diff --git a/packages/stack/src/Service.integration.test.ts b/packages/stack/src/Service.integration.test.ts
index 10d881b5f1..16b104c005 100644
--- a/packages/stack/src/Service.integration.test.ts
+++ b/packages/stack/src/Service.integration.test.ts
@@ -5,6 +5,7 @@ import {
   ServiceDestroyed,
   ServiceError,
   ServiceLaunchError,
+  ServiceStaleLaunch,
   type RuntimeSession,
   type ServiceDefinition,
   type ServiceInstance,
@@ -890,7 +891,7 @@ describe("service kernel", () => {
     ),
   );
 
-  it.live("cleans an exact runtime after an unexpected exit during health", () =>
+  it.live("fails readiness with the crash error and cleans the exact runtime", () =>
     Effect.scoped(
       Effect.gen(function* () {
         const fixture = yield* makeFixture;
@@ -918,7 +919,13 @@ describe("service kernel", () => {
         yield* open(plan.removeGate);
         yield* Fiber.join(stopping);
         yield* Fiber.join(stopped);
-        expect(Exit.isFailure(yield* Fiber.await(ready))).toBe(true);
+        const result = yield* Fiber.await(ready);
+        expect(Exit.isFailure(result)).toBe(true);
+        if (Exit.isFailure(result)) {
+          const failure = result.cause.reasons.find(Cause.isFailReason);
+          expect(failure?.error).toBeInstanceOf(ServiceError);
+          expect(failure?.error).toMatchObject({ operation: "process", message: "crashed" });
+        }
         expect((yield* fixture.service.get).lifecycle).toBe("stopped");
         expect((yield* Ref.get(plan.state)).removed).toBe(true);
         expect((yield* fixture.service.get).wakeEnabled).toBe(false);
@@ -1001,7 +1008,12 @@ describe("service kernel", () => {
           yield* Deferred.await(first.removeStarted);
           yield* open(first.removeGate);
           yield* Fiber.join(stopping);
-          expect(Exit.isFailure(yield* Fiber.await(oldReady))).toBe(true);
+          const stale = yield* Fiber.await(oldReady);
+          expect(Exit.isFailure(stale)).toBe(true);
+          if (Exit.isFailure(stale))
+            expect(stale.cause.reasons.find(Cause.isFailReason)?.error).toBeInstanceOf(
+              ServiceStaleLaunch,
+            );
 
           yield* open(second.launchGate);
           yield* fixture.service.start;
diff --git a/packages/stack/src/functions/FunctionsBootstrap.ts b/packages/stack/src/functions/FunctionsBootstrap.ts
index a6fad9206c..340deed73b 100644
--- a/packages/stack/src/functions/FunctionsBootstrap.ts
+++ b/packages/stack/src/functions/FunctionsBootstrap.ts
@@ -69,6 +69,7 @@ export const makeFunctionsBootstrapOwner = Effect.fn("FunctionsBootstrap.makeOwn
     if (input.content.includes("\u0000"))
       return yield* failure("Functions bootstrap contains an invalid character");
     const target = path.join(root, "index.ts");
+    const configFile = path.join(root, "deno.json");
     return yield* Effect.gen(function* () {
       const token = yield* crypto.randomUUIDv4.pipe(
         Effect.mapError((cause) =>
@@ -83,6 +84,13 @@ export const makeFunctionsBootstrapOwner = Effect.fn("FunctionsBootstrap.makeOwn
           fs.makeDirectory(root, { recursive: true, mode: 0o700 }),
         );
         yield* mapFs(root, "secure functions bootstrap directory", fs.chmod(root, 0o700));
+        // An empty workspace root stops Deno config discovery before any ancestor package.json or
+        // workspace; a plain `{}` still joins an ancestor Deno workspace and fails membership.
+        yield* mapFs(
+          configFile,
+          "write functions bootstrap config",
+          fs.writeFileString(configFile, '{"workspace":[]}\n', { mode: 0o600 }),
+        );
         yield* Effect.scoped(
           Effect.gen(function* () {
             const file = yield* mapFs(
diff --git a/packages/stack/src/services/Functions.integration.test.ts b/packages/stack/src/services/Functions.integration.test.ts
index 70d12dc7d9..d58275db2b 100644
--- a/packages/stack/src/services/Functions.integration.test.ts
+++ b/packages/stack/src/services/Functions.integration.test.ts
@@ -92,6 +92,96 @@ describe("service catalog", () => {
       }),
     ).pipe(Effect.provide(Layer.merge(NodeServices.layer, NodeHttpClient.layerNodeHttp))),
   );
+
+  const ancestors = [
+    {
+      name: "a package.json with an unreadable sibling",
+      setup: (fs: FileSystem.FileSystem, root: string) =>
+        Effect.gen(function* () {
+          yield* fs.writeFileString(`${root}/package.json`, '{"name":"home","private":true}');
+          yield* fs.makeDirectory(`${root}/unreadable`);
+          yield* fs.chmod(`${root}/unreadable`, 0o000);
+          yield* Effect.addFinalizer(() =>
+            fs.chmod(`${root}/unreadable`, 0o755).pipe(Effect.ignore),
+          );
+        }),
+    },
+    {
+      name: "a Deno workspace that includes the project functions",
+      setup: (fs: FileSystem.FileSystem, root: string) =>
+        fs.writeFileString(`${root}/deno.json`, '{"workspace":["./project/supabase/functions"]}'),
+    },
+  ];
+  for (const ancestor of ancestors)
+    it.live(
+      `boots below ${ancestor.name} and keeps shared functions deno.json imports`,
+      () =>
+        Effect.scoped(
+          Effect.gen(function* () {
+            const fs = yield* FileSystem.FileSystem;
+            const client = yield* HttpClient.HttpClient;
+            const temporaryRoot = `${process.cwd()}/tmp`;
+            yield* fs.makeDirectory(temporaryRoot, { recursive: true });
+            const root = yield* fs.makeTempDirectoryScoped({
+              directory: temporaryRoot,
+              prefix: "functions-ancestor-",
+            });
+            yield* ancestor.setup(fs, root);
+            const functionsRoot = `${root}/project/supabase/functions`;
+            yield* fs.makeDirectory(`${functionsRoot}/hello`, { recursive: true });
+            yield* fs.makeDirectory(`${functionsRoot}/_shared`, { recursive: true });
+            yield* fs.writeFileString(
+              `${functionsRoot}/deno.json`,
+              '{"imports":{"shared-message":"./_shared/message.ts"}}',
+            );
+            yield* fs.writeFileString(
+              `${functionsRoot}/_shared/message.ts`,
+              'export const message = "shared";',
+            );
+            yield* fs.writeFileString(
+              `${functionsRoot}/hello/index.ts`,
+              'import { message } from "shared-message"; Deno.serve(() => new Response(message));',
+            );
+            const recipe = yield* makeServiceRecipe(
+              {
+                service: "functions",
+                config: {
+                  functionsRoot,
+                  bootstrap: yield* bundleServeMainTemplate,
+                  verifyJwt: false,
+                },
+              },
+              {
+                ...options(root),
+                stackId: "d".repeat(64),
+                instanceId: "ancestor",
+                cacheRoot: "/tmp/supabase-stack-artifacts",
+              },
+            );
+            const logs = yield* Ref.make("");
+            yield* recipe.logs.pipe(
+              Stream.runForEach(({ bytes }) =>
+                Ref.update(logs, (text) => text + new TextDecoder().decode(bytes)),
+              ),
+              Effect.forkScoped({ startImmediately: true }),
+            );
+            const instance = yield* makeService(recipe.definition, {
+              id: "ancestor",
+              config: recipe.creation,
+            });
+            yield* instance.start;
+            yield* instance.ready.pipe(
+              Effect.tapError(() => Ref.get(logs).pipe(Effect.flatMap(Effect.logError))),
+            );
+            const endpoint = yield* recipe.endpoint("http");
+            const response = yield* client.get(`http://${endpoint.host}:${endpoint.port}/hello`);
+            expect(response.status, yield* Ref.get(logs)).toBe(200);
+            expect(yield* response.text).toBe("shared");
+            yield* instance.stop;
+          }),
+        ).pipe(Effect.provide(Layer.merge(NodeServices.layer, NodeHttpClient.layerNodeHttp))),
+      { timeout: 120_000 },
+    );
 });
 
 for (const runtime of ["native", "docker"] as const) {