diff --git a/commands/fn/render/cmdrender.go b/commands/fn/render/cmdrender.go
index 851f0ca93c..43426ebef9 100644
--- a/commands/fn/render/cmdrender.go
+++ b/commands/fn/render/cmdrender.go
@@ -63,8 +63,6 @@ func NewRunner(ctx context.Context, parent string) *Runner {
 		"allow functions to access network during pipeline execution.")
 	c.Flags().BoolVar(&r.RunnerOptions.AllowWasm, "allow-alpha-wasm", r.RunnerOptions.AllowWasm,
 		"allow wasm to be used during pipeline execution.")
-	c.Flags().BoolVar(&r.RunnerOptions.SaveOnRenderFailure, "save-on-render-failure", r.RunnerOptions.SaveOnRenderFailure,
-		"save partially rendered resources when rendering fails.")
 	cmdutil.FixDocs("kpt", parent, c)
 	r.Command = c
 	return r
diff --git a/documentation/content/en/book/02-concepts/_index.md b/documentation/content/en/book/02-concepts/_index.md
index 362223757b..c102d2db17 100644
--- a/documentation/content/en/book/02-concepts/_index.md
+++ b/documentation/content/en/book/02-concepts/_index.md
@@ -88,6 +88,16 @@ YAML as the file format.
 A package is explicitly declared using a file named `Kptfile` containing a KRM resource of kind `Kptfile`. The Kptfile
 contains metadata about the package and is just a regular resource in the YAML format.
 
+### Kptfile Annotations
+
+The Kptfile supports annotations that control package-level behaviour:
+
+- **`kpt.dev/bfs-rendering`**: When set to `"true"`, renders the package hierarchy in breadth-first order instead of
+the default depth-first post-order.
+- **`kpt.dev/save-on-render-failure`**: When set to `"true"`, saves partially rendered resources to disk even when
+rendering fails, instead of reverting all changes. This is particularly useful for debugging render failures and is
+essential for programmatic package rendering scenarios where preserving partial progress is valuable.
+
 Just as directories can be nested, a package can contain another package, called a _subpackage_.
 
 Let's take a look at the wordpress package as an example:
diff --git a/documentation/content/en/book/04-using-functions/_index.md b/documentation/content/en/book/04-using-functions/_index.md
index 3c6b228ed2..b2ec711e7b 100644
--- a/documentation/content/en/book/04-using-functions/_index.md
+++ b/documentation/content/en/book/04-using-functions/_index.md
@@ -124,8 +124,38 @@ The end result is that:
 3. Resources in `mysql` and `wordpress` packages are validated against their
    OpenAPI spec.
 
-If any of the functions in the pipeline fails for whatever reason, then the
-entire pipeline is aborted and the local filesystem is left intact.
+### Debugging render failures
+
+When a render pipeline fails, you can configure the package to save partially rendered resources to disk.
+This is particularly useful for debugging function pipeline issues by inspecting what changes were made before
+the failure occurred.
+
+By default, partially rendered resources are not saved when render fails. To enable this behaviour,
+add the `kpt.dev/save-on-render-failure` annotation to the Kptfile's metadata section:
+
+```yaml
+apiVersion: kpt.dev/v1
+kind: Kptfile
+metadata:
+  name: wordpress
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
+pipeline:
+  mutators:
+    - image: ghcr.io/kptdev/krm-functions-catalog/set-labels:latest
+      configMap:
+        app: wordpress
+  validators:
+    - image: ghcr.io/kptdev/krm-functions-catalog/kubeconform:latest
+```
+
+With this annotation set to `"true"`, if a function in the pipeline fails, kpt will save all resources that were
+successfully processed up to the point of failure. This allows you to examine the intermediate state and understand
+what transformations were applied before the error.
+
+This annotation follows the same pattern as `kpt.dev/bfs-rendering` and must be declared in the root package's Kptfile
+before running `kpt fn render`.
+
 
 ### Specifying `function`
 
diff --git a/documentation/content/en/reference/cli/fn/render/_index.md b/documentation/content/en/reference/cli/fn/render/_index.md
index 397b237469..4cde120dab 100644
--- a/documentation/content/en/reference/cli/fn/render/_index.md
+++ b/documentation/content/en/reference/cli/fn/render/_index.md
@@ -74,6 +74,18 @@ PKG_PATH:
   If not specified, no result files are written to the local filesystem.
 ```
 
+#### Kptfile Annotations
+
+```shell
+kpt.dev/save-on-render-failure:
+  Controls whether partially rendered resources are saved when rendering fails.
+  Set to "true" in the Kptfile metadata.annotations section to preserve the state
+  of resources at the point of failure. This is useful for debugging render failures
+  and understanding what changes were applied before the error occurred.
+  This follows the same pattern as kpt.dev/bfs-rendering annotation.
+  Default: false (failures will revert changes).
+```
+
 #### Environment Variables
 
 ```shell
@@ -131,6 +143,17 @@ $ KRM_FN_RUNTIME=podman kpt fn render my-package-dir
 $ kpt fn render --allow-network
 ```
 
+```shell
+# Example Kptfile with save-on-render-failure annotation
+apiVersion: kpt.dev/v1
+kind: Kptfile
+metadata:
+  name: my-package
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
+...
+```
+
 <!--mdtogo-->
 
 [declarative functions execution]:
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/diff.patch
index 3d21e4a397..b0b6b3e100 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/.expected/diff.patch
@@ -1,11 +1,11 @@
 diff --git a/Kptfile b/Kptfile
-index 2b64f0f..b2b7aa6 100644
+index ec2c042..d795f4f 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -3,7 +3,9 @@ kind: Kptfile
- metadata:
+@@ -4,7 +4,9 @@ metadata:
    annotations:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
 +    app: myapp
    name: save-on-render-failure
 +  namespace: staging
@@ -28,4 +28,4 @@ index 0848ba0..7eece9b 100644
 +  template:
 +    metadata:
 +      annotations:
-+        app: myapp
\ No newline at end of file
++        app: myapp
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/Kptfile
index 2b64f0fbec..ec2c042dc7 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-basicpipeline/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: save-on-render-failure
 pipeline:
   mutators:
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/diff.patch
index 193aaf8a82..3efb8adbb5 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 20f0a00..1129926 100644
+index dbd6541..bc4fd2d 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,10 +4,12 @@ metadata:
-   annotations:
+@@ -5,10 +5,12 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-deep-nested-middle-fails
 +  labels:
 +    level: root
@@ -82,4 +82,4 @@ index ab7d3fa..1eeeaed 100644
 +  labels:
 +    level: level1
  data:
-   level: level2
\ No newline at end of file
+   level: level2
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/Kptfile
index 20f0a00674..dbd6541cc7 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-deep-nested-middle-fails/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-deep-nested-middle-fails
 info:
   description: BFS - Deep nested, middle level fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/diff.patch
index 4092050b8f..8a582dcd77 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 436929b..101eb46 100644
+index e9fad85..1b08a62 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,6 +4,8 @@ metadata:
-   annotations:
+@@ -5,6 +5,8 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-multiple-subpkgs-one-fails
 +  labels:
 +    pkg: root
@@ -121,4 +121,4 @@ index dc257b3..3a13d11 100644
 +  template:
 +    metadata:
 +      labels:
-+        pkg: root
\ No newline at end of file
++        pkg: root
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/Kptfile
index 436929b34e..e9fad85916 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-multiple-subpkgs-one-fails/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-multiple-subpkgs-one-fails
 info:
   description: BFS - Multiple subpackages, sub2 fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/diff.patch
index c0e0fc087f..6154172d4a 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 542177a..a19bbc4 100644
+index cbe756f..a5fa6c0 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,6 +4,8 @@ metadata:
-   annotations:
+@@ -5,6 +5,8 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-parent-and-subpkg-both-fail
 +  labels:
 +    pkg: root
@@ -50,4 +50,4 @@ index 276bf9e..d6424da 100644
    ports:
    - port: 80
 +  selector:
-+    pkg: root
\ No newline at end of file
++    pkg: root
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/Kptfile
index 542177a62e..cbe756f987 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-and-subpkg-both-fail/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-parent-and-subpkg-both-fail
 info:
   description: BFS - Both parent and subpackage fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/diff.patch
index db09e9e1c4..d7619bd383 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 2391a7a..0e48609 100644
+index c80b904..6954e67 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,11 +4,13 @@ metadata:
-   annotations:
+@@ -5,11 +5,13 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-parent-mutator-fails
 +  labels:
 +    test: parent-mutator-fail
@@ -56,4 +56,4 @@ index 276bf9e..acfae7a 100644
    ports:
    - port: 80
 +  selector:
-+    test: parent-mutator-fail
\ No newline at end of file
++    test: parent-mutator-fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/Kptfile
index 2391a7a46f..c80b904236 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-mutator-fails/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-parent-mutator-fails
 info:
   description: BFS - Parent mutator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/diff.patch
index 60248a863e..1d8bba0c89 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 3e37f10..87a67b1 100644
+index 491b12e..8c66fe7 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,12 +4,14 @@ metadata:
-   annotations:
+@@ -5,12 +5,14 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-parent-validator-fails
 +  labels:
 +    test: parent-fail
@@ -57,4 +57,4 @@ index 276bf9e..fe08496 100644
    ports:
    - port: 80
 +  selector:
-+    test: parent-fail
\ No newline at end of file
++    test: parent-fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/Kptfile
index 3e37f10ba1..491b12e732 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-parent-validator-fails/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-parent-validator-fails
 info:
   description: BFS - Parent validator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/diff.patch
index 00b634249f..5c771fd77f 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 95a1035..aa44f54 100644
+index 84b93a6..877725d 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,10 +4,12 @@ metadata:
-   annotations:
+@@ -5,10 +5,12 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-subpkg-mutator-fails
 +  labels:
 +    test: mutator-fail
@@ -68,4 +68,4 @@ index 302322e..546fe5c 100644
 +  template:
 +    metadata:
 +      labels:
-+        test: mutator-fail
\ No newline at end of file
++        test: mutator-fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/Kptfile
index 95a103593b..84b93a6de8 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-mutator-fails/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-subpkg-mutator-fails
 info:
   description: BFS - Subpackage mutator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/diff.patch
index 676af7c1fd..c18f86ccf4 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 35b7419..08a35b8 100644
+index 86dbe13..c5c38b8 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -4,11 +4,14 @@ metadata:
-   annotations:
+@@ -5,11 +5,14 @@ metadata:
      kpt.dev/bfs-rendering: "true"
+     kpt.dev/save-on-render-failure: "true"
    name: bfs-subpkg-validator-fails
 +  labels:
 +    level: root
@@ -78,4 +78,4 @@ index 302322e..dfe3056 100644
 +    metadata:
 +      labels:
 +        level: root
-+        test: subpkg-fail
\ No newline at end of file
++        test: subpkg-fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/Kptfile
index 35b741942c..86dbe130e7 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/bfs-subpkg-validator-fails/Kptfile
@@ -3,6 +3,7 @@ kind: Kptfile
 metadata:
   annotations:
     kpt.dev/bfs-rendering: "true"
+    kpt.dev/save-on-render-failure: "true"
   name: bfs-subpkg-validator-fails
 info:
   description: BFS - Subpackage validator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/diff.patch
index 3449ace228..92754c2fd1 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/.expected/diff.patch
@@ -1,13 +1,13 @@
 diff --git a/Kptfile b/Kptfile
-index a2aef8c..93f2bd5 100644
+index c6fc0c5..1631bfb 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -2,6 +2,9 @@ apiVersion: kpt.dev/v1
- kind: Kptfile
+@@ -3,7 +3,9 @@ kind: Kptfile
  metadata:
-   name: save-on-render-failure
-+  annotations:
+   annotations:
+     kpt.dev/save-on-render-failure: "true"
 +    app: myapp
+   name: save-on-render-failure
 +  namespace: staging
  pipeline:
    mutators:
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/Kptfile
index a2aef8c7a6..c6fc0c546a 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-basicpipeline/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: save-on-render-failure
 pipeline:
   mutators:
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/diff.patch
index 0089e2c4f0..a4012da01e 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/.expected/diff.patch
@@ -52,4 +52,4 @@ index ab7d3fa..1eeeaed 100644
 +  labels:
 +    level: level1
  data:
-   level: level2
\ No newline at end of file
+   level: level2
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/Kptfile
index 98c6f7b2b9..4047d2778b 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-deep-nested-middle-fails/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-deep-nested-middle-fails
 info:
   description: DFS - Deep nested, middle level fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/diff.patch
index a576ecda9e..70def2baa5 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/.expected/diff.patch
@@ -61,4 +61,4 @@ index 20375ea..7290360 100644
 +  template:
 +    metadata:
 +      labels:
-+        pkg: sub2
\ No newline at end of file
++        pkg: sub2
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/Kptfile
index 010acfb956..c47c90d51f 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-multiple-subpkgs-one-fails/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-multiple-subpkgs-one-fails
 info:
   description: DFS - Multiple subpackages, sub2 fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/diff.patch
index b667c36b97..e2923d8d42 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/.expected/diff.patch
@@ -25,4 +25,4 @@ index 276bf9e..7b26a8d 100644
    ports:
    - port: 80
 +  selector:
-+    pkg: subpkg
\ No newline at end of file
++    pkg: subpkg
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/Kptfile
index d15ba2c378..e4d630ddc7 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-and-subpkg-both-fail/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-parent-and-subpkg-both-fail
 info:
   description: DFS - Both parent and subpackage fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/diff.patch
index c99854e65f..0c15742529 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 4feff42..5c4578e 100644
+index c134b37..32d759a 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -2,11 +2,13 @@ apiVersion: kpt.dev/v1
- kind: Kptfile
- metadata:
+@@ -4,11 +4,13 @@ metadata:
+   annotations:
+     kpt.dev/save-on-render-failure: "true"
    name: dfs-parent-mutator-fails
 +  labels:
 +    test: parent-mutator-fail
@@ -58,4 +58,4 @@ index 276bf9e..571e684 100644
    ports:
    - port: 80
 +  selector:
-+    test: parent-mutator-fail
\ No newline at end of file
++    test: parent-mutator-fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/Kptfile
index 4feff42893..c134b37717 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-mutator-fails/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-parent-mutator-fails
 info:
   description: DFS - Parent mutator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/diff.patch
index 3b7ead5c66..cfdb9a036b 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/.expected/diff.patch
@@ -1,10 +1,10 @@
 diff --git a/Kptfile b/Kptfile
-index 86325b3..2efd0b0 100644
+index 94a7a73..8581173 100644
 --- a/Kptfile
 +++ b/Kptfile
-@@ -2,12 +2,14 @@ apiVersion: kpt.dev/v1
- kind: Kptfile
- metadata:
+@@ -4,12 +4,14 @@ metadata:
+   annotations:
+     kpt.dev/save-on-render-failure: "true"
    name: dfs-parent-validator-fails
 +  labels:
 +    test: parent-fail
@@ -59,4 +59,4 @@ index 276bf9e..3ba5cae 100644
    ports:
    - port: 80
 +  selector:
-+    test: parent-fail
\ No newline at end of file
++    test: parent-fail
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/Kptfile
index 86325b3796..94a7a73ca7 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-parent-validator-fails/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-parent-validator-fails
 info:
   description: DFS - Parent validator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/diff.patch
index 383ee185f5..24433c71d9 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/.expected/diff.patch
@@ -20,4 +20,4 @@ index 302322e..98ff830 100644
    name: sub-deployment
 +  namespace: subpkg-ns
  spec:
-   replicas: 2
\ No newline at end of file
+   replicas: 2
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/Kptfile
index 5234a05c32..80aa788235 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-mutator-fails/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-subpkg-mutator-fails
 info:
   description: DFS - Subpackage mutator fails
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/config.yaml b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/config.yaml
index 14d9bc5616..2eba311bad 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/config.yaml
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/config.yaml
@@ -1,3 +1,2 @@
 exitCode: 1
-saveOnRenderFailure: true
 StdErrRegEx: "(docker: Error response from daemon: Head.*denied|Error.*initializing source docker)"
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/diff.patch b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/diff.patch
index 5978ff59d6..0fdd10dee3 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/diff.patch
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/.expected/diff.patch
@@ -20,4 +20,4 @@ index 302322e..98ff830 100644
    name: sub-deployment
 +  namespace: subpkg-ns
  spec:
-   replicas: 2
\ No newline at end of file
+   replicas: 2
diff --git a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/Kptfile b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/Kptfile
index b1ad2b390b..7c3b09a202 100644
--- a/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/Kptfile
+++ b/e2e/testdata/fn-render/save-on-render-failure/dfs-subpkg-validator-fails/Kptfile
@@ -1,6 +1,8 @@
 apiVersion: kpt.dev/v1
 kind: Kptfile
 metadata:
+  annotations:
+    kpt.dev/save-on-render-failure: "true"
   name: dfs-subpkg-validator-fails
 info:
   description: DFS - Subpackage validator fails
diff --git a/internal/util/render/executor.go b/internal/util/render/executor.go
index da09e339e7..d74ccf4957 100644
--- a/internal/util/render/executor.go
+++ b/internal/util/render/executor.go
@@ -93,6 +93,11 @@ func (e *Renderer) Execute(ctx context.Context) (*fnresult.ResultList, error) {
 		return nil, fmt.Errorf("failed to read Kptfile: %w", err)
 	}
 
+	// Read save-on-render-failure behavior from Kptfile annotation
+	if value, exists := kptfile.Annotations[kptfilev1.SaveOnRenderFailureAnnotation]; exists && kptfilev1.ToCondition(value) == kptfilev1.ConditionTrue {
+		hctx.saveOnRenderFailure = true
+	}
+
 	// Choose hydration function based on annotation
 	// If the annotation "kpt.dev/bfs-rendering" is set to "true", use hydrateBfsOrder
 	// otherwise use the default hydrate function in depth-first post-order.
@@ -103,7 +108,7 @@ func (e *Renderer) Execute(ctx context.Context) (*fnresult.ResultList, error) {
 
 	_, hydErr := hydrateFn(ctx, root, hctx)
 
-	if hydErr != nil && !hctx.runnerOptions.SaveOnRenderFailure {
+	if hydErr != nil && !hctx.saveOnRenderFailure {
 		_ = e.saveFnResults(ctx, hctx.fnResults)
 		return hctx.fnResults, errors.E(op, root.pkg.UniquePath, hydErr)
 	}
@@ -125,8 +130,8 @@ func (e *Renderer) Execute(ctx context.Context) (*fnresult.ResultList, error) {
 
 	if e.Output == nil {
 		// the intent of the user is to modify resources in-place
-		// Only write resources if hydration succeeded OR SaveOnRenderFailure is enabled
-		if hydErr == nil || hctx.runnerOptions.SaveOnRenderFailure {
+		// Only write resources if hydration succeeded OR save-on-render-failure is enabled
+		if hydErr == nil || hctx.saveOnRenderFailure {
 			pkgWriter := &kio.LocalPackageReadWriter{
 				PackagePath:        string(root.pkg.UniquePath),
 				PreserveSeqIndent:  true,
@@ -225,6 +230,10 @@ type hydrationContext struct {
 	// during pipeline execution.
 	fnResults *fnresult.ResultList
 
+	// saveOnRenderFailure indicates whether partially rendered resources
+	// should be saved when rendering fails. Read from the root Kptfile annotation.
+	saveOnRenderFailure bool
+
 	runnerOptions runneroptions.RunnerOptions
 
 	fileSystem filesys.FileSystem
@@ -353,7 +362,7 @@ func hydrate(ctx context.Context, pn *pkgNode, hctx *hydrationContext) (output [
 
 		transitiveResources, err = hydrate(ctx, subPkgNode, hctx)
 		if err != nil {
-			if transitiveResources != nil && hctx.runnerOptions.SaveOnRenderFailure {
+			if transitiveResources != nil && hctx.saveOnRenderFailure {
 				input = append(input, transitiveResources...)
 				curr.resources = input
 			}
@@ -365,7 +374,7 @@ func hydrate(ctx context.Context, pn *pkgNode, hctx *hydrationContext) (output [
 
 	output, err = curr.runPipeline(ctx, hctx, input)
 	if err != nil {
-		if hctx.runnerOptions.SaveOnRenderFailure {
+		if hctx.saveOnRenderFailure {
 			// Fall back to input if output is nil (early errors before pipeline execution)
 			if output == nil {
 				output = input
@@ -503,7 +512,7 @@ func executePipelinesWithScopedVisibility(ctx context.Context, allNodes []*pkgNo
 		input := buildPipelineInputWithScopedVisibility(node, childrenMap)
 		output, err := node.runPipeline(ctx, hctx, input)
 		if err != nil {
-			if hctx.runnerOptions.SaveOnRenderFailure {
+			if hctx.saveOnRenderFailure {
 				// Fall back to input if output is nil (early errors before pipeline execution)
 				if output == nil {
 					output = input
diff --git a/internal/util/render/executor_test.go b/internal/util/render/executor_test.go
index 5d1725d118..2c8e253f54 100644
--- a/internal/util/render/executor_test.go
+++ b/internal/util/render/executor_test.go
@@ -574,7 +574,7 @@ func TestRenderer_PrintPipelineExecutionSummary(t *testing.T) {
 
 func TestPkgNode_ClearAnnotationsOnMutFailure(t *testing.T) {
 	tests := []struct {
-		name               string
+		name                      string
 		inputYAML                 string
 		hasNonRenderingAnnotation bool
 	}{
diff --git a/pkg/api/kptfile/v1/types.go b/pkg/api/kptfile/v1/types.go
index 4afb56af5a..656820c448 100644
--- a/pkg/api/kptfile/v1/types.go
+++ b/pkg/api/kptfile/v1/types.go
@@ -411,8 +411,11 @@ const (
 
 // BFSRenderAnnotation is an annotation that can be used to indicate that a package
 // should be hydrated from the root package to the subpackages in a Breadth-First Level Order manner.
+// SaveOnRenderFailureAnnotation is an annotation that controls whether partially rendered
+// resources are saved to disk when rendering fails.
 const (
-	BFSRenderAnnotation = "kpt.dev/bfs-rendering"
+	BFSRenderAnnotation           = "kpt.dev/bfs-rendering"
+	SaveOnRenderFailureAnnotation = "kpt.dev/save-on-render-failure"
 )
 
 func ToCondition(value string) ConditionStatus {
diff --git a/pkg/lib/runneroptions/runneroptions.go b/pkg/lib/runneroptions/runneroptions.go
index 064abb78df..0f6fa19615 100644
--- a/pkg/lib/runneroptions/runneroptions.go
+++ b/pkg/lib/runneroptions/runneroptions.go
@@ -58,10 +58,6 @@ type RunnerOptions struct {
 
 	// ResolveToImage will resolve a partial image to a fully-qualified one
 	ResolveToImage ImageResolveFunc
-
-	// SaveOnRenderFailure determines whether to save the partially rendered
-	// resources when rendering fails.
-	SaveOnRenderFailure bool
 }
 
 func (opts *RunnerOptions) InitDefaults(defaultImagePrefix string) {
diff --git a/pkg/test/runner/config.go b/pkg/test/runner/config.go
index 5be14ad930..3c073bc425 100644
--- a/pkg/test/runner/config.go
+++ b/pkg/test/runner/config.go
@@ -94,9 +94,6 @@ type TestCaseConfig struct {
 	// AllowWasm determines if `fn render` needs to be invoked with `--allow-alpha-wasm` flag
 	AllowWasm bool `json:"allowWasm,omitempty" yaml:"allowWasm,omitempty"`
 
-	// SaveOnRenderFailure determines if `fn render` needs to be invoked with `--save-on-render-failure` flag
-	SaveOnRenderFailure bool `json:"saveOnRenderFailure,omitempty" yaml:"saveOnRenderFailure,omitempty"`
-
 	// Skip means should this test case be skipped. Default: false
 	Skip bool `json:"skip,omitempty" yaml:"skip,omitempty"`
 
diff --git a/pkg/test/runner/runner.go b/pkg/test/runner/runner.go
index b988d99e85..23575720fd 100644
--- a/pkg/test/runner/runner.go
+++ b/pkg/test/runner/runner.go
@@ -371,10 +371,6 @@ func (r *Runner) runFnRender() error {
 				kptArgs = append(kptArgs, "--allow-exec")
 			}
 
-			if r.testCase.Config.SaveOnRenderFailure {
-				kptArgs = append(kptArgs, "--save-on-render-failure")
-			}
-
 			if r.testCase.Config.AllowWasm {
 				kptArgs = append(kptArgs, allowWasmFlag)
 			}