diff --git a/helion/_compiler/type_propagation.py b/helion/_compiler/type_propagation.py
index 6e0ad4dd4..edf2f4faf 100644
--- a/helion/_compiler/type_propagation.py
+++ b/helion/_compiler/type_propagation.py
@@ -2071,14 +2071,25 @@ def visit_AnnAssign(self, node: ast.AnnAssign) -> TypeInfo:
 
     def visit_AugAssign(self, node: ast.AugAssign) -> TypeInfo:
         assert isinstance(node.target, ExtendedAST)
-        type_info = self.visit(
-            create(
-                ast.BinOp,
-                left=node.target.copy(ctx=ast.Load()),
-                op=node.op,
-                right=node.value,
+        try:
+            type_info = self.visit(
+                create(
+                    ast.BinOp,
+                    left=node.target.copy(ctx=ast.Load()),
+                    op=node.op,
+                    right=node.value,
+                )
             )
-        )
+        except exc.TorchOpTracingError as e:
+            # Check if this is a shape mismatch when modifying a host variable in device loop
+            if (
+                isinstance(node.target, ast.Name)
+                and (existing_type := self.scope.maybe_get(node.target.id)) is not None
+                and existing_type.origin.is_host()
+                and self.device_loop_depth > 0
+            ):
+                raise exc.CannotModifyHostVariableOnDevice(node.target.id) from e
+            raise
         self._assign(node.target, type_info)
         return NoType(origin=self.origin())
 
diff --git a/helion/exc.py b/helion/exc.py
index a394054ae..45a3a95e6 100644
--- a/helion/exc.py
+++ b/helion/exc.py
@@ -367,7 +367,7 @@ class NotAllowedInHelperFunction(BaseError):
 
 
 class CannotModifyHostVariableOnDevice(BaseError):
-    message = "Cannot modify host variable '{0}' inside `hl.tile` or `hl.grid` loop without subscript assignment. Use '{0}[tile] = ...' instead."
+    message = "Cannot modify host variable '{0}' inside `hl.tile` or `hl.grid` loop without subscript assignment. Use '{0}[tile] = ...' or '{0}[:] = ...' instead."
 
 
 class AtomicOnDeviceTensor(BaseError):
diff --git a/test/test_errors.py b/test/test_errors.py
index 18dae0f19..bfaf807b2 100644
--- a/test/test_errors.py
+++ b/test/test_errors.py
@@ -228,6 +228,25 @@ def bad_fn(x: torch.Tensor) -> torch.Tensor:
         with self.assertRaises(helion.exc.CannotReadDeviceVariableOnHost):
             code_and_output(bad_fn, (torch.randn(8, device=DEVICE),))
 
+    def test_augmented_assign_without_subscript(self):
+        """Test that augmented assignment to host variable in device loop raises proper error."""
+
+        @helion.kernel()
+        def bad_fn(grad_out: torch.Tensor) -> torch.Tensor:
+            m, n = grad_out.shape
+            n = hl.specialize(n)
+            grad_block = torch.zeros(n, dtype=torch.float32, device=grad_out.device)
+
+            for tile_m in hl.tile(m):
+                dy_m = grad_out[tile_m, :].to(torch.float32)
+                # Should use `grad_block[:] += ...` instead
+                grad_block += torch.sum(dy_m, dim=0)
+
+            return grad_block
+
+        with self.assertRaises(helion.exc.CannotModifyHostVariableOnDevice):
+            code_and_output(bad_fn, (torch.randn(4096, 5632, device=DEVICE),))
+
     def test_device_tensor_subscript(self):
         @helion.kernel()
         def bad_fn(x: torch.Tensor) -> torch.Tensor: