diff --git a/v-next/hardhat-node-test-runner/src/task-action.ts b/v-next/hardhat-node-test-runner/src/task-action.ts
index 01a819ee143..4793d631f91 100644
--- a/v-next/hardhat-node-test-runner/src/task-action.ts
+++ b/v-next/hardhat-node-test-runner/src/task-action.ts
@@ -1,6 +1,7 @@
 import type { HardhatConfig } from "@ignored/hardhat-vnext/types/config";
 import type { NewTaskActionFunction } from "@ignored/hardhat-vnext/types/tasks";
 
+import { finished } from "node:stream/promises";
 import { run } from "node:test";
 import { fileURLToPath } from "node:url";
 
@@ -20,6 +21,15 @@ function isJavascriptFile(path: string): boolean {
   return /\.(js|cjs|mjs)$/i.test(path);
 }
 
+function isSubtestFailedError(error: Error): boolean {
+  return (
+    "code" in error &&
+    "failureType" in error &&
+    error.code === "ERR_TEST_FAILURE" &&
+    error.failureType === "subtestsFailed"
+  );
+}
+
 async function getTestFiles(
   testFiles: string[],
   config: HardhatConfig,
@@ -34,6 +44,9 @@ async function getTestFiles(
   );
 }
 
+/**
+ * Note that we are testing this manually for now as you can't run a node:test within a node:test
+ */
 const testWithHardhat: NewTaskActionFunction<TestActionArguments> = async (
   { testFiles, only },
   hre,
@@ -43,7 +56,37 @@ const testWithHardhat: NewTaskActionFunction<TestActionArguments> = async (
   const tsx = fileURLToPath(import.meta.resolve("tsx/esm"));
   process.env.NODE_OPTIONS = `--import ${tsx}`;
 
-  run({ files, only }).compose(hardhatTestReporter).pipe(process.stdout);
+  async function runTests(): Promise<number> {
+    let failures = 0;
+    const reporterStream = run({ files, only })
+      .on("test:fail", (event) => {
+        if (event.details.type === "suite") {
+          // If a suite failed only because a subtest failed, we don't want to
+          // count it as a failure since the subtest failure will be reported as well
+          if (isSubtestFailedError(event.details.error)) {
+            return;
+          }
+        }
+
+        failures++;
+      })
+      .compose(hardhatTestReporter);
+
+    reporterStream.pipe(process.stdout);
+
+    await finished(reporterStream);
+
+    return failures;
+  }
+
+  const testFailures = await runTests();
+  console.log("Failures: ", testFailures);
+
+  if (testFailures > 0) {
+    process.exitCode = testFailures;
+  }
+
+  return testFailures;
 };
 
 export default testWithHardhat;