diff --git a/crates/bashkit/src/interpreter/mod.rs b/crates/bashkit/src/interpreter/mod.rs
index 362b915e..bc2d9f38 100644
--- a/crates/bashkit/src/interpreter/mod.rs
+++ b/crates/bashkit/src/interpreter/mod.rs
@@ -1142,7 +1142,8 @@ impl Interpreter {
             // Run ERR trap on non-zero exit (unless in conditional chain)
             if exit_code != 0 {
                 let suppressed = matches!(command, Command::List(_))
-                    || matches!(command, Command::Pipeline(p) if p.negated);
+                    || matches!(command, Command::Pipeline(p) if p.negated)
+                    || result.errexit_suppressed;
                 if !suppressed {
                     self.run_err_trap(&mut stdout, &mut stderr).await;
                 }
@@ -1151,9 +1152,12 @@ impl Interpreter {
             // errexit (set -e): stop on non-zero exit for top-level simple commands.
             // List commands handle errexit internally (with && / || chain awareness).
             // Negated pipelines (! cmd) explicitly handle the exit code.
+            // Compound commands (for/while/until) propagate errexit_suppressed when
+            // their body ends with an AND-OR chain failure.
             if self.is_errexit_enabled() && exit_code != 0 {
                 let suppressed = matches!(command, Command::List(_))
-                    || matches!(command, Command::Pipeline(p) if p.negated);
+                    || matches!(command, Command::Pipeline(p) if p.negated)
+                    || result.errexit_suppressed;
                 if !suppressed {
                     break;
                 }
diff --git a/crates/bashkit/tests/issue_873_test.rs b/crates/bashkit/tests/issue_873_test.rs
new file mode 100644
index 00000000..48579b6e
--- /dev/null
+++ b/crates/bashkit/tests/issue_873_test.rs
@@ -0,0 +1,70 @@
+//! Test for issue #873: set -e incorrectly triggers on compound commands
+//! whose body ends with && chain failure.
+
+use bashkit::Bash;
+
+#[tokio::test]
+async fn set_e_for_loop_and_chain_no_exit() {
+    let mut bash = Bash::new();
+    let result = bash
+        .exec(
+            r#"
+set -euo pipefail
+result=""
+for src in yes no; do
+  [[ "${src}" == "yes" ]] && result="${src}"
+done
+echo "result: ${result}"
+"#,
+        )
+        .await
+        .unwrap();
+    assert!(
+        result.stdout.contains("result: yes"),
+        "expected 'result: yes', got: {}",
+        result.stdout
+    );
+}
+
+#[tokio::test]
+async fn set_e_while_loop_and_chain_no_exit() {
+    let mut bash = Bash::new();
+    let result = bash
+        .exec(
+            r#"
+set -e
+i=0
+while [[ $i -lt 3 ]]; do
+    [[ $i -eq 1 ]] && echo "found one"
+    ((i++)) || true
+done
+echo "done"
+"#,
+        )
+        .await
+        .unwrap();
+    assert!(
+        result.stdout.contains("found one"),
+        "stdout: {}",
+        result.stdout
+    );
+    assert!(result.stdout.contains("done"), "stdout: {}", result.stdout);
+}
+
+#[tokio::test]
+async fn set_e_plain_failure_in_loop_still_exits() {
+    let mut bash = Bash::new();
+    let result = bash
+        .exec(
+            r#"
+set -e
+for x in a b; do
+    false
+done
+echo "SHOULD NOT APPEAR"
+"#,
+        )
+        .await
+        .unwrap();
+    assert!(!result.stdout.contains("SHOULD NOT APPEAR"));
+}