diff --git a/src/server.rs b/src/server.rs
index 239c96994..a3a888f3e 100644
--- a/src/server.rs
+++ b/src/server.rs
@@ -36,6 +36,7 @@ use futures::future::FutureExt;
 use futures::{future, stream, Sink, SinkExt, Stream, StreamExt, TryFutureExt};
 use number_prefix::NumberPrefix;
 use serde::{Deserialize, Serialize};
+use std::cell::Cell;
 use std::collections::HashMap;
 use std::env;
 use std::ffi::{OsStr, OsString};
@@ -392,12 +393,27 @@ impl DistClientContainer {
     }
 }
 
+thread_local! {
+    /// catch_unwind doesn't provide panic location, so we store that
+    /// information via a panic hook to be used when catch_unwind
+    /// catches a panic.
+    static PANIC_LOCATION: Cell<Option<(String, u32, u32)>> = Cell::new(None);
+}
+
 /// Start an sccache server, listening on `port`.
 ///
 /// Spins an event loop handling client connections until a client
 /// requests a shutdown.
 pub fn start_server(config: &Config, port: u16) -> Result<()> {
     info!("start_server: port: {}", port);
+    let panic_hook = std::panic::take_hook();
+    std::panic::set_hook(Box::new(move |info| {
+        PANIC_LOCATION.set(
+            info.location()
+                .map(|loc| (loc.file().to_string(), loc.line(), loc.column())),
+        );
+        panic_hook(info)
+    }));
     let client = unsafe { Client::new() };
     let runtime = tokio::runtime::Builder::new_multi_thread()
         .enable_all()
@@ -1182,20 +1198,35 @@ where
         let task = async move {
             let dist_client = me.dist_client.get_client().await;
             let result = match dist_client {
-                Ok(client) => {
-                    hasher
-                        .get_cached_or_compile(
-                            client,
-                            creator,
-                            storage,
-                            arguments,
-                            cwd,
-                            env_vars,
-                            cache_control,
-                            pool,
+                Ok(client) => std::panic::AssertUnwindSafe(hasher.get_cached_or_compile(
+                    client,
+                    creator,
+                    storage,
+                    arguments,
+                    cwd,
+                    env_vars,
+                    cache_control,
+                    pool,
+                ))
+                .catch_unwind()
+                .await
+                .map_err(|e| {
+                    let panic = e
+                        .downcast_ref::<&str>()
+                        .map(|s| &**s)
+                        .or_else(|| e.downcast_ref::<String>().map(|s| &**s))
+                        .unwrap_or_else(|| "An unknown panic was caught.");
+                    let thread = std::thread::current();
+                    let thread_name = thread.name().unwrap_or("unnamed");
+                    if let Some((file, line, column)) = PANIC_LOCATION.take() {
+                        anyhow!(
+                            "thread '{thread_name}' panicked at {file}:{line}:{column}: {panic}"
                         )
-                        .await
-                }
+                    } else {
+                        anyhow!("thread '{thread_name}' panicked: {panic}")
+                    }
+                })
+                .and_then(std::convert::identity),
                 Err(e) => Err(e),
             };
             let mut cache_write = None;