diff --git a/src/main/scala/sbt/Main.scala b/src/main/scala/sbt/Main.scala
index e06770d1c..4d8f25bc2 100755
--- a/src/main/scala/sbt/Main.scala
+++ b/src/main/scala/sbt/Main.scala
@@ -141,8 +141,11 @@ class xMain extends xsbti.AppMain
 			def rememberFail(newArgs: List[String]) = failAction.map(f => (FailureHandlerPrefix + f)).toList :::  newArgs
 
 			def tryOrFail(action: => Trampoline)  =  try { action } catch { case e: Exception => logCommandError(project.log, e); failed(BuildErrorExitCode) }
-			def reload(newID: ApplicationID, args: List[String]) =
+			def reload(args: List[String]) =
+			{
+				val newID = new ApplicationID(configuration.provider.id, baseProject.sbtVersion.value)
 				result( new Reboot(project.defScalaVersion.value, rememberCurrent(args), newID, configuration.baseDirectory) )
+			}
 			def failed(code: Int) =
 				failAction match
 				{
@@ -154,7 +157,7 @@ class xMain extends xsbti.AppMain
 			{
 				case "" :: tail => continue(project, tail, failAction)
 				case (ExitCommand | QuitCommand) :: _ => result( Exit(NormalExitCode) )
-				case RebootCommand :: tail => reload( new ApplicationID(configuration.provider.id, baseProject.sbtVersion.value), tail )
+				case RebootCommand :: tail => reload( tail )
 				case InteractiveCommand :: _ => continue(project, prompt(baseProject, project) :: arguments, interactiveContinue)
 				case SpecificBuild(version, action) :: tail =>
 					if(Some(version) != baseProject.info.buildScalaVersion)
@@ -220,10 +223,14 @@ class xMain extends xsbti.AppMain
 						continue(project, tail, failAction)
 					}
 
-				case PHandler(processor, arguments) :: tail =>
+				case PHandler(parsed) :: tail =>
 					 tryOrFail {
-						val result =processor(project, arguments)
-						continue(project, result.insertArguments ::: tail, failAction)
+						parsed.processor(parsed.label, project, failAction, parsed.arguments) match
+						{
+							case s: processor.Success => continue(s.project, s.insertArguments ::: tail, s.onFailure)
+							case e: processor.Exit => result( Exit(e.code) )
+							case r: processor.Reload => reload( r.insertArguments ::: tail )
+						}
 					 }
 		
 				case action :: tail =>
diff --git a/src/main/scala/sbt/processor/Handler.scala b/src/main/scala/sbt/processor/Handler.scala
index 9933f2e4c..8cd349f98 100644
--- a/src/main/scala/sbt/processor/Handler.scala
+++ b/src/main/scala/sbt/processor/Handler.scala
@@ -5,10 +5,10 @@ package sbt.processor
 
 class Handler(baseProject: Project) extends NotNull
 {
-	def unapply(line: String): Option[(Processor, String)] =
+	def unapply(line: String): Option[ParsedProcessor] =
 		line.split("""\s+""", 2) match
 		{
-			case Array(GetProcessor(processor), args @ _*) => Some( (processor, args.mkString) )
+			case Array(label @ GetProcessor(processor), args @ _*) => Some( new ParsedProcessor(label, processor, args.mkString) )
 			case _ => None
 		}
 	private object GetProcessor
@@ -31,4 +31,5 @@ class Handler(baseProject: Project) extends NotNull
 	
 	lazy val defParser = new DefinitionParser
 	lazy val manager = new ManagerImpl(files, scalaVersion, new Persist(lock, persistLockFile.asFile, defParser), baseProject.log)
-}
\ No newline at end of file
+}
+class ParsedProcessor(val label: String, val processor: Processor, val arguments: String) extends NotNull
\ No newline at end of file
diff --git a/src/main/scala/sbt/processor/Processor.scala b/src/main/scala/sbt/processor/Processor.scala
index 883467bd8..5824f40df 100644
--- a/src/main/scala/sbt/processor/Processor.scala
+++ b/src/main/scala/sbt/processor/Processor.scala
@@ -11,10 +11,28 @@ trait Processor extends NotNull
 	/** Apply this processor's action to the given `project`.
 	* The arguments are passed unparsed as a single String `args`.
 	* The return value optionally provides additional commands to run, such as 'reload'.
-	* Note: `project` is not necessarily the root project.  To get the root project, use `project.rootProject`.*/
-	def apply(project: Project, args: String): ProcessorResult
+	* Note: `project` is not necessarily the root project.  To get the root project, use `project.rootProject`.
+	* The `label` used to call the processor is provided to allow recursing.*/
+	def apply(label: String, project: Project, onFailure: Option[String], args: String): ProcessorResult
 }
-/** The result of a Processor run.
+/** An interface for code that operates on an sbt `Project` but doesn't need to modify command processing.*/
+abstract class BasicProcessor extends Processor
+{
+	/** Apply this processor's action to the given `project`.
+	* The arguments are passed unparsed as a single String `args`.
+	* Note: `project` is not necessarily the root project.  To get the root project, use `project.rootProject`.*/
+	def apply(project: Project, args: String): Unit
+
+	override final def apply(label: String, project: Project, onFailure: Option[String], args: String): ProcessorResult =
+	{
+		apply(project, args)
+		new Success(project, onFailure)
+	}
+}
+
+/** The result of a Processor run.*/
+sealed trait ProcessorResult extends NotNull
+/* Processor success.
 * `insertArgs` allows the Processor to insert additional commands to run.
 * These commands are run before pending commands.
 * 
@@ -25,7 +43,12 @@ trait Processor extends NotNull
 *   `sbt a cleanCompile b `
 * This runs `a`, `cleanCompile`, `clean`, `compile`, and finally `b`.
 * Commands are processed as if they were entered at the prompt or from the command line.*/
-final class ProcessorResult(insertArgs: String*) extends NotNull
+final class Success(val project: Project, val onFailure: Option[String], insertArgs: String*) extends ProcessorResult
+{
+	val insertArguments = insertArgs.toList
+}
+final class Exit(val code: Int) extends ProcessorResult
+final class Reload(insertArgs: String*) extends ProcessorResult
 {
 	val insertArguments = insertArgs.toList
 }
diff --git a/src/sbt-test/project/processor/project/build.properties b/src/sbt-test/project/processor/project/build.properties
new file mode 100644
index 000000000..c45202545
--- /dev/null
+++ b/src/sbt-test/project/processor/project/build.properties
@@ -0,0 +1,2 @@
+project.name=Processor Test
+project.version=1.0
\ No newline at end of file
diff --git a/src/sbt-test/project/processor/project/build/ProcessorProject.scala b/src/sbt-test/project/processor/project/build/ProcessorProject.scala
new file mode 100644
index 000000000..7c1170aa4
--- /dev/null
+++ b/src/sbt-test/project/processor/project/build/ProcessorProject.scala
@@ -0,0 +1,8 @@
+import sbt._
+
+class PTest(info: ProjectInfo) extends ProcessorProject(info)
+{
+	val launcherJar = "org.scala-tools.sbt" % "launcher" % info.app.id.version % "test"
+	val specs = "org.scala-tools.testing" % "specs" % "1.6.0" % "test"
+	override def testClasspath = super.testClasspath +++ info.sbtClasspath
+}
\ No newline at end of file
diff --git a/src/sbt-test/project/processor/src/test/scala/ProcessorTest.scala b/src/sbt-test/project/processor/src/test/scala/ProcessorTest.scala
new file mode 100644
index 000000000..5be8aed72
--- /dev/null
+++ b/src/sbt-test/project/processor/src/test/scala/ProcessorTest.scala
@@ -0,0 +1,74 @@
+package ptest
+
+import sbt._
+import Path.fromFile
+import org.specs._
+
+class ProcessorTest extends Specification
+{
+	"basic processor " should {
+		def success(f: processor.Success => Unit) = successOrFail(basicProcessorResult)(f)
+
+		"succeed" in {
+			success(_ => ())
+		}
+		"not insert any arguments" in {
+			success(_.insertArguments must_== Nil)
+		}
+		"preserve the fail handler" in {
+			success(_.onFailure must_== basicFail)
+		}
+	}
+	"full processor " should {
+		def success(f: processor.Success => Unit) = successOrFail(fullProcessorResult)(f)
+		"succeed" in {
+			success(_ => ())
+		}
+		"insert correct arguments" in {
+			success(_.insertArguments must_== testArgs)
+		}
+		"preserve the fail handler" in {
+			success(_.onFailure must_== testFail)
+		}
+	}
+
+	def successOrFail(r: processor.ProcessorResult)(f: processor.Success => Unit) =
+		r match
+		{
+			case s: processor.Success => f(s)
+			case _ => error("Processor failed: " + r)
+		}
+		
+	def withProject[T](f: Project => T): T =
+	{
+		val log = new ConsoleLogger
+		xsbt.FileUtilities.withTemporaryDirectory { tmp =>
+			val app = xsbt.boot.Launcher.defaultAppProvider(tmp)
+			val info = new ProjectInfo(tmp, Nil, None)(log, app, None)
+			val project = new DefaultProject(info)
+			f(project)
+		}
+	}
+	def basicProcessorResult =
+	{
+		var ranBasicArgs: Option[String] = None
+		val basic = new processor.BasicProcessor {
+			def apply(p: Project, args: String) = { ranBasicArgs = Some(args) }
+		}
+		val result = withProject { project => basic("basic", project, basicFail, basicArgs) }
+		ranBasicArgs must_== Some(basicArgs)
+		result
+	}
+	def fullProcessorResult =
+	{
+		val full = new processor.Processor {
+			def apply(label: String, p: Project, failAction: Option[String], args: String) = new processor.Success(p, failAction, args.split("""\s+"""): _*)
+		}
+		withProject { project => full("full", project, testFail, testArgs.mkString(" ")) }
+	}
+
+	lazy val testFail = Some("fail")
+	lazy val testArgs = List("a", "b")
+	lazy val basicArgs = " a b c "
+	lazy val basicFail = Some("basic-fail")
+}
\ No newline at end of file
diff --git a/src/sbt-test/project/processor/test b/src/sbt-test/project/processor/test
new file mode 100644
index 000000000..5fbb5d887
--- /dev/null
+++ b/src/sbt-test/project/processor/test
@@ -0,0 +1,2 @@
+> update
+> test
\ No newline at end of file