diff --git a/config/webpack/common.webpack.config.js b/config/webpack/common.webpack.config.js
index bcde0f68..efadc452 100644
--- a/config/webpack/common.webpack.config.js
+++ b/config/webpack/common.webpack.config.js
@@ -8,7 +8,7 @@ const LoaderOptionsPlugin = require('webpack/lib/LoaderOptionsPlugin');
 const CommonsChunkPlugin = require('webpack/lib/optimize/CommonsChunkPlugin');
 const ContextReplacementPlugin = require('webpack/lib/ContextReplacementPlugin');
 const ForkCheckerPlugin = require('awesome-typescript-loader').ForkCheckerPlugin;
-const processExitCode = require('../../plugin/process-exit-code');
+const ProcessExitCode = require('../../plugin/process-exit-code');
 const skyPagesConfigUtil = require('../sky-pages/sky-pages.config');
 const aliasBuilder = require('./alias-builder');
 
@@ -142,7 +142,7 @@ function getWebpackConfig(skyPagesConfig) {
       ),
 
       // Webpack 2 behavior does not correctly return non-zero exit code.
-      processExitCode
+      new ProcessExitCode()
     ]
   };
 }
diff --git a/config/webpack/test.webpack.config.js b/config/webpack/test.webpack.config.js
index af5ba379..365f3746 100644
--- a/config/webpack/test.webpack.config.js
+++ b/config/webpack/test.webpack.config.js
@@ -16,7 +16,7 @@ function getWebpackConfig(skyPagesConfig, argv) {
   const DefinePlugin = require('webpack/lib/DefinePlugin');
   const LoaderOptionsPlugin = require('webpack/lib/LoaderOptionsPlugin');
   const ContextReplacementPlugin = require('webpack/lib/ContextReplacementPlugin');
-  const processExitCode = require('../../plugin/process-exit-code');
+  const ProcessExitCode = require('../../plugin/process-exit-code');
   const skyPagesConfigUtil = require('../sky-pages/sky-pages.config');
   const aliasBuilder = require('./alias-builder');
 
@@ -160,7 +160,7 @@ function getWebpackConfig(skyPagesConfig, argv) {
       ),
 
       // Webpack 2 behavior does not correctly return non-zero exit code.
-      processExitCode
+      new ProcessExitCode()
     ]
   };
 
diff --git a/plugin/process-exit-code/index.js b/plugin/process-exit-code/index.js
index 57a1ff03..26a514a7 100644
--- a/plugin/process-exit-code/index.js
+++ b/plugin/process-exit-code/index.js
@@ -5,18 +5,14 @@
  * This function is inspired from webpack-fail-plugin, which has been deprecated.
  * Unfortunately, webpack does not correctly return a non-zero exit code unless using their CLI.
  */
-module.exports = function processExitCode() {
-  let isWatch = true;
+function ProcessExitCode() { }
 
-  this.plugin('run', (compiler, callback) => {
-    isWatch = false;
-    callback.call(compiler);
-  });
-
-  this.plugin('done', stats => {
-    if (stats.compilation.errors && stats.compilation.errors.length && !isWatch) {
-      process.on('beforeExit', () => process.exit(1));
+ProcessExitCode.prototype.apply = function (compiler) {
+  compiler.plugin('done', stats => {
+    if (stats.compilation.errors && stats.compilation.errors.length) {
+      process.on('exit', () => process.exitCode = 1);
     }
   });
-
 };
+
+module.exports = ProcessExitCode;
diff --git a/test/config-webpack-common.spec.js b/test/config-webpack-common.spec.js
index 6802208a..b74fdf71 100644
--- a/test/config-webpack-common.spec.js
+++ b/test/config-webpack-common.spec.js
@@ -3,6 +3,7 @@
 
 const path = require('path');
 const fs = require('fs');
+const ProcessExitCode = require('../plugin/process-exit-code');
 const runtimeUtils = require('../utils/runtime-test-utils');
 
 describe('config webpack common', () => {
@@ -123,12 +124,11 @@ describe('config webpack common', () => {
     });
 
     expect(processOnSpy).not.toHaveBeenCalled();
-  })
+  });
 
-  it('should pass a non-zero exit code to process.exit on errors', () => {
-    const processExitSpy = spyOn(process, 'exit');
+  it('should set process.exitCode to 1 if compilation errors', () => {
     const processOnSpy = spyOn(process, 'on').and.callFake((evt, cb) => {
-      if (evt === 'beforeExit') {
+      if (evt === 'exit') {
         cb();
       }
     });
@@ -139,13 +139,10 @@ describe('config webpack common', () => {
     });
 
     config.plugins.forEach(plugin => {
-      if (plugin.name === 'processExitCode') {
+      if (plugin instanceof ProcessExitCode) {
         plugin.apply({
           plugin: (evt, cb) => {
             switch (evt) {
-              case 'run':
-                cb(() => {}, () => {});
-              break;
               case 'done':
                 cb({
                   compilation: {
@@ -162,7 +159,41 @@ describe('config webpack common', () => {
     });
 
     expect(processOnSpy).toHaveBeenCalled();
-    expect(processExitSpy).toHaveBeenCalledWith(1);
+    expect(process.exitCode).toEqual(1);
+  });
+
+  it('should not set process.exit listener if no compilation errors', () => {
+
+    // Reset process.exitCode from any previous tests
+    process.exitCode = 0;
+
+    const processOnSpy = spyOn(process, 'on');
+    const lib = require('../config/webpack/common.webpack.config');
+    const config = lib.getWebpackConfig({
+      runtime: runtimeUtils.getDefaultRuntime(),
+      skyux: {}
+    });
+
+    config.plugins.forEach(plugin => {
+      if (plugin instanceof ProcessExitCode) {
+        plugin.apply({
+          plugin: (evt, cb) => {
+            switch (evt) {
+              case 'done':
+                cb({
+                  compilation: {
+                    errors: []
+                  }
+                });
+              break;
+            }
+          }
+        });
+      }
+    });
+
+    expect(processOnSpy).not.toHaveBeenCalled();
+    expect(process.exitCode).not.toEqual(1);
   });
 
 });