diff --git a/src/devnet/integrated-devnet.ts b/src/devnet/integrated-devnet.ts
index d310004c..456c9b98 100644
--- a/src/devnet/integrated-devnet.ts
+++ b/src/devnet/integrated-devnet.ts
@@ -1,5 +1,7 @@
 import axios from "axios";
 import { ChildProcess } from "child_process";
+import { HardhatPluginError } from "hardhat/plugins";
+import { PLUGIN_NAME } from "../constants";
 
 function sleep(amountMillis: number): Promise<void> {
     return new Promise((resolve) => {
@@ -11,6 +13,7 @@ const DEVNET_ALIVE_URL = "is_alive";
 
 export abstract class IntegratedDevnet {
     protected childProcess: ChildProcess;
+    private stderr = "";
 
     constructor(protected host: string, protected port: string) {
         IntegratedDevnet.cleanupFns.push(this.cleanup.bind(this));
@@ -29,6 +32,15 @@ export abstract class IntegratedDevnet {
     public async start(): Promise<void> {
         this.childProcess = await this.spawnChildProcess();
 
+        this.childProcess.stderr.on("data", (chunk) => (this.stderr += chunk.toString()));
+
+        this.childProcess.on("close", (code) => {
+            if (code !== 0) {
+                const msg = `Integrated devnet exited with code ${code}.\n${this.stderr}`;
+                throw new HardhatPluginError(PLUGIN_NAME, msg);
+            }
+        });
+
         return new Promise((resolve, reject) => {
             this.childProcess.on("spawn", async () => {
                 const maxWaitMillis = 60_000;
diff --git a/test/integrated-devnet-tests/with-docker-fail/check.sh b/test/integrated-devnet-tests/with-docker-fail/check.sh
new file mode 100755
index 00000000..53524ea3
--- /dev/null
+++ b/test/integrated-devnet-tests/with-docker-fail/check.sh
@@ -0,0 +1,17 @@
+#!/bin/bash
+set -e
+
+# TODO decide how it will fail - address already in use or invalid cli arg
+
+# TODO change to use ../
+source ~/shardlabs/starknet-hardhat-plugin/scripts/check-devnet-is-not-running.sh
+
+check_devnet_is_not_running
+
+# run devnet which will cause integrated-devnet to fail
+starknet-devnet --host 127.0.0.1 --port 5050 &
+
+npx hardhat starknet-compile contracts/contract.cairo
+
+npx hardhat test --no-compile test/integrated-devnet.test.ts | 
+    ~/shardlabs/starknet-hardhat-plugin/scripts/assert_contains.py "Address already in use"
diff --git a/test/integrated-devnet-tests/with-docker-fail/hardhat.config.ts b/test/integrated-devnet-tests/with-docker-fail/hardhat.config.ts
new file mode 100644
index 00000000..64707a22
--- /dev/null
+++ b/test/integrated-devnet-tests/with-docker-fail/hardhat.config.ts
@@ -0,0 +1,13 @@
+import "../dist/src/index.js";
+
+module.exports = {
+    starknet: {
+        network: process.env.NETWORK
+    },
+    networks: {
+        integratedDevnet: {
+            dockerizedVersion: process.env.STARKNET_DEVNET,
+            url: "http://127.0.0.1:5050"
+        }
+    }
+};
diff --git a/test/integrated-devnet-tests/with-docker-fail/network.json b/test/integrated-devnet-tests/with-docker-fail/network.json
new file mode 100644
index 00000000..116400d7
--- /dev/null
+++ b/test/integrated-devnet-tests/with-docker-fail/network.json
@@ -0,0 +1,4 @@
+{
+    "$schema": "../../network.schema",
+    "integrated-devnet": true
+}
diff --git a/test/integrated-devnet-tests/with-venv-fail/check.sh b/test/integrated-devnet-tests/with-venv-fail/check.sh
new file mode 100755
index 00000000..f55aa26f
--- /dev/null
+++ b/test/integrated-devnet-tests/with-venv-fail/check.sh
@@ -0,0 +1,11 @@
+#!/bin/bash
+set -e
+
+source ../scripts/check-devnet-is-not-running.sh
+
+check_devnet_is_not_running
+starknet-devnet --host 127.0.0.1 --port 5050 &
+
+npx hardhat starknet-compile contracts/contract.cairo
+npx hardhat test --no-compile test/integrated-devnet.test.ts | 
+    ../scripts/assert_contains.py "address already in use"
\ No newline at end of file
diff --git a/test/integrated-devnet-tests/with-venv-fail/hardhat.config.ts b/test/integrated-devnet-tests/with-venv-fail/hardhat.config.ts
new file mode 100644
index 00000000..8db81f16
--- /dev/null
+++ b/test/integrated-devnet-tests/with-venv-fail/hardhat.config.ts
@@ -0,0 +1,13 @@
+import "../dist/src/index.js";
+
+module.exports = {
+    starknet: {
+        network: process.env.NETWORK
+    },
+    networks: {
+        integratedDevnet: {
+            venv: process.env.STARKNET_DEVNET_PATH,
+            url: "http://127.0.0.1:5050"
+        }
+    }
+};
diff --git a/test/integrated-devnet-tests/with-venv-fail/network.json b/test/integrated-devnet-tests/with-venv-fail/network.json
new file mode 100644
index 00000000..116400d7
--- /dev/null
+++ b/test/integrated-devnet-tests/with-venv-fail/network.json
@@ -0,0 +1,4 @@
+{
+    "$schema": "../../network.schema",
+    "integrated-devnet": true
+}