diff --git a/src/flb_config.c b/src/flb_config.c
index 32dc34b7e83..f25e1e9a6b6 100644
--- a/src/flb_config.c
+++ b/src/flb_config.c
@@ -714,7 +714,7 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
 {
     int ret;
     char *tmp;
-    char *name;
+    char *name = NULL;
     char *s_type;
     struct mk_list *list;
     struct mk_list *head;
@@ -724,7 +724,7 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
     struct flb_cf_section *s;
     struct flb_cf_group *processors = NULL;
     int i;
-    void *ins;
+    void *ins = NULL;
 
     if (type == FLB_CF_CUSTOM) {
         s_type = "custom";
@@ -743,7 +743,7 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
         list = &cf->outputs;
     }
     else {
-        return -1;
+        goto error;
     }
 
     mk_list_foreach(head, list) {
@@ -752,7 +752,7 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
         if (!name) {
             flb_error("[config] section '%s' is missing the 'name' property",
                       s_type);
-            return -1;
+            goto error;
         }
 
         /* translate the variable */
@@ -778,10 +778,8 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
         if (!ins) {
             flb_error("[config] section '%s' tried to instance a plugin name "
                       "that doesn't exist", name);
-            flb_sds_destroy(name);
-            return -1;
+            goto error;
         }
-        flb_sds_destroy(name);
 
         /*
          * iterate section properties and populate instance by using specific
@@ -843,6 +841,7 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
                 flb_error("[config] could not configure property '%s' on "
                           "%s plugin with section name '%s'",
                           kv->key, s_type, name);
+                goto error;
             }
         }
 
@@ -850,18 +849,46 @@ static int configure_plugins_type(struct flb_config *config, struct flb_cf *cf,
         processors = flb_cf_group_get(cf, s, "processors");
         if (processors) {
             if (type == FLB_CF_INPUT) {
-                flb_processors_load_from_config_format_group(((struct flb_input_instance *) ins)->processor, processors);
+                ret = flb_processors_load_from_config_format_group(((struct flb_input_instance *) ins)->processor, processors);
+                if (ret == -1) {
+                    goto error;
+                }
             }
             else if (type == FLB_CF_OUTPUT) {
-                flb_processors_load_from_config_format_group(((struct flb_output_instance *) ins)->processor, processors);
+                ret = flb_processors_load_from_config_format_group(((struct flb_output_instance *) ins)->processor, processors);
+                if (ret == -1) {
+                    goto error;
+                }
             }
             else {
                 flb_error("[config] section '%s' does not support processors", s_type);
             }
         }
+
+        flb_sds_destroy(name);
     }
 
     return 0;
+
+error:
+    if (name != NULL) {
+        flb_sds_destroy(name);
+    }
+    if (ins != NULL) {
+        if (type == FLB_CF_CUSTOM) {
+            flb_custom_instance_destroy(ins);
+        }
+        else if (type == FLB_CF_INPUT) {
+            flb_input_instance_destroy(ins);
+        }
+        else if (type == FLB_CF_FILTER) {
+            flb_filter_instance_destroy(ins);
+        }
+        else if (type == FLB_CF_OUTPUT) {
+            flb_output_instance_destroy(ins);
+        }
+    }
+    return -1;
 }
 /* Load a struct flb_config_format context into a flb_config instance */
 int flb_config_load_config_format(struct flb_config *config, struct flb_cf *cf)
diff --git a/src/flb_input.c b/src/flb_input.c
index 089070c297b..4c8e1315b06 100644
--- a/src/flb_input.c
+++ b/src/flb_input.c
@@ -1240,6 +1240,7 @@ int flb_input_instance_init(struct flb_input_instance *ins,
     /* initialize processors */
     ret = flb_processor_init(ins->processor);
     if (ret == -1) {
+        flb_error("[input %s] error initializing processor, aborting startup", ins->name);
         return -1;
     }
 
diff --git a/src/flb_output.c b/src/flb_output.c
index 288fc9dbb1f..532e9602c64 100644
--- a/src/flb_output.c
+++ b/src/flb_output.c
@@ -1340,6 +1340,7 @@ int flb_output_init_all(struct flb_config *config)
         /* initialize processors */
         ret = flb_processor_init(ins->processor);
         if (ret == -1) {
+            flb_error("[output %s] error initializing processor, aborting startup", ins->name);
             return -1;
         }
     }
diff --git a/src/flb_processor.c b/src/flb_processor.c
index 5615e139e41..5bd72f64e28 100644
--- a/src/flb_processor.c
+++ b/src/flb_processor.c
@@ -244,7 +244,7 @@ struct flb_processor_unit *flb_processor_unit_create(struct flb_processor *proc,
         processor_instance = flb_processor_instance_create(config, pu->event_type, unit_name, NULL);
 
         if (processor_instance == NULL) {
-            flb_error("[processor] error creating native processor instance %s", pu->name);
+            flb_error("[processor] error creating processor '%s': plugin doesn't exist or failed to initialize", unit_name);
 
             pthread_mutex_destroy(&pu->lock);
             flb_sds_destroy(pu->name);
@@ -381,6 +381,7 @@ int flb_processor_init(struct flb_processor *proc)
         ret = flb_processor_unit_init(pu);
 
         if (ret == -1) {
+            flb_error("[processor] initialization of processor unit '%s' failed", pu->name);
             return -1;
         }
         count++;
@@ -391,6 +392,7 @@ int flb_processor_init(struct flb_processor *proc)
         ret = flb_processor_unit_init(pu);
 
         if (ret == -1) {
+            flb_error("[processor] initialization of processor unit '%s' failed", pu->name);
             return -1;
         }
         count++;
@@ -401,6 +403,7 @@ int flb_processor_init(struct flb_processor *proc)
         ret = flb_processor_unit_init(pu);
 
         if (ret == -1) {
+            flb_error("[processor] initialization of processor unit '%s' failed", pu->name);
             return -1;
         }
         count++;
@@ -822,7 +825,7 @@ static int load_from_config_format_group(struct flb_processor *proc, int type, s
         tmp = cfl_kvlist_fetch(kvlist, "name");
 
         if (!tmp) {
-            flb_error("processor configuration don't have a 'name' defined");
+            flb_error("[processor] configuration missing required 'name' field");
             return -1;
         }
 
@@ -831,7 +834,6 @@ static int load_from_config_format_group(struct flb_processor *proc, int type, s
         pu = flb_processor_unit_create(proc, type, name);
 
         if (!pu) {
-            flb_error("cannot create '%s' processor unit", name);
             return -1;
         }
 
diff --git a/tests/runtime_shell/CMakeLists.txt b/tests/runtime_shell/CMakeLists.txt
index 79c96de5fc9..593f9c27677 100644
--- a/tests/runtime_shell/CMakeLists.txt
+++ b/tests/runtime_shell/CMakeLists.txt
@@ -12,6 +12,7 @@ set(UNIT_TESTS_SH
   in_syslog_udp_plaintext_expect.sh
   in_syslog_uds_dgram_plaintext_expect.sh
   in_syslog_uds_stream_plaintext_expect.sh
+  processor_invalid.sh
   )
 
 # Prepare list of unit tests
diff --git a/tests/runtime_shell/processor_invalid.sh b/tests/runtime_shell/processor_invalid.sh
new file mode 100755
index 00000000000..59a72c7ef32
--- /dev/null
+++ b/tests/runtime_shell/processor_invalid.sh
@@ -0,0 +1,67 @@
+#!/bin/sh
+
+# Setup environment if not already set
+if [ -z "$FLB_BIN" ]; then
+    FLB_ROOT=${FLB_ROOT:-$(cd $(dirname $0)/../.. && pwd)}
+    FLB_BIN=${FLB_BIN:-$FLB_ROOT/build/bin/fluent-bit}
+fi
+
+echo "Using Fluent Bit at: $FLB_BIN"
+
+# Create a temporary YAML config file
+cat > /tmp/processor_invalid.yaml << EOL
+service:
+  log_level: debug
+  flush: 1
+pipeline:
+  inputs:
+    - name: dummy
+      dummy: '{"message": "test message"}'
+      tag: test
+      processors:
+        logs:
+          - name: non_existent_processor
+            action: invalid
+
+  outputs:
+    - name: stdout
+      match: '*'
+EOL
+
+echo "Running Fluent Bit with invalid processor YAML config..."
+echo "YAML Config:"
+cat /tmp/processor_invalid.yaml
+
+# Redirect stdout and stderr to a file for analysis
+OUTPUT_FILE="/tmp/processor_invalid_output.txt"
+$FLB_BIN -c /tmp/processor_invalid.yaml -o stdout > $OUTPUT_FILE 2>&1
+
+# Check exit code - we expect it to fail
+EXIT_CODE=$?
+echo "Fluent Bit exited with code: $EXIT_CODE"
+
+# Show the output
+echo "Output file content:"
+cat $OUTPUT_FILE
+
+# Check if the output contains an error related to invalid processor
+INVALID_PROCESSOR=$(grep -c "error creating processor 'non_existent_processor': plugin doesn't exist or failed to initialize" $OUTPUT_FILE || true)
+FAILED_INIT=$(grep -c "error initializing processor" $OUTPUT_FILE || true)
+
+# Clean up
+echo "Cleaning up..."
+rm -f /tmp/processor_invalid.yaml
+rm -f $OUTPUT_FILE
+
+# Check results - we expect Fluent Bit to fail (non-zero exit code)
+# and have an error message about the invalid processor
+if [ "$EXIT_CODE" -ne 0 ] && ([ "$INVALID_PROCESSOR" -gt 0 ] || [ "$FAILED_INIT" -gt 0 ]); then
+    echo "Test passed: Fluent Bit failed with error about invalid processor"
+    exit 0
+else
+    echo "Test failed: Fluent Bit should fail when an invalid processor is configured"
+    echo "Exit code: $EXIT_CODE (expected non-zero)"
+    echo "Invalid processor message count: $INVALID_PROCESSOR (expected > 0)"
+    echo "Failed init message count: $FAILED_INIT (expected > 0)"
+    exit 1
+fi
\ No newline at end of file