diff --git a/apps/vscode/CHANGELOG.md b/apps/vscode/CHANGELOG.md
index c2e8266c..086c8580 100644
--- a/apps/vscode/CHANGELOG.md
+++ b/apps/vscode/CHANGELOG.md
@@ -3,6 +3,7 @@
 ## 1.125.0 (Unreleased)
 
 - Fixed an issue where attribute values containing '='s could be truncated in some scenarios (<https://github.com/quarto-dev/quarto/pull/814>).
+- Fixed an issue where a loading spinner for qmd previews wasn't dismissed on preview errors (<https://github.com/quarto-dev/quarto/pull/823>)
 
 ## 1.124.0 (Release on 2025-08-20)
 
diff --git a/apps/vscode/src/providers/preview/preview.ts b/apps/vscode/src/providers/preview/preview.ts
index fdc0504d..586ec0ee 100644
--- a/apps/vscode/src/providers/preview/preview.ts
+++ b/apps/vscode/src/providers/preview/preview.ts
@@ -574,6 +574,7 @@ class PreviewManager {
         }
       }
     }
+    this.progressDismiss()
   }
 
   private progressShow(uri: Uri) {