diff --git a/lua/CopilotChat/config.lua b/lua/CopilotChat/config.lua
index ba24edb1..49205784 100644
--- a/lua/CopilotChat/config.lua
+++ b/lua/CopilotChat/config.lua
@@ -35,6 +35,7 @@
 ---@field auto_fold boolean?
 ---@field insert_at_end boolean?
 ---@field clear_chat_on_new_prompt boolean?
+---@field stop_on_tool_failure boolean?
 
 --- CopilotChat default configuration
 ---@class CopilotChat.config.Config : CopilotChat.config.Shared
@@ -94,6 +95,7 @@ return {
   auto_insert_mode = false, -- Automatically enter insert mode when opening window and on new prompt
   insert_at_end = false, -- Move cursor to end of buffer when inserting text
   clear_chat_on_new_prompt = false, -- Clears chat on every new prompt
+  stop_on_tool_failure = false, -- Stop processing prompt if any tool fails (preserves quota)
 
   -- Static config starts here (can be configured only via setup function)
 
diff --git a/lua/CopilotChat/init.lua b/lua/CopilotChat/init.lua
index ba32542e..2e62f4d9 100644
--- a/lua/CopilotChat/init.lua
+++ b/lua/CopilotChat/init.lua
@@ -413,7 +413,13 @@ function M.resolve_functions(prompt, config)
 
     local schema = tools[name] and tools[name].schema or nil
     local result = ''
-    local ok, output = pcall(tool.resolve, functions.parse_input(input, schema), state.source)
+    local ok, output
+    if config.stop_on_tool_failure then
+      output = tool.resolve(functions.parse_input(input, schema), state.source)
+      ok = true
+    else
+      ok, output = pcall(tool.resolve, functions.parse_input(input, schema), state.source)
+    end
     if not ok then
       result = string.format(BLOCK_OUTPUT_FORMAT, 'error', utils.make_string(output))
     else