diff --git a/.changes/unreleased/Fixes-20241017-153022.yaml b/.changes/unreleased/Fixes-20241017-153022.yaml
new file mode 100644
index 00000000000..905a40db501
--- /dev/null
+++ b/.changes/unreleased/Fixes-20241017-153022.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Ensure KeyboardInterrupt/SystemExit halts microbatch model execution
+time: 2024-10-17T15:30:22.781854-07:00
+custom:
+  Author: QMalcolm
+  Issue: "10862"
diff --git a/core/dbt/task/run.py b/core/dbt/task/run.py
index ce613c0e44d..0b6fae4fc4c 100644
--- a/core/dbt/task/run.py
+++ b/core/dbt/task/run.py
@@ -568,6 +568,9 @@ def _execute_microbatch_materialization(
                 # At least one batch has been inserted successfully!
                 incremental_batch = True
 
+            except (KeyboardInterrupt, SystemExit):
+                # reraise it for GraphRunnableTask.execute_nodes to handle
+                raise
             except Exception as e:
                 exception = e
                 batch_run_result = self._build_failed_run_batch_result(
diff --git a/tests/unit/task/test_run.py b/tests/unit/task/test_run.py
index 7063ca4200d..8f239ccfc3a 100644
--- a/tests/unit/task/test_run.py
+++ b/tests/unit/task/test_run.py
@@ -14,7 +14,7 @@
 from dbt.adapters.contracts.connection import AdapterResponse
 from dbt.adapters.postgres import PostgresAdapter
 from dbt.artifacts.resources.base import FileHash
-from dbt.artifacts.resources.types import NodeType, RunHookType
+from dbt.artifacts.resources.types import BatchSize, NodeType, RunHookType
 from dbt.artifacts.resources.v1.components import DependsOn
 from dbt.artifacts.resources.v1.config import NodeConfig
 from dbt.artifacts.resources.v1.model import ModelConfig
@@ -27,6 +27,7 @@
 from dbt.events.types import LogModelResult
 from dbt.exceptions import DbtRuntimeError
 from dbt.flags import get_flags, set_from_args
+from dbt.materializations.incremental.microbatch import MicrobatchBuilder
 from dbt.task.run import ModelRunner, RunTask, _get_adapter_info
 from dbt.tests.util import safe_set_invocation_context
 from dbt_common.events.base_types import EventLevel
@@ -265,6 +266,33 @@ class Relation:
         # Assert result of _is_incremental
         assert model_runner._is_incremental(model) == expectation
 
+    def test_keyboard_breaks__execute_microbatch_materialization(
+        self,
+        table_model: ModelNode,
+        manifest: Manifest,
+        model_runner: ModelRunner,
+    ) -> None:
+        def mock_build_batch_context(*args, **kwargs):
+            raise KeyboardInterrupt("Test exception")
+
+        def mock_is_incremental(*args, **kwargs):
+            return True
+
+        table_model.config.materialized = "incremental"
+        table_model.config.incremental_strategy = "microbatch"
+        table_model.config.batch_size = BatchSize.day
+
+        with patch.object(
+            MicrobatchBuilder, "build_batch_context", mock_build_batch_context
+        ), patch.object(ModelRunner, "_is_incremental", mock_is_incremental):
+            try:
+                model_runner._execute_microbatch_materialization(
+                    table_model, manifest, {}, MagicMock()
+                )
+                assert False, "KeybaordInterrupt failed to escape"
+            except KeyboardInterrupt:
+                assert True
+
 
 class TestRunTask:
     @pytest.fixture