diff --git a/src/cmd/go/internal/load/pkg.go b/src/cmd/go/internal/load/pkg.go
index df790e1eaa..15f6b2e87b 100644
--- a/src/cmd/go/internal/load/pkg.go
+++ b/src/cmd/go/internal/load/pkg.go
@@ -3068,7 +3068,15 @@ func setPGOProfilePath(pkgs []*Package) {
 // CheckPackageErrors prints errors encountered loading pkgs and their
 // dependencies, then exits with a non-zero status if any errors were found.
 func CheckPackageErrors(pkgs []*Package) {
-	var anyIncomplete bool
+	PackageErrors(pkgs, func(p *Package) {
+		DefaultPrinter().Errorf(p, "%v", p.Error)
+	})
+	base.ExitIfErrors()
+}
+
+// PackageErrors calls report for errors encountered loading pkgs and their dependencies.
+func PackageErrors(pkgs []*Package, report func(*Package)) {
+	var anyIncomplete, anyErrors bool
 	for _, pkg := range pkgs {
 		if pkg.Incomplete {
 			anyIncomplete = true
@@ -3078,11 +3086,14 @@ func CheckPackageErrors(pkgs []*Package) {
 		all := PackageList(pkgs)
 		for _, p := range all {
 			if p.Error != nil {
-				DefaultPrinter().Errorf(p, "%v", p.Error)
+				report(p)
+				anyErrors = true
 			}
 		}
 	}
-	base.ExitIfErrors()
+	if anyErrors {
+		return
+	}
 
 	// Check for duplicate loads of the same package.
 	// That should be impossible, but if it does happen then
@@ -3105,7 +3116,9 @@ func CheckPackageErrors(pkgs []*Package) {
 		}
 		seen[key] = true
 	}
-	base.ExitIfErrors()
+	if len(reported) > 0 {
+		base.ExitIfErrors()
+	}
 }
 
 // mainPackagesOnly filters out non-main packages matched only by arguments
diff --git a/src/cmd/go/internal/test/test.go b/src/cmd/go/internal/test/test.go
index b530d027df..90f2d88d6b 100644
--- a/src/cmd/go/internal/test/test.go
+++ b/src/cmd/go/internal/test/test.go
@@ -994,14 +994,15 @@ func runTest(ctx context.Context, cmd *base.Command, args []string) {
 
 	// Prepare build + run + print actions for all packages being tested.
 	for _, p := range pkgs {
-		buildTest, runTest, printTest, perr, err := builderTest(b, ctx, pkgOpts, p, allImports[p], writeCoverMetaAct)
-		if err != nil {
+		reportErr := func(perr *load.Package, err error) {
 			str := err.Error()
 			if p.ImportPath != "" {
 				load.DefaultPrinter().Errorf(perr, "# %s\n%s", p.ImportPath, str)
 			} else {
 				load.DefaultPrinter().Errorf(perr, "%s", str)
 			}
+		}
+		reportSetupFailed := func(perr *load.Package, err error) {
 			var stdout io.Writer = os.Stdout
 			if testJSON {
 				json := test2json.NewConverter(stdout, p.ImportPath, test2json.Timestamp)
@@ -1020,6 +1021,23 @@ func runTest(ctx context.Context, cmd *base.Command, args []string) {
 			}
 			fmt.Fprintf(stdout, "FAIL\t%s [setup failed]\n", p.ImportPath)
 			base.SetExitStatus(1)
+		}
+
+		var firstErrPkg *load.Package // arbitrarily report setup failed error for first error pkg reached in DFS
+		load.PackageErrors([]*load.Package{p}, func(p *load.Package) {
+			reportErr(p, p.Error)
+			if firstErrPkg == nil {
+				firstErrPkg = p
+			}
+		})
+		if firstErrPkg != nil {
+			reportSetupFailed(firstErrPkg, firstErrPkg.Error)
+			continue
+		}
+		buildTest, runTest, printTest, perr, err := builderTest(b, ctx, pkgOpts, p, allImports[p], writeCoverMetaAct)
+		if err != nil {
+			reportErr(perr, err)
+			reportSetupFailed(perr, err)
 			continue
 		}
 		builds = append(builds, buildTest)
diff --git a/src/cmd/go/testdata/script/test_json_build.txt b/src/cmd/go/testdata/script/test_json_build.txt
index 0a40649dcc..df8863ae03 100644
--- a/src/cmd/go/testdata/script/test_json_build.txt
+++ b/src/cmd/go/testdata/script/test_json_build.txt
@@ -40,6 +40,18 @@ stdout '"Action":"output","Package":"m/loaderror","Output":"FAIL\\tm/loaderror \
 stdout '"Action":"fail","Package":"m/loaderror","Elapsed":.*,"FailedBuild":"x"'
 ! stderr '.'
 
+# Test an import cycle loading error in a non test file. (#70820)
+! go test -json -o=$devnull ./cycle/p
+stdout '"ImportPath":"m/cycle/q","Action":"build-output","Output":"# m/cycle/p\\n"'
+stdout '"ImportPath":"m/cycle/q","Action":"build-output","Output":"package m/cycle/p\\n"'
+stdout '"ImportPath":"m/cycle/q","Action":"build-output","Output":"\\timports m/cycle/q from p.go\\n"'
+stdout '"ImportPath":"m/cycle/q","Action":"build-output","Output":"\\timports m/cycle/q from q.go: import cycle not allowed\\n"'
+stdout '"ImportPath":"m/cycle/q","Action":"build-fail"'
+stdout '"Action":"start","Package":"m/cycle/p"'
+stdout '"Action":"output","Package":"m/cycle/p","Output":"FAIL\\tm/cycle/p \[setup failed\]\\n"'
+stdout '"Action":"fail","Package":"m/cycle/p","Elapsed":.*,"FailedBuild":"m/cycle/q"'
+! stderr '.'
+
 # Test a vet error
 ! go test -json -o=$devnull ./veterror
 stdout '"ImportPath":"m/veterror \[m/veterror.test\]","Action":"build-output","Output":"# m/veterror\\n"'
@@ -99,3 +111,13 @@ import (
 func TestVetError(t *testing.T) {
         fmt.Printf("%s")
 }
+-- cycle/p/p.go --
+package p
+
+import "m/cycle/q"
+-- cycle/q/q.go --
+package q
+
+import (
+	"m/cycle/q"
+)
diff --git a/src/cmd/go/testdata/script/test_setup_error.txt b/src/cmd/go/testdata/script/test_setup_error.txt
index 2999067f2c..bf566d4621 100644
--- a/src/cmd/go/testdata/script/test_setup_error.txt
+++ b/src/cmd/go/testdata/script/test_setup_error.txt
@@ -33,10 +33,23 @@ stderr '# m/t2/p\n.*package x is not in std'
 stdout 'FAIL	m/t2/p \[setup failed\]'
 stdout 'ok  	m/t'
 
-# Finally, this one is a build error, but produced by cmd/go directly
+# Test that an import cycle error is reported. Test for #70820
+! go test -o=$devnull ./cycle/p ./t
+stderr '# m/cycle/p\n.*package m/cycle/p\n\timports m/cycle/p from p\.go: import cycle not allowed'
+stdout 'FAIL	m/cycle/p \[setup failed\]'
+stdout 'ok  	m/t'
+
+# Test that multiple errors for the same package under test are reported.
+! go test -o=$devnull ./cycle/q ./t
+stderr '# m/cycle/q\n.*package m/cycle/q\n\timports m/cycle/p from q\.go\n\timports m/cycle/p from p\.go: import cycle not allowed'
+stdout 'FAIL	m/cycle/q \[setup failed\]'
+stdout 'ok  	m/t'
+
+# Finally, this one is a non-import-cycle load error that
+# is produced for the package under test.
 ! go test -o=$devnull . ./t
-stderr '^\.: no Go files in '$PWD'$'
-stdout 'FAIL	. \[build failed\]'
+stderr '# \.\n.*no Go files in '$PWD'$'
+stdout 'FAIL	. \[setup failed\]'
 stdout 'ok  	m/t'
 
 -- go.mod --
@@ -68,6 +81,17 @@ package p
 package p
 
 import "m/bad"
+-- cycle/p/p.go --
+package p
+
+import "m/cycle/p"
+-- cycle/q/q.go --
+package q
+
+import (
+	"m/bad"
+	"m/cycle/p"
+)
 -- bad/bad.go --
 package bad