diff --git a/crates/queue-runner/src/main.rs b/crates/queue-runner/src/main.rs
index aa85591..7cf5567 100644
--- a/crates/queue-runner/src/main.rs
+++ b/crates/queue-runner/src/main.rs
@@ -36,6 +36,8 @@ async fn main() -> anyhow::Result<()> {
   let poll_interval = Duration::from_secs(qr_config.poll_interval);
   let build_timeout = Duration::from_secs(qr_config.build_timeout);
   let strict_errors = qr_config.strict_errors;
+  let failed_paths_cache = qr_config.failed_paths_cache;
+  let failed_paths_ttl = qr_config.failed_paths_ttl;
   let work_dir = qr_config.work_dir;
 
   // Ensure the work directory exists
@@ -77,12 +79,13 @@ async fn main() -> anyhow::Result<()> {
   );
 
   tokio::select! {
-      result = fc_queue_runner::runner_loop::run(db.pool().clone(), worker_pool, poll_interval, wakeup, strict_errors) => {
+      result = fc_queue_runner::runner_loop::run(db.pool().clone(), worker_pool, poll_interval, wakeup, strict_errors, failed_paths_cache) => {
           if let Err(e) = result {
               tracing::error!("Runner loop failed: {e}");
           }
       }
       () = gc_loop(gc_config_for_loop) => {}
+      () = failed_paths_cleanup_loop(db.pool().clone(), failed_paths_ttl, failed_paths_cache) => {}
       () = shutdown_signal() => {
           tracing::info!("Shutdown signal received, draining in-flight builds...");
           worker_pool_for_drain.drain();
@@ -148,6 +151,31 @@ async fn gc_loop(gc_config: GcConfig) {
   }
 }
 
+async fn failed_paths_cleanup_loop(
+  pool: sqlx::PgPool,
+  ttl: u64,
+  enabled: bool,
+) {
+  if !enabled {
+    return std::future::pending().await;
+  }
+
+  let interval = std::time::Duration::from_secs(3600);
+  loop {
+    tokio::time::sleep(interval).await;
+    match fc_common::repo::failed_paths_cache::cleanup_expired(&pool, ttl).await
+    {
+      Ok(count) if count > 0 => {
+        tracing::info!(count, "Cleaned up expired failed paths cache entries");
+      },
+      Ok(_) => {},
+      Err(e) => {
+        tracing::error!("Failed paths cache cleanup failed: {e}");
+      },
+    }
+  }
+}
+
 async fn shutdown_signal() {
   let ctrl_c = async {
     tokio::signal::ctrl_c()
diff --git a/crates/queue-runner/src/runner_loop.rs b/crates/queue-runner/src/runner_loop.rs
index 57406e6..02e4651 100644
--- a/crates/queue-runner/src/runner_loop.rs
+++ b/crates/queue-runner/src/runner_loop.rs
@@ -15,6 +15,7 @@ pub async fn run(
   poll_interval: Duration,
   wakeup: Arc<Notify>,
   strict_errors: bool,
+  failed_paths_cache: bool,
 ) -> anyhow::Result<()> {
   // Reset orphaned builds from previous crashes (older than 5 minutes)
   match repo::builds::reset_orphaned(&pool, 300).await {
@@ -112,6 +113,37 @@ pub async fn run(
             _ => {},
           }
 
+          // Failed paths cache: skip known-failing derivations
+          if failed_paths_cache {
+            if let Ok(true) = repo::failed_paths_cache::is_cached_failure(
+              &pool,
+              &build.drv_path,
+            )
+            .await
+            {
+              tracing::info!(
+                  build_id = %build.id, drv = %build.drv_path,
+                  "Cached failure: skipping known-failing derivation"
+              );
+              if let Err(e) = repo::builds::start(&pool, build.id).await {
+                tracing::warn!(build_id = %build.id, "Failed to start cached-failure build: {e}");
+              }
+              if let Err(e) = repo::builds::complete(
+                &pool,
+                build.id,
+                BuildStatus::CachedFailure,
+                None,
+                None,
+                Some("Build skipped: derivation is in failed paths cache"),
+              )
+              .await
+              {
+                tracing::warn!(build_id = %build.id, "Failed to complete cached-failure build: {e}");
+              }
+              continue;
+            }
+          }
+
           // Dependency-aware scheduling: skip if deps not met
           match repo::build_dependencies::all_deps_completed(&pool, build.id)
             .await
diff --git a/crates/queue-runner/src/worker.rs b/crates/queue-runner/src/worker.rs
index a1f6df8..2edec45 100644
--- a/crates/queue-runner/src/worker.rs
+++ b/crates/queue-runner/src/worker.rs
@@ -744,6 +744,17 @@ async fn run_build(
         )
         .await?;
 
+        if let Err(e) = repo::failed_paths_cache::insert(
+          pool,
+          &build.drv_path,
+          failure_status,
+          build.id,
+        )
+        .await
+        {
+          tracing::warn!(build_id = %build.id, "Failed to cache failed path: {e}");
+        }
+
         tracing::warn!(build_id = %build.id, "Build failed: {:?}", failure_status);
       }
     },