diff --git a/CLAUDE.md b/CLAUDE.md
index bf20bcbaf..eba106e55 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -16,6 +16,7 @@ General advice:
 
 - `devtools::test()` - Run all tests
 - `devtools::test_file("tests/testthat/test-filename.R")` - Run tests in a specific file
+- DO NOT USE `devtools::test_active_file()`
 - `devtools::load_all()` - Load package for development
 - `devtools::document()` - Generate documentation
 - `devtools::check()` - Run R CMD check
diff --git a/NEWS.md b/NEWS.md
index 00ee47bf6..1191ecf0f 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -1,5 +1,6 @@
 # testthat (development version)
 
+* `ParallelProgressReporter` now respect `max_failures` (#1162).
 * The last snapshot is no longer lost if the snapshot file is missing the final newline (#2092). It's easy to accidentally remove this because there are two trailing new lines in snapshot files and many editors will automatically remove if you touch the file.
 * New `expect_r6_class()` (#2030).
 * `expect_*()` functions consistently and rigorously check their inputs (#1754). 
diff --git a/R/reporter-progress.R b/R/reporter-progress.R
index a5405f483..25faf9d10 100644
--- a/R/reporter-progress.R
+++ b/R/reporter-progress.R
@@ -221,16 +221,20 @@ ProgressReporter <- R6::R6Class(
       self$report_issues(self$ctxt_issues)
 
       if (self$is_full()) {
-        snapshotter <- get_snapshotter()
-        if (!is.null(snapshotter)) {
-          snapshotter$end_file()
-        }
+        self$report_full()
+      }
+    },
 
-        stop_reporter(c(
-          "Maximum number of failures exceeded; quitting at end of file.",
-          i = "Increase this number with (e.g.) {.run testthat::set_max_fails(Inf)}"
-        ))
+    report_full = function() {
+      snapshotter <- get_snapshotter()
+      if (!is.null(snapshotter)) {
+        snapshotter$end_file()
       }
+
+      stop_reporter(c(
+        "Maximum number of failures exceeded; quitting at end of file.",
+        i = "Increase this number with (e.g.) {.run testthat::set_max_fails(Inf)}"
+      ))
     },
 
     add_result = function(context, test, result) {
@@ -258,6 +262,10 @@ ProgressReporter <- R6::R6Class(
     },
 
     end_reporter = function() {
+      if (self$is_full()) {
+        return()
+      }
+
       self$cat_line()
 
       colour_if <- function(n, type) {
@@ -465,7 +473,13 @@ ParallelProgressReporter <- R6::R6Class(
       self$report_issues(fsts$issues)
 
       self$files[[self$file_name]] <- NULL
-      if (length(self$files)) self$update(force = TRUE)
+      if (length(self$files)) {
+        self$update(force = TRUE)
+      }
+
+      if (self$is_full()) {
+        self$report_full()
+      }
     },
 
     end_reporter = function() {
diff --git a/tests/testthat/_snaps/reporter-progress.md b/tests/testthat/_snaps/reporter-progress.md
index e27a9e2b4..af5ed43d0 100644
--- a/tests/testthat/_snaps/reporter-progress.md
+++ b/tests/testthat/_snaps/reporter-progress.md
@@ -133,79 +133,6 @@
     --------------------------------------------------------------------------------
     Maximum number of failures exceeded; quitting at end of file.
     i Increase this number with (e.g.) `testthat::set_max_fails(Inf)` 
-    
-    == Results =====================================================================
-    -- Failed tests ----------------------------------------------------------------
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    Failure ('reporters/fail-many.R:3:5'): Example
-    FALSE (`actual`) is not equal to TRUE (`expected`).
-    
-    `actual`:   FALSE
-    `expected`: TRUE 
-    
-    [ FAIL 11 | WARN 0 | SKIP 0 | PASS 0 ]
-    == Terminated early ============================================================
-    
-    No one gets it right on their first try
 
 # can fully suppress incremental updates
 
@@ -632,3 +559,81 @@
     [ FAIL 0 | WARN 0 | SKIP 0 | PASS 6 ]
     [ FAIL 0 | WARN 0 | SKIP 0 | PASS 7 ]
 
+# ParallelProgressReporter fails after max_fail tests
+
+    v | F W  S  OK | Context
+    
+    - [ FAIL 0 | WARN 0 | SKIP 0 | PASS 0 ] Starting up...                          
+    x | 11        0 | reporters/fail-many                                           
+    --------------------------------------------------------------------------------
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    
+    Failure ('reporters/fail-many.R:3:5'): Example
+    FALSE (`actual`) is not equal to TRUE (`expected`).
+    
+    `actual`:   FALSE
+    `expected`: TRUE 
+    --------------------------------------------------------------------------------
+    Maximum number of failures exceeded; quitting at end of file.
+    i Increase this number with (e.g.) `testthat::set_max_fails(Inf)` 
+    
+                                                                                    
+
diff --git a/tests/testthat/test-reporter-progress.R b/tests/testthat/test-reporter-progress.R
index bcac0b60f..1c893d081 100644
--- a/tests/testthat/test-reporter-progress.R
+++ b/tests/testthat/test-reporter-progress.R
@@ -83,3 +83,13 @@ test_that("display of successes only is compact", {
     test_path("reporters/successes.R")
   )
 })
+
+# parallel progress reporter ----------------------------------------------
+
+test_that("ParallelProgressReporter fails after max_fail tests", {
+  withr::local_options(testthat.progress.max_fails = 10)
+  expect_snapshot_reporter(
+    ParallelProgressReporter$new(update_interval = 0, min_time = Inf),
+    test_path(c("reporters/fail-many.R", "reporters/fail.R"))
+  )
+})