diff --git a/lib/commands/exam/iterate.js b/lib/commands/exam/iterate.js
index 673ece8f..93930d2b 100644
--- a/lib/commands/exam/iterate.js
+++ b/lib/commands/exam/iterate.js
@@ -139,6 +139,7 @@ module.exports = {
     } catch (error) {
       this._write('Returned non-zero exit code with error: ' + error);
       exitCode = 1;
+      process.exitCode = 1;
     } finally {
       var color = exitCode ? chalk.red : chalk.green;
       return [
diff --git a/node-tests/acceptance/exam-iterate-test.js b/node-tests/acceptance/exam-iterate-test.js
index 674e5b03..1f22db1d 100644
--- a/node-tests/acceptance/exam-iterate-test.js
+++ b/node-tests/acceptance/exam-iterate-test.js
@@ -3,7 +3,7 @@ var child_process = require('child_process');
 var exec = child_process.exec;
 var execSync = child_process.execSync;
 var rimraf = require('rimraf');
-var fs = require('fs');
+var fs = require('fs-extra');
 var path = require('path');
 
 function contains(str, value) {
@@ -88,4 +88,24 @@ describe('Acceptance | Exam Iterate Command', function() {
       done();
     });
   });
+
+  describe('Exit Code', function() {
+    var destPath = path.join( __dirname, '..', '..', 'tests', 'unit', 'failing-test.js');
+
+    beforeEach(function() {
+      var failingTestPath = path.join( __dirname, '..', 'fixtures', 'failure.js');
+      fs.copySync(failingTestPath, destPath);
+    });
+
+    afterEach(function() {
+      fs.removeSync(destPath);
+    });
+
+    it('should have an exitCode of 1 when a test fails', function(done) {
+      exec('ember exam:iterate 1', function(error, stdout, stderr) {
+        assert.equal(error.code, 1);
+        done();
+      });
+    });
+  });
 });
diff --git a/node-tests/fixtures/failure.js b/node-tests/fixtures/failure.js
new file mode 100644
index 00000000..18397c3f
--- /dev/null
+++ b/node-tests/fixtures/failure.js
@@ -0,0 +1 @@
+throw 'failure';
diff --git a/package.json b/package.json
index c262b747..2d98d0c7 100644
--- a/package.json
+++ b/package.json
@@ -9,11 +9,11 @@
   "scripts": {
     "build": "ember build",
     "start": "ember server",
-    "test": "mocha --recursive node-tests/",
+    "test": "mocha node-tests/**/*-test.js",
     "test:ember": "ember try:each",
     "test:all": "npm run test:ember && npm test",
     "test:ci": "ember try:one $EMBER_TRY_SCENARIO && npm test",
-    "test:cover": "istanbul cover ./node_modules/mocha/bin/_mocha -- --recursive node-tests/",
+    "test:cover": "istanbul cover ./node_modules/mocha/bin/_mocha -- node-tests/**/*-test.js",
     "test:ci:cover": "ember try:one $EMBER_TRY_SCENARIO && npm run test:cover"
   },
   "repository": {