diff --git a/sbt-app/src/sbt-test/project/usePipelining-cancellation/build.sbt b/sbt-app/src/sbt-test/project/usePipelining-cancellation/build.sbt
new file mode 100644
index 000000000..69344aa97
--- /dev/null
+++ b/sbt-app/src/sbt-test/project/usePipelining-cancellation/build.sbt
@@ -0,0 +1,8 @@
+// Test for issue #7973: CancellationException should not be thrown on compile errors with usePipelining
+ThisBuild / usePipelining := true
+
+lazy val root = (project in file("."))
+  .settings(
+    name := "usePipelining-cancellation",
+    scalaVersion := "2.13.15"
+  )
diff --git a/sbt-app/src/sbt-test/project/usePipelining-cancellation/src/main/scala/A.scala b/sbt-app/src/sbt-test/project/usePipelining-cancellation/src/main/scala/A.scala
new file mode 100644
index 000000000..465e4255e
--- /dev/null
+++ b/sbt-app/src/sbt-test/project/usePipelining-cancellation/src/main/scala/A.scala
@@ -0,0 +1,7 @@
+object A {
+  def invalidSyntax {
+    // Missing closing brace - this will cause compile errors
+    val x = 1
+  // }
+}
+
diff --git a/sbt-app/src/sbt-test/project/usePipelining-cancellation/test b/sbt-app/src/sbt-test/project/usePipelining-cancellation/test
new file mode 100644
index 000000000..5394963f4
--- /dev/null
+++ b/sbt-app/src/sbt-test/project/usePipelining-cancellation/test
@@ -0,0 +1,7 @@
+# Test for issue #7973: CancellationException should not be thrown on compile errors with usePipelining
+# This verifies that compile errors with usePipelining enabled don't show CancellationException stack traces
+
+# Try to compile (should fail with compile errors, but not throw CancellationException)
+# The fix ensures CancellationException is caught and handled gracefully
+# Using -> to indicate expected failure
+-> compile
diff --git a/tasks/src/main/scala/sbt/ConcurrentRestrictions.scala b/tasks/src/main/scala/sbt/ConcurrentRestrictions.scala
index 1f35f8e7a..bb5ae2257 100644
--- a/tasks/src/main/scala/sbt/ConcurrentRestrictions.scala
+++ b/tasks/src/main/scala/sbt/ConcurrentRestrictions.scala
@@ -12,7 +12,7 @@ import java.util.concurrent.atomic.AtomicInteger
 
 import sbt.internal.util.AttributeKey
 import java.util.concurrent.atomic.AtomicBoolean
-import java.util.concurrent.{ Future as JFuture, RejectedExecutionException }
+import java.util.concurrent.{ Future as JFuture, RejectedExecutionException, CancellationException }
 import scala.collection.mutable
 import scala.jdk.CollectionConverters.*
 
@@ -312,7 +312,17 @@ object ConcurrentRestrictions {
           throw new RejectedExecutionException(
             "Tried to get values for a closed completion service"
           )
-        jservice.take().get()
+        try {
+          jservice.take().get()
+        } catch {
+          case ce: CancellationException =>
+            // When tasks are cancelled (e.g., due to compile errors with usePipelining),
+            // the future's get() throws CancellationException. Convert this to an Incomplete
+            // to avoid showing stack traces to users. The cancellation is already handled
+            // by the task execution framework, so we just need to prevent the exception
+            // from propagating as an unhandled exception.
+            throw Incomplete(node = None, message = Some("cancelled"), directCause = Some(ce))
+        }
       }
     }
   }