diff --git a/lib/elixir/lib/code.ex b/lib/elixir/lib/code.ex
index 6ae72648b7..09b604489a 100644
--- a/lib/elixir/lib/code.ex
+++ b/lib/elixir/lib/code.ex
@@ -284,6 +284,14 @@ defmodule Code do
     :elixir_compiler.quoted [quoted], file
   end
 
+  @doc """
+  Loads the compile status from the code server. Returns :ok if all is
+  well. Returns :error if an error has ben generated.
+  """
+  def compilation_status do
+    :elixir_code_server.call :compilation_status
+  end
+
   @doc """
   Ensures the given module is loaded. If the module is already
   loaded, it works as no-op. If the module was not loaded yet,
diff --git a/lib/elixir/lib/kernel/cli.ex b/lib/elixir/lib/kernel/cli.ex
index aaeb9fcf54..601c498fa8 100644
--- a/lib/elixir/lib/kernel/cli.ex
+++ b/lib/elixir/lib/kernel/cli.ex
@@ -328,8 +328,13 @@ defmodule Kernel.CLI do
     if files != [] do
       Code.compiler_options(config.compiler_options)
       Kernel.ParallelCompiler.files_to_path(files, config.output,
-        fn file -> IO.puts "Compiled #{file}" end)
-      :ok
+        fn file ->
+          if Code.compilation_status == :ok do IO.puts "Compiled #{file}" end
+        end)
+      case Code.compilation_status do
+        :ok -> :ok
+        :error -> { :error, "--compile generated an error" }
+      end
     else
       { :error, "--compile : No files matched patterns #{Enum.join(patterns, ",")}" }
     end
diff --git a/lib/elixir/src/elixir_code_server.erl b/lib/elixir/src/elixir_code_server.erl
index 4e64f9eef0..70a8f61019 100644
--- a/lib/elixir/src/elixir_code_server.erl
+++ b/lib/elixir/src/elixir_code_server.erl
@@ -5,11 +5,12 @@
 -behavior(gen_server).
 -record(elixir_code_server, {
   argv=[],
+  compilation_status=ok,
   loaded=[],
   at_exit=[],
   pool=[],
   counter=0,
-  compiler_options=[{docs,true},{debug_info,true}],
+  compiler_options=[{docs,true},{debug_info,true},{warnings_as_errors,false}],
   waiting=[]
 }).
 
@@ -58,6 +59,9 @@ handle_call(argv, _From, Config) ->
 handle_call(compiler_options, _From, Config) ->
   { reply, Config#elixir_code_server.compiler_options, Config };
 
+handle_call(compilation_status, _From, Config) ->
+  { reply, Config#elixir_code_server.compilation_status, Config };
+
 handle_call(retrieve_module_name, _From, Config) ->
   case Config#elixir_code_server.pool of
     [H|T] ->
@@ -80,6 +84,9 @@ handle_cast({ compiler_options, Options }, Config) ->
   Final = orddict:merge(fun(_,_,V) -> V end, Config#elixir_code_server.compiler_options, Options),
   { noreply, Config#elixir_code_server{compiler_options=Final} };
 
+handle_cast({ compilation_status, Value }, Config) ->
+  { noreply, Config#elixir_code_server{compilation_status=Value} };
+
 handle_cast({ loaded, Path }, Config) ->
   Current = Config#elixir_code_server.loaded,
   case orddict:find(Path, Current) of
diff --git a/lib/elixir/src/elixir_compiler.erl b/lib/elixir/src/elixir_compiler.erl
index 12498d886c..5a5255ef9d 100644
--- a/lib/elixir/src/elixir_compiler.erl
+++ b/lib/elixir/src/elixir_compiler.erl
@@ -241,7 +241,13 @@ format_error({ skip_native, Module }) ->
     [elixir_errors:inspect(Module)]).
 
 format_errors(_File, []) ->
-  exit({ nocompile, "compilation failed but no error was raised" });
+  case get_opt(warnings_as_errors) of
+    % If we get here we are treating warnings as errors and we
+    % have warnngs, but no errors
+    true -> ok;
+    false -> exit({ nocompile, "compilation failed but no error was raised" })
+  end;
+  
 
 format_errors(File, Errors) ->
   lists:foreach(fun ({_, Each}) ->
diff --git a/lib/elixir/src/elixir_errors.erl b/lib/elixir/src/elixir_errors.erl
index 8d05abb29b..e2b1061cf9 100644
--- a/lib/elixir/src/elixir_errors.erl
+++ b/lib/elixir/src/elixir_errors.erl
@@ -78,7 +78,9 @@ deprecation(Meta, File, Message, Args) ->
 %% output warning based on warnings going to stdout or stderr.
 output_warning(Warning) ->
   case elixir_compiler:get_opt(warnings_as_errors) of
-    true -> io:format(standard_error, Warning);
+    true ->
+      io:format(standard_error, Warning, []),
+      elixir_code_server:cast({ compilation_status, error });
     false -> io:format(Warning)
   end.
 
@@ -107,7 +109,7 @@ handle_file_warning(_, File, {Line,erl_lint,{undefined_behaviour,Module}}) ->
     true  -> [];
     false ->
       Message = io_lib:format("behaviour ~ts undefined", [inspect(Module)]),
-      io:format(file_format(Line, File, Message))
+      output_warning(file_format(Line, File, Message))
   end;
 
 handle_file_warning(_, _File, {Line,erl_lint,{unused_var,_Var}}) when Line =< 0 ->
@@ -115,16 +117,16 @@ handle_file_warning(_, _File, {Line,erl_lint,{unused_var,_Var}}) when Line =< 0
 
 handle_file_warning(_, File, {Line,erl_lint,{unused_var,Var}}) ->
   Message = format_error(erl_lint, { unused_var, format_var(Var) }),
-  io:format(file_format(Line, File, Message));
+  output_warning(file_format(Line, File, Message));
 
 handle_file_warning(_, File, {Line,erl_lint,{shadowed_var,Var,Where}}) ->
   Message = format_error(erl_lint, { shadowed_var, format_var(Var), Where }),
-  io:format(file_format(Line, File, Message));
+  output_warning(file_format(Line, File, Message));
 
 %% Default behavior
 handle_file_warning(_, File, {Line,Module,Desc}) ->
   Message = format_error(Module, Desc),
-  io:format(file_format(Line, File, Message)).
+  output_warning(file_format(Line, File, Message)).
 
 handle_file_warning(File, Desc) ->
   handle_file_warning(false, File, Desc).