diff --git a/CHANGELOG.md b/CHANGELOG.md
index c14f6a7c1d..839fd6d208 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,7 +8,8 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/) a
 
 ### Added
 
-- `pm_options_stack_budget_set` was added to the C API. It sets the number of bytes of C stack the parser may use before reporting that the source is nested too deeply, instead of overflowing the stack. `SIZE_MAX` means no budget, which is the default. The nesting depth limit alone assumes a stack of roughly 8MB, so embedders that parse on a smaller stack, such as a thread's or a fiber's, should pass a budget.
+- `pm_options_stack_budget_set` was added to the C API. It sets the number of bytes of C stack the parser may use before reporting a `stack_exhausted` error, instead of overflowing the stack. `SIZE_MAX` means no budget, which is the default. The nesting depth limit alone assumes a stack of roughly 8MB, so embedders that parse on a smaller stack, such as a thread's or a fiber's, should pass a budget.
+- A new `stack` error level, for errors that should raise `SystemStackError`. Its only error is `stack_exhausted`, reported once per parse when the stack budget is used up. It is separate from `nesting_too_deep`, which stays a syntax error, because the same source may parse with more stack. When errors are formatted, a `stack_exhausted` error takes precedence over the syntax errors around it, as argument and load errors do. The level is `:stack` in Ruby, `"stack"` in JavaScript, `ERROR_STACK` in Java, and `PM_ERROR_LEVEL_STACK` in C and Rust.
 
 ### Changed
 
diff --git a/config.yml b/config.yml
index 14ea82f405..217b16e763 100644
--- a/config.yml
+++ b/config.yml
@@ -262,6 +262,7 @@ errors:
   - RETURN_INVALID
   - SCRIPT_NOT_FOUND
   - SINGLETON_FOR_LITERALS
+  - STACK_EXHAUSTED
   - STATEMENT_ALIAS
   - STATEMENT_POSTEXE_END
   - STATEMENT_PREEXE_BEGIN
diff --git a/docs/serialization.md b/docs/serialization.md
index cbe7746f40..63bd5a2b64 100644
--- a/docs/serialization.md
+++ b/docs/serialization.md
@@ -69,7 +69,7 @@ Only nodes that own comments have an attachment, and there are none unless the `
 | varuint | type |
 | string | error message (ASCII-only characters) |
 | location | the location in the source this error applies to |
-| `1` | the level of the error: `0` for `fatal`, `1` for `argument`, `2` for `load` |
+| `1` | the level of the error: `0` for `syntax`, `1` for `argument`, `2` for `load`, `3` for `stack` |
 
 ### warning
 
diff --git a/ext/prism/extension.c b/ext/prism/extension.c
index 78d60731a7..20c74e0e40 100644
--- a/ext/prism/extension.c
+++ b/ext/prism/extension.c
@@ -493,6 +493,10 @@ check_raise_error_option(pm_parser_t *parser, const pm_options_t *options, rb_en
             rb_ivar_set(error, rb_intern_const("@path"), Qnil);
             break;
         }
+        case PM_ERROR_LEVEL_STACK: {
+            error = rb_exc_new_str(rb_eSysStackError, message);
+            break;
+        }
     }
 
     return result_err(error);
@@ -716,6 +720,9 @@ parser_error(const pm_diagnostic_t *diagnostic, rb_encoding *encoding, VALUE sou
         case PM_ERROR_LEVEL_LOAD:
             level = ID2SYM(rb_intern("load"));
             break;
+        case PM_ERROR_LEVEL_STACK:
+            level = ID2SYM(rb_intern("stack"));
+            break;
         default:
             rb_raise(rb_eRuntimeError, "Unknown level: %" PRIu8, error_level);
     }
diff --git a/include/prism/diagnostic.h b/include/prism/diagnostic.h
index 202a3e782a..560d61ef4d 100644
--- a/include/prism/diagnostic.h
+++ b/include/prism/diagnostic.h
@@ -32,7 +32,14 @@ typedef enum {
     PM_ERROR_LEVEL_ARGUMENT = 1,
 
     /** For errors that should raise a load error. */
-    PM_ERROR_LEVEL_LOAD = 2
+    PM_ERROR_LEVEL_LOAD = 2,
+
+    /**
+     * For errors that should raise a system stack error. These mean that the
+     * parser ran out of the stack it was given, not that the source is
+     * invalid, so the same source may parse with more stack.
+     */
+    PM_ERROR_LEVEL_STACK = 3
 } pm_error_level_t;
 
 /**
diff --git a/include/prism/errors_format.h b/include/prism/errors_format.h
index 9706c2b57c..b94940e568 100644
--- a/include/prism/errors_format.h
+++ b/include/prism/errors_format.h
@@ -48,9 +48,10 @@ typedef enum {
  * @param buffer The buffer to format the errors into.
  * @param format_type The type of formatting to use when formatting the errors.
  * @returns The error level of the error with the highest precedence that was
- *   formatted. In practice this means it will be the argument or load error
- *   level if any were found, otherwise it will be the syntax error level.
- *   Callers should raise appropriate error types based on the returned level.
+ *   formatted. In practice this means it will be the level of the first
+ *   argument, load, or stack error if any were found, otherwise it will be the
+ *   syntax error level. Callers should raise appropriate error types based on
+ *   the returned level.
  */
 PRISM_EXPORTED_FUNCTION pm_error_level_t pm_errors_format(const pm_parser_t *parser, pm_buffer_t *buffer, pm_errors_format_type_t format_type) PRISM_NONNULL(1, 2);
 
diff --git a/include/prism/internal/options.h b/include/prism/internal/options.h
index 0c98dba849..71fa1a6b95 100644
--- a/include/prism/internal/options.h
+++ b/include/prism/internal/options.h
@@ -78,9 +78,9 @@ struct pm_options_t {
     /*
      * The number of bytes of C stack that the parser may use, measured from
      * where pm_parse is called. When the recursive descent goes past it, the
-     * parser reports that the input is nested too deeply instead of
-     * overflowing the stack. SIZE_MAX means no budget was given, in which case
-     * only PRISM_DEPTH_MAXIMUM bounds the recursion.
+     * parser reports that the stack is exhausted instead of overflowing it.
+     * SIZE_MAX means no budget was given, in which case only
+     * PRISM_DEPTH_MAXIMUM bounds the recursion.
      */
     size_t stack_budget;
 
diff --git a/include/prism/internal/parser.h b/include/prism/internal/parser.h
index 60ae79d457..42f3a437c0 100644
--- a/include/prism/internal/parser.h
+++ b/include/prism/internal/parser.h
@@ -889,8 +889,8 @@ struct pm_parser_t {
 
     /*
      * The number of bytes of C stack below stack_base that the recursive
-     * descent may use before it reports that the input is nested too deeply.
-     * SIZE_MAX when no budget was given, so the check never fires.
+     * descent may use before it reports that the stack is exhausted. SIZE_MAX
+     * when no budget was given, so the check never fires.
      */
     size_t stack_budget;
 
@@ -986,6 +986,13 @@ struct pm_parser_t {
      */
     bool warn_mismatched_indentation;
 
+    /*
+     * Whether the stack exhausted error has been reported. Once the budget is
+     * used up, every recursion that unwinds past it would report the error
+     * again, so it is only reported the first time.
+     */
+    bool stack_exhausted_reported;
+
 #if defined(PRISM_HAS_NEON) || defined(PRISM_HAS_SSE2) || defined(PRISM_HAS_SWAR)
     /*
      * Cached lookup tables for pm_strpbrk's SIMD fast path. Avoids rebuilding
@@ -1041,4 +1048,12 @@ pm_parser_stack_exhausted(const pm_parser_t *parser) {
     return used > parser->stack_budget;
 }
 
+/*
+ * Reports that the stack budget has been used up, at the given location. This
+ * is a separate error from the nesting depth limit, with its own error level,
+ * because the source may be valid and parse with more stack. It is reported
+ * once per parse.
+ */
+void pm_parser_err_stack_exhausted(pm_parser_t *parser, uint32_t start, uint32_t length);
+
 #endif
diff --git a/include/prism/options.h b/include/prism/options.h
index 19f520854c..58062061c3 100644
--- a/include/prism/options.h
+++ b/include/prism/options.h
@@ -291,14 +291,16 @@ PRISM_EXPORTED_FUNCTION void pm_options_raise_error_set(pm_options_t *options, u
 /**
  * Set the stack_budget option on the given options struct. This is the number
  * of bytes of C stack that the parser may use, measured from where pm_parse is
- * called. Deeply nested input that would go past it is reported as nested too
- * deeply instead of overflowing the stack. Callers should pass less than the
- * stack they actually have left, since the parser checks the budget between
- * frames rather than inside every one, and anything that walks the tree
- * afterward recurses on the same stack. A budget of 0 leaves no room for any
- * expression, so every one is reported as nested too deeply. A budget of
- * SIZE_MAX (the default) disables the check, leaving PRISM_DEPTH_MAXIMUM as the
- * only bound, which assumes a stack of roughly 8MB.
+ * called. Deeply nested input that would go past it produces a
+ * PM_ERR_STACK_EXHAUSTED error instead of overflowing the stack. That error
+ * has PM_ERROR_LEVEL_STACK rather than PM_ERROR_LEVEL_SYNTAX, since the same
+ * source may parse with a larger budget, and it is reported once per parse.
+ * Callers should pass less than the stack they actually have left, since the
+ * parser checks the budget between frames rather than inside every one, and
+ * anything that walks the tree afterward recurses on the same stack. A budget
+ * of 0 leaves no room for any expression. A budget of SIZE_MAX (the default)
+ * disables the check, leaving PRISM_DEPTH_MAXIMUM as the only bound, which
+ * assumes a stack of roughly 8MB.
  *
  * @param options The options struct to set the stack_budget value on.
  * @param stack_budget The stack_budget value to set, in bytes, or SIZE_MAX for
diff --git a/java/api/src/main/java/org/ruby_lang/prism/ParseResult.java b/java/api/src/main/java/org/ruby_lang/prism/ParseResult.java
index 7931327b9a..38a66931cd 100644
--- a/java/api/src/main/java/org/ruby_lang/prism/ParseResult.java
+++ b/java/api/src/main/java/org/ruby_lang/prism/ParseResult.java
@@ -22,6 +22,9 @@ public enum ErrorLevel {
 
         /** For errors that should raise LoadError. */
         ERROR_LOAD,
+
+        /** For errors that should raise SystemStackError. */
+        ERROR_STACK,
     }
 
     public static ErrorLevel[] ERROR_LEVELS = ErrorLevel.values();
diff --git a/lib/prism/ffi.rb b/lib/prism/ffi.rb
index d2cee03684..f3158cbb5d 100644
--- a/lib/prism/ffi.rb
+++ b/lib/prism/ffi.rb
@@ -537,6 +537,8 @@ def raise_error(string, options, format_type) # :nodoc:
           error = LoadError.new(message.force_encoding(Encoding.find("locale")))
           error.instance_variable_set(:@path, nil)
           raise error
+        when 3 # stack
+          raise SystemStackError, message.force_encoding(encoding_name)
         else
           raise "Unknown error level: #{level}"
         end
diff --git a/rust/ruby-prism-sys/src/bindings.rs b/rust/ruby-prism-sys/src/bindings.rs
index a8c2092668..aae2b8d4fd 100644
--- a/rust/ruby-prism-sys/src/bindings.rs
+++ b/rust/ruby-prism-sys/src/bindings.rs
@@ -10474,6 +10474,11 @@ pub enum pm_error_level_t {
     /** For errors that should raise a load error.
 */
     PM_ERROR_LEVEL_LOAD = 2,
+    /** For errors that should raise a system stack error. These mean that the
+ parser ran out of the stack it was given, not that the source is
+ invalid, so the same source may parse with more stack.
+*/
+    PM_ERROR_LEVEL_STACK = 3,
 }
 #[repr(u32)]
 #[non_exhaustive]
diff --git a/src/errors_format.c b/src/errors_format.c
index 645a997088..595580a136 100644
--- a/src/errors_format.c
+++ b/src/errors_format.c
@@ -581,6 +581,23 @@ pm_errors_format(const pm_parser_t *parser, pm_buffer_t *buffer, pm_errors_forma
             xfree_sized(rich_errors, rich_errors_size);
             return PM_ERROR_LEVEL_LOAD;
           }
+          case PM_ERROR_LEVEL_STACK: {
+            /* If we get a stack error, we want to format it and return it
+             * immediately. Once the stack is exhausted, the syntax errors
+             * around it come from recovering from that point rather than from
+             * the source, so they are left out. It should include a snippet of
+             * the source if possible. */
+            pm_rich_error_init(parser, rich_errors, diagnostic, &location);
+            pm_error_append_summary(parser, buffer, rich_errors[0].line_start, pm_diagnostic_message(diagnostic));
+
+            if (rich_errors_are_utf8(parser, 1, rich_errors)) {
+                pm_buffer_append_byte(buffer, '\n');
+                pm_rich_errors_format(parser, buffer, format_type, 1, rich_errors, false);
+            }
+
+            xfree_sized(rich_errors, rich_errors_size);
+            return PM_ERROR_LEVEL_STACK;
+          }
         }
     }
 
diff --git a/src/prism.c b/src/prism.c
index e5621e0ad8..b1fc48724e 100644
--- a/src/prism.c
+++ b/src/prism.c
@@ -550,6 +550,16 @@ pm_parser_err_current(pm_parser_t *parser, pm_diagnostic_id_t diag_id) {
     pm_parser_err_token(parser, &parser->current, diag_id);
 }
 
+/**
+ * Reports that the stack budget has been used up, at the given location.
+ */
+void
+pm_parser_err_stack_exhausted(pm_parser_t *parser, uint32_t start, uint32_t length) {
+    if (parser->stack_exhausted_reported) return;
+    parser->stack_exhausted_reported = true;
+    pm_parser_err(parser, start, length, PM_ERR_STACK_EXHAUSTED);
+}
+
 /**
  * Append an error to the list of errors on the parser using the location of the
  * previous token.
@@ -17850,7 +17860,12 @@ parse_pattern(pm_parser_t *parser, pm_constant_id_set_t *captures, uint8_t flags
     /* Nested patterns recurse back into parse_pattern without passing through
      * parse_expression, so this cycle needs its own depth check. */
     if (PRISM_UNLIKELY(depth >= PRISM_DEPTH_MAXIMUM || pm_parser_stack_exhausted(parser))) {
-        pm_parser_err_current(parser, PM_ERR_NESTING_TOO_DEEP);
+        if (depth >= PRISM_DEPTH_MAXIMUM) {
+            pm_parser_err_current(parser, PM_ERR_NESTING_TOO_DEEP);
+        } else {
+            pm_parser_err_stack_exhausted(parser, PM_TOKEN_START(parser, &parser->current), PM_TOKEN_LENGTH(&parser->current));
+        }
+
         return UP(pm_error_recovery_node_create(parser, PM_TOKEN_START(parser, &parser->current), PM_TOKEN_LENGTH(&parser->current)));
     }
 
@@ -22819,7 +22834,12 @@ parse_expression_terminator(pm_parser_t *parser, pm_node_t *node) {
 static pm_node_t *
 parse_expression(pm_parser_t *parser, pm_binding_power_t binding_power, uint8_t flags, pm_diagnostic_id_t diag_id, uint16_t depth) {
     if (PRISM_UNLIKELY(depth >= PRISM_DEPTH_MAXIMUM || pm_parser_stack_exhausted(parser))) {
-        pm_parser_err_current(parser, PM_ERR_NESTING_TOO_DEEP);
+        if (depth >= PRISM_DEPTH_MAXIMUM) {
+            pm_parser_err_current(parser, PM_ERR_NESTING_TOO_DEEP);
+        } else {
+            pm_parser_err_stack_exhausted(parser, PM_TOKEN_START(parser, &parser->current), PM_TOKEN_LENGTH(&parser->current));
+        }
+
         return UP(pm_error_recovery_node_create(parser, PM_TOKEN_START(parser, &parser->current), PM_TOKEN_LENGTH(&parser->current)));
     }
 
@@ -23519,6 +23539,7 @@ pm_parse_err_is_fatal(pm_diagnostic_id_t diag_id) {
         case PM_ERR_INVALID_NUMBER_UNDERSCORE_TRAILING:
         case PM_ERR_NO_LOCAL_VARIABLE:
         case PM_ERR_PARAMETER_ORDER:
+        case PM_ERR_STACK_EXHAUSTED:
         case PM_ERR_STATEMENT_UNDEF:
         case PM_ERR_VOID_EXPRESSION:
             return true;
diff --git a/src/regexp.c b/src/regexp.c
index 013bb23760..ed8b0af5d3 100644
--- a/src/regexp.c
+++ b/src/regexp.c
@@ -139,6 +139,25 @@ pm_regexp_parse_error(pm_regexp_parser_t *regexp_parser, const uint8_t *start, c
     }
 }
 
+/**
+ * Report that the stack budget was used up while parsing the regular
+ * expression. Unlike other errors, this is reported even when report_errors is
+ * not set, because giving up early there would silently drop the named
+ * captures that the rest of the regular expression defines. In that case start
+ * and end do not point into the original source, so the error is reported at
+ * the token that the parser is on instead.
+ */
+static void
+pm_regexp_parse_stack_exhausted(pm_regexp_parser_t *regexp_parser) {
+    pm_parser_t *parser = regexp_parser->parser;
+
+    if (regexp_parser->report_errors) {
+        pm_parser_err_stack_exhausted(parser, (uint32_t) (regexp_parser->start - parser->start), (uint32_t) (regexp_parser->end - regexp_parser->start));
+    } else {
+        pm_parser_err_stack_exhausted(parser, (uint32_t) (parser->current.start - parser->start), (uint32_t) (parser->current.end - parser->current.start));
+    }
+}
+
 /**
  * Append a formatted syntax error to the parser's error list, following the
  * same rules as pm_regexp_parse_error. This is a macro because we need
@@ -714,11 +733,16 @@ pm_regexp_parse_hex_escape(pm_regexp_parser_t *parser) {
  */
 static bool
 pm_regexp_parse_backslash_escape(pm_regexp_parser_t *parser, uint16_t depth) {
-    if (depth >= PM_REGEXP_PARSE_DEPTH_MAX || pm_parser_stack_exhausted(parser->parser)) {
+    if (depth >= PM_REGEXP_PARSE_DEPTH_MAX) {
         pm_regexp_parse_error(parser, parser->start, parser->end, "parse depth limit over");
         return false;
     }
 
+    if (pm_parser_stack_exhausted(parser->parser)) {
+        pm_regexp_parse_stack_exhausted(parser);
+        return false;
+    }
+
     if (pm_regexp_char_is_eof(parser)) return true;
 
     switch (*parser->cursor) {
@@ -846,11 +870,16 @@ pm_regexp_parse_character_set(pm_regexp_parser_t *parser, uint16_t depth) {
  */
 static bool
 pm_regexp_parse_lbracket(pm_regexp_parser_t *parser, uint16_t depth) {
-    if (depth >= PM_REGEXP_PARSE_DEPTH_MAX || pm_parser_stack_exhausted(parser->parser)) {
+    if (depth >= PM_REGEXP_PARSE_DEPTH_MAX) {
         pm_regexp_parse_error(parser, parser->start, parser->end, "parse depth limit over");
         return false;
     }
 
+    if (pm_parser_stack_exhausted(parser->parser)) {
+        pm_regexp_parse_stack_exhausted(parser);
+        return false;
+    }
+
     if ((parser->cursor < parser->end) && parser->cursor[0] == ']') {
         parser->cursor++;
         pm_regexp_parse_error(parser, parser->cursor - 1, parser->cursor, "empty char-class");
@@ -1011,7 +1040,7 @@ pm_regexp_parse_group(pm_regexp_parser_t *parser, uint16_t depth) {
      * stops that function from being inlined, which adds a frame to every
      * level of nesting. */
     if (pm_parser_stack_exhausted(parser->parser)) {
-        pm_regexp_parse_error(parser, parser->start, parser->end, "parse depth limit over");
+        pm_regexp_parse_stack_exhausted(parser);
         return false;
     }
 
diff --git a/templates/javascript/src/deserialize.js.erb b/templates/javascript/src/deserialize.js.erb
index d1fdbf507c..55f74907b8 100644
--- a/templates/javascript/src/deserialize.js.erb
+++ b/templates/javascript/src/deserialize.js.erb
@@ -244,7 +244,7 @@ export class ParseResult {
   }
 }
 
-const errorLevels = ["syntax", "argument", "load"];
+const errorLevels = ["syntax", "argument", "load", "stack"];
 const errorTypes = [
   <%- errors.each do |error| -%>
   "<%= error.name.downcase %>",
diff --git a/templates/lib/prism/serialize.rb.erb b/templates/lib/prism/serialize.rb.erb
index 32afb2fd29..aebf8a802f 100644
--- a/templates/lib/prism/serialize.rb.erb
+++ b/templates/lib/prism/serialize.rb.erb
@@ -412,6 +412,8 @@ module Prism
           :argument
         when 2
           :load
+        when 3
+          :stack
         else
           raise "Unknown level: #{level}"
         end
diff --git a/templates/src/diagnostic.c.erb b/templates/src/diagnostic.c.erb
index 7283411186..50635ab77c 100644
--- a/templates/src/diagnostic.c.erb
+++ b/templates/src/diagnostic.c.erb
@@ -82,6 +82,7 @@ typedef struct {
  * * `PM_ERROR_LEVEL_SYNTAX` - Errors that should raise SyntaxError.
  * * `PM_ERROR_LEVEL_ARGUMENT` - Errors that should raise ArgumentError.
  * * `PM_ERROR_LEVEL_LOAD` - Errors that should raise LoadError.
+ * * `PM_ERROR_LEVEL_STACK` - Errors that should raise SystemStackError.
  *
  * For warnings, they are:
  *
@@ -98,6 +99,9 @@ static const pm_diagnostic_data_t diagnostic_messages[PM_DIAGNOSTIC_ID_MAX] = {
     /* Errors that should raise load errors */
     [PM_ERR_SCRIPT_NOT_FOUND]                   = { "no Ruby script found in input", PM_ERROR_LEVEL_LOAD },
 
+    /* Errors that should raise system stack errors */
+    [PM_ERR_STACK_EXHAUSTED]                    = { "stack level too deep", PM_ERROR_LEVEL_STACK },
+
     /* Errors that should raise syntax errors */
     [PM_ERR_ALIAS_ARGUMENT]                     = { "invalid argument being passed to `alias`; expected a bare word, symbol, constant, or global variable", PM_ERROR_LEVEL_SYNTAX },
     [PM_ERR_ALIAS_ARGUMENT_NUMBERED_REFERENCE]  = { "invalid argument being passed to `alias`; can't make alias for the number variables", PM_ERROR_LEVEL_SYNTAX },