diff --git a/src/commands/project.ts b/src/commands/project.ts
index 2cfc0088..5e837799 100644
--- a/src/commands/project.ts
+++ b/src/commands/project.ts
@@ -3995,11 +3995,18 @@ function renderHackFolderReadme(opts: {
 async function requireProjectContext(startDir: string) {
   const ctx = await findProjectContext(startDir);
   if (!ctx) {
-    throw new Error(
+    throw new MissingProjectContextError();
+  }
+  return ctx;
+}
+
+class MissingProjectContextError extends Error {
+  constructor() {
+    super(
       `No ${HACK_PROJECT_DIR_PRIMARY}/ (or legacy .dev/) found. Run: hack init`
     );
+    this.name = "MissingProjectContextError";
   }
-  return ctx;
 }
 
 type RemoteLifecycleAction = "up" | "down" | "restart";
@@ -4116,11 +4123,20 @@ async function handleUp({
   readonly ctx: CliContext;
   readonly args: UpArgs;
 }): Promise<number> {
-  const project = await resolveProjectForArgs({
-    ctx,
-    pathOpt: args.options.path,
-    projectOpt: args.options.project,
-  });
+  let project: Awaited<ReturnType<typeof requireProjectContext>>;
+  try {
+    project = await resolveProjectForArgs({
+      ctx,
+      pathOpt: args.options.path,
+      projectOpt: args.options.project,
+    });
+  } catch (error: unknown) {
+    if (error instanceof MissingProjectContextError) {
+      logger.error({ message: error.message });
+      return 1;
+    }
+    throw error;
+  }
   const detach = args.options.detach;
   const branch = resolveBranchSlug(args.options.branch);
   const profiles = parseCsvList(args.options.profile);
diff --git a/tests/project-up-command.test.ts b/tests/project-up-command.test.ts
new file mode 100644
index 00000000..e462f3a9
--- /dev/null
+++ b/tests/project-up-command.test.ts
@@ -0,0 +1,100 @@
+import { afterEach, beforeEach, expect, test } from "bun:test";
+import { mkdtemp, rm } from "node:fs/promises";
+import { tmpdir } from "node:os";
+import { join } from "node:path";
+
+type CapturedRunResult = {
+  readonly exitCode: number;
+  readonly stdout: string;
+  readonly stderr: string;
+};
+
+let tempDir: string | null = null;
+let originalSetupSyncMode: string | undefined;
+let originalLogger: string | undefined;
+
+beforeEach(async () => {
+  tempDir = await mkdtemp(join(tmpdir(), "hack-up-missing-project-"));
+  originalSetupSyncMode = process.env.HACK_SETUP_SYNC_MODE;
+  originalLogger = process.env.HACK_LOGGER;
+  process.env.HACK_SETUP_SYNC_MODE = "off";
+  process.env.HACK_LOGGER = "console";
+});
+
+afterEach(async () => {
+  if (tempDir) {
+    await rm(tempDir, { recursive: true, force: true });
+    tempDir = null;
+  }
+  if (originalSetupSyncMode !== undefined) {
+    process.env.HACK_SETUP_SYNC_MODE = originalSetupSyncMode;
+  } else {
+    process.env.HACK_SETUP_SYNC_MODE = undefined;
+  }
+  if (originalLogger !== undefined) {
+    process.env.HACK_LOGGER = originalLogger;
+  } else {
+    process.env.HACK_LOGGER = undefined;
+  }
+});
+
+test("up without .hack prints a user message without stack trace", async () => {
+  if (!tempDir) {
+    throw new Error("Missing temp directory");
+  }
+
+  const result = await runCliWithCapturedOutput(["up", "--path", tempDir]);
+
+  expect(result.exitCode).toBe(1);
+
+  const combinedOutput = `${result.stdout}\n${result.stderr}`;
+  expect(combinedOutput).toContain(
+    "No .hack/ (or legacy .dev/) found. Run: hack init"
+  );
+  expect(combinedOutput).not.toContain("at requireProjectContext");
+  expect(combinedOutput).not.toContain("at async handleUp");
+  expect(combinedOutput).not.toContain("ERROR Error:");
+});
+
+test("up still reports unrelated usage errors", async () => {
+  const result = await runCliWithCapturedOutput([
+    "up",
+    "--definitely-not-a-real-flag",
+  ]);
+
+  expect(result.exitCode).toBe(1);
+  const combinedOutput = `${result.stdout}\n${result.stderr}`;
+  expect(combinedOutput).toContain("Unknown option");
+  expect(combinedOutput).toContain("--definitely-not-a-real-flag");
+  expect(combinedOutput).toContain("Usage:");
+});
+
+async function runCliWithCapturedOutput(
+  args: readonly string[]
+): Promise<CapturedRunResult> {
+  let stdout = "";
+  let stderr = "";
+  const originalStdoutWrite = process.stdout.write;
+  const originalStderrWrite = process.stderr.write;
+
+  process.stdout.write = ((chunk: string | Uint8Array) => {
+    stdout +=
+      typeof chunk === "string" ? chunk : Buffer.from(chunk).toString("utf8");
+    return true;
+  }) as typeof process.stdout.write;
+
+  process.stderr.write = ((chunk: string | Uint8Array) => {
+    stderr +=
+      typeof chunk === "string" ? chunk : Buffer.from(chunk).toString("utf8");
+    return true;
+  }) as typeof process.stderr.write;
+
+  try {
+    const { runCli } = await import("../src/cli/run.ts");
+    const exitCode = await runCli(args);
+    return { exitCode, stdout, stderr };
+  } finally {
+    process.stdout.write = originalStdoutWrite;
+    process.stderr.write = originalStderrWrite;
+  }
+}