diff --git a/packages/cli/__tests__/index.test.ts b/packages/cli/__tests__/index.test.ts
index 01f781616..fe5b0eb5f 100644
--- a/packages/cli/__tests__/index.test.ts
+++ b/packages/cli/__tests__/index.test.ts
@@ -1,14 +1,73 @@
-import { describe, expect, it, vi } from "vitest";
+import { afterEach, beforeEach, describe, expect, it, vi } from "vitest";
 
-const parse = vi.fn();
+let parseAsync: ReturnType<typeof vi.fn>;
 
-vi.mock("../src/program.js", () => ({
-  createProgram: () => ({ parse }),
-}));
+beforeEach(() => {
+  vi.resetModules();
+  parseAsync = vi.fn().mockResolvedValue(undefined);
+  vi.doMock("../src/program.js", () => ({
+    createProgram: () => ({ parseAsync }),
+  }));
+});
+
+afterEach(() => {
+  vi.restoreAllMocks();
+});
 
 describe("cli entrypoint", () => {
   it("parses the created program", async () => {
     await import("../src/index.js");
-    expect(parse).toHaveBeenCalledOnce();
+    expect(parseAsync).toHaveBeenCalledOnce();
+  });
+
+  it("prints a clean message and exits 1 on ConfigNotFoundError", async () => {
+    const { ConfigNotFoundError } = await import("@composio/ao-core");
+    const error = new ConfigNotFoundError();
+    let rejectionHandler:
+      | ((reason: unknown) => unknown)
+      | undefined;
+
+    parseAsync.mockImplementation(
+      () =>
+        ({
+          catch: (handler: (reason: unknown) => unknown) => {
+            rejectionHandler = handler;
+          },
+        }) as Promise<void>,
+    );
+
+    const errorSpy = vi.spyOn(console, "error").mockImplementation(() => {});
+    const exitSpy = vi
+      .spyOn(process, "exit")
+      .mockImplementation(() => undefined as never);
+
+    await import("../src/index.js");
+
+    expect(rejectionHandler).toBeTypeOf("function");
+    rejectionHandler?.(error);
+
+    expect(errorSpy).toHaveBeenCalledWith(`Error: ${error.message}`);
+    expect(exitSpy).toHaveBeenCalledWith(1);
+  });
+
+  it("re-throws non-ConfigNotFoundError errors", async () => {
+    const error = new Error("unexpected");
+    let rejectionHandler:
+      | ((reason: unknown) => unknown)
+      | undefined;
+
+    parseAsync.mockImplementation(
+      () =>
+        ({
+          catch: (handler: (reason: unknown) => unknown) => {
+            rejectionHandler = handler;
+          },
+        }) as Promise<void>,
+    );
+
+    await import("../src/index.js");
+
+    expect(rejectionHandler).toBeTypeOf("function");
+    expect(() => rejectionHandler?.(error)).toThrow(error);
   });
 });
diff --git a/packages/cli/src/index.ts b/packages/cli/src/index.ts
index b7791ffbc..fb2b54723 100644
--- a/packages/cli/src/index.ts
+++ b/packages/cli/src/index.ts
@@ -1,5 +1,15 @@
 #!/usr/bin/env node
 
+import { ConfigNotFoundError } from "@composio/ao-core";
 import { createProgram } from "./program.js";
 
-createProgram().parse();
+createProgram()
+  .parseAsync()
+  .catch((err) => {
+    if (err instanceof ConfigNotFoundError) {
+      console.error(`Error: ${err.message}`);
+      process.exit(1);
+      return;
+    }
+    throw err;
+  });