diff --git a/__tests__/main.test.ts b/__tests__/main.test.ts
index a2d6b10..811d3a3 100644
--- a/__tests__/main.test.ts
+++ b/__tests__/main.test.ts
@@ -305,10 +305,14 @@ describe('action', () => {
 
     await main.run();
     expect(runSpy).toHaveReturned();
-    expect(process.exitCode).not.toBeDefined();
+    expect(process.exitCode).toEqual(1);
 
-    expect(core.setFailed).toHaveBeenLastCalledWith(
-      'JSON schema missing $schema key'
+    expect(core.error).toHaveBeenLastCalledWith(
+      'JSON schema missing $schema key',
+      {
+        title: 'JSON Schema Validation Error',
+        file: '/foo/bar'
+      }
     );
   });
 
@@ -359,6 +363,29 @@ describe('action', () => {
     expect(runSpy).toHaveReturned();
     expect(process.exitCode).toEqual(1);
 
+    expect(core.error).toHaveBeenCalledWith(
+      'Error while validating file: /foo/bar/baz/config.yml'
+    );
+    expect(core.error).toHaveBeenLastCalledWith(
+      JSON.stringify(
+        {
+          instancePath: '',
+          schemaPath: '#/oneOf',
+          keyword: 'oneOf',
+          params: {
+            passingSchemas: [0, 1]
+          },
+          message: 'must match exactly one schema in oneOf'
+        },
+        null,
+        4
+      ),
+      {
+        title: 'JSON Schema Validation Error',
+        file: '/foo/bar/baz/config.yml'
+      }
+    );
+
     expect(core.setOutput).toHaveBeenCalledTimes(1);
     expect(core.setOutput).toHaveBeenLastCalledWith('valid', false);
   });
@@ -447,14 +474,36 @@ describe('action', () => {
     });
 
     it('which are invalid', async () => {
-      mockGetBooleanInput({ 'fail-on-invalid': false });
+      mockGetBooleanInput({ 'fail-on-invalid': true });
 
       vi.mocked(fs.readFile).mockResolvedValueOnce(invalidSchemaContents);
 
       await main.run();
       expect(runSpy).toHaveReturned();
-      expect(process.exitCode).not.toBeDefined();
+      expect(process.exitCode).toEqual(1);
 
+      expect(core.error).toHaveBeenCalledWith(
+        'Error while validating file: /foo/bar/baz/config.yml'
+      );
+      expect(core.error).toHaveBeenLastCalledWith(
+        JSON.stringify(
+          {
+            instancePath: '/properties/foobar/minLength',
+            schemaPath: '#/definitions/nonNegativeInteger/type',
+            keyword: 'type',
+            params: {
+              type: 'integer'
+            },
+            message: 'must be integer'
+          },
+          null,
+          4
+        ),
+        {
+          title: 'JSON Schema Validation Error',
+          file: '/foo/bar/baz/config.yml'
+        }
+      );
       expect(core.setOutput).toHaveBeenCalledTimes(1);
       expect(core.setOutput).toHaveBeenLastCalledWith('valid', false);
     });
@@ -482,10 +531,14 @@ describe('action', () => {
 
       await main.run();
       expect(runSpy).toHaveReturned();
-      expect(process.exitCode).not.toBeDefined();
-
-      expect(core.setFailed).toHaveBeenLastCalledWith(
-        'JSON schema missing $schema key'
+      expect(process.exitCode).toEqual(1);
+
+      expect(core.error).toHaveBeenLastCalledWith(
+        'JSON schema missing $schema key',
+        {
+          title: 'JSON Schema Validation Error',
+          file: '/foo/bar/baz/config.yml'
+        }
       );
     });
   });
diff --git a/dist/index.js b/dist/index.js
index 1ded1bc..0d288a6 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -89913,7 +89913,12 @@ async function run() {
             // Load and compile the schema
             const schema = JSON.parse(await fs.readFile(schemaPath, 'utf-8'));
             if (typeof schema.$schema !== 'string') {
-                core.setFailed('JSON schema missing $schema key');
+                core.error(`Error while validating schema: ${schemaPath}`);
+                core.error('JSON schema missing $schema key', {
+                    title: 'JSON Schema Validation Error',
+                    file: schemaPath
+                });
+                process.exitCode = 1;
                 return;
             }
             const ajv = newAjv(schema);
@@ -89929,7 +89934,12 @@ async function run() {
             filesValidated = true;
             const instance = yaml.parse(await fs.readFile(file, 'utf-8'));
             if (validatingSchema && typeof instance.$schema !== 'string') {
-                core.setFailed('JSON schema missing $schema key');
+                core.error(`Error while validating schema: ${file}`);
+                core.error('JSON schema missing $schema key', {
+                    title: 'JSON Schema Validation Error',
+                    file
+                });
+                process.exitCode = 1;
                 return;
             }
             const errors = await validate(instance);
@@ -89937,7 +89947,11 @@ async function run() {
                 valid = false;
                 core.debug(`𐄂 ${file} is not valid`);
                 for (const error of errors) {
-                    core.error(JSON.stringify(error, null, 4));
+                    core.error(`Error while validating file: ${file}`);
+                    core.error(JSON.stringify(error, null, 4), {
+                        title: 'JSON Schema Validation Error',
+                        file
+                    });
                 }
             }
             else {
diff --git a/src/main.ts b/src/main.ts
index 3bb6f32..94a0b8a 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -111,7 +111,12 @@ export async function run(): Promise<void> {
       );
 
       if (typeof schema.$schema !== 'string') {
-        core.setFailed('JSON schema missing $schema key');
+        core.error(`Error while validating schema: ${schemaPath}`);
+        core.error('JSON schema missing $schema key', {
+          title: 'JSON Schema Validation Error',
+          file: schemaPath
+        });
+        process.exitCode = 1;
         return;
       }
 
@@ -134,7 +139,12 @@ export async function run(): Promise<void> {
       const instance = yaml.parse(await fs.readFile(file, 'utf-8'));
 
       if (validatingSchema && typeof instance.$schema !== 'string') {
-        core.setFailed('JSON schema missing $schema key');
+        core.error(`Error while validating schema: ${file}`);
+        core.error('JSON schema missing $schema key', {
+          title: 'JSON Schema Validation Error',
+          file
+        });
+        process.exitCode = 1;
         return;
       }
 
@@ -145,7 +155,11 @@ export async function run(): Promise<void> {
         core.debug(`𐄂 ${file} is not valid`);
 
         for (const error of errors) {
-          core.error(JSON.stringify(error, null, 4));
+          core.error(`Error while validating file: ${file}`);
+          core.error(JSON.stringify(error, null, 4), {
+            title: 'JSON Schema Validation Error',
+            file
+          });
         }
       } else {
         core.debug(`✓ ${file} is valid`);