diff --git a/nanobot/agent/loop.py b/nanobot/agent/loop.py
index 1d1de4ab..6834e879 100644
--- a/nanobot/agent/loop.py
+++ b/nanobot/agent/loop.py
@@ -190,6 +190,7 @@ class AgentLoop:
         context_window_tokens: int | None = None,
         context_block_limit: int | None = None,
         max_tool_result_chars: int | None = None,
+        fail_on_tool_error: bool | None = None,
         provider_retry_mode: str = "standard",
         tool_hint_max_length: int | None = None,
         cron_service: CronService | None = None,
@@ -287,6 +288,7 @@ class AgentLoop:
             disabled_skills=disabled_skills,
             max_iterations=self.max_iterations,
             max_concurrent_subagents=max_concurrent_subagents,
+            fail_on_tool_error=fail_on_tool_error,
             llm_wall_timeout_for_session=lambda sk: runner_wall_llm_timeout_s(self.sessions, sk),
         )
         self._unified_session = unified_session
@@ -377,6 +379,7 @@ class AgentLoop:
             context_window_tokens=context_window_tokens,
             context_block_limit=defaults.context_block_limit,
             max_tool_result_chars=defaults.max_tool_result_chars,
+            fail_on_tool_error=defaults.fail_on_tool_error,
             provider_retry_mode=defaults.provider_retry_mode,
             tool_hint_max_length=defaults.tool_hint_max_length,
             restrict_to_workspace=config.tools.restrict_to_workspace,
diff --git a/nanobot/agent/subagent.py b/nanobot/agent/subagent.py
index d93f8419..85dbce66 100644
--- a/nanobot/agent/subagent.py
+++ b/nanobot/agent/subagent.py
@@ -86,6 +86,7 @@ class SubagentManager:
         disabled_skills: list[str] | None = None,
         max_iterations: int | None = None,
         max_concurrent_subagents: int | None = None,
+        fail_on_tool_error: bool | None = None,
         llm_wall_timeout_for_session: Callable[[str | None], float | None] | None = None,
     ):
         defaults = AgentDefaults()
@@ -107,6 +108,11 @@ class SubagentManager:
             if max_concurrent_subagents is not None
             else defaults.max_concurrent_subagents
         )
+        self.fail_on_tool_error = (
+            fail_on_tool_error
+            if fail_on_tool_error is not None
+            else defaults.fail_on_tool_error
+        )
         self.runner = AgentRunner(provider)
         self._llm_wall_timeout_for_session = llm_wall_timeout_for_session
         self._running_tasks: dict[str, asyncio.Task[None]] = {}
@@ -251,7 +257,7 @@ class SubagentManager:
                     max_iterations_message="Task completed but no final response was generated.",
                     finalize_on_max_iterations=False,
                     error_message=None,
-                    fail_on_tool_error=True,
+                    fail_on_tool_error=self.fail_on_tool_error,
                     checkpoint_callback=_on_checkpoint,
                     session_key=sess_key,
                     workspace=root,
diff --git a/nanobot/config/schema.py b/nanobot/config/schema.py
index 22f2acfa..feb2d62e 100644
--- a/nanobot/config/schema.py
+++ b/nanobot/config/schema.py
@@ -132,6 +132,7 @@ class AgentDefaults(Base):
     fallback_models: list[FallbackCandidate] = Field(default_factory=list)
     max_tool_iterations: int = 200
     max_concurrent_subagents: int = Field(default=1, ge=1)
+    fail_on_tool_error: bool = True
     max_tool_result_chars: int = 16_000
     provider_retry_mode: Literal["standard", "persistent"] = "standard"
     tool_hint_max_length: int = Field(
diff --git a/tests/agent/test_subagent.py b/tests/agent/test_subagent.py
index 32b5aa6a..529c436b 100644
--- a/tests/agent/test_subagent.py
+++ b/tests/agent/test_subagent.py
@@ -1,11 +1,12 @@
 """Tests for SubagentManager."""
 
 from pathlib import Path
-from unittest.mock import MagicMock
+from unittest.mock import AsyncMock, MagicMock
 
 import pytest
 
-from nanobot.agent.subagent import SubagentManager
+from nanobot.agent.runner import AgentRunResult
+from nanobot.agent.subagent import SubagentManager, SubagentStatus
 from nanobot.agent.tools.filesystem import FileToolsConfig
 from nanobot.bus.queue import MessageBus
 from nanobot.config.schema import ToolsConfig
@@ -79,3 +80,33 @@ def test_subagent_respects_file_tool_toggle(tmp_path):
         "write_file",
     }
     assert file_tools.isdisjoint(tools.tool_names)
+
+
+@pytest.mark.asyncio
+async def test_subagent_forwards_fail_on_tool_error_to_runner(tmp_path):
+    provider = MagicMock(spec=LLMProvider)
+    provider.get_default_model.return_value = "test"
+    sm = SubagentManager(
+        provider=provider,
+        workspace=tmp_path,
+        bus=MessageBus(),
+        model="test",
+        max_tool_result_chars=16_000,
+        fail_on_tool_error=False,
+    )
+    sm.runner.run = AsyncMock(
+        return_value=AgentRunResult(final_content="ok", messages=[], stop_reason="completed")
+    )
+    sm._announce_result = AsyncMock()
+
+    status = SubagentStatus(
+        task_id="t1",
+        label="label",
+        task_description="task",
+        started_at=0.0,
+    )
+
+    await sm._run_subagent("t1", "task", "label", {"channel": "cli", "chat_id": "direct"}, status)
+
+    spec = sm.runner.run.call_args.args[0]
+    assert spec.fail_on_tool_error is False