diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1a28e1b7..11e3e09f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -39,6 +39,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
   `/sys/firmware/devicetree/base/serial-number`
 - Replace slice in templates with sprig substr. #1093
 - Fix an invalid format issue for the GitHub nightly build action. #1258
+- Return non-zero exit code on overlay build failure #1393
 
 ## v4.5.8, unreleased
 
diff --git a/internal/app/wwctl/overlay/build/main.go b/internal/app/wwctl/overlay/build/main.go
index 6c2a7bcd..c44b30ef 100644
--- a/internal/app/wwctl/overlay/build/main.go
+++ b/internal/app/wwctl/overlay/build/main.go
@@ -2,6 +2,7 @@ package build
 
 import (
 	"errors"
+	"fmt"
 	"os"
 	"strings"
 
@@ -77,7 +78,7 @@ func CobraRunE(cmd *cobra.Command, args []string) error {
 	if BuildHost && controller.Warewulf.EnableHostOverlay {
 		err := overlay.BuildHostOverlay()
 		if err != nil {
-			wwlog.Warn("host overlay could not be built: %s", err)
+			return fmt.Errorf("host overlay could not be built: %s", err)
 		}
 	}
 
@@ -89,7 +90,7 @@ func CobraRunE(cmd *cobra.Command, args []string) error {
 		}
 
 		if err != nil {
-			wwlog.Warn("Some overlays failed to be generated: %s", err)
+			return fmt.Errorf("Some overlays failed to be generated: %s", err)
 		}
 	}
 	return nil