diff --git a/crates/uv/src/commands/pip/operations.rs b/crates/uv/src/commands/pip/operations.rs
index 7db3d6a88..58a614f6f 100644
--- a/crates/uv/src/commands/pip/operations.rs
+++ b/crates/uv/src/commands/pip/operations.rs
@@ -215,11 +215,10 @@ pub(crate) async fn resolve<InstalledPackages: InstalledPackagesProvider>(
                 build_dispatch.workspace_cache(),
             )
             .await
-            .map_err(|e| {
-                anyhow!(
-                    "Failed to read dependency groups from: {}\n{}",
-                    pyproject_path.display(),
-                    e
+            .with_context(|| {
+                format!(
+                    "Failed to read dependency groups from: {}",
+                    pyproject_path.display()
                 )
             })?;
 
diff --git a/crates/uv/tests/it/pip_install.rs b/crates/uv/tests/it/pip_install.rs
index af6c4aee8..04e2be938 100644
--- a/crates/uv/tests/it/pip_install.rs
+++ b/crates/uv/tests/it/pip_install.rs
@@ -9719,6 +9719,74 @@ fn dependency_group() -> Result<()> {
     Ok(())
 }
 
+#[test]
+fn recursive_dependency_group() -> Result<()> {
+    let context = TestContext::new("3.12");
+
+    // Test a self-referencing group.
+    let pyproject_toml = context.temp_dir.child("pyproject.toml");
+    pyproject_toml.write_str(
+        r#"
+        [project]
+        name = "myproject"
+        version = "0.1.0"
+        requires-python = ">=3.12"
+
+        [dependency-groups]
+        test = [
+            { include-group = "test" },
+            "requests"
+        ]
+        "#,
+    )?;
+
+    uv_snapshot!(context.filters(), context.pip_install()
+        .arg("--group").arg("test"), @r"
+    success: false
+    exit_code: 2
+    ----- stdout -----
+
+    ----- stderr -----
+    error: Failed to read dependency groups from: [TEMP_DIR]/pyproject.toml
+      Caused by: Project `myproject` has malformed dependency groups
+      Caused by: Detected a cycle in `dependency-groups`: `test` -> `test`
+    ");
+
+    // Test mutually recursive groups.
+    pyproject_toml.write_str(
+        r#"
+        [project]
+        name = "myproject"
+        version = "0.1.0"
+        requires-python = ">=3.12"
+
+        [dependency-groups]
+        test = [
+            { include-group = "dev" },
+            "requests"
+        ]
+        dev = [
+            { include-group = "test" },
+            "pytest"
+        ]
+        "#,
+    )?;
+
+    uv_snapshot!(context.filters(), context.pip_install()
+        .arg("--group").arg("test"), @r"
+    success: false
+    exit_code: 2
+    ----- stdout -----
+
+    ----- stderr -----
+    error: Failed to read dependency groups from: [TEMP_DIR]/pyproject.toml
+      Caused by: Project `myproject` has malformed dependency groups
+      Caused by: Detected a cycle in `dependency-groups`: `dev` -> `test` -> `dev`
+    ");
+
+    Ok(())
+}
+
 #[test]
 fn virtual_dependency_group() -> Result<()> {
     // testing basic `uv pip install --group` functionality