diff --git a/sdks/go/pkg/beam/runners/prism/internal/execute.go b/sdks/go/pkg/beam/runners/prism/internal/execute.go
index 853b7974479d..f6e148f9f3f6 100644
--- a/sdks/go/pkg/beam/runners/prism/internal/execute.go
+++ b/sdks/go/pkg/beam/runners/prism/internal/execute.go
@@ -376,7 +376,11 @@ func executePipeline(ctx context.Context, wks map[string]*worker.W, j *jobservic
 			eg.Go(func() error {
 				s := stages[rb.StageID]
 				wk := wks[s.envID]
-				if err := s.Execute(ctx, j, wk, comps, em, rb); err != nil {
+				// Pass egctx instead of the parent ctx so that when any bundle fails,
+				// the errgroup cancels egctx and all other concurrent bundle execution
+				// goroutines immediately detect cancellation and abort. This prevents
+				// eg.Wait() from blocking indefinitely and allows prompt error reporting.
+				if err := s.Execute(egctx, j, wk, comps, em, rb); err != nil {
 					// Ensure we clean up on bundle failure
 					j.Logger.Error("Bundle Failed.", slog.Any("error", err))
 					em.FailBundle(rb)
diff --git a/sdks/go/pkg/beam/runners/prism/internal/execute_test.go b/sdks/go/pkg/beam/runners/prism/internal/execute_test.go
index 29fccaeb238e..2bb73f20e200 100644
--- a/sdks/go/pkg/beam/runners/prism/internal/execute_test.go
+++ b/sdks/go/pkg/beam/runners/prism/internal/execute_test.go
@@ -519,6 +519,28 @@ func TestFailure(t *testing.T) {
 	}
 }
 
+func TestFailureHang(t *testing.T) {
+	initRunner(t)
+
+	p, s := beam.NewPipelineWithRoot()
+	imp := beam.Impulse(s)
+	col1 := beam.ParDo(s, doFnBlock, imp)
+	col2 := beam.ParDo(s, doFnFail, imp)
+	beam.ParDo(s, &int64Check{Name: "block", Want: []int{}}, col1)
+	beam.ParDo(s, &int64Check{Name: "fail", Want: []int{}}, col2)
+
+	ctx, cancel := context.WithTimeout(context.Background(), 2*time.Second)
+	defer cancel()
+
+	_, err := executeWithT(ctx, t, p)
+	if err == nil {
+		t.Fatalf("expected pipeline failure, but got a success")
+	}
+	if want := "doFnFail: failing as intended"; !strings.Contains(err.Error(), want) {
+		t.Fatalf("expected pipeline failure with %q, but was %v", want, err)
+	}
+}
+
 func TestRunner_Passert(t *testing.T) {
 	initRunner(t)
 	tests := []struct {
diff --git a/sdks/go/pkg/beam/runners/prism/internal/testdofns_test.go b/sdks/go/pkg/beam/runners/prism/internal/testdofns_test.go
index 334d74fcae1d..d21ccd53afd0 100644
--- a/sdks/go/pkg/beam/runners/prism/internal/testdofns_test.go
+++ b/sdks/go/pkg/beam/runners/prism/internal/testdofns_test.go
@@ -59,6 +59,7 @@ func init() {
 	register.Function3x0(dofn1Counter)
 	register.Function2x0(dofnSink)
 	register.Function3x1(doFnFail)
+	register.Function3x0(doFnBlock)
 
 	register.Function2x1(combineIntSum)
 
@@ -283,6 +284,10 @@ func doFnFail(ctx context.Context, _ []byte, emit func(int64)) error {
 	return fmt.Errorf("doFnFail: failing as intended")
 }
 
+func doFnBlock(ctx context.Context, _ []byte, emit func(int64)) {
+	<-ctx.Done()
+}
+
 func combineIntSum(a, b int64) int64 {
 	return a + b
 }