diff --git a/scripts/build-remote.pl.in b/scripts/build-remote.pl.in
index 930164599a..53cf536447 100755
--- a/scripts/build-remote.pl.in
+++ b/scripts/build-remote.pl.in
@@ -192,8 +192,16 @@ my $buildFlags = "--max-silent-time $maxSilentTime";
 # connection dies.  Without it, the remote process might continue to
 # run indefinitely (that is, until it next tries to write to
 # stdout/stderr).
-system("ssh -tt $sshOpts $hostName 'nix-store -rvvK $buildFlags $drvPath'") == 0
-    or die "remote build on $hostName failed: $?";
+if (system("ssh -tt $sshOpts $hostName 'nix-store -rvvK $buildFlags $drvPath'") != 0) {
+    # If we couldn't run ssh or there was an ssh problem (indicated by
+    # exit code 255), then we return exit code 1; otherwise we assume
+    # that the builder failed, which we indicated to Nix using exit
+    # code 100.  It's important to distinguish between the two because
+    # the first is a transient failure and the latter is permanent.
+    my $res = $? == -1 || ($? >> 8) == 255 ? 1 : 100;
+    print STDERR "remote build on $hostName failed: $?";
+    exit $res;
+}
 
 print "REMOTE BUILD DONE: $drvPath on $hostName\n";
 
diff --git a/src/libstore/build.cc b/src/libstore/build.cc
index db2bed6d01..aea4ccdc43 100644
--- a/src/libstore/build.cc
+++ b/src/libstore/build.cc
@@ -648,6 +648,9 @@ private:
     /* Pipe for the builder's standard output/error. */
     Pipe logPipe;
 
+    /* Whether we're building using a build hook. */
+    bool usingBuildHook;
+
     /* Pipes for talking to the build hook (if any). */
     Pipe toHook;
     Pipe fromHook;
@@ -970,6 +973,7 @@ void DerivationGoal::tryToBuild()
     try {
 
         /* Is the build hook willing to accept this job? */
+        usingBuildHook = true;
         switch (tryBuildHook()) {
             case rpAccept:
                 /* Yes, it has started doing so.  Wait until we get
@@ -1003,6 +1007,7 @@ void DerivationGoal::tryToBuild()
 
         /* Acquire locks and such.  If we then see that the build has
            been done by somebody else, we're done. */
+        usingBuildHook = false;
         PrepareBuildReply preply = prepareBuild();
         if (preply == prDone) {
             amDone(ecSuccess);
@@ -1019,8 +1024,12 @@ void DerivationGoal::tryToBuild()
     } catch (BuildError & e) {
         printMsg(lvlError, e.msg());
         if (printBuildTrace) {
-            printMsg(lvlError, format("@ build-failed %1% %2% %3% %4%")
-                % drvPath % drv.outputs["out"].path % 0 % e.msg());
+            if (usingBuildHook)
+                printMsg(lvlError, format("@ hook-failed %1% %2% %3% %4%")
+                    % drvPath % drv.outputs["out"].path % 0 % e.msg());
+            else
+                printMsg(lvlError, format("@ build-failed %1% %2% %3% %4%")
+                    % drvPath % drv.outputs["out"].path % 0 % e.msg());
         }
         amDone(ecFailed);
         return;
@@ -1122,8 +1131,15 @@ void DerivationGoal::buildDone()
     } catch (BuildError & e) {
         printMsg(lvlError, e.msg());
         if (printBuildTrace) {
-            printMsg(lvlError, format("@ build-failed %1% %2% %3% %4%")
-                % drvPath % drv.outputs["out"].path % status % e.msg());
+            /* When using a build hook, the hook will return a
+               remote build failure using exit code 100.  Anything
+               else is a hook problem. */
+            if (usingBuildHook && (!WIFEXITED(status) || WEXITSTATUS(status) != 100))
+                printMsg(lvlError, format("@ hook-failed %1% %2% %3% %4%")
+                    % drvPath % drv.outputs["out"].path % status % e.msg());
+            else
+                printMsg(lvlError, format("@ build-failed %1% %2% %3% %4%")
+                    % drvPath % drv.outputs["out"].path % status % e.msg());
         }
         amDone(ecFailed);
         return;