diff --git a/CHANGELOG.md b/CHANGELOG.md
index 650bed246..3e095205f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -16,6 +16,7 @@
 
 - Take namespace into account for incremental cleanup. https://github.com/rescript-lang/rescript-vscode/pull/1164
 - Potential race condition in incremental compilation. https://github.com/rescript-lang/rescript-vscode/pull/1167
+- Fix extension crash triggered by incremental compilation. https://github.com/rescript-lang/rescript-vscode/pull/1169
 
 #### :nail_care: Polish
 
diff --git a/server/src/incrementalCompilation.ts b/server/src/incrementalCompilation.ts
index 1cc4e1ce8..da65b9d4d 100644
--- a/server/src/incrementalCompilation.ts
+++ b/server/src/incrementalCompilation.ts
@@ -13,7 +13,6 @@ import { fileCodeActions } from "./codeActions";
 import { projectsFiles } from "./projectFiles";
 import { getRewatchBscArgs, RewatchCompilerArgs } from "./bsc-args/rewatch";
 import { BsbCompilerArgs, getBsbBscArgs } from "./bsc-args/bsb";
-import { getCurrentCompilerDiagnosticsForFile } from "./server";
 import { NormalizedPath } from "./utils";
 import { getLogger } from "./logger";
 
@@ -712,7 +711,12 @@ async function compileContents(
         entry.project.bscBinaryLocation,
         callArgs,
         { cwd, signal },
-      );
+      ).catch((error) => {
+        if (error.stderr) {
+          return { stderr: error.stderr };
+        }
+        throw error;
+      });
 
       getLogger().log(
         `Recompiled ${entry.file.sourceFileName} in ${