diff --git a/changes/20251112110252.bugfix b/changes/20251112110252.bugfix
new file mode 100644
index 0000000000..772569e03f
--- /dev/null
+++ b/changes/20251112110252.bugfix
@@ -0,0 +1 @@
+:bug: `parallelisation` Ensure that execution options are propagated to compound execution group when creating a PriorityExecutionGroup
diff --git a/utils/parallelisation/priority_group.go b/utils/parallelisation/priority_group.go
index 6c8049d562..c7b9f1e8f7 100644
--- a/utils/parallelisation/priority_group.go
+++ b/utils/parallelisation/priority_group.go
@@ -95,7 +95,9 @@ func (g *PriorityExecutionGroup[T]) executors() (executor *CompoundExecutionGrou
 	g.mu.RLock()
 	defer g.mu.RUnlock()
 
-	executor = NewCompoundExecutionGroup(DefaultOptions().MergeWithOptions(Sequential).Options()...)
+	opts := DefaultOptions().MergeWithOptions(g.options...)
+	opts.MergeWithOptions(Sequential)
+	executor = NewCompoundExecutionGroup(opts.Options()...)
 	for _, key := range slices.Sorted(maps.Keys(g.groups)) {
 		executor.RegisterExecutor(g.groups[key])
 	}
diff --git a/utils/parallelisation/priority_group_test.go b/utils/parallelisation/priority_group_test.go
index 5d5968d5e2..2507c3e5de 100644
--- a/utils/parallelisation/priority_group_test.go
+++ b/utils/parallelisation/priority_group_test.go
@@ -392,4 +392,32 @@ func TestPriority(t *testing.T) {
 		err := priorityGroup.Execute(ctx)
 		errortest.AssertError(t, err, commonerrors.ErrTimeout)
 	})
+
+	t.Run("stop on first error propagates properly across priorities", func(t *testing.T) {
+		defer goleak.VerifyNone(t)
+
+		var lowerPriorityCalled, samePriorityCalledAfter atomic.Bool
+
+		priorityGroup := NewPriorityExecutionGroup(Sequential, StopOnFirstError)
+
+		priorityGroup.RegisterFunctionWithPriority(0, testExecutorFunc(func(ctx context.Context) (err error) {
+			err = commonerrors.ErrConflict
+			return
+		}))
+
+		priorityGroup.RegisterFunctionWithPriority(0, testExecutorFunc(func(ctx context.Context) (err error) {
+			samePriorityCalledAfter.Store(true)
+			return
+		}))
+
+		priorityGroup.RegisterFunctionWithPriority(1, testExecutorFunc(func(ctx context.Context) (err error) {
+			lowerPriorityCalled.Store(true)
+			return
+		}))
+
+		err := priorityGroup.Execute(context.Background())
+		errortest.AssertError(t, err, commonerrors.ErrConflict)
+		assert.False(t, samePriorityCalledAfter.Load())
+		assert.False(t, lowerPriorityCalled.Load())
+	})
 }