diff --git a/Source/Editor/GUI/StatusBar.cs b/Source/Editor/GUI/StatusBar.cs
index 80a500236..f8f7ae839 100644
--- a/Source/Editor/GUI/StatusBar.cs
+++ b/Source/Editor/GUI/StatusBar.cs
@@ -30,6 +30,11 @@ namespace FlaxEditor.GUI
         /// </summary>
         public string Text { get; set; }
 
+        /// <summary>
+        /// Gets or sets the status text color
+        /// </summary>
+        public Color TextColor { get; set; } = Style.Current.Foreground;
+
         /// <summary>
         /// Initializes a new instance of the <see cref="StatusBar"/> class.
         /// </summary>
@@ -51,7 +56,7 @@ namespace FlaxEditor.GUI
                 Render2D.DrawSprite(style.StatusBarSizeGrip, new Rectangle(Width - 12, 10, 12, 12), style.Foreground);
 
             // Draw status text
-            Render2D.DrawText(style.FontSmall, Text, new Rectangle(4, 0, Width - 20, Height), style.Foreground, TextAlignment.Near, TextAlignment.Center);
+            Render2D.DrawText(style.FontSmall, Text, new Rectangle(4, 0, Width - 20, Height), TextColor, TextAlignment.Near, TextAlignment.Center);
         }
     }
 }
diff --git a/Source/Editor/Modules/ProgressReportingModule.cs b/Source/Editor/Modules/ProgressReportingModule.cs
index b038d9a4c..16acd7f8b 100644
--- a/Source/Editor/Modules/ProgressReportingModule.cs
+++ b/Source/Editor/Modules/ProgressReportingModule.cs
@@ -153,9 +153,10 @@ namespace FlaxEditor.Modules
             }
         }
 
-        private void HandlerOnProgressFail(ProgressHandler handler)
+        private void HandlerOnProgressFail(ProgressHandler handler, string message)
         {
-            Editor.UI.ProgressFailed();
+            UpdateProgress();
+            Editor.UI.ProgressFailed(message);
         }
     }
 }
diff --git a/Source/Editor/Modules/UIModule.cs b/Source/Editor/Modules/UIModule.cs
index 6520f02ee..c72e07c6c 100644
--- a/Source/Editor/Modules/UIModule.cs
+++ b/Source/Editor/Modules/UIModule.cs
@@ -34,6 +34,7 @@ namespace FlaxEditor.Modules
         private Button _outputLogButton;
         private List<KeyValuePair<string, DateTime>> _statusMessages;
         private ContentStats _contentStats;
+        private bool _progressFailed;
 
         private ContextMenuButton _menuFileSaveScenes;
         private ContextMenuButton _menuFileCloseScenes;
@@ -253,6 +254,12 @@ namespace FlaxEditor.Modules
         {
             if (StatusBar == null)
                 return;
+
+            if (ScriptsBuilder.LastCompilationFailed)
+            {
+                ProgressFailed("Scripts Compilation Failed");
+                return;
+            }
             var contentStats = FlaxEngine.Content.Stats;
 
             Color color;
@@ -305,26 +312,29 @@ namespace FlaxEditor.Modules
                 _progressLabel.Text = text;
             if (_progressBar != null)
             {
-                if (_outputLogButton.Visible)
+                if (_progressFailed)
                 {
-                    _progressBar.BarColor = Style.Current.ProgressNormal;
-                    var scale = _progressBar.SmoothingScale;
-                    _progressBar.SmoothingScale = 0;
-                    _progressBar.Value = 0;
-                    _progressBar.SmoothingScale = scale;
-                    _outputLogButton.Visible = false;
+                    ResetProgressFailure();
                 }
                 _progressBar.Value = progress * 100.0f;
             }
         }
 
-        internal void ProgressFailed()
+        internal void ProgressFailed(string message)
         {
-            _progressBar.BarColor = Color.Red;
-            _progressLabel.Text = "Failed";
+            _progressFailed = true;
+            StatusBar.StatusColor = Color.Red;
+            StatusBar.Text = message;
             _outputLogButton.Visible = true;
         }
 
+        internal void ResetProgressFailure()
+        {
+            _outputLogButton.Visible = false;
+            _progressFailed = false;
+            UpdateStatusBar();
+        }
+
         /// <inheritdoc />
         public override void OnInit()
         {
@@ -600,6 +610,30 @@ namespace FlaxEditor.Modules
                 Parent = mainWindow,
                 Offsets = new Margin(0, 0, -StatusBar.DefaultHeight, StatusBar.DefaultHeight),
             };
+            // Output log button
+            _outputLogButton = new Button()
+            {
+                AnchorPreset = AnchorPresets.TopLeft,
+                Parent = StatusBar,
+                Visible = false,
+                Text = "",
+                Width = 200,
+                TooltipText = "Opens or shows the output log window.",
+                BackgroundColor = Color.Transparent,
+                BorderColor = Color.Transparent,
+                BackgroundColorHighlighted = Color.Transparent,
+                BackgroundColorSelected = Color.Transparent,
+                BorderColorHighlighted = Color.Transparent,
+                BorderColorSelected = Color.Transparent,
+            };
+            _outputLogButton.LocalY -= 2;
+            var defaultTextColor = StatusBar.TextColor;
+            _outputLogButton.HoverBegin += () => StatusBar.TextColor = Style.Current.BackgroundSelected;
+            _outputLogButton.HoverEnd += () => StatusBar.TextColor = defaultTextColor;
+            _outputLogButton.Clicked += () =>
+            {
+                Editor.Windows.OutputLogWin.FocusOrShow();
+            };
 
             // Progress bar with label
             const float progressBarWidth = 120.0f;
@@ -619,32 +653,6 @@ namespace FlaxEditor.Modules
                 Parent = progressPanel,
                 Offsets = new Margin(-progressBarWidth - progressBarRightMargin, progressBarWidth, progressBarHeight * -0.5f, progressBarHeight),
             };
-            _outputLogButton = new Button()
-            {
-                AnchorPreset = AnchorPresets.TopLeft,
-                Parent = _progressBar,
-                Visible = false,
-                Text = "Output Log",
-                TooltipText = "Opens or shows the output log window.",
-                BackgroundColor = Color.Transparent,
-                BorderColor = Color.Transparent,
-                BackgroundColorHighlighted = Color.Transparent,
-                BackgroundColorSelected = Color.Transparent,
-                BorderColorHighlighted = Color.Transparent,
-                BorderColorSelected = Color.Transparent,
-            };
-            _outputLogButton.LocalY -= 2;
-            var defaultTextColor = _outputLogButton.TextColor;
-            _outputLogButton.HoverBegin += () => _outputLogButton.TextColor = Style.Current.BackgroundSelected;
-            _outputLogButton.HoverEnd += () => _outputLogButton.TextColor = defaultTextColor;
-            _outputLogButton.Clicked += () =>
-            {
-                Editor.Windows.OutputLogWin.FocusOrShow();
-                _progressBar.BarColor = Style.Current.ProgressNormal;
-                _progressBar.Value = 0;
-                ProgressVisible = false;
-                _outputLogButton.Visible = false;
-            };
             _progressLabel = new Label
             {
                 HorizontalAlignment = TextAlignment.Far,
diff --git a/Source/Editor/Progress/Handlers/BuildingGameProgress.cs b/Source/Editor/Progress/Handlers/BuildingGameProgress.cs
index 4f116be11..f5152d11c 100644
--- a/Source/Editor/Progress/Handlers/BuildingGameProgress.cs
+++ b/Source/Editor/Progress/Handlers/BuildingGameProgress.cs
@@ -39,7 +39,7 @@ namespace FlaxEditor.Progress.Handlers
                 OnUpdate(0, "Starting building game..");
                 break;
             case GameCooker.EventType.BuildFailed:
-                OnFail();
+                OnEnd();
                 break;
             case GameCooker.EventType.BuildDone:
                 OnEnd();
diff --git a/Source/Editor/Progress/Handlers/CompileScriptsProgress.cs b/Source/Editor/Progress/Handlers/CompileScriptsProgress.cs
index 085a0fddf..811a2b73f 100644
--- a/Source/Editor/Progress/Handlers/CompileScriptsProgress.cs
+++ b/Source/Editor/Progress/Handlers/CompileScriptsProgress.cs
@@ -21,7 +21,7 @@ namespace FlaxEditor.Progress.Handlers
             // Link for events
             ScriptsBuilder.CompilationBegin += OnStart;
             ScriptsBuilder.CompilationSuccess += OnEnd;
-            ScriptsBuilder.CompilationFailed += OnFail;
+            ScriptsBuilder.CompilationFailed += OnCompilationFail;
             ScriptsBuilder.CompilationStarted += () => OnUpdate(0.2f, "Compiling scripts...");
             ScriptsBuilder.ScriptsReloadCalled += () => OnUpdate(0.8f, "Reloading scripts...");
             ScriptsBuilder.ScriptsReloadBegin += OnScriptsReloadBegin;
@@ -57,5 +57,13 @@ namespace FlaxEditor.Progress.Handlers
 
             OnUpdate(0, "Starting scripts compilation...");
         }
+
+        /// <summary>
+        /// Called when scripts compilation fails
+        /// </summary>
+        private void OnCompilationFail()
+        {
+            OnFail("Scripts Compilation Failed");
+        }
     }
 }
diff --git a/Source/Editor/Progress/ProgressHandler.cs b/Source/Editor/Progress/ProgressHandler.cs
index 71e8a1a20..2738b7c57 100644
--- a/Source/Editor/Progress/ProgressHandler.cs
+++ b/Source/Editor/Progress/ProgressHandler.cs
@@ -16,6 +16,11 @@ namespace FlaxEditor.Progress
         /// </summary>
         /// <param name="handler">The calling handler.</param>
         public delegate void ProgressDelegate(ProgressHandler handler);
+        
+        /// <summary>
+        /// Progress failed handler event delegate
+        /// </summary>
+        public delegate void ProgressFailedDelegate(ProgressHandler handler, string message);
 
         private float _progress;
         private bool _isActive;
@@ -54,7 +59,7 @@ namespace FlaxEditor.Progress
         /// <summary>
         /// Occurs when the progress fails
         /// </summary>
-        public event ProgressDelegate ProgressFailed;
+        public event ProgressFailedDelegate ProgressFailed;
 
         /// <summary>
         /// Gets a value indicating whether this handler action can be cancelled.
@@ -118,7 +123,7 @@ namespace FlaxEditor.Progress
         /// <summary>
         /// Called when progress action fails
         /// </summary>
-        protected virtual void OnFail()
+        protected virtual void OnFail(string message)
         {
             if (!_isActive)
                 throw new InvalidOperationException("Already ended.");
@@ -126,7 +131,7 @@ namespace FlaxEditor.Progress
             _isActive = false;
             _progress = 0;
             _infoText = string.Empty;
-            ProgressFailed?.Invoke(this);
+            ProgressFailed?.Invoke(this, message);
         }
     }
 }