diff --git a/dvc/cache.py b/dvc/cache.py
index feec198f7..a211c5916 100644
--- a/dvc/cache.py
+++ b/dvc/cache.py
@@ -8,6 +8,8 @@ class Cache(object):
 
     def __init__(self, dvc_dir):
         self.cache_dir = os.path.abspath(os.path.realpath(os.path.join(dvc_dir, self.CACHE_DIR)))
+        if not os.path.exists(self.cache_dir):
+            os.mkdir(self.cache_dir)
 
     @staticmethod
     def init(dvc_dir):
diff --git a/dvc/command/repro.py b/dvc/command/repro.py
index c8bb524a9..08e5e7cfd 100644
--- a/dvc/command/repro.py
+++ b/dvc/command/repro.py
@@ -1,5 +1,6 @@
-from dvc.exceptions import DvcException
 from dvc.command.common.base import CmdBase
+from dvc.project import ReproductionError
+
 
 class CmdRepro(CmdBase):
     def run(self):
@@ -9,8 +10,10 @@ class CmdRepro(CmdBase):
                 self.project.reproduce(target,
                                        recursive=recursive,
                                        force=self.args.force)
-            except DvcException as ex:
-                msg = 'Failed to reproduce {}: {}'.format(target, str(ex))
+            except ReproductionError as ex:
+                self.project.logger.error(ex)
+            except Exception as ex:
+                msg = 'Failed to reproduce \'{}\' - unexpected error: {}'.format(target, ex)
                 self.project.logger.error(msg)
                 return 1
         return 0
diff --git a/dvc/project.py b/dvc/project.py
index 5c5f9cad6..5e167d7e5 100644
--- a/dvc/project.py
+++ b/dvc/project.py
@@ -26,6 +26,13 @@ class StageNotFoundError(DvcException):
         super(StageNotFoundError, self).__init__(msg)
 
 
+class ReproductionError(DvcException):
+    def __init__(self, dvc_file_name, msg):
+        self.dvc_file_name = dvc_file_name
+        self.msg = msg
+        super(ReproductionError, self).__init__(u'Failed to reproduce \'{}\': {}'.format(dvc_file_name, msg))
+
+
 class Pipeline(object):
 
     def __init__(self, project, G):
@@ -168,17 +175,12 @@ class Project(object):
         return stage
 
     def reproduce(self, target, recursive=True, force=False):
-        reproduced = []
         stages = nx.get_node_attributes(self.graph(), 'stage')
         node = os.path.relpath(os.path.abspath(target), self.root_dir)
         if node not in stages:
             raise StageNotFoundError(target)
 
-        if recursive:
-            for n in nx.dfs_postorder_nodes(self.graph(), node):
-                stages[n].reproduce(force=force)
-                stages[n].dump()
-                reproduced.append(stages[n])
+        reproduced = self._reproduce_stages(force, node, stages) if recursive else []
 
         stages[node].reproduce(force=force)
         stages[node].dump()
@@ -186,6 +188,17 @@ class Project(object):
 
         return reproduced
 
+    def _reproduce_stages(self, force, node, stages):
+        result = []
+        for n in nx.dfs_postorder_nodes(self.graph(), node):
+            try:
+                stages[n].reproduce(force=force)
+                stages[n].dump()
+                result.append(stages[n])
+            except Exception as ex:
+                raise ReproductionError(n, ex.message)
+        return result
+
     def checkout(self):
         for stage in self.stages():
             stage.checkout()