diff --git a/src/loader.ts b/src/loader.ts
index 29b0545c..5d6e4535 100644
--- a/src/loader.ts
+++ b/src/loader.ts
@@ -24,6 +24,7 @@ export interface OutputFile {
   extension?: string;
   contents?: string;
   declaration?: boolean;
+  errors?: Error[];
   raw?: boolean;
   skip?: boolean;
 }
diff --git a/src/make.ts b/src/make.ts
index 0af298f4..6c4da9f2 100644
--- a/src/make.ts
+++ b/src/make.ts
@@ -10,7 +10,11 @@ import {
   OutputFile,
   Loader,
 } from "./loader";
-import { getDeclarations, normalizeCompilerOptions } from "./utils/dts";
+import {
+  DeclarationOutput,
+  getDeclarations,
+  normalizeCompilerOptions,
+} from "./utils/dts";
 import { getVueDeclarations } from "./utils/vue-dts";
 import { LoaderName } from "./loaders";
 import { glob, type GlobOptions } from "tinyglobby";
@@ -83,17 +87,17 @@ export async function mkdist(
     );
   }
   options.typescript.compilerOptions = defu(
-    { noEmit: false },
+    { noEmit: false } satisfies TSConfig["compilerOptions"],
     options.typescript.compilerOptions,
     {
       allowJs: true,
       declaration: true,
-      incremental: true,
       skipLibCheck: true,
       strictNullChecks: true,
       emitDeclarationOnly: true,
+      allowImportingTsExtensions: true,
       allowNonTsExtensions: true,
-    },
+    } satisfies TSConfig["compilerOptions"],
   );
 
   // Create loader
@@ -120,12 +124,16 @@ export async function mkdist(
   const dtsOutputs = outputs.filter((o) => o.declaration && !o.skip);
   if (dtsOutputs.length > 0) {
     const vfs = new Map(dtsOutputs.map((o) => [o.srcPath, o.contents || ""]));
-    const declarations = Object.create(null);
+    const declarations: DeclarationOutput = Object.create(null);
     for (const loader of [getVueDeclarations, getDeclarations]) {
       Object.assign(declarations, await loader(vfs, options));
     }
     for (const output of dtsOutputs) {
-      output.contents = declarations[output.srcPath] || "";
+      const result = declarations[output.srcPath];
+      output.contents = result?.contents || "";
+      if (result.errors) {
+        output.errors = result.errors;
+      }
     }
   }
 
@@ -187,6 +195,7 @@ export async function mkdist(
 
   // Write outputs
   const writtenFiles: string[] = [];
+  const errors: Array<{ filename: string; errors: TypeError[] }> = [];
   await Promise.all(
     outputs
       .filter((o) => !o.skip)
@@ -197,10 +206,15 @@ export async function mkdist(
           ? copyFileWithStream(output.srcPath, outFile)
           : fsp.writeFile(outFile, output.contents, "utf8"));
         writtenFiles.push(outFile);
+
+        if (output.errors) {
+          errors.push({ filename: outFile, errors: output.errors });
+        }
       }),
   );
 
   return {
+    errors,
     writtenFiles,
   };
 }
diff --git a/src/utils/dts.ts b/src/utils/dts.ts
index 279cac14..7aeb57a6 100644
--- a/src/utils/dts.ts
+++ b/src/utils/dts.ts
@@ -3,6 +3,7 @@ import { findStaticImports, findExports, findTypeExports } from "mlly";
 import { resolve } from "pathe";
 import type { TSConfig } from "pkg-types";
 import type { MkdistOptions } from "../make";
+import type { CompilerHost, EmitResult } from "typescript";
 
 export async function normalizeCompilerOptions(
   _options: TSConfig["compilerOptions"],
@@ -11,10 +12,15 @@ export async function normalizeCompilerOptions(
   return ts.convertCompilerOptionsFromJson(_options, process.cwd()).options;
 }
 
+export type DeclarationOutput = Record<
+  string,
+  { contents: string; errors?: Error[] }
+>;
+
 export async function getDeclarations(
   vfs: Map<string, string>,
   opts?: MkdistOptions,
-) {
+): Promise<DeclarationOutput> {
   const ts = await import("typescript").then((r) => r.default || r);
 
   const inputFiles = [...vfs.keys()];
@@ -38,11 +44,10 @@ export async function getDeclarations(
     tsHost,
   );
   const result = program.emit();
-  if (result.diagnostics?.length) {
-    console.error(ts.formatDiagnostics(result.diagnostics, tsHost));
-  }
+  const output = extractDeclarations(vfs, inputFiles, opts);
+  augmentWithDiagnostics(result, output, tsHost, ts);
 
-  return extractDeclarations(vfs, inputFiles, opts);
+  return output;
 }
 
 const JS_EXT_RE = /\.(m|c)?(ts|js)$/;
@@ -53,8 +58,8 @@ export function extractDeclarations(
   vfs: Map<string, string>,
   inputFiles: string[],
   opts?: MkdistOptions,
-) {
-  const output: Record<string, string> = {};
+): DeclarationOutput {
+  const output: DeclarationOutput = {};
 
   for (const filename of inputFiles) {
     const dtsFilename = filename.replace(JSX_EXT_RE, ".d.$1ts");
@@ -88,10 +93,32 @@ export function extractDeclarations(
         );
       }
     }
-    output[filename] = contents;
+    output[filename] = { contents };
 
     vfs.delete(filename);
   }
 
   return output;
 }
+
+export function augmentWithDiagnostics(
+  result: EmitResult,
+  output: DeclarationOutput,
+  tsHost: CompilerHost,
+  ts: typeof import("typescript"),
+) {
+  if (result.diagnostics?.length) {
+    for (const diagnostic of result.diagnostics) {
+      const filename = diagnostic.file?.fileName;
+      if (filename in output) {
+        output[filename].errors = output[filename].errors || [];
+        output[filename].errors.push(
+          new TypeError(ts.formatDiagnostics([diagnostic], tsHost), {
+            cause: diagnostic,
+          }),
+        );
+      }
+    }
+    console.error(ts.formatDiagnostics(result.diagnostics, tsHost));
+  }
+}
diff --git a/src/utils/vue-dts.ts b/src/utils/vue-dts.ts
index ae2f987e..3c43db1c 100644
--- a/src/utils/vue-dts.ts
+++ b/src/utils/vue-dts.ts
@@ -1,17 +1,21 @@
 import { createRequire } from "node:module";
-import { CompilerOptions, CreateProgramOptions } from "typescript";
+import { CreateProgramOptions } from "typescript";
 import { readPackageJSON } from "pkg-types";
 import { satisfies } from "semver";
 import { normalize } from "pathe";
 import { MkdistOptions } from "../make";
-import { extractDeclarations } from "./dts";
+import {
+  augmentWithDiagnostics,
+  DeclarationOutput,
+  extractDeclarations,
+} from "./dts";
 
 const require = createRequire(import.meta.url);
 
 export async function getVueDeclarations(
   vfs: Map<string, string>,
   opts?: MkdistOptions,
-) {
+): Promise<DeclarationOutput> {
   const fileMapping = getFileMapping(vfs);
   const srcFiles = Object.keys(fileMapping);
   const originFiles = Object.values(fileMapping);
@@ -28,26 +32,22 @@ export async function getVueDeclarations(
   }
 
   const { version } = pkgInfo;
+  let output: DeclarationOutput;
   switch (true) {
     case satisfies(version, "^1.8.27"): {
-      await emitVueTscV1(vfs, opts.typescript.compilerOptions, srcFiles);
+      output = await emitVueTscV1(vfs, srcFiles, originFiles, opts);
       break;
     }
     case satisfies(version, "~v2.0.0"): {
-      await emitVueTscV2(vfs, opts.typescript.compilerOptions, srcFiles);
+      output = await emitVueTscV2(vfs, srcFiles, originFiles, opts);
       break;
     }
     default: {
-      await emitVueTscLatest(
-        vfs,
-        opts.typescript.compilerOptions,
-        srcFiles,
-        opts.rootDir!,
-      );
+      output = await emitVueTscLatest(vfs, srcFiles, originFiles, opts);
     }
   }
 
-  return extractDeclarations(vfs, originFiles, opts);
+  return output;
 }
 
 const SFC_EXT_RE = /\.vue\.[cm]?[jt]s$/;
@@ -64,8 +64,9 @@ function getFileMapping(vfs: Map<string, string>): Record<string, string> {
 
 async function emitVueTscV1(
   vfs: Map<string, string>,
-  compilerOptions: CompilerOptions,
-  srcFiles: string[],
+  inputFiles: string[],
+  originFiles: string[],
+  opts?: MkdistOptions,
 ) {
   const vueTsc: typeof import("vue-tsc1") = await import("vue-tsc")
     .then((r) => r.default || r)
@@ -75,7 +76,7 @@ async function emitVueTscV1(
   const ts =
     require("typescript") as typeof import("typescript/lib/tsserverlibrary");
 
-  const tsHost = ts.createCompilerHost(compilerOptions);
+  const tsHost = ts.createCompilerHost(opts.typescript.compilerOptions);
 
   const _tsSysWriteFile = ts.sys.writeFile;
   ts.sys.writeFile = (filename, content) => {
@@ -91,15 +92,17 @@ async function emitVueTscV1(
 
   try {
     const program = vueTsc.createProgram({
-      rootNames: srcFiles,
-      options: compilerOptions,
+      rootNames: inputFiles,
+      options: opts.typescript.compilerOptions,
       host: tsHost,
     });
 
     const result = program.emit();
-    if (result.diagnostics?.length) {
-      console.error(ts.formatDiagnostics(result.diagnostics, tsHost));
-    }
+    const output = extractDeclarations(vfs, originFiles, opts);
+
+    augmentWithDiagnostics(result, output, tsHost, ts);
+
+    return output;
   } finally {
     ts.sys.writeFile = _tsSysWriteFile;
     ts.sys.readFile = _tsSysReadFile;
@@ -108,8 +111,9 @@ async function emitVueTscV1(
 
 async function emitVueTscV2(
   vfs: Map<string, string>,
-  compilerOptions: CompilerOptions,
-  srcFiles: string[],
+  inputFiles: string[],
+  originFiles: string[],
+  opts?: MkdistOptions,
 ) {
   const { resolve: resolveModule } = await import("mlly");
   const ts: typeof import("typescript") = await import("typescript").then(
@@ -124,7 +128,7 @@ async function emitVueTscV2(
   const volarTs: typeof import("@volar/typescript") =
     requireFromVueTsc("@volar/typescript");
 
-  const tsHost = ts.createCompilerHost(compilerOptions);
+  const tsHost = ts.createCompilerHost(opts.typescript.compilerOptions);
   tsHost.writeFile = (filename, content) => {
     vfs.set(filename, vueTsc.removeEmitGlobalTypes(content));
   };
@@ -140,8 +144,8 @@ async function emitVueTscV2(
     return vfs.has(filename) || _tsFileExist(filename);
   };
   const programOptions: CreateProgramOptions = {
-    rootNames: srcFiles,
-    options: compilerOptions,
+    rootNames: inputFiles,
+    options: opts.typescript.compilerOptions,
     host: tsHost,
   };
   const createProgram = volarTs.proxyCreateProgram(
@@ -167,18 +171,22 @@ async function emitVueTscV2(
       return [vueLanguagePlugin];
     },
   );
+
   const program = createProgram(programOptions);
+
   const result = program.emit();
-  if (result.diagnostics?.length) {
-    console.error(ts.formatDiagnostics(result.diagnostics, tsHost));
-  }
+  const output = extractDeclarations(vfs, originFiles, opts);
+
+  augmentWithDiagnostics(result, output, tsHost, ts);
+
+  return output;
 }
 
 async function emitVueTscLatest(
   vfs: Map<string, string>,
-  compilerOptions: CompilerOptions,
-  srcFiles: string[],
-  rootDir: string,
+  inputFiles: string[],
+  originFiles: string[],
+  opts?: MkdistOptions,
 ) {
   const { resolve: resolveModule } = await import("mlly");
   const ts: typeof import("typescript") = await import("typescript").then(
@@ -190,7 +198,7 @@ async function emitVueTscLatest(
   const volarTs: typeof import("@volar/typescript") =
     requireFromVueTsc("@volar/typescript");
 
-  const tsHost = ts.createCompilerHost(compilerOptions);
+  const tsHost = ts.createCompilerHost(opts.typescript.compilerOptions);
   tsHost.writeFile = (filename, content) => {
     vfs.set(filename, content);
   };
@@ -207,8 +215,8 @@ async function emitVueTscLatest(
   };
 
   const programOptions: CreateProgramOptions = {
-    rootNames: srcFiles,
-    options: compilerOptions,
+    rootNames: inputFiles,
+    options: opts.typescript.compilerOptions,
     host: tsHost,
   };
 
@@ -222,7 +230,7 @@ async function emitVueTscLatest(
         vueLanguageCore.createParsedCommandLineByJson(
           ts,
           ts.sys,
-          rootDir,
+          opts.rootDir,
           {},
           undefined,
           true,
@@ -234,8 +242,11 @@ async function emitVueTscLatest(
   );
 
   const program = createProgram(programOptions);
+
   const result = program.emit();
-  if (result.diagnostics?.length) {
-    console.error(ts.formatDiagnostics(result.diagnostics, tsHost));
-  }
+  const output = extractDeclarations(vfs, originFiles, opts);
+
+  augmentWithDiagnostics(result, output, tsHost, ts);
+
+  return output;
 }
diff --git a/test/index.test.ts b/test/index.test.ts
index 854fc2e9..f2dc0ddc 100644
--- a/test/index.test.ts
+++ b/test/index.test.ts
@@ -1,5 +1,5 @@
 import { readFile } from "node:fs/promises";
-import { resolve } from "pathe";
+import { relative, resolve } from "pathe";
 import {
   describe,
   it,
@@ -497,6 +497,28 @@ describe("mkdist", () => {
       "
     `);
   });
+
+  it("emits DTS errors", async () => {
+    const rootDir = resolve(__dirname, "fixture");
+    const { mkdist } = await import("../src/make");
+    const { errors } = await mkdist({
+      rootDir,
+      declaration: true,
+      typescript: {
+        compilerOptions: {
+          // force compiler errors to be emitted
+          noEmitOnError: true,
+        },
+      },
+    });
+    const files = errors.map((e) => relative(rootDir, e.filename));
+    expect(files).toMatchInlineSnapshot(`
+      [
+        "dist/components/index.d.ts",
+        "dist/components/tsx.d.ts",
+      ]
+    `);
+  }, 50_000);
 });
 
 describe("mkdist with vue-tsc v1", () => {