diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5869b1b5..ea93d000 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,7 @@
 ### Added
 
 - Add support for `conditionTemplate` and allow `condition` to be set directly to `true` or `false`.
+- Add `--allow-failed-releases` global flag to continue preparing charts for the remaining releases when chart preparation fails for a release; failed releases are skipped and all failures are reported at the end (#2616)
 
 ## [1.4.1] - 2026-03-03
 
diff --git a/cmd/root.go b/cmd/root.go
index 7b6eee6a..fede132a 100644
--- a/cmd/root.go
+++ b/cmd/root.go
@@ -131,6 +131,7 @@ func setGlobalOptionsForRootCmd(fs *pflag.FlagSet, globalOptions *config.GlobalO
 	fs.StringArrayVar(&globalOptions.StateValuesFile, "state-values-file", nil, "specify state values in a YAML file. Used to override .Values within the helmfile template (not values template).")
 	fs.BoolVar(&globalOptions.SkipDeps, "skip-deps", false, `skip running "helm repo update" and "helm dependency build"`)
 	fs.BoolVar(&globalOptions.SkipRefresh, "skip-refresh", false, `skip running "helm repo update"`)
+	fs.BoolVar(&globalOptions.AllowFailedReleases, "allow-failed-releases", false, `continue preparing charts for other releases when chart preparation fails for a release; failed releases are skipped and all failures are reported at the end`)
 	fs.BoolVar(&globalOptions.StripArgsValuesOnExitError, "strip-args-values-on-exit-error", true, `Strip the potential secret values of the helm command args contained in a helmfile error message`)
 	fs.BoolVar(&globalOptions.DisableForceUpdate, "disable-force-update", false, `do not force helm repos to update when executing "helm repo add" (Helm 3 only)`)
 	fs.BoolVar(&globalOptions.EnforcePluginVerification, "enforce-plugin-verification", false, `fail plugin installation if verification is not supported (for security purposes)`)
diff --git a/docs/cli.md b/docs/cli.md
index 88bed36e..90f40015 100644
--- a/docs/cli.md
+++ b/docs/cli.md
@@ -550,6 +550,7 @@ The following global flags are also available but not shown in the main help out
 | Flag | Default | Description |
 |------|---------|-------------|
 | `--kubeconfig` | `""` | Use a particular kubeconfig file |
+| `--allow-failed-releases` | false | Continue preparing charts for other releases when chart preparation fails for a release; failed releases are skipped and all failures are reported at the end |
 | `--skip-refresh` | false | Skip running `helm repo update` (lighter than `--skip-deps` which also skips dependency build) |
 | `--enforce-plugin-verification` | false | Fail plugin installation if verification is not supported |
 | `--oci-plain-http` | false | Use plain HTTP for OCI registries (required for local/insecure registries in Helm 4) |
diff --git a/pkg/app/app.go b/pkg/app/app.go
index 4e68cfa1..2d89d2f2 100644
--- a/pkg/app/app.go
+++ b/pkg/app/app.go
@@ -173,6 +173,7 @@ func (a *App) Diff(c DiffConfigProvider) error {
 		prepErr := run.WithPreparedCharts("diff", state.ChartPrepareOptions{
 			SkipRepos:                  c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh:                c.SkipRefresh(),
+			AllowFailedReleases:        c.AllowFailedReleases(),
 			SkipDeps:                   c.SkipDeps(),
 			SkipSchemaValidation:       c.SkipSchemaValidation(),
 			IncludeCRDs:                &includeCRDs,
@@ -246,6 +247,7 @@ func (a *App) Template(c TemplateConfigProvider) error {
 		prepErr := run.WithPreparedCharts("template", state.ChartPrepareOptions{
 			SkipRepos:              c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh:            c.SkipRefresh(),
+			AllowFailedReleases:    c.AllowFailedReleases(),
 			SkipDeps:               c.SkipDeps(),
 			SkipSchemaValidation:   c.SkipSchemaValidation(),
 			IncludeCRDs:            &includeCRDs,
@@ -274,6 +276,8 @@ func (a *App) Template(c TemplateConfigProvider) error {
 func (a *App) WriteValues(c WriteValuesConfigProvider) error {
 	return a.ForEachState(func(run *Run) (ok bool, errs []error) {
 		prepErr := run.WithPreparedCharts("write-values", state.ChartPrepareOptions{
+			// Note: "write-values" never prepares charts (see commandsSkipChartPrep
+			// in run.go), so AllowFailedReleases does not apply here.
 			SkipRepos:   c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh: c.SkipRefresh(),
 			SkipDeps:    c.SkipDeps(),
@@ -329,6 +333,7 @@ func (a *App) Lint(c LintConfigProvider) error {
 			ForceDownload:          true,
 			SkipRepos:              c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh:            c.SkipRefresh(),
+			AllowFailedReleases:    c.AllowFailedReleases(),
 			SkipDeps:               c.SkipDeps(),
 			SkipCleanup:            c.SkipCleanup(),
 			Concurrency:            c.Concurrency(),
@@ -371,6 +376,7 @@ func (a *App) Unittest(c UnittestConfigProvider) error {
 			ForceDownload:          true,
 			SkipRepos:              c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh:            c.SkipRefresh(),
+			AllowFailedReleases:    c.AllowFailedReleases(),
 			SkipDeps:               c.SkipDeps(),
 			SkipCleanup:            c.SkipCleanup(),
 			Concurrency:            c.Concurrency(),
@@ -447,13 +453,14 @@ func (a *App) Fetch(c FetchConfigProvider) error {
 		}
 
 		prepErr := run.WithPreparedCharts("pull", state.ChartPrepareOptions{
-			ForceDownload:     true,
-			SkipRefresh:       c.SkipRefresh(),
-			SkipRepos:         c.SkipRefresh() || c.SkipDeps(),
-			SkipDeps:          c.SkipDeps(),
-			OutputDir:         c.OutputDir(),
-			OutputDirTemplate: c.OutputDirTemplate(),
-			Concurrency:       c.Concurrency(),
+			ForceDownload:       true,
+			SkipRefresh:         c.SkipRefresh(),
+			AllowFailedReleases: c.AllowFailedReleases(),
+			SkipRepos:           c.SkipRefresh() || c.SkipDeps(),
+			SkipDeps:            c.SkipDeps(),
+			OutputDir:           c.OutputDir(),
+			OutputDirTemplate:   c.OutputDirTemplate(),
+			Concurrency:         c.Concurrency(),
 		}, func() []error {
 			if c.WriteOutput() {
 				for i := range run.state.Releases {
@@ -504,6 +511,7 @@ func (a *App) Sync(c SyncConfigProvider) error {
 		prepErr := run.WithPreparedCharts("sync", state.ChartPrepareOptions{
 			SkipRepos:                  c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh:                c.SkipRefresh(),
+			AllowFailedReleases:        c.AllowFailedReleases(),
 			SkipDeps:                   c.SkipDeps(),
 			SkipSchemaValidation:       c.SkipSchemaValidation(),
 			Wait:                       c.Wait(),
@@ -562,6 +570,7 @@ func (a *App) Apply(c ApplyConfigProvider) error {
 		prepErr := run.WithPreparedCharts("apply", state.ChartPrepareOptions{
 			SkipRepos:                  c.SkipRefresh() || c.SkipDeps(),
 			SkipRefresh:                c.SkipRefresh(),
+			AllowFailedReleases:        c.AllowFailedReleases(),
 			SkipDeps:                   c.SkipDeps(),
 			SkipSchemaValidation:       c.SkipSchemaValidation(),
 			Wait:                       c.Wait(),
@@ -608,9 +617,10 @@ func (a *App) Apply(c ApplyConfigProvider) error {
 func (a *App) Status(c StatusesConfigProvider) error {
 	return a.ForEachState(func(run *Run) (ok bool, errs []error) {
 		err := run.WithPreparedCharts("status", state.ChartPrepareOptions{
-			SkipRepos:   true,
-			SkipDeps:    true,
-			Concurrency: c.Concurrency(),
+			SkipRepos:           true,
+			AllowFailedReleases: c.AllowFailedReleases(),
+			SkipDeps:            true,
+			Concurrency:         c.Concurrency(),
 		}, func() []error {
 			ok, errs = a.status(run, c)
 			return errs
@@ -628,12 +638,13 @@ func (a *App) Destroy(c DestroyConfigProvider) error {
 	return a.ForEachState(func(run *Run) (ok bool, errs []error) {
 		if !c.SkipCharts() {
 			err := run.WithPreparedCharts("destroy", state.ChartPrepareOptions{
-				SkipRepos:     c.SkipRefresh() || c.SkipDeps(),
-				SkipRefresh:   c.SkipRefresh(),
-				SkipDeps:      c.SkipDeps(),
-				Concurrency:   c.Concurrency(),
-				DeleteWait:    c.DeleteWait(),
-				DeleteTimeout: c.DeleteTimeout(),
+				SkipRepos:           c.SkipRefresh() || c.SkipDeps(),
+				SkipRefresh:         c.SkipRefresh(),
+				AllowFailedReleases: c.AllowFailedReleases(),
+				SkipDeps:            c.SkipDeps(),
+				Concurrency:         c.Concurrency(),
+				DeleteWait:          c.DeleteWait(),
+				DeleteTimeout:       c.DeleteTimeout(),
 			}, func() []error {
 				ok, errs = a.delete(run, true, c)
 				return errs
@@ -657,10 +668,11 @@ func (a *App) Test(c TestConfigProvider) error {
 		}
 
 		err := run.WithPreparedCharts("test", state.ChartPrepareOptions{
-			SkipRepos:   c.SkipRefresh() || c.SkipDeps(),
-			SkipRefresh: c.SkipRefresh(),
-			SkipDeps:    c.SkipDeps(),
-			Concurrency: c.Concurrency(),
+			SkipRepos:           c.SkipRefresh() || c.SkipDeps(),
+			SkipRefresh:         c.SkipRefresh(),
+			AllowFailedReleases: c.AllowFailedReleases(),
+			SkipDeps:            c.SkipDeps(),
+			Concurrency:         c.Concurrency(),
 		}, func() []error {
 			errs = a.test(run, c)
 			return errs
@@ -768,6 +780,8 @@ func (a *App) ListReleases(c ListConfigProvider) error {
 
 		if !c.SkipCharts() {
 			prepErr := run.WithPreparedCharts("list", state.ChartPrepareOptions{
+				// Note: "list" never prepares charts (see commandsSkipChartPrep in
+				// run.go), so AllowFailedReleases does not apply here.
 				SkipRepos:   true,
 				SkipDeps:    true,
 				Concurrency: 2,
diff --git a/pkg/app/app_test.go b/pkg/app/app_test.go
index 19233d9d..78f0cda8 100644
--- a/pkg/app/app_test.go
+++ b/pkg/app/app_test.go
@@ -2369,6 +2369,7 @@ type configImpl struct {
 	skipTests            bool
 	skipSchemaValidation bool
 	skipRefresh          bool
+	allowFailedReleases  bool
 
 	skipNeeds                bool
 	includeNeeds             bool
@@ -2416,6 +2417,10 @@ func (c configImpl) SkipRefresh() bool {
 	return c.skipRefresh
 }
 
+func (c configImpl) AllowFailedReleases() bool {
+	return c.allowFailedReleases
+}
+
 func (c configImpl) SkipNeeds() bool {
 	return c.skipNeeds
 }
@@ -2508,6 +2513,7 @@ type applyConfig struct {
 	skipCRDs                 bool
 	skipDeps                 bool
 	skipRefresh              bool
+	allowFailedReleases      bool
 	skipNeeds                bool
 	includeNeeds             bool
 	includeTransitiveNeeds   bool
@@ -2609,6 +2615,10 @@ func (a applyConfig) SkipRefresh() bool {
 	return a.skipRefresh
 }
 
+func (a applyConfig) AllowFailedReleases() bool {
+	return a.allowFailedReleases
+}
+
 func (a applyConfig) SkipNeeds() bool {
 	return a.skipNeeds
 }
diff --git a/pkg/app/config.go b/pkg/app/config.go
index 02e4996c..56238005 100644
--- a/pkg/app/config.go
+++ b/pkg/app/config.go
@@ -18,6 +18,7 @@ type ConfigProvider interface {
 	RepoRetry() int
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	SequentialHelmfiles() bool
 
 	FileOrDir() string
@@ -62,6 +63,7 @@ type ApplyConfigProvider interface {
 	SkipCRDs() bool
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	Wait() bool
 	WaitRetries() int
 	WaitForJobs() bool
@@ -126,6 +128,7 @@ type SyncConfigProvider interface {
 	SkipCRDs() bool
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	Wait() bool
 	WaitRetries() int
 	WaitForJobs() bool
@@ -174,6 +177,7 @@ type DiffConfigProvider interface {
 	SkipCRDs() bool
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 
 	IncludeTests() bool
 
@@ -231,6 +235,7 @@ type DestroyConfigProvider interface {
 
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	SkipCharts() bool
 	DeleteWait() bool
 	DeleteTimeout() int
@@ -246,6 +251,7 @@ type TestConfigProvider interface {
 
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	Timeout() int
 	Cleanup() bool
 	Logs() bool
@@ -260,6 +266,7 @@ type LintConfigProvider interface {
 	Set() []string
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	SkipCleanup() bool
 
 	DAGConfig
@@ -277,6 +284,7 @@ type UnittestConfigProvider interface {
 	DebugPlugin() bool
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	SkipCleanup() bool
 
 	DAGConfig
@@ -287,6 +295,7 @@ type UnittestConfigProvider interface {
 type FetchConfigProvider interface {
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	OutputDir() string
 	OutputDirTemplate() string
 	WriteOutput() bool
@@ -306,6 +315,7 @@ type TemplateConfigProvider interface {
 	Validate() bool
 	SkipDeps() bool
 	SkipRefresh() bool
+	AllowFailedReleases() bool
 	SkipCleanup() bool
 	SkipTests() bool
 	OutputDir() string
@@ -341,6 +351,7 @@ type WriteValuesConfigProvider interface {
 
 type StatusesConfigProvider interface {
 	Args() string
+	AllowFailedReleases() bool
 
 	concurrencyConfig
 }
diff --git a/pkg/app/destroy_test.go b/pkg/app/destroy_test.go
index 1a136230..cde27941 100644
--- a/pkg/app/destroy_test.go
+++ b/pkg/app/destroy_test.go
@@ -39,6 +39,7 @@ type destroyConfig struct {
 	interactive            bool
 	skipDeps               bool
 	skipRefresh            bool
+	allowFailedReleases    bool
 	logger                 *zap.SugaredLogger
 	includeTransitiveNeeds bool
 	skipCharts             bool
@@ -78,6 +79,10 @@ func (d destroyConfig) SkipRefresh() bool {
 	return d.skipRefresh
 }
 
+func (d destroyConfig) AllowFailedReleases() bool {
+	return d.allowFailedReleases
+}
+
 func (d destroyConfig) IncludeTransitiveNeeds() bool {
 	return d.includeTransitiveNeeds
 }
diff --git a/pkg/app/diff_test.go b/pkg/app/diff_test.go
index 2b6a9204..81c2d364 100644
--- a/pkg/app/diff_test.go
+++ b/pkg/app/diff_test.go
@@ -25,6 +25,7 @@ type diffConfig struct {
 	skipCRDs                 bool
 	skipDeps                 bool
 	skipRefresh              bool
+	allowFailedReleases      bool
 	includeTests             bool
 	skipNeeds                bool
 	includeNeeds             bool
@@ -87,6 +88,10 @@ func (a diffConfig) SkipRefresh() bool {
 	return a.skipRefresh
 }
 
+func (a diffConfig) AllowFailedReleases() bool {
+	return a.allowFailedReleases
+}
+
 func (a diffConfig) IncludeTests() bool {
 	return a.includeTests
 }
diff --git a/pkg/app/issue_2616_test.go b/pkg/app/issue_2616_test.go
new file mode 100644
index 00000000..ec3466f7
--- /dev/null
+++ b/pkg/app/issue_2616_test.go
@@ -0,0 +1,109 @@
+package app
+
+import (
+	"path/filepath"
+	"sync"
+	"testing"
+
+	"github.com/helmfile/vals"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"go.uber.org/zap"
+
+	"github.com/helmfile/helmfile/pkg/exectest"
+	ffs "github.com/helmfile/helmfile/pkg/filesystem"
+	"github.com/helmfile/helmfile/pkg/helmexec"
+)
+
+// issue2616HelmfileContent defines two releases: one that is templated fine
+// (logging) and one that always fails chart preparation (error), because OCI
+// charts do not support the "latest" version tag.
+const issue2616HelmfileContent = `
+releases:
+- name: logging
+  chart: incubator/raw
+  namespace: kube-system
+
+- name: error
+  chart: oci://example.com/chart/error
+  namespace: failed
+  version: latest
+`
+
+// TestTemplateAllowFailedReleases verifies the behavior of the
+// --allow-failed-releases flag end to end for `helmfile template`:
+// when chart preparation fails for one release, the remaining releases are
+// still templated, the failed release is skipped (i.e. never executed against
+// its un-prepared chart reference) and all failures are reported at the end.
+func TestTemplateAllowFailedReleases(t *testing.T) {
+	testcases := []struct {
+		name               string
+		allowFailedRelease bool
+
+		// wantTemplated contains the releases that must have been passed to
+		// `helm template`; the release failing chart preparation must never
+		// appear here.
+		wantTemplated []exectest.Release
+	}{
+		{
+			name:               "default: abort on chart preparation failure",
+			allowFailedRelease: false,
+			wantTemplated:      nil,
+		},
+		{
+			name:               "allow-failed-releases: skip failed release, template the rest",
+			allowFailedRelease: true,
+			wantTemplated:      []exectest.Release{{Name: "logging", Flags: []string{"--kube-context", "default", "--namespace", "kube-system"}}},
+		},
+	}
+
+	for _, tc := range testcases {
+		t.Run(tc.name, func(t *testing.T) {
+			var helm = &exectest.Helm{
+				FailOnUnexpectedList: true,
+				FailOnUnexpectedDiff: true,
+				DiffMutex:            &sync.Mutex{},
+				ChartsMutex:          &sync.Mutex{},
+				ReleasesMutex:        &sync.Mutex{},
+			}
+
+			_ = runWithLogCapture(t, "debug", func(t *testing.T, logger *zap.SugaredLogger) {
+				t.Helper()
+
+				valsRuntime, err := vals.New(vals.Options{CacheSize: 32})
+				require.NoError(t, err)
+
+				files := map[string]string{
+					"/path/to/helmfile.yaml": issue2616HelmfileContent,
+				}
+
+				app := appWithFs(&App{
+					OverrideHelmBinary:              DefaultHelmBinary,
+					fs:                              &ffs.FileSystem{Glob: filepath.Glob},
+					OverrideKubeContext:             "default",
+					DisableKubeVersionAutoDetection: true,
+					Env:                             "default",
+					Logger:                          logger,
+					helms: map[helmKey]helmexec.Interface{
+						createHelmKey("helm", "default"): helm,
+					},
+					valsRuntime: valsRuntime,
+				}, files)
+
+				tmplErr := app.Template(applyConfig{
+					// if we check log output, concurrency must be 1. otherwise the test becomes non-deterministic.
+					concurrency:         1,
+					logger:              logger,
+					allowFailedReleases: tc.allowFailedRelease,
+				})
+
+				// The chart preparation failure must be reported in both modes.
+				require.Error(t, tmplErr)
+				assert.Contains(t, tmplErr.Error(), "the version for OCI charts should be semver compliant")
+
+				// The release that failed chart preparation must never be executed.
+				require.Equal(t, tc.wantTemplated, helm.Templated)
+			})
+		})
+	}
+}
diff --git a/pkg/app/run.go b/pkg/app/run.go
index 323380a7..40eea495 100644
--- a/pkg/app/run.go
+++ b/pkg/app/run.go
@@ -1,6 +1,7 @@
 package app
 
 import (
+	"errors"
 	"fmt"
 	"os"
 	"slices"
@@ -48,18 +49,23 @@ func (r *Run) askForConfirmation(msg string) bool {
 // When skipRepos is false, SyncReposOnce still runs normally for all repos.
 var commandsSkipChartPrep = []string{"write-values", "list"}
 
-func (r *Run) prepareChartsIfNeeded(helmfileCommand string, dir string, concurrency int, opts state.ChartPrepareOptions) (map[state.PrepareChartKey]string, error) {
+func (r *Run) prepareChartsIfNeeded(helmfileCommand string, dir string, concurrency int, opts state.ChartPrepareOptions) (map[state.PrepareChartKey]string, map[state.PrepareChartKey]error, error) {
 	// Skip chart preparation for commands that don't need chart pulls
 	if slices.Contains(commandsSkipChartPrep, strings.ToLower(helmfileCommand)) {
-		return nil, nil
+		return nil, nil, nil
 	}
 
-	releaseToChart, errs := r.state.PrepareCharts(r.helm, dir, concurrency, helmfileCommand, opts)
+	releaseToChart, failedReleases, errs := r.state.PrepareCharts(r.helm, dir, concurrency, helmfileCommand, opts)
 	if len(errs) > 0 {
-		return nil, fmt.Errorf("%v", errs)
+		if !opts.AllowFailedReleases {
+			// abort on first error
+			return nil, nil, fmt.Errorf("%v", errs)
+		}
+		// return partial results, along with the per-release errors for the failed ones
+		return releaseToChart, failedReleases, &MultiError{Errors: errs}
 	}
 
-	return releaseToChart, nil
+	return releaseToChart, failedReleases, nil
 }
 
 func (r *Run) WithPreparedCharts(helmfileCommand string, opts state.ChartPrepareOptions, f func() []error) error {
@@ -113,11 +119,25 @@ func (r *Run) WithPreparedCharts(helmfileCommand string, opts state.ChartPrepare
 	// remain available for the entire operation lifecycle. See issue #1799.
 	defer r.state.CleanupChartifyTempDirs()
 
-	releaseToChart, err := r.prepareChartsIfNeeded(helmfileCommand, dir, opts.Concurrency, opts)
-	if err != nil {
-		return err
+	releaseToChart, failedReleases, prepareErr := r.prepareChartsIfNeeded(helmfileCommand, dir, opts.Concurrency, opts)
+	// A prepare error with no per-release attribution (state parsing, dependency
+	// resolution, ...) is a general failure: always abort, even with
+	// opts.AllowFailedReleases, since there are no processable partial results.
+	// Otherwise, abort only when partial results are not allowed; the failed
+	// releases are skipped below and their errors are reported at the end.
+	if prepareErr != nil && (len(failedReleases) == 0 || !opts.AllowFailedReleases) {
+		return prepareErr
 	}
 
+	// Releases whose chart preparation failed are removed from the state, so that
+	// the operation below never executes them against their original, un-prepared
+	// chart reference. That would either fail again with a duplicate error or,
+	// worse, bypass chartify modifications (patches, dependencies) and produce an
+	// unintended result. Their preparation errors are reported via prepareErr.
+	releases := r.state.Releases
+	if len(failedReleases) > 0 {
+		releases = make([]state.ReleaseSpec, 0, len(r.state.Releases))
+	}
 	for i := range r.state.Releases {
 		rel := &r.state.Releases[i]
 		key := state.PrepareChartKey{
@@ -125,7 +145,10 @@ func (r *Run) WithPreparedCharts(helmfileCommand string, opts state.ChartPrepare
 			Namespace:   rel.Namespace,
 			KubeContext: rel.KubeContext,
 		}
-		if chart := releaseToChart[key]; chart != rel.Chart {
+		if _, failed := failedReleases[key]; failed {
+			continue
+		}
+		if chart, ok := releaseToChart[key]; ok && chart != rel.Chart {
 			// The chart has been downloaded and modified by Helmfile (and chartify under the hood).
 			// We let the later step use the modified version of the chart, located under the `chart` variable,
 			// instead of the original chart path.
@@ -133,7 +156,11 @@ func (r *Run) WithPreparedCharts(helmfileCommand string, opts state.ChartPrepare
 			// if it has been modified or not.
 			rel.ChartPath = chart
 		}
+		if len(failedReleases) > 0 {
+			releases = append(releases, *rel)
+		}
 	}
+	r.state.Releases = releases
 
 	r.ReleaseToChart = releaseToChart
 
@@ -146,8 +173,28 @@ func (r *Run) WithPreparedCharts(helmfileCommand string, opts state.ChartPrepare
 		}
 	}
 
-	_, err = r.state.TriggerGlobalCleanupEvent(helmfileCommand, firstErr)
-	return err
+	_, cleanupErr := r.state.TriggerGlobalCleanupEvent(helmfileCommand, firstErr)
+	if !opts.AllowFailedReleases {
+		return cleanupErr
+	}
+
+	// merge the preparation and cleanup errors into a single error output
+	var merged []error
+	if prepareErr != nil {
+		var me *MultiError
+		if errors.As(prepareErr, &me) {
+			merged = append(merged, me.Errors...)
+		} else {
+			merged = append(merged, prepareErr)
+		}
+	}
+	if cleanupErr != nil {
+		merged = append(merged, fmt.Errorf("error during global cleanup event: %w", cleanupErr))
+	}
+	if len(merged) > 0 {
+		return &MultiError{Errors: merged}
+	}
+	return nil
 }
 
 func (r *Run) Deps(c DepsConfigProvider) []error {
diff --git a/pkg/config/global.go b/pkg/config/global.go
index 6391b863..ce18e4b7 100644
--- a/pkg/config/global.go
+++ b/pkg/config/global.go
@@ -35,6 +35,8 @@ type GlobalOptions struct {
 	SkipDeps bool
 	// SkipRefresh is true if the running "helm repo update" should be skipped
 	SkipRefresh bool
+	// AllowFailedReleases is true if partial errors during release processing are allowed
+	AllowFailedReleases bool
 	// StripArgsValuesOnExitError is true if the ARGS output on exit error should be suppressed
 	StripArgsValuesOnExitError bool
 	// DisableForceUpdate is true if force updating repos is not desirable when executing "helm repo add" (Helm 3)
@@ -264,6 +266,11 @@ func (g *GlobalImpl) SkipRefresh() bool {
 	return g.GlobalOptions.SkipRefresh
 }
 
+// AllowFailedReleases returns true if partial errors during release processing are allowed
+func (g *GlobalImpl) AllowFailedReleases() bool {
+	return g.GlobalOptions.AllowFailedReleases
+}
+
 // StripArgsValuesOnExitError return if the ARGS output on exit error should be suppressed
 func (g *GlobalImpl) StripArgsValuesOnExitError() bool {
 	return g.GlobalOptions.StripArgsValuesOnExitError
diff --git a/pkg/state/issue923_test.go b/pkg/state/issue923_test.go
index b8995777..92df0981 100644
--- a/pkg/state/issue923_test.go
+++ b/pkg/state/issue923_test.go
@@ -86,7 +86,7 @@ releases:
 		OutputDirTemplate:      "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(helm, tempDir, 1, "apply", opts)
+	releaseToChart, _, errs := st.PrepareCharts(helm, tempDir, 1, "apply", opts)
 	require.Empty(t, errs, "PrepareCharts should not return errors")
 
 	// Verify both releases have prepared charts
@@ -152,7 +152,7 @@ releases:
 		OutputDirTemplate:      "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(helm, tempDir, 1, "apply", opts)
+	releaseToChart, _, errs := st.PrepareCharts(helm, tempDir, 1, "apply", opts)
 	require.Empty(t, errs)
 
 	// argocd-secrets should NOT have a prepared chart
diff --git a/pkg/state/issue_2616_test.go b/pkg/state/issue_2616_test.go
new file mode 100644
index 00000000..2420a118
--- /dev/null
+++ b/pkg/state/issue_2616_test.go
@@ -0,0 +1,98 @@
+package state
+
+import (
+	"sync"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"go.uber.org/zap"
+
+	"github.com/helmfile/helmfile/pkg/exectest"
+)
+
+// issue2616HelmfileContent defines two releases: one that prepares fine
+// (grafana) and one that always fails chart preparation (error), because OCI
+// charts do not support the "latest" version tag.
+var issue2616HelmfileContent = []byte(`
+repositories:
+- name: stable
+  url: kubernetes-charts.storage.googleapis.com
+  oci: true
+
+releases:
+  - name: grafana
+    namespace: grafana
+    chart: stable/grafana
+  - name: error
+    namespace: failed
+    chart: oci://example.com/chart/error
+    version: latest
+`)
+
+// issue2616PrepareCharts runs PrepareCharts for issue2616HelmfileContent.
+func issue2616PrepareCharts(t *testing.T, opts ChartPrepareOptions) (map[PrepareChartKey]string, map[PrepareChartKey]error, []error) {
+	t.Helper()
+
+	resetChartCacheForTest()
+
+	logger := zap.NewExample().Sugar()
+
+	st, err := createFromYaml(issue2616HelmfileContent, "example/path/to/helmfile.yaml", DefaultEnv, logger)
+	require.NoError(t, err)
+
+	tempDir := t.TempDir()
+
+	helm := &exectest.Helm{
+		ChartsMutex: &sync.Mutex{},
+	}
+
+	// OutputDirTemplate includes .OutputDir so charts go into tempDir (auto-cleaned
+	// by t.TempDir), not the global cache or CWD.
+	opts.OutputDirTemplate = "{{ .OutputDir }}/{{ .Release.Name }}"
+
+	releaseToChart, failedReleases, errs := st.PrepareCharts(helm, tempDir, 1, "apply", opts)
+	return releaseToChart, failedReleases, errs
+}
+
+// TestAllowFailedReleasesFlag_Enabled verifies that the AllowFailedReleases flag
+// works as intended with one release that should work and another release, that
+// will fail: the healthy release is prepared and reported in the partial
+// results, while the failing one is recorded in failedReleases so that callers
+// can skip it during execution.
+func TestAllowFailedReleasesFlag_Enabled(t *testing.T) {
+	releaseToChart, failedReleases, errs := issue2616PrepareCharts(t, ChartPrepareOptions{
+		Concurrency:         1,
+		AllowFailedReleases: true,
+	})
+
+	require.NotEmpty(t, errs, "PrepareCharts should return an error")
+
+	// Verify only the error chart is not prepared
+	assert.Contains(t, releaseToChart, PrepareChartKey{Name: "grafana", Namespace: "grafana"},
+		"grafana chart should be prepared")
+	assert.NotContains(t, releaseToChart, PrepareChartKey{Name: "error", Namespace: "failed"},
+		"error chart should not be prepared")
+
+	// Verify the failed release is attributed per-release, so that the caller
+	// can skip it instead of executing it against the un-prepared chart
+	assert.NotContains(t, failedReleases, PrepareChartKey{Name: "grafana", Namespace: "grafana"},
+		"grafana should not be marked as failed")
+	failedKey := PrepareChartKey{Name: "error", Namespace: "failed"}
+	assert.Contains(t, failedReleases, failedKey, "the failing release should be marked as failed")
+	assert.Error(t, failedReleases[failedKey])
+}
+
+// TestAllowFailedReleasesFlag_Disabled verifies that the AllowFailedReleases flag
+// has no unintended side effects and the default abort on error still works.
+func TestAllowFailedReleasesFlag_Disabled(t *testing.T) {
+	releaseToChart, failedReleases, errs := issue2616PrepareCharts(t, ChartPrepareOptions{
+		Concurrency: 1,
+	})
+
+	require.NotEmpty(t, errs, "PrepareCharts should return an error")
+
+	// Verify no partial results are returned on the default abort-on-error path
+	assert.Nil(t, releaseToChart)
+	assert.Nil(t, failedReleases)
+}
diff --git a/pkg/state/issue_2741_test.go b/pkg/state/issue_2741_test.go
index e6f888eb..8d862e49 100644
--- a/pkg/state/issue_2741_test.go
+++ b/pkg/state/issue_2741_test.go
@@ -116,7 +116,7 @@ func TestPrepareChartsPrefetchesSharedRemoteChart(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(mockHelm, tempDir, 5, "sync", opts)
+	releaseToChart, _, errs := st.PrepareCharts(mockHelm, tempDir, 5, "sync", opts)
 	require.Empty(t, errs, "PrepareCharts should not return errors")
 
 	assert.Equal(t, int32(1), mockHelm.fetchCount.Load(),
@@ -158,7 +158,7 @@ func TestPrepareChartsSkipsPrefetchForUniqueCharts(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(mockHelm, tempDir, 3, "sync", opts)
+	releaseToChart, _, errs := st.PrepareCharts(mockHelm, tempDir, 3, "sync", opts)
 	require.Empty(t, errs, "PrepareCharts should not return errors")
 
 	assert.Equal(t, int32(0), mockHelm.fetchCount.Load(),
@@ -199,7 +199,7 @@ func TestPrepareChartsSkipsPrefetchWhenFetchFlagsDiffer(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(mockHelm, tempDir, 2, "sync", opts)
+	releaseToChart, _, errs := st.PrepareCharts(mockHelm, tempDir, 2, "sync", opts)
 	require.Empty(t, errs)
 
 	assert.Equal(t, int32(0), mockHelm.fetchCount.Load(),
@@ -241,7 +241,7 @@ func TestPrepareChartsSkipsPrefetchWhenVerifyEnabled(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(mockHelm, tempDir, 2, "sync", opts)
+	releaseToChart, _, errs := st.PrepareCharts(mockHelm, tempDir, 2, "sync", opts)
 	require.Empty(t, errs)
 
 	assert.Equal(t, int32(0), mockHelm.fetchCount.Load(),
@@ -294,7 +294,7 @@ func TestPrepareChartsSkipsPrefetchForUnknownRepoChart(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(mockHelm, tempDir, 2, "diff", opts)
+	releaseToChart, _, errs := st.PrepareCharts(mockHelm, tempDir, 2, "diff", opts)
 	require.Empty(t, errs)
 
 	assert.Equal(t, int32(0), mockHelm.fetchCount.Load(),
@@ -367,7 +367,7 @@ func TestPrefetchedSharedChartAllowsConcurrentSyncRelease(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(fetchHelm, tempDir, 5, "sync", opts)
+	releaseToChart, _, errs := st.PrepareCharts(fetchHelm, tempDir, 5, "sync", opts)
 	require.Empty(t, errs)
 	require.Equal(t, int32(1), fetchHelm.fetchCount.Load())
 
@@ -422,7 +422,7 @@ func TestPrefetchedSharedChartAllowsConcurrentDiffRelease(t *testing.T) {
 		OutputDirTemplate:          "{{ .OutputDir }}/{{ .Release.Name }}",
 	}
 
-	releaseToChart, errs := st.PrepareCharts(fetchHelm, tempDir, 5, "diff", opts)
+	releaseToChart, _, errs := st.PrepareCharts(fetchHelm, tempDir, 5, "diff", opts)
 	require.Empty(t, errs)
 	require.Equal(t, int32(1), fetchHelm.fetchCount.Load())
 
diff --git a/pkg/state/run_helm_dep_builds_skip_refresh_test.go b/pkg/state/run_helm_dep_builds_skip_refresh_test.go
index cbe5a200..be81160c 100644
--- a/pkg/state/run_helm_dep_builds_skip_refresh_test.go
+++ b/pkg/state/run_helm_dep_builds_skip_refresh_test.go
@@ -275,7 +275,7 @@ func TestRunHelmDepBuilds_SkipRefreshBehaviors(t *testing.T) {
 				SkipRefresh: tt.optsSkipRefresh,
 			}
 
-			err := st.runHelmDepBuilds(helm, 1, builds, opts)
+			err := st.runHelmDepBuilds(helm, 1, builds, opts, nil)
 			require.NoError(t, err)
 
 			assert.NotNil(t, helm.buildDepsFlags, "BuildDeps should have been called")
@@ -336,7 +336,7 @@ func TestRunHelmDepBuilds_MultipleBuilds(t *testing.T) {
 
 	opts := ChartPrepareOptions{SkipRefresh: false}
 
-	err := st.runHelmDepBuilds(helm, 1, builds, opts)
+	err := st.runHelmDepBuilds(helm, 1, builds, opts, nil)
 	require.NoError(t, err)
 
 	assert.True(t, helm.updateRepoCalled, "UpdateRepo should have been called")
diff --git a/pkg/state/state.go b/pkg/state/state.go
index 1ca72ecf..36d34afc 100644
--- a/pkg/state/state.go
+++ b/pkg/state/state.go
@@ -1534,6 +1534,7 @@ type ChartPrepareOptions struct {
 	SkipRepos                  bool
 	SkipDeps                   bool
 	SkipRefresh                bool
+	AllowFailedReleases        bool
 	SkipResolve                bool
 	SkipCleanup                bool
 	// SkipSchemaValidation configures chartify to pass --skip-schema-validation to helm-template run by it.
@@ -2207,22 +2208,24 @@ func (st *HelmState) prepareChartForRelease(release *ReleaseSpec, helm helmexec.
 }
 
 // PrepareCharts downloads and prepares all charts for the selected releases.
-// Returns the chart paths and any errors encountered.
+// It returns the chart paths for the successfully prepared releases, the set of
+// releases that failed to prepare (keyed by release, with their errors), and any
+// errors encountered.
 //
 // Note: OCI chart locks are acquired and released during chart download within this function.
 // The tempDir cleanup is deferred until after helm operations complete in the caller,
 // so charts remain available during helm commands even though locks are released.
-func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurrency int, helmfileCommand string, opts ChartPrepareOptions) (map[PrepareChartKey]string, []error) {
+func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurrency int, helmfileCommand string, opts ChartPrepareOptions) (map[PrepareChartKey]string, map[PrepareChartKey]error, []error) {
 	if !opts.SkipResolve {
 		updated, err := st.ResolveDeps()
 		if err != nil {
-			return nil, []error{err}
+			return nil, nil, []error{err}
 		}
 		*st = *updated
 	}
 	selected, err := st.GetSelectedReleases(opts.IncludeTransitiveNeeds)
 	if err != nil {
-		return nil, []error{err}
+		return nil, nil, []error{err}
 	}
 
 	releases := releasesNeedCharts(selected)
@@ -2309,6 +2312,12 @@ func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurre
 
 	prepareChartInfo := make(map[PrepareChartKey]string, len(releases))
 
+	// Releases that failed to prepare. When opts.AllowFailedReleases is set,
+	// these releases are excluded from the returned chart paths so that callers
+	// can skip them instead of executing them against their un-prepared chart
+	// references.
+	failedReleases := make(map[PrepareChartKey]error)
+
 	errs := []error{}
 
 	jobQueue := make(chan *ReleaseSpec, len(releases))
@@ -2332,6 +2341,14 @@ func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurre
 					releaseOpts.ForceDownload = true
 				}
 				result := st.prepareChartForRelease(release, helm, dir, helmfileCommand, releaseOpts, workerIndex)
+				if result.err != nil {
+					// Error results returned by prepareChartForRelease may lack the
+					// release identity. Complete it here, so that the failure can be
+					// attributed to the correct release in failedReleases below.
+					result.releaseName = release.Name
+					result.releaseNamespace = release.Namespace
+					result.releaseContext = release.KubeContext
+				}
 				results <- result
 			}
 		},
@@ -2341,7 +2358,15 @@ func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurre
 
 				if downloadRes.err != nil {
 					errs = append(errs, downloadRes.err)
-					return
+
+					if !opts.AllowFailedReleases {
+						return
+					}
+
+					// Continue processing the other releases and record which one
+					// failed, so that the caller can skip it during execution.
+					failedReleases[chartPrepareResultKey(downloadRes)] = downloadRes.err
+					continue
 				}
 				func() {
 					prepareChartInfoMutex.Lock()
@@ -2361,21 +2386,40 @@ func (st *HelmState) PrepareCharts(helm helmexec.Interface, dir string, concurre
 		},
 	)
 
-	if len(errs) > 0 {
-		return nil, errs
+	if len(errs) > 0 && !opts.AllowFailedReleases {
+		return nil, nil, errs
 	}
 
 	if len(builds) > 0 {
-		if err := st.runHelmDepBuilds(helm, concurrency, builds, opts); err != nil {
-			return nil, []error{err}
+		if err := st.runHelmDepBuilds(helm, concurrency, builds, opts, failedReleases); err != nil {
+			if !opts.AllowFailedReleases {
+				return nil, nil, []error{err}
+			}
+			errs = append(errs, err)
 		}
 	}
 
-	return prepareChartInfo, nil
+	// Drop the chart paths of releases whose `helm dep build` failed (only
+	// possible with opts.AllowFailedReleases), so that callers skip them too.
+	for key := range failedReleases {
+		delete(prepareChartInfo, key)
+	}
+
+	return prepareChartInfo, failedReleases, errs
+}
+
+// chartPrepareResultKey returns the map key identifying the release a chart
+// preparation result belongs to.
+func chartPrepareResultKey(r *chartPrepareResult) PrepareChartKey {
+	return PrepareChartKey{
+		Name:        r.releaseName,
+		Namespace:   r.releaseNamespace,
+		KubeContext: r.releaseContext,
+	}
 }
 
 // nolint: unparam
-func (st *HelmState) runHelmDepBuilds(helm helmexec.Interface, concurrency int, builds []*chartPrepareResult, opts ChartPrepareOptions) error {
+func (st *HelmState) runHelmDepBuilds(helm helmexec.Interface, concurrency int, builds []*chartPrepareResult, opts ChartPrepareOptions, failedReleases map[PrepareChartKey]error) error {
 	// NOTES:
 	// 1. `helm dep build` fails when it was run concurrency on the same chart.
 	//    To avoid that, we run `helm dep build` only once per each local chart.
@@ -2399,7 +2443,15 @@ func (st *HelmState) runHelmDepBuilds(helm helmexec.Interface, concurrency int,
 
 	if anySkipRefresh && !opts.SkipRefresh && !st.HelmDefaults.SkipRefresh && st.NeedsRepoUpdate() {
 		if err := helm.UpdateRepo(); err != nil {
-			return fmt.Errorf("updating repo: %w", err)
+			err = fmt.Errorf("updating repo: %w", err)
+			if opts.AllowFailedReleases {
+				// None of the dep builds below can be trusted to produce usable
+				// charts: mark all of them as failed and let the caller skip them.
+				for _, r := range builds {
+					failedReleases[chartPrepareResultKey(r)] = err
+				}
+			}
+			return err
 		}
 	}
 
@@ -2428,7 +2480,14 @@ func (st *HelmState) runHelmDepBuilds(helm helmexec.Interface, concurrency int,
 				continue
 			}
 
-			return fmt.Errorf("building dependencies of local chart: %w", err)
+			err = fmt.Errorf("building dependencies of local chart %q for release %q: %w", r.chartName, r.releaseName, err)
+			if opts.AllowFailedReleases {
+				// Record the failed release and keep building the remaining charts.
+				failedReleases[chartPrepareResultKey(r)] = err
+				continue
+			}
+
+			return err
 		}
 	}