diff --git a/core/src/main/java/org/lflang/federated/generator/FedGenerator.java b/core/src/main/java/org/lflang/federated/generator/FedGenerator.java
index 445b1dacfc..2d06f21436 100644
--- a/core/src/main/java/org/lflang/federated/generator/FedGenerator.java
+++ b/core/src/main/java/org/lflang/federated/generator/FedGenerator.java
@@ -203,7 +203,7 @@ public boolean doGenerate(Resource resource, LFGeneratorContext context) throws
             });
 
     context.finish(Status.COMPILED, codeMapMap);
-    return false;
+    return context.getErrorReporter().getErrorsOccurred();
   }
 
   /**
@@ -218,9 +218,14 @@ private void buildUsingDocker(LFGeneratorContext context, List<SubContext> subCo
       dockerGen.writeDockerComposeFile(createDockerFiles(context, subContexts));
       if (dockerGen.build()) {
         dockerGen.createLauncher();
+      } else {
+        context.getErrorReporter().nowhere().error("Docker build failed.");
       }
     } catch (IOException e) {
-      context.getErrorReporter().nowhere().error("Unsuccessful Docker build.");
+      context
+          .getErrorReporter()
+          .nowhere()
+          .error("Docker build failed due to invalid file system state.");
     }
   }
 
@@ -237,8 +242,7 @@ private void prepareRtiBuildEnvironment(LFGeneratorContext context) {
       try {
         Files.createDirectories(dest);
         // 2. Copy reactor-c source files into it
-        FileUtil.copyFromClassPath("/lib/c/reactor-c/core", dest, true, false);
-        FileUtil.copyFromClassPath("/lib/c/reactor-c/include", dest, true, false);
+        FileUtil.copyFromClassPath("/lib/c/reactor-c", dest, true, true);
         // 3. Generate a Dockerfile for the rti
         new RtiDockerGenerator(context).generateDockerData(dest).writeDockerFile();
       } catch (IOException e) {
diff --git a/core/src/main/java/org/lflang/generator/c/CGenerator.java b/core/src/main/java/org/lflang/generator/c/CGenerator.java
index d8ba272455..eb3a21dc26 100644
--- a/core/src/main/java/org/lflang/generator/c/CGenerator.java
+++ b/core/src/main/java/org/lflang/generator/c/CGenerator.java
@@ -523,7 +523,10 @@ public void doGenerate(Resource resource, LFGeneratorContext context) {
             context.getMode());
         context.finish(GeneratorResult.Status.COMPILED, null);
       } else if (dockerBuild.enabled()) {
-        buildUsingDocker();
+        boolean success = buildUsingDocker();
+        if (!success) {
+          context.unsuccessfulFinish();
+        }
       } else {
         var cleanCode = code.removeLines("#line");
         var cCompiler = new CCompiler(targetConfig, fileConfig, messageReporter, cppMode);
@@ -557,7 +560,7 @@ public void doGenerate(Resource resource, LFGeneratorContext context) {
   }
 
   /** Create Dockerfiles and docker-compose.yml, build, and create a launcher. */
-  private void buildUsingDocker() {
+  private boolean buildUsingDocker() {
     // Create docker file.
     var dockerCompose = new DockerComposeGenerator(context);
     var dockerData = getDockerGenerator(context).generateDockerData();
@@ -568,9 +571,13 @@ private void buildUsingDocker() {
       throw new RuntimeException("Error while writing Docker files", e);
     }
     var success = dockerCompose.build();
+    if (!success) {
+      messageReporter.nowhere().error("Docker-compose build failed.");
+    }
     if (success && mainDef != null) {
       dockerCompose.createLauncher();
     }
+    return success;
   }
 
   private void generateCodeFor(String lfModuleName) throws IOException {
diff --git a/core/src/main/java/org/lflang/generator/docker/RtiDockerGenerator.java b/core/src/main/java/org/lflang/generator/docker/RtiDockerGenerator.java
index fb863eed4c..d281cc896c 100644
--- a/core/src/main/java/org/lflang/generator/docker/RtiDockerGenerator.java
+++ b/core/src/main/java/org/lflang/generator/docker/RtiDockerGenerator.java
@@ -1,5 +1,9 @@
 package org.lflang.generator.docker;
 
+import java.io.BufferedReader;
+import java.io.InputStream;
+import java.io.InputStreamReader;
+import java.util.stream.Collectors;
 import org.lflang.generator.LFGeneratorContext;
 
 /**
@@ -15,24 +19,12 @@ public RtiDockerGenerator(LFGeneratorContext context) {
 
   @Override
   protected String generateDockerFileContent() {
-    return """
-        # Docker file for building the image of the rti
-        FROM %s
-        COPY core /reactor-c/core
-        COPY include /reactor-c/include
-        WORKDIR /reactor-c/core/federated/RTI
-        %s
-        RUN rm -rf build && \\
-            mkdir build && \\
-            cd build && \\
-            cmake ../ && \\
-            make && \\
-            make install
-
-        # Use ENTRYPOINT not CMD so that command-line arguments go through
-        ENTRYPOINT ["RTI"]
-        """
-        .formatted(baseImage(), generateRunForBuildDependencies());
+    InputStream stream =
+        RtiDockerGenerator.class.getResourceAsStream(
+            "/lib/c/reactor-c/core/federated/RTI/rti.Dockerfile");
+    return new BufferedReader(new InputStreamReader(stream))
+        .lines()
+        .collect(Collectors.joining("\n"));
   }
 
   @Override
diff --git a/core/src/main/java/org/lflang/generator/docker/TSDockerGenerator.java b/core/src/main/java/org/lflang/generator/docker/TSDockerGenerator.java
index cdb6ddcf4b..e22d9a3e86 100644
--- a/core/src/main/java/org/lflang/generator/docker/TSDockerGenerator.java
+++ b/core/src/main/java/org/lflang/generator/docker/TSDockerGenerator.java
@@ -17,11 +17,11 @@ public TSDockerGenerator(LFGeneratorContext context) {
   /** Return the content of the docker file for [tsFileName]. */
   public String generateDockerFileContent() {
     return """
-        |FROM %s
-        |WORKDIR /linguafranca/$name
-        |%s
-        |COPY . .
-        |ENTRYPOINT ["node", "dist/%s.js"]
+        FROM %s
+        WORKDIR /linguafranca/$name
+        %s
+        COPY . .
+        ENTRYPOINT ["node", "dist/%s.js"]
         """
         .formatted(baseImage(), generateRunForBuildDependencies(), context.getFileConfig().name);
   }
diff --git a/core/src/main/resources/lib/c/reactor-c b/core/src/main/resources/lib/c/reactor-c
index 7427d987d7..2a3c2575be 160000
--- a/core/src/main/resources/lib/c/reactor-c
+++ b/core/src/main/resources/lib/c/reactor-c
@@ -1 +1 @@
-Subproject commit 7427d987d725111141139819c5341921edd0fef1
+Subproject commit 2a3c2575be15f62b1229f8d8967b03d7fb16887a
diff --git a/core/src/testFixtures/java/org/lflang/tests/TestBase.java b/core/src/testFixtures/java/org/lflang/tests/TestBase.java
index 6923149f07..fb57ea3691 100644
--- a/core/src/testFixtures/java/org/lflang/tests/TestBase.java
+++ b/core/src/testFixtures/java/org/lflang/tests/TestBase.java
@@ -381,6 +381,13 @@ private void prepare(LFTest test, Transformer transformer, Configurator configur
         FileConfig.findPackageRoot(test.getSrcPath(), s -> {})
             .resolve(FileConfig.DEFAULT_SRC_GEN_DIR)
             .toString());
+
+    // Update the test by applying the transformation.
+    if (transformer != null) {
+      if (!transformer.transform(resource)) {
+        throw new TestError("Test transformation unsuccessful.", Result.TRANSFORM_FAIL);
+      }
+    }
     var context =
         new MainContext(
             LFGeneratorContext.Mode.STANDALONE,
@@ -391,13 +398,6 @@ private void prepare(LFTest test, Transformer transformer, Configurator configur
             fileAccess,
             fileConfig -> new DefaultMessageReporter());
 
-    // Update the test by applying the transformation.
-    if (transformer != null) {
-      if (!transformer.transform(resource)) {
-        throw new TestError("Test transformation unsuccessful.", Result.TRANSFORM_FAIL);
-      }
-    }
-
     // Reload the context because properties may have changed as part of the transformation.
     test.loadContext(context);