diff --git a/CHANGELOG.md b/CHANGELOG.md
index 46683d9..1e37700 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,7 @@
 - fix: Ensure automatic bool variants (--foo/--no-foo) are mutually exclusive.
 - fix: Allow negative number arguments and option values.
 - fix: Precalculate implicit deps during class construction rather than traversing the output shape.
+- fix: Thread `output` into `parse_result.instance` resolution in `parse`/`parse_async`/`invoke`/`invoke_async`, so `cappa.Exit` raised from `Arg(parse=...)` callbacks renders an error message instead of silently exiting non-zero.
 
 ## 0.31.0
 - fix: Allow options accepting zero-length unbounded num_args.
diff --git a/src/cappa/base.py b/src/cappa/base.py
index 1384fbf..bf7fb29 100644
--- a/src/cappa/base.py
+++ b/src/cappa/base.py
@@ -166,8 +166,10 @@ def parse(
         state=state,
     )
     if exit_stack is not None:
-        return exit_stack.enter_context(parse_result.instance.get(managed=True))
-    return parse_result.instance.call(managed=False)
+        return exit_stack.enter_context(
+            parse_result.instance.get(output=parse_result.output, managed=True)
+        )
+    return parse_result.instance.call(output=parse_result.output, managed=False)
 
 
 async def parse_async(
@@ -239,9 +241,11 @@ async def parse_async(
     )
     if exit_stack is not None:
         return await exit_stack.enter_async_context(
-            parse_result.instance.get_async(managed=True)
+            parse_result.instance.get_async(output=parse_result.output, managed=True)
         )
-    return await parse_result.instance.call_async(managed=False)
+    return await parse_result.instance.call_async(
+        output=parse_result.output, managed=False
+    )
 
 
 def invoke(
@@ -313,7 +317,9 @@ def invoke(
     )
 
     def _invoke_with_stack(stack: contextlib.ExitStack):
-        instance = stack.enter_context(parse_result.instance.get())
+        instance = stack.enter_context(
+            parse_result.instance.get(output=parse_result.output)
+        )
 
         # Resolve all implicit deps
         resolved_implicit_deps: dict[Hashable, Any] = {}
@@ -412,7 +418,9 @@ async def invoke_async(
     )
 
     async def _invoke_async_with_stack(stack: contextlib.AsyncExitStack):
-        instance = await stack.enter_async_context(parse_result.instance.get_async())
+        instance = await stack.enter_async_context(
+            parse_result.instance.get_async(output=parse_result.output)
+        )
 
         # Resolve all implicit deps
         resolved_implicit_deps: dict[Hashable, Any] = {}
diff --git a/tests/invoke/test_output.py b/tests/invoke/test_output.py
index 4cccf96..faa4ce6 100644
--- a/tests/invoke/test_output.py
+++ b/tests/invoke/test_output.py
@@ -3,6 +3,9 @@
 from dataclasses import dataclass
 from typing import Any
 
+import pytest
+from typing_extensions import Annotated
+
 import cappa
 from tests.utils import Backend, CapsysOutput, backends, invoke
 
@@ -34,3 +37,36 @@ def __call__(self, out: cappa.Output):
     out = CapsysOutput.from_capsys(capsys)
     out.stdout = "woah!\n"
     out.stderr = ""
+
+
+def _raise_value_error(value: str) -> str:
+    raise ValueError("nope")
+
+
+@backends
+def test_invoke_routes_parse_errors_through_output(backend: Backend, capsys: Any):
+    """A parse= callback that raises should produce a visible error on stderr.
+
+    Regression test: previously `invoke()` (and `invoke_async`/`parse`) did not
+    pass `output=` into the resolution of `parse_result.instance`, so any
+    `cappa.Exit` raised from an `Arg(parse=...)` callback would be caught by
+    `Resolved.handle_exit` with `output=None` and silently re-raised, producing
+    a non-zero exit with no message.
+    """
+
+    @dataclass
+    class Cmd:
+        x: Annotated[
+            str,
+            cappa.Arg(parse=_raise_value_error, parse_inference=False, long="--x"),
+        ] = "default"
+
+        def __call__(self) -> None:
+            pass
+
+    with pytest.raises(cappa.Exit) as e:
+        invoke(Cmd, "--x", "foo", backend=backend)
+
+    assert e.value.code == 2
+    out = CapsysOutput.from_capsys(capsys)
+    assert "Invalid value for '--x': nope" in out.stderr