diff --git a/pkg/action/install.go b/pkg/action/install.go
index f0f960a..1839ac0 100644
--- a/pkg/action/install.go
+++ b/pkg/action/install.go
@@ -189,6 +189,11 @@ func (i InstallAction) Run() (err error) {
 		return err
 	}
 
+	// Check if we should fail the installation by checking the sentinel file FailInstallationFileSentinel
+	if toFail, err := utils.CheckFailedInstallation(cnst.FailInstallationFileSentinel); toFail {
+		return err
+	}
+
 	// Deploy active image
 	systemMeta, err := e.DeployImage(&i.spec.Active, true)
 	if err != nil {
diff --git a/pkg/constants/constants.go b/pkg/constants/constants.go
index 3bf611c..fd57ca1 100644
--- a/pkg/constants/constants.go
+++ b/pkg/constants/constants.go
@@ -23,70 +23,71 @@ import (
 )
 
 const (
-	GrubConf                = "/etc/cos/grub.cfg"
-	GrubOEMEnv              = "grub_oem_env"
-	GrubDefEntry            = "Kairos"
-	DefaultTty              = "tty1"
-	BiosPartName            = "bios"
-	EfiLabel                = "COS_GRUB"
-	EfiPartName             = "efi"
-	ActiveLabel             = "COS_ACTIVE"
-	PassiveLabel            = "COS_PASSIVE"
-	SystemLabel             = "COS_SYSTEM"
-	RecoveryLabel           = "COS_RECOVERY"
-	RecoveryPartName        = "recovery"
-	StateLabel              = "COS_STATE"
-	StatePartName           = "state"
-	InstallStateFile        = "state.yaml"
-	PersistentLabel         = "COS_PERSISTENT"
-	PersistentPartName      = "persistent"
-	OEMLabel                = "COS_OEM"
-	OEMPartName             = "oem"
-	MountBinary             = "/usr/bin/mount"
-	EfiDevice               = "/sys/firmware/efi"
-	LinuxFs                 = "ext4"
-	LinuxImgFs              = "ext2"
-	SquashFs                = "squashfs"
-	EfiFs                   = "vfat"
-	EfiSize                 = uint(64)
-	OEMSize                 = uint(64)
-	PersistentSize          = uint(0)
-	BiosSize                = uint(1)
-	ImgSize                 = uint(3072)
-	HTTPTimeout             = 60
-	LiveDir                 = "/run/initramfs/live"
-	RecoveryDir             = "/run/cos/recovery"
-	StateDir                = "/run/cos/state"
-	OEMDir                  = "/run/cos/oem"
-	PersistentDir           = "/run/cos/persistent"
-	ActiveDir               = "/run/cos/active"
-	TransitionDir           = "/run/cos/transition"
-	EfiDir                  = "/run/cos/efi"
-	RecoverySquashFile      = "recovery.squashfs"
-	IsoRootFile             = "rootfs.squashfs"
-	ActiveImgFile           = "active.img"
-	PassiveImgFile          = "passive.img"
-	RecoveryImgFile         = "recovery.img"
-	IsoBaseTree             = "/run/rootfsbase"
-	AfterInstallChrootHook  = "after-install-chroot"
-	AfterInstallHook        = "after-install"
-	BeforeInstallHook       = "before-install"
-	AfterResetChrootHook    = "after-reset-chroot"
-	AfterResetHook          = "after-reset"
-	BeforeResetHook         = "before-reset"
-	AfterUpgradeChrootHook  = "after-upgrade-chroot"
-	AfterUpgradeHook        = "after-upgrade"
-	BeforeUpgradeHook       = "before-upgrade"
-	TransitionImgFile       = "transition.img"
-	RunningStateDir         = "/run/initramfs/cos-state" // TODO: converge this constant with StateDir/RecoveryDir in dracut module from cos-toolkit
-	RunningRecoveryStateDir = "/run/initramfs/isoscan"   // TODO: converge this constant with StateDir/RecoveryDir in dracut module from cos-toolkit
-	ActiveImgName           = "active"
-	PassiveImgName          = "passive"
-	RecoveryImgName         = "recovery"
-	StateResetImgName       = "statereset"
-	GPT                     = "gpt"
-	UsrLocalPath            = "/usr/local"
-	OEMPath                 = "/oem"
+	GrubConf                     = "/etc/cos/grub.cfg"
+	GrubOEMEnv                   = "grub_oem_env"
+	GrubDefEntry                 = "Kairos"
+	DefaultTty                   = "tty1"
+	BiosPartName                 = "bios"
+	EfiLabel                     = "COS_GRUB"
+	EfiPartName                  = "efi"
+	ActiveLabel                  = "COS_ACTIVE"
+	PassiveLabel                 = "COS_PASSIVE"
+	SystemLabel                  = "COS_SYSTEM"
+	RecoveryLabel                = "COS_RECOVERY"
+	RecoveryPartName             = "recovery"
+	StateLabel                   = "COS_STATE"
+	StatePartName                = "state"
+	InstallStateFile             = "state.yaml"
+	PersistentLabel              = "COS_PERSISTENT"
+	PersistentPartName           = "persistent"
+	OEMLabel                     = "COS_OEM"
+	OEMPartName                  = "oem"
+	MountBinary                  = "/usr/bin/mount"
+	EfiDevice                    = "/sys/firmware/efi"
+	LinuxFs                      = "ext4"
+	LinuxImgFs                   = "ext2"
+	SquashFs                     = "squashfs"
+	EfiFs                        = "vfat"
+	EfiSize                      = uint(64)
+	OEMSize                      = uint(64)
+	PersistentSize               = uint(0)
+	BiosSize                     = uint(1)
+	ImgSize                      = uint(3072)
+	HTTPTimeout                  = 60
+	LiveDir                      = "/run/initramfs/live"
+	RecoveryDir                  = "/run/cos/recovery"
+	StateDir                     = "/run/cos/state"
+	OEMDir                       = "/run/cos/oem"
+	PersistentDir                = "/run/cos/persistent"
+	ActiveDir                    = "/run/cos/active"
+	TransitionDir                = "/run/cos/transition"
+	EfiDir                       = "/run/cos/efi"
+	RecoverySquashFile           = "recovery.squashfs"
+	IsoRootFile                  = "rootfs.squashfs"
+	ActiveImgFile                = "active.img"
+	PassiveImgFile               = "passive.img"
+	RecoveryImgFile              = "recovery.img"
+	IsoBaseTree                  = "/run/rootfsbase"
+	AfterInstallChrootHook       = "after-install-chroot"
+	AfterInstallHook             = "after-install"
+	BeforeInstallHook            = "before-install"
+	AfterResetChrootHook         = "after-reset-chroot"
+	AfterResetHook               = "after-reset"
+	BeforeResetHook              = "before-reset"
+	AfterUpgradeChrootHook       = "after-upgrade-chroot"
+	AfterUpgradeHook             = "after-upgrade"
+	BeforeUpgradeHook            = "before-upgrade"
+	TransitionImgFile            = "transition.img"
+	RunningStateDir              = "/run/initramfs/cos-state" // TODO: converge this constant with StateDir/RecoveryDir in dracut module from cos-toolkit
+	RunningRecoveryStateDir      = "/run/initramfs/isoscan"   // TODO: converge this constant with StateDir/RecoveryDir in dracut module from cos-toolkit
+	FailInstallationFileSentinel = "/run/cos/fail_installation"
+	ActiveImgName                = "active"
+	PassiveImgName               = "passive"
+	RecoveryImgName              = "recovery"
+	StateResetImgName            = "statereset"
+	GPT                          = "gpt"
+	UsrLocalPath                 = "/usr/local"
+	OEMPath                      = "/oem"
 
 	// SELinux targeted policy paths
 	SELinuxTargetedPath        = "/etc/selinux/targeted"
diff --git a/pkg/uki/install.go b/pkg/uki/install.go
index c245da0..2198a3c 100644
--- a/pkg/uki/install.go
+++ b/pkg/uki/install.go
@@ -84,6 +84,11 @@ func (i *InstallAction) Run() (err error) {
 		return err
 	}
 
+	// Check if we should fail the installation by checking the sentinel file FailInstallationFileSentinel
+	if toFail, err := utils.CheckFailedInstallation(constants.FailInstallationFileSentinel); toFail {
+		return err
+	}
+
 	// Store cloud-config in TPM or copy it to COS_OEM?
 	// Copy cloud-init if any
 	err = e.CopyCloudConfig(i.spec.CloudInit)
diff --git a/pkg/utils/common.go b/pkg/utils/common.go
index dbf8932..9ccb95d 100644
--- a/pkg/utils/common.go
+++ b/pkg/utils/common.go
@@ -609,3 +609,15 @@ func SystemdBootConfWriter(fs v1.FS, filePath string, conf map[string]string) er
 
 	return writer.Flush()
 }
+
+// CheckFailedInstallation checks if the state file if present, and if it is, it will return true and the error with the file content indicating why we should abort the installation
+func CheckFailedInstallation(stateFile string) (bool, error) {
+	if _, err := os.Stat(stateFile); err == nil {
+		content, err := os.ReadFile(stateFile)
+		if err != nil {
+			return true, err
+		}
+		return true, fmt.Errorf("Installation failed: %s", string(content))
+	}
+	return false, nil
+}