diff --git a/client/src/ClientNotificationManager.ts b/client/src/ClientNotificationManager.ts
new file mode 100644
index 00000000..ddbe1ffd
--- /dev/null
+++ b/client/src/ClientNotificationManager.ts
@@ -0,0 +1,50 @@
+import { type Memento, commands, window } from 'vscode'
+import { type LanguageClient, type Disposable } from 'vscode-languageclient/node'
+
+export class ClientNotificationManager {
+  private readonly _client: LanguageClient
+  private readonly _memento: Memento
+
+  constructor (client: LanguageClient, memento: Memento) {
+    this._client = client
+    this._memento = memento
+  }
+
+  buildHandlers (): Disposable[] {
+    const handlers = [
+      this.buildBitBakeNotFoundHandler()
+    ]
+
+    return handlers
+  }
+
+  private buildBitBakeNotFoundHandler (): Disposable {
+    const isNeverShowAgain = this.checkIsNeverShowAgain('custom/bitBakeNotFound')
+    if (isNeverShowAgain) {
+      return { dispose: () => {} }
+    }
+    return this._client.onNotification('custom/bitBakeNotFound', () => {
+      void window.showErrorMessage(
+        'BitBake folder could not be found. Please set its path in the settings. Optionally, also set an environment script.',
+        'Open Settings',
+        'Close',
+        'Never Show Again'
+      )
+        .then((item) => {
+          if (item === 'Open Settings') {
+            void commands.executeCommand('workbench.action.openSettings', 'bitbake')
+          } else if (item === 'Never Show Again') {
+            void this.neverShowAgain('custom/bitBakeNotFound')
+          }
+        })
+    })
+  }
+
+  private neverShowAgain (method: string): Thenable<void> {
+    return this._memento.update(`neverShowAgain/${method}`, true)
+  }
+
+  private checkIsNeverShowAgain (method: string): boolean {
+    return this._memento.get(`neverShowAgain/${method}`, false)
+  }
+}
diff --git a/client/src/extension.ts b/client/src/extension.ts
index 5e42a6c3..98d01a10 100644
--- a/client/src/extension.ts
+++ b/client/src/extension.ts
@@ -15,6 +15,7 @@ import type { ExtensionContext } from 'vscode'
 import type { LanguageClientOptions, ServerOptions } from 'vscode-languageclient/node'
 
 // import { legend, BitBakeDocumentSemanticTokensProvider } from './BitBakeDocumentSemanticTokensProvider'
+import { ClientNotificationManager } from './ClientNotificationManager'
 
 let client: LanguageClient
 export async function activate (context: ExtensionContext): Promise<void> {
@@ -55,6 +56,8 @@ export async function activate (context: ExtensionContext): Promise<void> {
   await client.start()
 
   // context.subscriptions.push(languages.registerDocumentSemanticTokensProvider({ language: 'bitbake', scheme: 'file' }, new BitBakeDocumentSemanticTokensProvider(), legend))
+  const notificationManager = new ClientNotificationManager(client, context.globalState)
+  context.subscriptions.push(...notificationManager.buildHandlers())
 }
 
 export function deactivate (): Thenable<void> | undefined {
diff --git a/server/src/BitBakeDocScanner.ts b/server/src/BitBakeDocScanner.ts
index 9b2995e0..e135e27e 100644
--- a/server/src/BitBakeDocScanner.ts
+++ b/server/src/BitBakeDocScanner.ts
@@ -1,5 +1,6 @@
 import path from 'path'
 import fs from 'fs'
+import logger from 'winston'
 
 type SuffixType = 'layer' | 'providedItem' | undefined
 
@@ -50,7 +51,13 @@ export class BitBakeDocScanner {
   }
 
   parse (pathToBitbakeFolder: string): void {
-    const file = fs.readFileSync(path.join(pathToBitbakeFolder, variablesFolder), 'utf8')
+    let file = ''
+    const docPath = path.join(pathToBitbakeFolder, variablesFolder)
+    try {
+      file = fs.readFileSync(docPath, 'utf8')
+    } catch {
+      logger.warn(`BitBake doc file not found at ${docPath}`)
+    }
     for (const match of file.matchAll(variablesRegexForDoc)) {
       const name = match.groups?.name
       // Naive silly inneficient incomplete conversion to markdown
diff --git a/server/src/BitBakeProjectScanner.ts b/server/src/BitBakeProjectScanner.ts
index 0e12b261..420066ba 100644
--- a/server/src/BitBakeProjectScanner.ts
+++ b/server/src/BitBakeProjectScanner.ts
@@ -22,6 +22,7 @@ import type {
 import {
   OutputParser
 } from './OutputParser'
+import { ServerNotificationManager } from './ServerNotificationManager'
 
 interface ScannStatus {
   scanIsRunning: boolean
@@ -42,6 +43,7 @@ export class BitBakeProjectScanner {
   private _includes: ElementInfo[] = new Array < ElementInfo >()
   private _recipes: ElementInfo[] = new Array < ElementInfo >()
   private readonly _outputParser: OutputParser
+  private readonly _notificationManager: ServerNotificationManager
   private _shouldDeepExamine: boolean = false
   private _pathToBuildFolder: string = 'build'
   private _pathToEnvScript: string = 'oe-init-build-env'
@@ -49,6 +51,7 @@ export class BitBakeProjectScanner {
 
   constructor (connection: Connection) {
     this._outputParser = new OutputParser(connection)
+    this._notificationManager = new ServerNotificationManager(connection)
   }
 
   private readonly _scanStatus: ScannStatus = {
@@ -347,9 +350,13 @@ export class BitBakeProjectScanner {
     const commandResult = this.executeCommand(scriptContent)
 
     if (commandResult.status === 127) {
-      // Likely "bitbake: not found"
-      // TODO: Show a proper error message to help the user configuring the extension
-      throw new Error(commandResult.output.toString())
+      const output = commandResult.stderr.toString()
+      if (output.includes('bitbake')) {
+        // Seems like Bitbake could not be found.
+        // Are we sure this is the actual error?
+        this._notificationManager.sendBitBakeNotFound()
+        throw new Error(output)
+      }
     }
 
     return commandResult
diff --git a/server/src/ServerNotificationManager.ts b/server/src/ServerNotificationManager.ts
new file mode 100644
index 00000000..9c0579f7
--- /dev/null
+++ b/server/src/ServerNotificationManager.ts
@@ -0,0 +1,20 @@
+import { type Connection } from 'vscode-languageserver'
+
+export type NotificationType =
+  'custom/bitBakeNotFound'
+
+export class ServerNotificationManager {
+  private readonly _connection: Connection
+
+  constructor (connection: Connection) {
+    this._connection = connection
+  }
+
+  send (type: NotificationType, message?: string): void {
+    void this._connection.sendNotification(type, message)
+  }
+
+  sendBitBakeNotFound (): void {
+    this.send('custom/bitBakeNotFound')
+  }
+}