diff --git a/.github/actions/test/process-pester-results/process-pester-results.ps1 b/.github/actions/test/process-pester-results/process-pester-results.ps1
index 523de3beba..5804bec9a9 100644
--- a/.github/actions/test/process-pester-results/process-pester-results.ps1
+++ b/.github/actions/test/process-pester-results/process-pester-results.ps1
@@ -24,6 +24,7 @@ $testIgnoredCount = 0
 $testSkippedCount = 0
 $testInvalidCount = 0
 
+# Process test results and generate annotations for failures
 Get-ChildItem -Path "${TestResultsFolder}/*.xml" -Recurse | ForEach-Object {
     $results = [xml] (get-content $_.FullName)
 
@@ -35,6 +36,61 @@ Get-ChildItem -Path "${TestResultsFolder}/*.xml" -Recurse | ForEach-Object {
     $testIgnoredCount += [int]$results.'test-results'.ignored
     $testSkippedCount += [int]$results.'test-results'.skipped
     $testInvalidCount += [int]$results.'test-results'.invalid
+
+    # Generate GitHub Actions annotations for test failures
+    # Select failed test cases
+    if ("System.Xml.XmlDocumentXPathExtensions" -as [Type]) {
+        $failures = [System.Xml.XmlDocumentXPathExtensions]::SelectNodes($results.'test-results', './/test-case[@result = "Failure"]')
+    }
+    else {
+        $failures = $results.SelectNodes('.//test-case[@result = "Failure"]')
+    }
+
+    foreach ($testfail in $failures) {
+        $description = $testfail.description
+        $testName = $testfail.name
+        $message = $testfail.failure.message
+        $stack_trace = $testfail.failure.'stack-trace'
+
+        # Parse stack trace to get file and line info
+        $fileInfo = Get-PesterFailureFileInfo -StackTraceString $stack_trace
+
+        if ($fileInfo.File) {
+            # Convert absolute path to relative path for GitHub Actions
+            $filePath = $fileInfo.File
+
+            # GitHub Actions expects paths relative to the workspace root
+            if ($env:GITHUB_WORKSPACE) {
+                $workspacePath = $env:GITHUB_WORKSPACE
+                if ($filePath.StartsWith($workspacePath)) {
+                    $filePath = $filePath.Substring($workspacePath.Length).TrimStart('/', '\')
+                    # Normalize to forward slashes for consistency
+                    $filePath = $filePath -replace '\\', '/'
+                }
+            }
+
+            # Create annotation title
+            $annotationTitle = "Test Failure: $description / $testName"
+
+            # Build the annotation message
+            $annotationMessage = $message -replace "`n", "%0A" -replace "`r"
+
+            # Build and output the workflow command
+            $workflowCommand = "::error file=$filePath"
+            if ($fileInfo.Line) {
+                $workflowCommand += ",line=$($fileInfo.Line)"
+            }
+            $workflowCommand += ",title=$annotationTitle::$annotationMessage"
+
+            Write-Host $workflowCommand
+
+            # Output a link to the test run
+            if ($env:GITHUB_SERVER_URL -and $env:GITHUB_REPOSITORY -and $env:GITHUB_RUN_ID) {
+                $logUrl = "$($env:GITHUB_SERVER_URL)/$($env:GITHUB_REPOSITORY)/actions/runs/$($env:GITHUB_RUN_ID)"
+                Write-Host "Test logs: $logUrl"
+            }
+        }
+    }
 }
 
 @"
diff --git a/build.psm1 b/build.psm1
index 78d966c73a..ddd5014d0d 100644
--- a/build.psm1
+++ b/build.psm1
@@ -1846,6 +1846,69 @@ $stack_trace
 
 }
 
+function Get-PesterFailureFileInfo
+{
+    [CmdletBinding()]
+    param (
+        [Parameter(Mandatory)]
+        [string]$StackTraceString
+    )
+
+    # Parse stack trace to extract file path and line number
+    # Common patterns:
+    # "at line: 123 in C:\path\to\file.ps1" (Pester 4)
+    # "at C:\path\to\file.ps1:123"
+    # "at <ScriptBlock>, C:\path\to\file.ps1: line 123"
+    # "at 1 | Should -Be 2, /path/to/file.ps1:123" (Pester 5)
+    # "at 1 | Should -Be 2, C:\path\to\file.ps1:123" (Pester 5 Windows)
+    
+    $result = @{
+        File = $null
+        Line = $null
+    }
+    
+    if ([string]::IsNullOrWhiteSpace($StackTraceString)) {
+        return $result
+    }
+    
+    # Try pattern: "at line: 123 in <path>" (Pester 4)
+    if ($StackTraceString -match 'at line:\s*(\d+)\s+in\s+(.+?)(?:\r|\n|$)') {
+        $result.Line = $matches[1]
+        $result.File = $matches[2].Trim()
+        return $result
+    }
+    
+    # Try pattern: ", <path>:123" (Pester 5 format)
+    # This handles both Unix paths (/path/file.ps1:123) and Windows paths (C:\path\file.ps1:123)
+    if ($StackTraceString -match ',\s*((?:[A-Za-z]:)?[\/\\].+?\.ps[m]?1):(\d+)') {
+        $result.File = $matches[1].Trim()
+        $result.Line = $matches[2]
+        return $result
+    }
+    
+    # Try pattern: "at <path>:123" (without comma)
+    # Handle both absolute Unix and Windows paths
+    if ($StackTraceString -match 'at\s+((?:[A-Za-z]:)?[\/\\][^,]+?\.ps[m]?1):(\d+)(?:\r|\n|$)') {
+        $result.File = $matches[1].Trim()
+        $result.Line = $matches[2]
+        return $result
+    }
+    
+    # Try pattern: "<path>: line 123"
+    if ($StackTraceString -match '((?:[A-Za-z]:)?[\/\\][^,]+?\.ps[m]?1):\s*line\s+(\d+)(?:\r|\n|$)') {
+        $result.File = $matches[1].Trim()
+        $result.Line = $matches[2]
+        return $result
+    }
+    
+    # Try to extract just the file path if no line number found
+    if ($StackTraceString -match '(?:at\s+|in\s+)?((?:[A-Za-z]:)?[\/\\].+?\.ps[m]?1)') {
+        $result.File = $matches[1].Trim()
+    }
+    
+    return $result
+}
+
 function Test-XUnitTestResults
 {
     param(