diff --git a/packages/cli-kit/src/public/node/error-handler.test.ts b/packages/cli-kit/src/public/node/error-handler.test.ts
index c17d7f0472..8f101ab55d 100644
--- a/packages/cli-kit/src/public/node/error-handler.test.ts
+++ b/packages/cli-kit/src/public/node/error-handler.test.ts
@@ -174,6 +174,15 @@ describe('skips sending errors to Bugsnag', () => {
     expect(onNotify).not.toHaveBeenCalled()
     expect(mockOutput.debug()).toMatch('Skipping Bugsnag report')
   })
+
+  test('when error is expected', async () => {
+    const mockOutput = mockAndCaptureOutput()
+    const res = await sendErrorToBugsnag(new error.AbortError('In test'), 'expected_error')
+    expect(res.reported).toEqual(false)
+    expect(res.unhandled).toBeUndefined()
+    expect(onNotify).not.toHaveBeenCalled()
+    expect(mockOutput.debug()).toMatch('Skipping Bugsnag report for expected error')
+  })
 })
 
 describe('sends errors to Bugsnag', () => {
@@ -200,13 +209,6 @@ describe('sends errors to Bugsnag', () => {
     expect(onNotify).toHaveBeenCalledWith(res.error)
   })
 
-  test('processes AbortErrors as handled', async () => {
-    const res = await sendErrorToBugsnag(new error.AbortError('In test'), 'expected_error')
-    expect(res.reported).toEqual(true)
-    expect(res.unhandled).toEqual(false)
-    expect(onNotify).toHaveBeenCalledWith(res.error)
-  })
-
   test.each([null, undefined, {}, {message: 'nope'}])('deals with strange things to throw %s', async (throwable) => {
     const res = await sendErrorToBugsnag(throwable, 'unexpected_error')
     expect(res.reported).toEqual(false)
diff --git a/packages/cli-kit/src/public/node/error-handler.ts b/packages/cli-kit/src/public/node/error-handler.ts
index 9b764be5c7..5735d2b823 100644
--- a/packages/cli-kit/src/public/node/error-handler.ts
+++ b/packages/cli-kit/src/public/node/error-handler.ts
@@ -76,6 +76,11 @@ export async function sendErrorToBugsnag(
       return {reported: false, error, unhandled: undefined}
     }
 
+    if (exitMode === 'expected_error') {
+      outputDebug(`Skipping Bugsnag report for expected error`)
+      return {reported: false, error, unhandled: undefined}
+    }
+
     // If the error was unexpected, we flag it as "unhandled" in Bugsnag. This is a helpful distinction.
     const unhandled = exitMode === 'unexpected_error'