diff --git a/skyvern/forge/sdk/workflow/models/block.py b/skyvern/forge/sdk/workflow/models/block.py
index 6f1e9f43..7008f61c 100644
--- a/skyvern/forge/sdk/workflow/models/block.py
+++ b/skyvern/forge/sdk/workflow/models/block.py
@@ -111,6 +111,17 @@ class BlockStatus(StrEnum):
     timed_out = "timed_out"
 
 
+# Mapping from TaskV2Status to the corresponding BlockStatus. Declared once at
+# import time so it is not recreated on each block execution.
+TASKV2_TO_BLOCK_STATUS: dict[TaskV2Status, BlockStatus] = {
+    TaskV2Status.completed: BlockStatus.completed,
+    TaskV2Status.terminated: BlockStatus.terminated,
+    TaskV2Status.failed: BlockStatus.failed,
+    TaskV2Status.canceled: BlockStatus.canceled,
+    TaskV2Status.timed_out: BlockStatus.timed_out,
+}
+
+
 @dataclass(frozen=True)
 class BlockResult:
     success: bool
@@ -2544,11 +2555,18 @@ class TaskV2Block(Block):
         if task_v2:
             result_dict = task_v2.output
 
+        # Determine block status from task status using module-level mapping
+        block_status = TASKV2_TO_BLOCK_STATUS.get(task_v2.status, BlockStatus.failed)
+        success = task_v2.status == TaskV2Status.completed
+        failure_reason = task_v2.failure_reason
+
+        # If continue_on_failure is True, we treat the block as successful even if the task failed
+        # This allows the workflow to continue execution despite this block's failure
         return await self.build_block_result(
-            success=True,
-            failure_reason=None,
+            success=success or self.continue_on_failure,
+            failure_reason=failure_reason,
             output_parameter_value=result_dict,
-            status=BlockStatus.completed,
+            status=block_status,
             workflow_run_block_id=workflow_run_block_id,
             organization_id=organization_id,
         )