diff --git a/crates/fj-host/src/lib.rs b/crates/fj-host/src/lib.rs
index 8c7c36e7c..3b09d70a8 100644
--- a/crates/fj-host/src/lib.rs
+++ b/crates/fj-host/src/lib.rs
@@ -323,7 +323,7 @@ impl Watcher {
                         return Ok(None);
                     }
                     Err(err) => {
-                        panic!("Error reloading model: {:?}", err);
+                        return Err(err);
                     }
                 };