diff --git a/docs/command-line.md b/docs/command-line.md
index 5ff92ae73..42d934da6 100644
--- a/docs/command-line.md
+++ b/docs/command-line.md
@@ -30,4 +30,5 @@ Pyright can be run as either a VS Code extension or as a node-based command-line
 | 0           | No errors reported                                                |
 | 1           | One or more errors reported                                       |
 | 2           | Fatal error occurred with no errors or warnings reported          |
+| 3           | Config file could not be read or parsed                           |
 
diff --git a/server/src/analyzer/service.ts b/server/src/analyzer/service.ts
index 9dbc06bab..d299c6351 100644
--- a/server/src/analyzer/service.ts
+++ b/server/src/analyzer/service.ts
@@ -39,6 +39,7 @@ export interface AnalysisResults {
     filesInProgram: number;
     filesRequiringAnalysis: number;
     fatalErrorOccurred: boolean;
+    configParseErrorOccurred: boolean;
     elapsedTime: number;
 }
 
@@ -510,6 +511,7 @@ export class AnalyzerService {
                 configContents = fs.readFileSync(configPath, { encoding: 'utf8' });
             } catch {
                 this._console.log(`Config file "${ configPath }" could not be read.`);
+                this._reportConfigParseError();
                 return undefined;
             }
 
@@ -532,7 +534,8 @@ export class AnalyzerService {
             // resulting in parse errors. We'll give it a little more time and
             // try again.
             if (parseAttemptCount++ >= 5) {
-                this._console.log(`Config file "${ configPath }" could not be parsed.`);
+                this._console.log(`Config file "${ configPath }" could not be parsed. Verify that JSON is correct.`);
+                this._reportConfigParseError();
                 return undefined;
             }
         }
@@ -876,6 +879,7 @@ export class AnalyzerService {
                 filesInProgram: this._program.getFileCount(),
                 filesRequiringAnalysis: filesLeftToAnalyze,
                 fatalErrorOccurred: false,
+                configParseErrorOccurred: false,
                 elapsedTime: duration.getDurationInSeconds()
             };
 
@@ -896,6 +900,7 @@ export class AnalyzerService {
                     filesInProgram: 0,
                     filesRequiringAnalysis: 0,
                     fatalErrorOccurred: true,
+                    configParseErrorOccurred: false,
                     elapsedTime: 0
                 });
             }
@@ -912,9 +917,23 @@ export class AnalyzerService {
                     filesInProgram: this._program.getFileCount(),
                     filesRequiringAnalysis: this._program.getFilesToAnalyzeCount(),
                     fatalErrorOccurred: false,
+                    configParseErrorOccurred: false,
                     elapsedTime: 0
                 });
             }
         }
     }
+
+    private _reportConfigParseError() {
+        if (this._onCompletionCallback) {
+            this._onCompletionCallback({
+                diagnostics: [],
+                filesInProgram: 0,
+                filesRequiringAnalysis: 0,
+                fatalErrorOccurred: false,
+                configParseErrorOccurred: true,
+                elapsedTime: 0
+            });
+        }
+    }
 }
diff --git a/server/src/pyright.ts b/server/src/pyright.ts
index 9b622cbf1..f75abccab 100644
--- a/server/src/pyright.ts
+++ b/server/src/pyright.ts
@@ -27,7 +27,8 @@ const toolName = 'pyright';
 enum ExitStatus {
     NoErrors = 0,
     ErrorsReported = 1,
-    FatalError = 2
+    FatalError = 2,
+    ConfigFileParseError = 3
 }
 
 interface DiagnosticResult {
@@ -119,6 +120,10 @@ function processArgs() {
             process.exit(ExitStatus.FatalError);
         }
 
+        if (results.configParseErrorOccurred) {
+            process.exit(ExitStatus.ConfigFileParseError);
+        }
+
         let errorCount = 0;
         if (results.diagnostics.length > 0 && !args.createstub) {
             const report = reportDiagnostics(results.diagnostics);