diff --git a/src/panels/KaitoPanel.ts b/src/panels/KaitoPanel.ts
index 65466abed..8074cec96 100644
--- a/src/panels/KaitoPanel.ts
+++ b/src/panels/KaitoPanel.ts
@@ -136,6 +136,24 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
     }
 
     private async handleKaitoInstallation(webview: MessageSink<ToWebViewMsgDef>) {
+        // Get current json
+        const currentJson = await longRunning(`Get current cluster information.`, () => {
+            return this.resourceManagementClient.resources.getById(this.armId, "2023-08-01");
+        });
+
+        // Prevent KAITO installation on automatic clusters
+        const skuName = currentJson.sku?.name;
+        if (skuName === "Automatic") {
+            webview.postKaitoInstallProgressUpdate({
+                operationDescription: "Automatic Cluster Detected",
+                event: 3,
+                errorMessage:
+                    "KAITO cannot be installed on automatic clusters. Please try installing KAITO on a standard cluster.",
+                models: [],
+            });
+            return;
+        }
+
         // Get the feature registration state
         const getFeatureClientRegisterState = await longRunning(
             `Getting the AIToolchainOperator registration state.`,
@@ -161,11 +179,6 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
             }
         }
 
-        // Get current json
-        const currentJson = await longRunning(`Get current cluster information.`, () => {
-            return this.resourceManagementClient.resources.getById(this.armId, "2023-08-01");
-        });
-
         // Install kaito enablement
         const kaitoInstallationResult = await longRunning(
             `Enabling the KAITO for cluster '${this.clusterName}'.`,
@@ -191,9 +204,18 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
             );
 
             if (failed(installKaitoFederatedCredentialsAndRoleAssignments)) {
+                //installing federated credentionals failed
+                const errorMessage = installKaitoFederatedCredentialsAndRoleAssignments.error;
                 vscode.window.showErrorMessage(
-                    `Error installing KAITO Federated Credentials and role Assignments: ${installKaitoFederatedCredentialsAndRoleAssignments.error}`,
+                    `Error installing KAITO Federated Credentials and role Assignments: ${errorMessage}`,
                 );
+                webview.postKaitoInstallProgressUpdate({
+                    operationDescription: "Installing Federated Credentials Failed",
+                    event: 3,
+                    errorMessage: errorMessage,
+                    models: [],
+                });
+                return;
             }
 
             //kaito installation succeeded
@@ -304,13 +326,18 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
             return { succeeded: false, error: clusterInfo.error };
         }
 
-        await this.installKaitoRoleAssignments(
+        const roleAssignmentsResult = await this.installKaitoRoleAssignments(
             clusterInfo.result.nodeResourceGroup!,
             this.subscriptionId,
             this.resourceGroupName,
             this.clusterName,
         );
 
+        //halt installation if role assignments creation failed
+        if (failed(roleAssignmentsResult)) {
+            return { succeeded: false, error: roleAssignmentsResult.error };
+        }
+
         const aksOidcIssuerUrl = clusterInfo.result.oidcIssuerProfile?.issuerURL;
         if (!aksOidcIssuerUrl) {
             vscode.window.showErrorMessage(
@@ -321,12 +348,18 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
                 error: "Error getting aks oidc issuer url, oidc issuer url is undefined/null/empty",
             };
         }
-        await this.installKaitoFederatedCredentials(
+
+        const kaitoFederatedCredentialsResult = await this.installKaitoFederatedCredentials(
             clusterInfo.result.nodeResourceGroup!,
             this.clusterName,
             aksOidcIssuerUrl,
         );
 
+        //halt installation if federated credentials installation failed
+        if (failed(kaitoFederatedCredentialsResult)) {
+            return { succeeded: false, error: kaitoFederatedCredentialsResult.error };
+        }
+
         //kubectl rollout restart deployment kaito-gpu-provisioner -n kube-system
         const command = `rollout restart deployment kaito-gpu-provisioner -n kube-system`;
         const kubectlresult = await invokeKubectlCommand(this.kubectl, this.kubeConfigFilePath, command);
@@ -404,14 +437,14 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
         subscriptionId: string,
         resourceGroupName: string,
         clusterName: string,
-    ) {
+    ): Promise<Errorable<string>> {
         // get principal id of managed service identity
         const identityName = `ai-toolchain-operator-${clusterName}`;
         const identityResult = await getIdentity(this.managedServiceIdentityClient, mcResourceGroup, identityName);
 
         if (failed(identityResult)) {
             vscode.window.showErrorMessage(`Error getting identity: ${identityResult.error}`);
-            return;
+            return { succeeded: false, error: identityResult.error };
         }
 
         const roleAssignment = await createRoleAssignment(
@@ -423,17 +456,22 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
         );
 
         if (failed(roleAssignment)) {
-            vscode.window.showWarningMessage(
-                `Error installing KAITO Federated Credentials and role Assignments: ${roleAssignment.error}`,
-            );
+            // Don't cancel installation if role assignments already exist, user could be attempting to reinstall
+            if (roleAssignment.error?.includes("already exists")) {
+                return { succeeded: true, result: "Role assignments already exist" };
+            } else {
+                // cancel installation only if there is an alternate error that conflicts with further steps
+                return { succeeded: false, error: roleAssignment.error };
+            }
         }
+        return { succeeded: true, result: "Role assignments created successfully" };
     }
 
     private async installKaitoFederatedCredentials(
         nodeResourceGroup: string,
         clusterName: string,
         aksOidcIssuerUrl: string,
-    ) {
+    ): Promise<Errorable<string>> {
         const result = await createFederatedCredential(
             this.managedServiceIdentityClient,
             nodeResourceGroup,
@@ -445,8 +483,10 @@ export class KaitoPanelDataProvider implements PanelDataProvider<"kaito"> {
         );
 
         if (failed(result)) {
-            vscode.window.showErrorMessage(`Error creating federated credentials: ${result.error}`);
-            return;
+            // vscode.window.showErrorMessage(`Error creating federated credentials: ${result.error}`);
+            return { succeeded: false, error: result.error };
+        } else {
+            return { succeeded: true, result: "Federated credentials created successfully" };
         }
     }
 }
diff --git a/webview-ui/src/Kaito/Kaito.module.css b/webview-ui/src/Kaito/Kaito.module.css
index 186ccce63..3d1e07b9c 100644
--- a/webview-ui/src/Kaito/Kaito.module.css
+++ b/webview-ui/src/Kaito/Kaito.module.css
@@ -123,3 +123,7 @@
 .installBlurb {
     margin: 0.5rem 0rem 0.06rem 0rem;
 }
+.errorMessage {
+    font-weight: 400;
+    width: 90%;
+}
diff --git a/webview-ui/src/Kaito/Kaito.tsx b/webview-ui/src/Kaito/Kaito.tsx
index b5cc83c24..05cbf8083 100644
--- a/webview-ui/src/Kaito/Kaito.tsx
+++ b/webview-ui/src/Kaito/Kaito.tsx
@@ -64,7 +64,7 @@ export function Kaito(initialState: InitialState) {
                         </p>
                     </ul>
                 </div>
-                <div>
+                <div className={styles.installationDiv}>
                     {state.kaitoInstallStatus === ProgressEventType.NotStarted && (
                         <button className={styles.button} onClick={handleClick} disabled={isDisabled}>
                             Install KAITO
@@ -111,6 +111,12 @@ export function Kaito(initialState: InitialState) {
                             </div>
                         </div>
                     )}
+                    {state.kaitoInstallStatus === ProgressEventType.Failed && (
+                        <div className={styles.postInstall}>
+                            <p>Error installing KAITO.</p>
+                            <p className={styles.errorMessage}>{state.errors}</p>
+                        </div>
+                    )}
                 </div>
             </div>
         </>