diff --git a/CHANGELOG.md b/CHANGELOG.md
index d7b990d6..dc902a86 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,13 @@
 
 ## Unreleased
 
+### Added
+- Display test output (stdout/stderr) on failure for runtime errors
+    - Shows captured output in an "Output:" section when tests fail with runtime errors
+    - Helps debug test failures without manually capturing output
+    - Enabled by default; use `--no-output-on-failure` or `BASHUNIT_SHOW_OUTPUT_ON_FAILURE=false` to disable
+    - New CLI options: `--show-output`, `--no-output-on-failure`
+
 ## [0.32.0](https://github.com/TypedDevs/bashunit/compare/0.31.0...0.32.0) - 2026-01-12
 
 ### Changed
diff --git a/docs/command-line.md b/docs/command-line.md
index 6e16cbcc..99c866e5 100644
--- a/docs/command-line.md
+++ b/docs/command-line.md
@@ -69,6 +69,8 @@ bashunit test tests/ --parallel --simple
 | `--debug [file]`               | Enable shell debug mode                          |
 | `--no-output`                  | Suppress all output                              |
 | `--failures-only`              | Only show failures                               |
+| `--show-output`                | Show test output on failure (default)            |
+| `--no-output-on-failure`       | Hide test output on failure                      |
 | `--strict`                     | Enable strict shell mode                         |
 | `--skip-env-file`              | Skip `.env` loading, use shell environment only  |
 | `-l, --login`                  | Run tests in login shell context                 |
@@ -231,6 +233,33 @@ bashunit test tests/ --report-html report.html
 ```
 :::
 
+### Show Output on Failure
+
+> `bashunit test --show-output`
+> `bashunit test --no-output-on-failure`
+
+Control whether test output (stdout/stderr) is displayed when tests fail with runtime errors.
+
+By default (`--show-output`), when a test fails due to a runtime error (command not found,
+unbound variable, permission denied, etc.), bashunit displays the captured output in an
+"Output:" section to help debug the failure.
+
+Use `--no-output-on-failure` to suppress this output.
+
+::: code-group
+```bash [Example]
+bashunit test tests/ --no-output-on-failure
+```
+```[Output with --show-output (default)]
+✗ Error: My test function
+    command not found
+    Output:
+      Debug: Setting up test
+      Running command: my_command
+      /path/to/test.sh: line 5: my_command: command not found
+```
+:::
+
 ### Strict Mode
 
 > `bashunit test --strict`
diff --git a/docs/configuration.md b/docs/configuration.md
index fdae2b48..19b686ab 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -347,6 +347,30 @@ BASHUNIT_FAILURES_ONLY=true
 ```
 :::
 
+## Show output on failure
+
+> `BASHUNIT_SHOW_OUTPUT_ON_FAILURE=true|false`
+
+Display captured stdout/stderr output when tests fail with runtime errors. `true` by default.
+
+When a test fails due to a runtime error (command not found, unbound variable, etc.),
+bashunit displays the test's output in an "Output:" section to help debug the failure.
+
+Similar as using `--show-output` or `--no-output-on-failure` options on the [command line](/command-line#show-output-on-failure).
+
+::: code-group
+```[Output example]
+✗ Error: My test function
+    command not found
+    Output:
+      Debug: Setting up test
+      Running command: my_command
+```
+```bash [.env to disable]
+BASHUNIT_SHOW_OUTPUT_ON_FAILURE=false
+```
+:::
+
 ## Color output
 
 > `NO_COLOR=1`
diff --git a/src/console_header.sh b/src/console_header.sh
index 75b0302d..bc5467a3 100644
--- a/src/console_header.sh
+++ b/src/console_header.sh
@@ -117,6 +117,8 @@ Options:
   --debug [file]              Enable shell debug mode
   --no-output                 Suppress all output
   --failures-only             Only show failures (suppress passed/skipped/incomplete)
+  --show-output               Show test output on failure (default: enabled)
+  --no-output-on-failure      Hide test output on failure
   --strict                    Enable strict shell mode (set -euo pipefail)
   --skip-env-file             Skip .env loading, use shell environment only
   -l, --login                 Run tests in login shell context
diff --git a/src/console_results.sh b/src/console_results.sh
index fadf1baa..c768d477 100644
--- a/src/console_results.sh
+++ b/src/console_results.sh
@@ -335,6 +335,7 @@ function bashunit::console_results::print_snapshot_test() {
 function bashunit::console_results::print_error_test() {
   local function_name=$1
   local error="$2"
+  local raw_output="${3:-}"
 
   local test_name
   test_name=$(bashunit::helper::normalize_test_function_name "$function_name")
@@ -343,6 +344,13 @@ function bashunit::console_results::print_error_test() {
   line="$(printf "${_BASHUNIT_COLOR_FAILED}✗ Error${_BASHUNIT_COLOR_DEFAULT}: %s
     ${_BASHUNIT_COLOR_FAINT}%s${_BASHUNIT_COLOR_DEFAULT}\n" "${test_name}" "${error}")"
 
+  if [[ -n "$raw_output" ]] && bashunit::env::is_show_output_on_failure_enabled; then
+    line+="$(printf "    %sOutput:%s\n" "${_BASHUNIT_COLOR_FAINT}" "${_BASHUNIT_COLOR_DEFAULT}")"
+    while IFS= read -r output_line; do
+      line+="$(printf "      %s\n" "$output_line")"
+    done <<< "$raw_output"
+  fi
+
   bashunit::state::print_line "error" "$line"
 }
 
diff --git a/src/env.sh b/src/env.sh
index 682486b7..08e77864 100644
--- a/src/env.sh
+++ b/src/env.sh
@@ -62,6 +62,7 @@ _BASHUNIT_DEFAULT_SKIP_ENV_FILE="false"
 _BASHUNIT_DEFAULT_LOGIN_SHELL="false"
 _BASHUNIT_DEFAULT_FAILURES_ONLY="false"
 _BASHUNIT_DEFAULT_NO_COLOR="false"
+_BASHUNIT_DEFAULT_SHOW_OUTPUT_ON_FAILURE="true"
 
 : "${BASHUNIT_PARALLEL_RUN:=${PARALLEL_RUN:=$_BASHUNIT_DEFAULT_PARALLEL_RUN}}"
 : "${BASHUNIT_SHOW_HEADER:=${SHOW_HEADER:=$_BASHUNIT_DEFAULT_SHOW_HEADER}}"
@@ -80,6 +81,7 @@ _BASHUNIT_DEFAULT_NO_COLOR="false"
 : "${BASHUNIT_SKIP_ENV_FILE:=${SKIP_ENV_FILE:=$_BASHUNIT_DEFAULT_SKIP_ENV_FILE}}"
 : "${BASHUNIT_LOGIN_SHELL:=${LOGIN_SHELL:=$_BASHUNIT_DEFAULT_LOGIN_SHELL}}"
 : "${BASHUNIT_FAILURES_ONLY:=${FAILURES_ONLY:=$_BASHUNIT_DEFAULT_FAILURES_ONLY}}"
+: "${BASHUNIT_SHOW_OUTPUT_ON_FAILURE:=${SHOW_OUTPUT_ON_FAILURE:=$_BASHUNIT_DEFAULT_SHOW_OUTPUT_ON_FAILURE}}"
 # Support NO_COLOR standard (https://no-color.org)
 if [[ -n "${NO_COLOR:-}" ]]; then
   BASHUNIT_NO_COLOR="true"
@@ -159,6 +161,10 @@ function bashunit::env::is_failures_only_enabled() {
   [[ "$BASHUNIT_FAILURES_ONLY" == "true" ]]
 }
 
+function bashunit::env::is_show_output_on_failure_enabled() {
+  [[ "$BASHUNIT_SHOW_OUTPUT_ON_FAILURE" == "true" ]]
+}
+
 function bashunit::env::is_no_color_enabled() {
   [[ "$BASHUNIT_NO_COLOR" == "true" ]]
 }
diff --git a/src/main.sh b/src/main.sh
index 7b43f3b7..83f6e2d4 100644
--- a/src/main.sh
+++ b/src/main.sh
@@ -82,6 +82,12 @@ function bashunit::main::cmd_test() {
       --failures-only)
         export BASHUNIT_FAILURES_ONLY=true
         ;;
+      --show-output)
+        export BASHUNIT_SHOW_OUTPUT_ON_FAILURE=true
+        ;;
+      --no-output-on-failure)
+        export BASHUNIT_SHOW_OUTPUT_ON_FAILURE=false
+        ;;
       --strict)
         export BASHUNIT_STRICT_MODE=true
         ;;
diff --git a/src/runner.sh b/src/runner.sh
index 66472a3a..9012724e 100755
--- a/src/runner.sh
+++ b/src/runner.sh
@@ -567,9 +567,9 @@ function bashunit::runner::run_test() {
     elif [[ -z "$error_message" && -n "$hook_message" ]]; then
       error_message="$hook_message"
     fi
-    bashunit::console_results::print_error_test "$failure_function" "$error_message"
+    bashunit::console_results::print_error_test "$failure_function" "$error_message" "$runtime_output"
     bashunit::reports::add_test_failed "$test_file" "$failure_label" "$duration" "$total_assertions"
-    bashunit::runner::write_failure_result_output "$test_file" "$failure_function" "$error_message"
+    bashunit::runner::write_failure_result_output "$test_file" "$failure_function" "$error_message" "$runtime_output"
     bashunit::internal_log "Test error" "$failure_label" "$error_message"
     return
   fi
@@ -760,6 +760,7 @@ function bashunit::runner::write_failure_result_output() {
   local test_file=$1
   local fn_name=$2
   local error_msg=$3
+  local raw_output="${4:-}"
 
   local line_number
   line_number=$(bashunit::helper::get_function_line_number "$fn_name")
@@ -769,7 +770,12 @@ function bashunit::runner::write_failure_result_output() {
     test_nr=$(bashunit::state::get_tests_failed)
   fi
 
-  echo -e "$test_nr) $test_file:$line_number\n$error_msg" >> "$FAILURES_OUTPUT_PATH"
+  local output_section=""
+  if [[ -n "$raw_output" ]] && bashunit::env::is_show_output_on_failure_enabled; then
+    output_section="\n    Output:\n$raw_output"
+  fi
+
+  echo -e "$test_nr) $test_file:$line_number\n$error_msg$output_section" >> "$FAILURES_OUTPUT_PATH"
 }
 
 function bashunit::runner::write_skipped_result_output() {
diff --git a/tests/acceptance/bashunit_show_output_on_failure_test.sh b/tests/acceptance/bashunit_show_output_on_failure_test.sh
new file mode 100644
index 00000000..0d99d8ce
--- /dev/null
+++ b/tests/acceptance/bashunit_show_output_on_failure_test.sh
@@ -0,0 +1,53 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+function set_up_before_script() {
+  TEST_ENV_FILE="tests/acceptance/fixtures/.env.default"
+}
+
+function test_show_output_on_failure_enabled_by_default() {
+  local test_file=./tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh
+
+  local actual
+  actual="$(./bashunit --no-parallel --env "$TEST_ENV_FILE" "$test_file" 2>&1 || true)"
+
+  assert_contains "Output:" "$actual"
+  assert_contains "Debug: Starting test" "$actual"
+  assert_contains "Info: About to run command" "$actual"
+}
+
+function test_show_output_on_failure_disabled_via_flag() {
+  local test_file=./tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh
+
+  local actual
+  actual="$(./bashunit --no-parallel --env "$TEST_ENV_FILE" --no-output-on-failure "$test_file" 2>&1 || true)"
+
+  assert_not_contains "Output:" "$actual"
+  assert_not_contains "Debug: Starting test" "$actual"
+}
+
+function test_show_output_on_failure_disabled_via_env() {
+  local test_file=./tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh
+
+  local actual
+  actual="$(
+    BASHUNIT_SHOW_OUTPUT_ON_FAILURE=false \
+    ./bashunit --no-parallel --env "$TEST_ENV_FILE" "$test_file" 2>&1 || true
+  )"
+
+  assert_not_contains "Output:" "$actual"
+  assert_not_contains "Debug: Starting test" "$actual"
+}
+
+function test_show_output_flag_overrides_env() {
+  local test_file=./tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh
+
+  local actual
+  actual="$(
+    BASHUNIT_SHOW_OUTPUT_ON_FAILURE=false \
+    ./bashunit --no-parallel --env "$TEST_ENV_FILE" --show-output "$test_file" 2>&1 || true
+  )"
+
+  assert_contains "Output:" "$actual"
+  assert_contains "Debug: Starting test" "$actual"
+}
diff --git a/tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh b/tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh
new file mode 100644
index 00000000..5808649b
--- /dev/null
+++ b/tests/acceptance/fixtures/test_bashunit_show_output_on_failure.sh
@@ -0,0 +1,7 @@
+#!/usr/bin/env bash
+
+function test_with_output_before_error() {
+  echo "Debug: Starting test"
+  echo "Info: About to run command"
+  nonexistent_command_xyz
+}