diff --git a/lib/livebook/runtime.ex b/lib/livebook/runtime.ex
index 23be0159a..a601420c7 100644
--- a/lib/livebook/runtime.ex
+++ b/lib/livebook/runtime.ex
@@ -42,6 +42,9 @@ defprotocol Livebook.Runtime do
   * `{:evaluation_stdout, ref, string}` - output captured during evaluation
   * `{:evaluation_response, ref, response}` - final result of the evaluation
 
+  If the evaluation state within a container is lost (e.g. a process goes down),
+  the runtime can send `{:container_down, container_ref, message}` to notify the owner.
+
   ## Options
 
   * `:file` - file to which the evaluated code belongs. Most importantly,
diff --git a/lib/livebook/runtime/erl_dist/manager.ex b/lib/livebook/runtime/erl_dist/manager.ex
index 53b485d1e..89da6c2e3 100644
--- a/lib/livebook/runtime/erl_dist/manager.ex
+++ b/lib/livebook/runtime/erl_dist/manager.ex
@@ -156,6 +156,22 @@ defmodule Livebook.Runtime.ErlDist.Manager do
     {:stop, :normal, state}
   end
 
+  def handle_info({:DOWN, _, :process, pid, reason}, state) do
+    state.evaluators
+    |> Enum.find(fn {_container_ref, evaluator_pid} ->
+      evaluator_pid == pid
+    end)
+    |> case do
+      {container_ref, _} ->
+        message = Exception.format_exit(reason)
+        send(state.owner, {:container_down, container_ref, message})
+        {:noreply, %{state | evaluators: Map.delete(state.evaluators, container_ref)}}
+
+      nil ->
+        {:noreply, state}
+    end
+  end
+
   def handle_info(_message, state), do: {:noreply, state}
 
   @impl true
@@ -201,6 +217,7 @@ defmodule Livebook.Runtime.ErlDist.Manager do
       state
     else
       {:ok, evaluator} = ErlDist.EvaluatorSupervisor.start_evaluator()
+      Process.monitor(evaluator)
       %{state | evaluators: Map.put(state.evaluators, container_ref, evaluator)}
     end
   end
diff --git a/lib/livebook/session.ex b/lib/livebook/session.ex
index 7b245ddd0..34e8c1b9f 100644
--- a/lib/livebook/session.ex
+++ b/lib/livebook/session.ex
@@ -459,6 +459,13 @@ defmodule Livebook.Session do
     {:noreply, handle_operation(state, operation)}
   end
 
+  def handle_info({:container_down, :main, message}, state) do
+    broadcast_error(state.session_id, "evaluation process terminated - #{message}")
+
+    operation = {:reflect_evaluation_failure, self()}
+    {:noreply, handle_operation(state, operation)}
+  end
+
   def handle_info(:autosave, state) do
     Process.send_after(self(), :autosave, @autosave_interval)
     {:noreply, maybe_save_notebook(state)}
diff --git a/lib/livebook/session/data.ex b/lib/livebook/session/data.ex
index 2883b2d40..a1b68548b 100644
--- a/lib/livebook/session/data.ex
+++ b/lib/livebook/session/data.ex
@@ -58,7 +58,7 @@ defmodule Livebook.Session.Data do
 
   @type cell_revision :: non_neg_integer()
 
-  @type cell_validity_status :: :fresh | :evaluated | :stale
+  @type cell_validity_status :: :fresh | :evaluated | :stale | :aborted
   @type cell_evaluation_status :: :ready | :queued | :evaluating
 
   @type index :: non_neg_integer()
@@ -80,6 +80,7 @@ defmodule Livebook.Session.Data do
           | {:queue_cell_evaluation, pid(), Cell.id()}
           | {:add_cell_evaluation_stdout, pid(), Cell.id(), String.t()}
           | {:add_cell_evaluation_response, pid(), Cell.id(), Evaluator.evaluation_response()}
+          | {:reflect_evaluation_failure, pid()}
           | {:cancel_cell_evaluation, pid(), Cell.id()}
           | {:set_notebook_name, pid(), String.t()}
           | {:set_section_name, pid(), Section.id(), String.t()}
@@ -270,6 +271,13 @@ defmodule Livebook.Session.Data do
     end
   end
 
+  def apply_operation(data, {:reflect_evaluation_failure, _client_pid}) do
+    data
+    |> with_actions()
+    |> clear_evaluation()
+    |> wrap_ok()
+  end
+
   def apply_operation(data, {:cancel_cell_evaluation, _client_pid, id}) do
     with {:ok, cell, section} <- Notebook.fetch_cell_and_section(data.notebook, id) do
       case data.cell_infos[cell.id].evaluation_status do
@@ -577,11 +585,19 @@ defmodule Livebook.Session.Data do
     |> set_section_info!(section.id, evaluating_cell_id: nil, evaluation_queue: [])
     |> reduce(
       section.cells,
-      &set_cell_info!(&1, &2.id,
-        validity_status: :fresh,
-        evaluation_status: :ready,
-        evaluation_digest: nil
-      )
+      &update_cell_info!(&1, &2.id, fn info ->
+        %{
+          info
+          | validity_status:
+              if info.validity_status == :fresh and info.evaluation_status != :evaluating do
+                :fresh
+              else
+                :aborted
+              end,
+            evaluation_status: :ready,
+            evaluation_digest: nil
+        }
+      end)
     )
   end
 
diff --git a/lib/livebook_web/live/cell_component.ex b/lib/livebook_web/live/cell_component.ex
index bcaa30222..d012132e8 100644
--- a/lib/livebook_web/live/cell_component.ex
+++ b/lib/livebook_web/live/cell_component.ex
@@ -269,6 +269,8 @@ defmodule LivebookWeb.CellComponent do
     |> String.split("\n")
   end
 
+  defp render_cell_status(validity_status, evaluation_status, changed)
+
   defp render_cell_status(_, :evaluating, changed) do
     render_status_indicator("Evaluating", "bg-blue-500", "bg-blue-400", changed)
   end
@@ -285,6 +287,10 @@ defmodule LivebookWeb.CellComponent do
     render_status_indicator("Stale", "bg-yellow-200", nil, changed)
   end
 
+  defp render_cell_status(:aborted, _, _) do
+    render_status_indicator("Aborted", "bg-red-400", nil, false)
+  end
+
   defp render_cell_status(_, _, _), do: nil
 
   defp render_status_indicator(text, circle_class, animated_circle_class, show_changed) do
@@ -302,7 +308,9 @@ defmodule LivebookWeb.CellComponent do
         <span class="<%= unless(@show_changed, do: "invisible") %>">*</span>
       </div>
       <span class="flex relative h-3 w-3">
-        <span class="animate-ping absolute inline-flex h-3 w-3 rounded-full <%= @animated_circle_class %> opacity-75"></span>
+        <%= if @animated_circle_class do %>
+          <span class="animate-ping absolute inline-flex h-3 w-3 rounded-full <%= @animated_circle_class %> opacity-75"></span>
+        <% end %>
         <span class="relative inline-flex rounded-full h-3 w-3 <%= @circle_class %>"></span>
       </span>
     </div>
diff --git a/lib/livebook_web/live/session_live.ex b/lib/livebook_web/live/session_live.ex
index c9f6aa64f..b8c10d449 100644
--- a/lib/livebook_web/live/session_live.ex
+++ b/lib/livebook_web/live/session_live.ex
@@ -359,13 +359,13 @@ defmodule LivebookWeb.SessionLive do
   end
 
   def handle_info({:error, error}, socket) do
-    message = error |> to_string() |> String.capitalize()
+    message = error |> to_string() |> upcase_first()
 
     {:noreply, put_flash(socket, :error, message)}
   end
 
   def handle_info({:info, info}, socket) do
-    message = info |> to_string() |> String.capitalize()
+    message = info |> to_string() |> upcase_first()
 
     {:noreply, put_flash(socket, :info, message)}
   end
@@ -450,6 +450,11 @@ defmodule LivebookWeb.SessionLive do
     end
   end
 
+  def upcase_first(string) do
+    {head, tail} = String.split_at(string, 1)
+    String.upcase(head) <> tail
+  end
+
   defp insert_cell_next_to(socket, cell_id, type, idx_offset: idx_offset) do
     {:ok, cell, section} = Notebook.fetch_cell_and_section(socket.private.data.notebook, cell_id)
     index = Enum.find_index(section.cells, &(&1 == cell))
diff --git a/test/livebook/evaluator_test.exs b/test/livebook/evaluator_test.exs
index f3188f706..9a9ee26d4 100644
--- a/test/livebook/evaluator_test.exs
+++ b/test/livebook/evaluator_test.exs
@@ -69,7 +69,8 @@ defmodule Livebook.EvaluatorTest do
       Evaluator.evaluate_code(evaluator, self(), code, :code_1)
 
       assert_receive {:evaluation_response, :code_1,
-                      {:error, :error, %FunctionClauseError{}, [{List, :first, 1, _location}]}}
+                      {:error, :error, %FunctionClauseError{},
+                       [{List, :first, _arity, _location}]}}
     end
 
     test "in case of an error returns only the relevant part of stacktrace", %{
diff --git a/test/livebook/runtime/erl_dist/manager_test.exs b/test/livebook/runtime/erl_dist/manager_test.exs
index 0f101d051..638ea1295 100644
--- a/test/livebook/runtime/erl_dist/manager_test.exs
+++ b/test/livebook/runtime/erl_dist/manager_test.exs
@@ -68,4 +68,21 @@ defmodule Livebook.Runtime.ErlDist.ManagerTest do
       Manager.stop(node())
     end
   end
+
+  @tag capture_log: true
+  test "notifies the owner when an evaluator goes down" do
+    Manager.start()
+    Manager.set_owner(node(), self())
+
+    code = """
+    spawn_link(fn -> raise "sad cat" end)
+    """
+
+    Manager.evaluate_code(node(), code, :container1, :evaluation1)
+
+    assert_receive {:container_down, :container1, message}
+    assert message =~ "sad cat"
+
+    Manager.stop(node())
+  end
 end
diff --git a/test/livebook/session/data_test.exs b/test/livebook/session/data_test.exs
index c93edf9f6..e07fb689e 100644
--- a/test/livebook/session/data_test.exs
+++ b/test/livebook/session/data_test.exs
@@ -790,6 +790,36 @@ defmodule Livebook.Session.DataTest do
     end
   end
 
+  describe "apply_operation/2 given :reflect_evaluation_failure" do
+    test "clears evaluation queue and marks evaluated and evaluating cells as aborted" do
+      data =
+        data_after_operations!([
+          {:insert_section, self(), 0, "s1"},
+          {:insert_cell, self(), "s1", 0, :elixir, "c1"},
+          {:insert_cell, self(), "s1", 1, :elixir, "c2"},
+          {:insert_cell, self(), "s1", 2, :elixir, "c3"},
+          {:queue_cell_evaluation, self(), "c1"},
+          {:queue_cell_evaluation, self(), "c2"},
+          {:queue_cell_evaluation, self(), "c3"},
+          {:add_cell_evaluation_response, self(), "c1", {:ok, [1, 2, 3]}}
+        ])
+
+      operation = {:reflect_evaluation_failure, self()}
+
+      assert {:ok,
+              %{
+                cell_infos: %{
+                  "c1" => %{validity_status: :aborted, evaluation_status: :ready},
+                  "c2" => %{validity_status: :aborted, evaluation_status: :ready},
+                  "c3" => %{validity_status: :fresh, evaluation_status: :ready}
+                },
+                section_infos: %{
+                  "s1" => %{evaluating_cell_id: nil, evaluation_queue: []}
+                }
+              }, _actions} = Data.apply_operation(data, operation)
+    end
+  end
+
   describe "apply_operation/2 given :cancel_cell_evaluation" do
     test "returns an error given invalid cell id" do
       data = Data.new()
@@ -829,8 +859,8 @@ defmodule Livebook.Session.DataTest do
       assert {:ok,
               %{
                 cell_infos: %{
-                  "c1" => %{validity_status: :fresh, evaluation_status: :ready},
-                  "c2" => %{validity_status: :fresh, evaluation_status: :ready},
+                  "c1" => %{validity_status: :aborted, evaluation_status: :ready},
+                  "c2" => %{validity_status: :aborted, evaluation_status: :ready},
                   "c3" => %{validity_status: :fresh, evaluation_status: :ready}
                 },
                 section_infos: %{
@@ -1317,7 +1347,7 @@ defmodule Livebook.Session.DataTest do
       assert {:ok,
               %{
                 cell_infos: %{
-                  "c1" => %{validity_status: :fresh, evaluation_status: :ready},
+                  "c1" => %{validity_status: :aborted, evaluation_status: :ready},
                   "c2" => %{validity_status: :fresh, evaluation_status: :ready},
                   "c3" => %{validity_status: :fresh, evaluation_status: :ready},
                   "c4" => %{validity_status: :fresh, evaluation_status: :ready}