComponent(
+                    CodeGPTBundle.get(
+                        "settingsConfigurable.service.llama.additionalBuildParameters.label"),
+                    additionalBuildParametersField)
+                .addComponentToRightColumn(
+                    createComment(
+                        "settingsConfigurable.service.llama.additionalBuildParameters.comment"))
             .addVerticalGap(4)
             .addComponentFillVertically(new JPanel(), 0)
             .getPanel()))
@@ -196,6 +209,7 @@ public class LlamaServerPreferencesForm {
   private JButton getServerButton(
       LlamaServerAgent llamaServerAgent,
       ServerProgressPanel serverProgressPanel) {
+    llamaServerAgent.setActiveServerProgressPanel(serverProgressPanel);
     var serverRunning = llamaServerAgent.isServerRunning();
     var serverButton = new JButton();
     serverButton.setText(serverRunning
@@ -218,7 +232,9 @@ public class LlamaServerPreferencesForm {
                 getContextSize(),
                 getThreads(),
                 getServerPort(),
-                getListOfAdditionalParameters()),
+                getListOfAdditionalParameters(),
+                getListOfAdditionalBuildParameters()
+            ),
             serverProgressPanel,
             () -> {
               setFormEnabled(false);
@@ -227,12 +243,12 @@ public class LlamaServerPreferencesForm {
                   Actions.Checked,
                   SwingConstants.LEADING));
             },
-            () -> {
+            (activeServerProgressPanel) -> {
               setFormEnabled(true);
               serverButton.setText(
                   CodeGPTBundle.get("settingsConfigurable.service.llama.startServer.label"));
               serverButton.setIcon(Actions.Execute);
-              serverProgressPanel.displayComponent(new JBLabel(
+              activeServerProgressPanel.displayComponent(new JBLabel(
                   CodeGPTBundle.get("settingsConfigurable.service.llama.progress.serverTerminated"),
                   Actions.Cancel,
                   SwingConstants.LEADING));
@@ -282,7 +298,7 @@ public class LlamaServerPreferencesForm {
     serverButton.setText(
         CodeGPTBundle.get("settingsConfigurable.service.llama.startServer.label"));
     serverButton.setIcon(Actions.Execute);
-    progressPanel.updateText(
+    progressPanel.displayText(
         CodeGPTBundle.get("settingsConfigurable.service.llama.progress.stoppingServer"));
   }
 
@@ -291,7 +307,7 @@ public class LlamaServerPreferencesForm {
     serverButton.setText(
         CodeGPTBundle.get("settingsConfigurable.service.llama.stopServer.label"));
     serverButton.setIcon(Actions.Suspend);
-    progressPanel.startProgress(
+    progressPanel.displayText(
         CodeGPTBundle.get("settingsConfigurable.service.llama.progress.startingServer"));
   }
 
@@ -301,6 +317,7 @@ public class LlamaServerPreferencesForm {
     maxTokensField.setEnabled(enabled);
     threadsField.setEnabled(enabled);
     additionalParametersField.setEnabled(enabled);
+    additionalBuildParametersField.setEnabled(enabled);
   }
 
   public boolean isRunLocalServer() {
@@ -337,9 +354,20 @@ public class LlamaServerPreferencesForm {
 
   public List<String> getListOfAdditionalParameters() {
     return Arrays.stream(additionalParametersField.getText().split(","))
-      .map(String::trim)
-      .filter(s -> !s.isBlank())
-      .toList();
+            .map(String::trim)
+            .filter(s -> !s.isBlank())
+            .toList();
+  }
+
+  public String getAdditionalBuildParameters() {
+    return additionalBuildParametersField.getText();
+  }
+
+  public List<String> getListOfAdditionalBuildParameters() {
+    return Arrays.stream(additionalBuildParametersField.getText().split(","))
+            .map(String::trim)
+            .filter(s -> !s.isBlank())
+            .toList();
   }
 
   public PromptTemplate getPromptTemplate() {
diff --git a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaSettingsForm.java b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaSettingsForm.java
index 7147eceb..d5260b24 100644
--- a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaSettingsForm.java
+++ b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/LlamaSettingsForm.java
@@ -41,6 +41,7 @@ public class LlamaSettingsForm extends JPanel {
     state.setContextSize(llamaServerPreferencesForm.getContextSize());
     state.setThreads(llamaServerPreferencesForm.getThreads());
     state.setAdditionalParameters(llamaServerPreferencesForm.getAdditionalParameters());
+    state.setAdditionalBuildParameters(llamaServerPreferencesForm.getAdditionalBuildParameters());
 
     var modelPreferencesForm = llamaServerPreferencesForm.getLlamaModelPreferencesForm();
     state.setCustomLlamaModelPath(modelPreferencesForm.getCustomLlamaModelPath());
diff --git a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/ServerProgressPanel.java b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/ServerProgressPanel.java
index 9a755003..4d348865 100644
--- a/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/ServerProgressPanel.java
+++ b/src/main/java/ee/carlrobert/codegpt/settings/service/llama/form/ServerProgressPanel.java
@@ -8,20 +8,15 @@ import javax.swing.JPanel;
 public class ServerProgressPanel extends JPanel {
 
   private final JBLabel label = new JBLabel();
+  private final AsyncProcessIcon loadingSpinner = new AsyncProcessIcon("sign_in_spinner");
 
-  public ServerProgressPanel() {
-    setVisible(false);
-    add(new AsyncProcessIcon("sign_in_spinner"));
-    add(label);
-  }
-
-  public void startProgress(String text) {
-    setVisible(true);
-    updateText(text);
-  }
-
-  public void updateText(String text) {
+  public void displayText(String text) {
     label.setText(text);
+    removeAll();
+    add(loadingSpinner);
+    add(label);
+    revalidate();
+    repaint();
   }
 
   public void displayComponent(JComponent component) {
diff --git a/src/main/java/ee/carlrobert/codegpt/ui/OverlayUtil.java b/src/main/java/ee/carlrobert/codegpt/ui/OverlayUtil.java
index bc16cbb0..394da503 100644
--- a/src/main/java/ee/carlrobert/codegpt/ui/OverlayUtil.java
+++ b/src/main/java/ee/carlrobert/codegpt/ui/OverlayUtil.java
@@ -149,4 +149,13 @@ public class OverlayUtil {
         .createBalloon()
         .show(RelativePoint.getSouthOf(component), Position.below);
   }
+
+  public static void showClosableBalloon(String content, MessageType messageType,
+      JComponent component) {
+    JBPopupFactory.getInstance()
+        .createHtmlTextBalloonBuilder(content, messageType, null)
+        .setCloseButtonEnabled(true)
+        .createBalloon()
+        .show(RelativePoint.getSouthOf(component), Position.below);
+  }
 }
diff --git a/src/main/resources/messages/codegpt.properties b/src/main/resources/messages/codegpt.properties
index b8be890a..2b0aa0fe 100644
--- a/src/main/resources/messages/codegpt.properties
+++ b/src/main/resources/messages/codegpt.properties
@@ -63,6 +63,8 @@ settingsConfigurable.service.llama.threads.label=Threads:
 settingsConfigurable.service.llama.threads.comment=The number of threads available to execute the model. It is not recommended to specify a number greater than the number of processor cores.
 settingsConfigurable.service.llama.additionalParameters.label=Additional parameters:
 settingsConfigurable.service.llama.additionalParameters.comment=<html>Additional command-line parameters for the server startup process, separated by commas. See the full <a href="https://github.com/ggerganov/llama.cpp/blob/master/examples/server/README.md">list of options</a>.<p><i>Example: "--n-gpu-layers, 1,  --no-mmap, --mlock"</i></p></html>
+settingsConfigurable.service.llama.additionalBuildParameters.label=Additional build parameters:
+settingsConfigurable.service.llama.additionalBuildParameters.comment=<html>Additional command-line parameters for the server build process, separated by commas. See the full <a href="https://github.com/ggerganov/llama.cpp/tree/master?tab=readme-ov-file#build">list of build options</a>.<p><i>Example: "LLAMA_CUBLAS=1,CUDA_DOCKER_ARCH=all"</i></p></html>
 settingsConfigurable.service.llama.baseHost.label=Base host:
 settingsConfigurable.service.llama.baseHost.comment=URL to existing LLama server
 settingsConfigurable.service.llama.startServer.label=Start server
@@ -179,7 +181,7 @@ validation.error.mustBeGreaterThanZero=Value must be greater than 0
 checkForUpdatesTask.title=Checking for CodeGPT update...
 checkForUpdatesTask.notification.message=An update for CodeGPT is available.
 checkForUpdatesTask.notification.installButton=Install update
-llamaServerAgent.buildingProject.description=Building llama.cpp...
+llamaServerAgent.buildingProject.description=Building server...
 llamaServerAgent.serverBootup.description=Booting up server...
 notification.compilationError.description=CodeGPT has detected a compilation error. Would you like assistance in resolving it?
 notification.compilationError.okLabel=Resolve errors