diff --git a/Utilities/Thread.cpp b/Utilities/Thread.cpp
index a035ea31f3..1414bd540b 100644
--- a/Utilities/Thread.cpp
+++ b/Utilities/Thread.cpp
@@ -1755,6 +1755,8 @@ const bool s_terminate_handler_set = []() -> bool
 
 thread_local DECLARE(thread_ctrl::g_tls_this_thread) = nullptr;
 
+thread_local DECLARE(thread_ctrl::g_tls_error_callback) = nullptr;
+
 DECLARE(thread_ctrl::g_native_core_layout) { native_core_arrangement::undefined };
 
 void thread_base::start(native_entry entry)
@@ -1767,11 +1769,13 @@ void thread_base::start(native_entry entry)
 #endif
 }
 
-void thread_base::initialize(bool(*wait_cb)(const void*))
+void thread_base::initialize(void (*error_cb)(), bool(*wait_cb)(const void*))
 {
-	// Initialize TLS variable
+	// Initialize TLS variables
 	thread_ctrl::g_tls_this_thread = this;
 
+	thread_ctrl::g_tls_error_callback = error_cb;
+
 	// Initialize atomic wait callback
 	atomic_storage_futex::set_wait_callback(wait_cb);
 
@@ -1828,7 +1832,7 @@ void thread_base::notify_abort() noexcept
 	atomic_storage_futex::raw_notify(+m_state_notifier);
 }
 
-bool thread_base::finalize(int) noexcept
+bool thread_base::finalize(thread_state result_state) noexcept
 {
 	// Report pending errors
 	error_code::error_report(0, 0, 0, 0);
@@ -1875,7 +1879,7 @@ bool thread_base::finalize(int) noexcept
 		fsoft, fhard, ctxvol, ctxinv);
 
 	// Return true if need to delete thread object
-	const bool ok = m_state.exchange(thread_state::finished) <= thread_state::aborting;
+	const bool ok = m_state.exchange(result_state) <= thread_state::aborting;
 
 	// Signal waiting threads
 	m_state.notify_all();
@@ -1984,13 +1988,18 @@ thread_base::~thread_base()
 	}
 }
 
-void thread_base::join() const
+bool thread_base::join() const
 {
 	for (auto state = m_state.load(); state != thread_state::finished;)
 	{
 		m_state.wait(state);
 		state = m_state;
+
+		if (state == thread_state::errored)
+			return false;
 	}
+
+	return true;
 }
 
 void thread_base::notify()
@@ -2061,7 +2070,9 @@ void thread_ctrl::emergency_exit(std::string_view reason)
 
 	if (const auto _this = g_tls_this_thread)
 	{
-		if (_this->finalize(0))
+		g_tls_error_callback();
+
+		if (_this->finalize(thread_state::errored))
 		{
 			delete _this;
 		}
diff --git a/Utilities/Thread.h b/Utilities/Thread.h
index e58e8fad90..6df879e756 100644
--- a/Utilities/Thread.h
+++ b/Utilities/Thread.h
@@ -36,6 +36,7 @@ enum class thread_state : u32
 {
 	created,  // Initial state
 	aborting, // The thread has been joined in the destructor or explicitly aborted
+	errored, // Set after the emergency_exit call
 	finished  // Final state, always set at the end of thread execution
 };
 
@@ -45,6 +46,8 @@ class named_thread;
 template <typename T>
 struct result_storage
 {
+	static_assert(std::is_default_constructible_v<T> && noexcept(T()));
+
 	alignas(T) std::byte data[sizeof(T)];
 
 	static constexpr bool empty = false;
@@ -116,13 +119,13 @@ class thread_base
 	void start(native_entry);
 
 	// Called at the thread start
-	void initialize(bool(*wait_cb)(const void*));
+	void initialize(void (*error_cb)(), bool(*wait_cb)(const void*));
 
 	// May be called in destructor
 	void notify_abort() noexcept;
 
 	// Called at the thread end, returns true if needs destruction
-	bool finalize(int) noexcept;
+	bool finalize(thread_state result) noexcept;
 
 	// Cleanup after possibly deleting the thread instance
 	static void finalize() noexcept;
@@ -142,7 +145,7 @@ public:
 	u64 get_cycles();
 
 	// Wait for the thread (it does NOT change thread state, and can be called from multiple threads)
-	void join() const;
+	bool join() const;
 
 	// Notify the thread
 	void notify();
@@ -154,6 +157,9 @@ class thread_ctrl final
 	// Current thread
 	static thread_local thread_base* g_tls_this_thread;
 
+	// Error handling details
+	static thread_local void(*g_tls_error_callback)();
+
 	// Target cpu core layout
 	static atomic_t<native_core_arrangement> g_native_core_layout;
 
@@ -272,7 +278,18 @@ class named_thread final : public Context, result_storage_t<Context>, thread_bas
 
 	bool entry_point()
 	{
-		thread::initialize([](const void* data)
+		auto tls_error_cb = []()
+		{
+			const auto _this = thread_ctrl::get_current();
+
+			if constexpr (!result::empty)
+			{
+				// Construct using default constructor in the case of failure
+				new (static_cast<result*>(static_cast<named_thread*>(_this))->get()) typename result::type();
+			}
+		};
+
+		thread::initialize(tls_error_cb, [](const void* data)
 		{
 			const auto _this = thread_ctrl::get_current();
 
@@ -308,7 +325,7 @@ class named_thread final : public Context, result_storage_t<Context>, thread_bas
 			new (result::get()) typename result::type(Context::operator()());
 		}
 
-		return thread::finalize(0);
+		return thread::finalize(thread_state::finished);
 	}
 
 	friend class thread_ctrl;
@@ -437,12 +454,19 @@ public:
 	named_thread_group& operator=(const named_thread_group&) = delete;
 
 	// Wait for completion
-	void join() const
+	bool join() const
 	{
+		bool result = true;
+
 		for (u32 i = 0; i < m_count; i++)
 		{
 			std::as_const(*std::launder(m_threads + i))();
+
+			if (std::as_const(*std::launder(m_threads + i)) != thread_state::finished)
+				result = false;
 		}
+
+		return result;
 	}
 
 	// Join and access specific thread
diff --git a/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp b/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp
index 19c3c853f4..9301cc6d65 100644
--- a/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp
+++ b/rpcs3/Emu/RSX/Overlays/overlay_message_dialog.cpp
@@ -257,7 +257,7 @@ namespace rsx
 						}
 						else
 						{
-							while (!exit && thread_ctrl::state() == thread_state::created)
+							while (!exit && thread_ctrl::state() <= thread_state::aborting)
 							{
 								refresh();
 
diff --git a/rpcs3/Emu/System.cpp b/rpcs3/Emu/System.cpp
index c0f12b8cb0..d56f699deb 100644
--- a/rpcs3/Emu/System.cpp
+++ b/rpcs3/Emu/System.cpp
@@ -621,7 +621,7 @@ bool Emulator::InstallPkg(const std::string& path)
 
 	{
 		// Wait for the completion
-		while (std::this_thread::sleep_for(5ms), worker != thread_state::finished)
+		while (std::this_thread::sleep_for(5ms), worker <= thread_state::aborting)
 		{
 			// TODO: update unified progress dialog
 			double pval = progress;
diff --git a/rpcs3/rpcs3qt/main_window.cpp b/rpcs3/rpcs3qt/main_window.cpp
index 3c5a3cb1dd..b0e8d287cb 100644
--- a/rpcs3/rpcs3qt/main_window.cpp
+++ b/rpcs3/rpcs3qt/main_window.cpp
@@ -513,7 +513,7 @@ void main_window::HandlePackageInstallation(QStringList file_paths)
 		});
 
 		// Wait for the completion
-		while (std::this_thread::sleep_for(5ms), worker != thread_state::finished)
+		while (std::this_thread::sleep_for(5ms), worker <= thread_state::aborting)
 		{
 			if (pdlg.wasCanceled())
 			{