diff --git a/cmd/homelab-deploy/main.go b/cmd/homelab-deploy/main.go
index 758fe73..19d3a26 100644
--- a/cmd/homelab-deploy/main.go
+++ b/cmd/homelab-deploy/main.go
@@ -17,7 +17,7 @@ import (
 	"github.com/urfave/cli/v3"
 )
 
-const version = "0.2.0"
+const version = "0.2.1"
 
 func main() {
 	app := &cli.Command{
diff --git a/internal/builder/builder.go b/internal/builder/builder.go
index 9894c3e..2c3c03d 100644
--- a/internal/builder/builder.go
+++ b/internal/builder/builder.go
@@ -6,6 +6,7 @@ import (
 	"log/slog"
 	"regexp"
 	"sort"
+	"strings"
 	"sync"
 	"time"
 
@@ -18,6 +19,18 @@ import (
 // Allows: alphanumeric, dashes, underscores, dots.
 var hostnameRegex = regexp.MustCompile(`^[a-zA-Z0-9._-]+$`)
 
+// truncateOutput truncates output to the first and last N lines if it exceeds 2*N lines.
+func truncateOutput(output string, keepLines int) string {
+	lines := strings.Split(output, "\n")
+	if len(lines) <= keepLines*2 {
+		return output
+	}
+	head := lines[:keepLines]
+	tail := lines[len(lines)-keepLines:]
+	omitted := len(lines) - keepLines*2
+	return strings.Join(head, "\n") + fmt.Sprintf("\n\n... (%d lines omitted) ...\n\n", omitted) + strings.Join(tail, "\n")
+}
+
 // BuilderConfig holds the configuration for the builder.
 type BuilderConfig struct {
 	NATSUrl        string
@@ -256,7 +269,7 @@ func (b *Builder) handleBuildRequest(subject string, data []byte) {
 			DurationSeconds: hostDuration,
 		}
 		if !result.Success {
-			hostResult.Error = result.Stderr
+			hostResult.Error = truncateOutput(result.Stderr, 50)
 			if hostResult.Error == "" && result.Error != nil {
 				hostResult.Error = result.Error.Error()
 			}
diff --git a/internal/builder/builder_test.go b/internal/builder/builder_test.go
new file mode 100644
index 0000000..eaca6f2
--- /dev/null
+++ b/internal/builder/builder_test.go
@@ -0,0 +1,115 @@
+package builder
+
+import (
+	"strings"
+	"testing"
+)
+
+func TestTruncateOutput(t *testing.T) {
+	tests := []struct {
+		name      string
+		input     string
+		keepLines int
+		wantLines int
+		wantOmit  bool
+	}{
+		{
+			name:      "short output unchanged",
+			input:     "line1\nline2\nline3",
+			keepLines: 50,
+			wantLines: 3,
+			wantOmit:  false,
+		},
+		{
+			name:      "exactly at threshold unchanged",
+			input:     strings.Join(makeLines(100), "\n"),
+			keepLines: 50,
+			wantLines: 100,
+			wantOmit:  false,
+		},
+		{
+			name:      "over threshold truncated",
+			input:     strings.Join(makeLines(150), "\n"),
+			keepLines: 50,
+			wantLines: 103, // 50 + 1 (empty) + 1 (omitted msg) + 1 (empty) + 50
+			wantOmit:  true,
+		},
+		{
+			name:      "large output truncated",
+			input:     strings.Join(makeLines(1000), "\n"),
+			keepLines: 50,
+			wantLines: 103,
+			wantOmit:  true,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := truncateOutput(tt.input, tt.keepLines)
+			gotLines := strings.Split(got, "\n")
+
+			if len(gotLines) != tt.wantLines {
+				t.Errorf("got %d lines, want %d", len(gotLines), tt.wantLines)
+			}
+
+			hasOmit := strings.Contains(got, "lines omitted")
+			if hasOmit != tt.wantOmit {
+				t.Errorf("got omit marker = %v, want %v", hasOmit, tt.wantOmit)
+			}
+
+			if tt.wantOmit {
+				// Verify first and last lines are preserved
+				inputLines := strings.Split(tt.input, "\n")
+				firstLine := inputLines[0]
+				lastLine := inputLines[len(inputLines)-1]
+				if !strings.HasPrefix(got, firstLine+"\n") {
+					t.Errorf("first line not preserved, got prefix %q, want %q",
+						gotLines[0], firstLine)
+				}
+				if !strings.HasSuffix(got, lastLine) {
+					t.Errorf("last line not preserved, got suffix %q, want %q",
+						gotLines[len(gotLines)-1], lastLine)
+				}
+			}
+		})
+	}
+}
+
+func makeLines(n int) []string {
+	lines := make([]string, n)
+	for i := range lines {
+		lines[i] = "line " + strings.Repeat("x", i%80)
+	}
+	return lines
+}
+
+func TestTruncateOutputPreservesContent(t *testing.T) {
+	// Create input with distinct first and last lines
+	lines := make([]string, 200)
+	for i := range lines {
+		lines[i] = "middle"
+	}
+	lines[0] = "FIRST"
+	lines[49] = "LAST_OF_HEAD"
+	lines[150] = "FIRST_OF_TAIL"
+	lines[199] = "LAST"
+
+	input := strings.Join(lines, "\n")
+	got := truncateOutput(input, 50)
+
+	if !strings.Contains(got, "FIRST") {
+		t.Error("missing FIRST")
+	}
+	if !strings.Contains(got, "LAST_OF_HEAD") {
+		t.Error("missing LAST_OF_HEAD")
+	}
+	if !strings.Contains(got, "FIRST_OF_TAIL") {
+		t.Error("missing FIRST_OF_TAIL")
+	}
+	if !strings.Contains(got, "LAST") {
+		t.Error("missing LAST")
+	}
+	if !strings.Contains(got, "(100 lines omitted)") {
+		t.Errorf("wrong omitted count, got: %s", got)
+	}
+}