diff --git a/crates/nu-command/src/core_commands/let_.rs b/crates/nu-command/src/core_commands/let_.rs
index 090893854f..4d419dc146 100644
--- a/crates/nu-command/src/core_commands/let_.rs
+++ b/crates/nu-command/src/core_commands/let_.rs
@@ -60,19 +60,22 @@ impl Command for Let {
             .as_keyword()
             .expect("internal error: missing keyword");
 
-        let rhs = eval_expression_with_input(
+        let (rhs, external_failed) = eval_expression_with_input(
             engine_state,
             stack,
             keyword_expr,
             input,
             call.redirect_stdout,
             call.redirect_stderr,
-        )?
-        .0;
-
-        stack.add_var(var_id, rhs.into_value(call.head));
-
-        Ok(PipelineData::empty())
+        )?;
+        if external_failed {
+            // rhs must be a PipelineData::ExternalStream and it's failed
+            // return the failed stream (with a non-zero exit code) so the engine knows to stop running
+            Ok(rhs)
+        } else {
+            stack.add_var(var_id, rhs.into_value(call.head));
+            Ok(PipelineData::empty())
+        }
     }
 
     fn examples(&self) -> Vec<Example> {
diff --git a/crates/nu-command/tests/commands/let_.rs b/crates/nu-command/tests/commands/let_.rs
index d2db3e5877..ec207a666a 100644
--- a/crates/nu-command/tests/commands/let_.rs
+++ b/crates/nu-command/tests/commands/let_.rs
@@ -25,3 +25,13 @@ fn let_doesnt_mutate() {
 
     assert!(actual.err.contains("immutable"));
 }
+
+#[test]
+fn let_with_external_failed() {
+    let actual = nu!(
+        cwd: ".",
+        pipeline(r#"let x = nu --testbin outcome_err "aa"; echo fail"#)
+    );
+
+    assert!(!actual.out.contains("fail"));
+}