diff --git a/packages/compiler-cli/ngcc/src/analysis/decoration_analyzer.ts b/packages/compiler-cli/ngcc/src/analysis/decoration_analyzer.ts
index bfc8abc24bac03..d49a161a5583a8 100644
--- a/packages/compiler-cli/ngcc/src/analysis/decoration_analyzer.ts
+++ b/packages/compiler-cli/ngcc/src/analysis/decoration_analyzer.ts
@@ -130,7 +130,13 @@ export class DecorationAnalyzer {
 
   protected analyzeClass(symbol: ClassSymbol): AnalyzedClass|null {
     const decorators = this.reflectionHost.getDecoratorsOfSymbol(symbol);
-    return analyzeDecorators(symbol, decorators, this.handlers);
+    const analyzedClass = analyzeDecorators(symbol, decorators, this.handlers);
+    if (analyzedClass !== null && analyzedClass.diagnostics !== undefined) {
+      for (const diagnostic of analyzedClass.diagnostics) {
+        this.diagnosticHandler(diagnostic);
+      }
+    }
+    return analyzedClass;
   }
 
   protected migrateFile(migrationHost: MigrationHost, analyzedFile: AnalyzedFile): void {
diff --git a/packages/compiler-cli/ngcc/src/analysis/util.ts b/packages/compiler-cli/ngcc/src/analysis/util.ts
index 63e854a720fae0..b617199ed78158 100644
--- a/packages/compiler-cli/ngcc/src/analysis/util.ts
+++ b/packages/compiler-cli/ngcc/src/analysis/util.ts
@@ -6,9 +6,12 @@
  * found in the LICENSE file at https://angular.io/license
  */
 import * as ts from 'typescript';
+
+import {isFatalDiagnosticError} from '../../../src/ngtsc/diagnostics';
 import {AbsoluteFsPath, absoluteFromSourceFile, relative} from '../../../src/ngtsc/file_system';
 import {ClassSymbol, Decorator} from '../../../src/ngtsc/reflection';
 import {DecoratorHandler, DetectResult, HandlerPrecedence} from '../../../src/ngtsc/transform';
+
 import {AnalyzedClass, MatchingHandler} from './types';
 
 export function isWithinPackage(packagePath: AbsoluteFsPath, sourceFile: ts.SourceFile): boolean {
@@ -59,11 +62,19 @@ export function analyzeDecorators(
   const matches: {handler: DecoratorHandler<any, any>, analysis: any}[] = [];
   const allDiagnostics: ts.Diagnostic[] = [];
   for (const {handler, detected} of detections) {
-    const {analysis, diagnostics} = handler.analyze(declaration, detected.metadata);
-    if (diagnostics !== undefined) {
-      allDiagnostics.push(...diagnostics);
+    try {
+      const {analysis, diagnostics} = handler.analyze(declaration, detected.metadata);
+      if (diagnostics !== undefined) {
+        allDiagnostics.push(...diagnostics);
+      }
+      matches.push({handler, analysis});
+    } catch (e) {
+      if (isFatalDiagnosticError(e)) {
+        allDiagnostics.push(e.toDiagnostic());
+      } else {
+        throw e;
+      }
     }
-    matches.push({handler, analysis});
   }
   return {
     name: symbol.name,
diff --git a/packages/compiler-cli/ngcc/src/main.ts b/packages/compiler-cli/ngcc/src/main.ts
index 4901f7196606f4..448451f0d4860e 100644
--- a/packages/compiler-cli/ngcc/src/main.ts
+++ b/packages/compiler-cli/ngcc/src/main.ts
@@ -5,6 +5,8 @@
  * Use of this source code is governed by an MIT-style license that can be
  * found in the LICENSE file at https://angular.io/license
  */
+import * as ts from 'typescript';
+
 import {AbsoluteFsPath, FileSystem, absoluteFrom, dirname, getFileSystem, resolve} from '../../src/ngtsc/file_system';
 
 import {CommonJsDependencyHost} from './dependencies/commonjs_dependency_host';
@@ -27,7 +29,6 @@ import {FileWriter} from './writing/file_writer';
 import {InPlaceFileWriter} from './writing/in_place_file_writer';
 import {NewEntryPointFileWriter} from './writing/new_entry_point_file_writer';
 
-
 /**
  * The options to configure the ngcc compiler.
  */
@@ -171,8 +172,17 @@ export function mainNgcc(
 
       logger.info(`Compiling ${entryPoint.name} : ${formatProperty} as ${format}`);
 
-      const transformedFiles = transformer.transform(bundle);
-      fileWriter.writeBundle(bundle, transformedFiles, formatPropertiesToMarkAsProcessed);
+      const result = transformer.transform(bundle);
+      if (result.success) {
+        if (result.diagnostics.length > 0) {
+          logger.warn(ts.formatDiagnostics(result.diagnostics, bundle.src.host));
+        }
+        fileWriter.writeBundle(bundle, result.transformedFiles, formatPropertiesToMarkAsProcessed);
+      } else {
+        const errors = ts.formatDiagnostics(result.diagnostics, bundle.src.host);
+        throw new Error(
+            `Failed to compile entry-point ${entryPoint.name} due to compilation errors:\n${errors}`);
+      }
 
       onTaskCompleted(task, TaskProcessingOutcome.Processed);
     };
diff --git a/packages/compiler-cli/ngcc/src/packages/transformer.ts b/packages/compiler-cli/ngcc/src/packages/transformer.ts
index 11bbc4900a1c16..34480ad3e72e8f 100644
--- a/packages/compiler-cli/ngcc/src/packages/transformer.ts
+++ b/packages/compiler-cli/ngcc/src/packages/transformer.ts
@@ -6,6 +6,7 @@
  * found in the LICENSE file at https://angular.io/license
  */
 import * as ts from 'typescript';
+
 import {FileSystem} from '../../../src/ngtsc/file_system';
 import {DecorationAnalyzer} from '../analysis/decoration_analyzer';
 import {ModuleWithProvidersAnalyses, ModuleWithProvidersAnalyzer} from '../analysis/module_with_providers_analyzer';
@@ -27,8 +28,17 @@ import {Renderer} from '../rendering/renderer';
 import {RenderingFormatter} from '../rendering/rendering_formatter';
 import {UmdRenderingFormatter} from '../rendering/umd_rendering_formatter';
 import {FileToWrite} from '../rendering/utils';
+
 import {EntryPointBundle} from './entry_point_bundle';
 
+export type TransformResult = {
+  success: true; diagnostics: ts.Diagnostic[]; transformedFiles: FileToWrite[];
+} |
+{
+  success: false;
+  diagnostics: ts.Diagnostic[];
+};
+
 /**
  * A Package is stored in a directory on disk and that directory can contain one or more package
  * formats - e.g. fesm2015, UMD, etc. Additionally, each package provides typings (`.d.ts` files).
@@ -58,12 +68,17 @@ export class Transformer {
    * @param bundle the bundle to transform.
    * @returns information about the files that were transformed.
    */
-  transform(bundle: EntryPointBundle): FileToWrite[] {
+  transform(bundle: EntryPointBundle): TransformResult {
     const reflectionHost = this.getHost(bundle);
 
     // Parse and analyze the files.
     const {decorationAnalyses, switchMarkerAnalyses, privateDeclarationsAnalyses,
-           moduleWithProvidersAnalyses} = this.analyzeProgram(reflectionHost, bundle);
+           moduleWithProvidersAnalyses, diagnostics} = this.analyzeProgram(reflectionHost, bundle);
+
+    // Bail if the analysis produced any errors.
+    if (hasErrors(diagnostics)) {
+      return {success: false, diagnostics};
+    }
 
     // Transform the source files and source maps.
     const srcFormatter = this.getRenderingFormatter(reflectionHost, bundle);
@@ -81,7 +96,7 @@ export class Transformer {
       renderedFiles = renderedFiles.concat(renderedDtsFiles);
     }
 
-    return renderedFiles;
+    return {success: true, diagnostics, transformedFiles: renderedFiles};
   }
 
   getHost(bundle: EntryPointBundle): NgccReflectionHost {
@@ -127,8 +142,10 @@ export class Transformer {
         new SwitchMarkerAnalyzer(reflectionHost, bundle.entryPoint.package);
     const switchMarkerAnalyses = switchMarkerAnalyzer.analyzeProgram(bundle.src.program);
 
-    const decorationAnalyzer =
-        new DecorationAnalyzer(this.fs, bundle, reflectionHost, referencesRegistry);
+    const diagnostics: ts.Diagnostic[] = [];
+    const decorationAnalyzer = new DecorationAnalyzer(
+        this.fs, bundle, reflectionHost, referencesRegistry,
+        diagnostic => diagnostics.push(diagnostic));
     const decorationAnalyses = decorationAnalyzer.analyzeProgram();
 
     const moduleWithProvidersAnalyzer =
@@ -142,14 +159,18 @@ export class Transformer {
         privateDeclarationsAnalyzer.analyzeProgram(bundle.src.program);
 
     return {decorationAnalyses, switchMarkerAnalyses, privateDeclarationsAnalyses,
-            moduleWithProvidersAnalyses};
+            moduleWithProvidersAnalyses, diagnostics};
   }
 }
 
+export function hasErrors(diagnostics: ts.Diagnostic[]) {
+  return diagnostics.some(d => d.category === ts.DiagnosticCategory.Error);
+}
 
 interface ProgramAnalyses {
   decorationAnalyses: Map<ts.SourceFile, CompiledFile>;
   switchMarkerAnalyses: SwitchMarkerAnalyses;
   privateDeclarationsAnalyses: ExportInfo[];
   moduleWithProvidersAnalyses: ModuleWithProvidersAnalyses|null;
+  diagnostics: ts.Diagnostic[];
 }
diff --git a/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts b/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts
index ec9e07ed8c62e5..8388a4a35b6a06 100644
--- a/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts
+++ b/packages/compiler-cli/ngcc/test/integration/ngcc_spec.ts
@@ -406,6 +406,42 @@ runInEachFileSystem(() => {
       });
     });
 
+    describe('diagnostics', () => {
+      it('should fail with formatted diagnostics when an error diagnostic is produced', () => {
+        loadTestFiles([
+          {
+            name: _('/node_modules/fatal-error/package.json'),
+            contents: '{"name": "fatal-error", "es2015": "./index.js", "typings": "./index.d.ts"}',
+          },
+          {name: _('/node_modules/fatal-error/index.metadata.json'), contents: 'DUMMY DATA'},
+          {
+            name: _('/node_modules/fatal-error/index.js'),
+            contents: `
+              import {Component} from '@angular/core';
+              export class FatalError {}
+              FatalError.decorators = [
+                {type: Component, args: [{selector: 'fatal-error'}]}
+              ];
+            `,
+          },
+          {
+            name: _('/node_modules/fatal-error/index.d.ts'),
+            contents: `
+              export declare class FatalError {}
+            `,
+          },
+        ]);
+        expect(() => mainNgcc({
+                 basePath: '/node_modules',
+                 targetEntryPointPath: 'fatal-error',
+                 propertiesToConsider: ['es2015']
+               }))
+            .toThrowError(
+                'Failed to compile entry-point fatal-error due to compilation errors:\n' +
+                'node_modules/fatal-error/index.js(5,17): error TS-992001: component is missing a template\n');
+      });
+    });
+
     describe('logger', () => {
       it('should log info message to the console by default', () => {
         const consoleInfoSpy = spyOn(console, 'info');