diff --git a/pkg/sqlcmd/sqlcmd.go b/pkg/sqlcmd/sqlcmd.go
index d0ebb491..7c2b8d3b 100644
--- a/pkg/sqlcmd/sqlcmd.go
+++ b/pkg/sqlcmd/sqlcmd.go
@@ -68,8 +68,9 @@ type Sqlcmd struct {
 	Query    string
 	Cmd      Commands
 	// PrintError allows the host to redirect errors away from the default output. Returns false if the error is not redirected by the host.
-	PrintError        func(msg string, severity uint8) bool
-	UnicodeOutputFile bool
+	PrintError           func(msg string, severity uint8) bool
+	UnicodeOutputFile    bool
+	IsInteractiveSession bool
 }
 
 // New creates a new Sqlcmd instance
@@ -86,10 +87,13 @@ func New(l Console, workingDirectory string, vars *Variables) *Sqlcmd {
 	s.PrintError = func(msg string, severity uint8) bool {
 		return false
 	}
+	s.SetOutput(os.Stdout)
+	s.SetError(os.Stderr)
 	return s
 }
 
 func (s *Sqlcmd) scanNext() (string, error) {
+	s.IsInteractiveSession = true
 	return s.lineIo.Readline()
 }
 
@@ -134,7 +138,11 @@ func (s *Sqlcmd) Run(once bool, processAll bool) error {
 				args = make([]string, 0)
 				once = true
 			} else {
-				_, _ = s.GetOutput().Write([]byte(err.Error() + SqlcmdEol))
+				if iactive && s.IsInteractiveSession {
+					_, _ = s.GetOutput().Write([]byte(err.Error() + SqlcmdEol))
+				} else {
+					_, _ = s.GetError().Write([]byte(err.Error() + SqlcmdEol))
+				}
 			}
 		}
 		if cmd != nil {
@@ -144,7 +152,11 @@ func (s *Sqlcmd) Run(once bool, processAll bool) error {
 				break
 			}
 			if err != nil {
-				_, _ = s.GetOutput().Write([]byte(err.Error() + SqlcmdEol))
+				if iactive && s.IsInteractiveSession {
+					_, _ = s.GetOutput().Write([]byte(err.Error() + SqlcmdEol))
+				} else {
+					_, _ = s.GetError().Write([]byte(err.Error() + SqlcmdEol))
+				}
 				lastError = err
 			}
 		}
diff --git a/pkg/sqlcmd/sqlcmd_test.go b/pkg/sqlcmd/sqlcmd_test.go
index f7909334..accaa965 100644
--- a/pkg/sqlcmd/sqlcmd_test.go
+++ b/pkg/sqlcmd/sqlcmd_test.go
@@ -109,6 +109,44 @@ func TestSqlCmdQueryAndExit(t *testing.T) {
 	}
 }
 
+func TestSqlCmdOutputAndError(t *testing.T) {
+	s, outfile, errfile := setupSqlcmdWithFileErrorOutput(t)
+	defer os.Remove(outfile.Name())
+	defer os.Remove(errfile.Name())
+	s.Query = "select $(X"
+	err := s.Run(true, false)
+	if assert.NoError(t, err, "s.Run(once = true)") {
+		bytes, err := os.ReadFile(errfile.Name())
+		if assert.NoError(t, err, "os.ReadFile") {
+			assert.Equal(t, "Sqlcmd: Error: Syntax error at line 1."+SqlcmdEol, string(bytes), "Expected syntax error not received for query execution")
+		}
+	}
+	s.Query = "select '1'"
+	err = s.Run(true, false)
+	if assert.NoError(t, err, "s.Run(once = true)") {
+		bytes, err := os.ReadFile(outfile.Name())
+		if assert.NoError(t, err, "os.ReadFile") {
+			assert.Equal(t, "1"+SqlcmdEol+SqlcmdEol+"(1 row affected)"+SqlcmdEol, string(bytes), "Unexpected output for query execution")
+		}
+	}
+
+	s, outfile, errfile = setupSqlcmdWithFileErrorOutput(t)
+	defer os.Remove(outfile.Name())
+	defer os.Remove(errfile.Name())
+	dataPath := "testdata" + string(os.PathSeparator)
+	err = s.IncludeFile(dataPath+"teststdouterr.sql", false)
+	if assert.NoError(t, err, "IncludeFile teststdouterr.sql false") {
+		bytes, err := os.ReadFile(outfile.Name())
+		if assert.NoError(t, err, "os.ReadFile outfile") {
+			assert.Equal(t, "1"+SqlcmdEol+SqlcmdEol+"(1 row affected)"+SqlcmdEol, string(bytes), "Unexpected output for sql file execution in outfile")
+		}
+		bytes, err = os.ReadFile(errfile.Name())
+		if assert.NoError(t, err, "os.ReadFile errfile") {
+			assert.Equal(t, "Sqlcmd: Error: Syntax error at line 1."+SqlcmdEol, string(bytes), "Expected syntax error not found in errfile")
+		}
+	}
+}
+
 // Simulate :r command
 func TestIncludeFileNoExecutions(t *testing.T) {
 	s, file := setupSqlcmdWithFileOutput(t)
@@ -476,6 +514,7 @@ func setupSqlCmdWithMemoryOutput(t testing.TB) (*Sqlcmd, *memoryBuffer) {
 	s.Format = NewSQLCmdDefaultFormatter(true)
 	buf := &memoryBuffer{buf: new(bytes.Buffer)}
 	s.SetOutput(buf)
+	s.SetError(buf)
 	err := s.ConnectDb(nil, true)
 	assert.NoError(t, err, "s.ConnectDB")
 	return s, buf
@@ -491,6 +530,7 @@ func setupSqlcmdWithFileOutput(t testing.TB) (*Sqlcmd, *os.File) {
 	file, err := os.CreateTemp("", "sqlcmdout")
 	assert.NoError(t, err, "os.CreateTemp")
 	s.SetOutput(file)
+	s.SetError(file)
 	err = s.ConnectDb(nil, true)
 	if err != nil {
 		os.Remove(file.Name())
@@ -499,6 +539,28 @@ func setupSqlcmdWithFileOutput(t testing.TB) (*Sqlcmd, *os.File) {
 	return s, file
 }
 
+func setupSqlcmdWithFileErrorOutput(t testing.TB) (*Sqlcmd, *os.File, *os.File) {
+	t.Helper()
+	v := InitializeVariables(true)
+	v.Set(SQLCMDMAXVARTYPEWIDTH, "0")
+	s := New(nil, "", v)
+	s.Connect = newConnect(t)
+	s.Format = NewSQLCmdDefaultFormatter(true)
+	outfile, err := os.CreateTemp("", "sqlcmdout")
+	assert.NoError(t, err, "os.CreateTemp")
+	errfile, err := os.CreateTemp("", "sqlcmderr")
+	assert.NoError(t, err, "os.CreateTemp")
+	s.SetOutput(outfile)
+	s.SetError(errfile)
+	err = s.ConnectDb(nil, true)
+	if err != nil {
+		os.Remove(outfile.Name())
+		os.Remove(errfile.Name())
+	}
+	assert.NoError(t, err, "s.ConnectDB")
+	return s, outfile, errfile
+}
+
 // Assuming public Azure, use AAD when SQLCMDUSER environment variable is not set
 func canTestAzureAuth() bool {
 	server := os.Getenv(SQLCMDSERVER)
diff --git a/pkg/sqlcmd/testdata/teststdouterr.sql b/pkg/sqlcmd/testdata/teststdouterr.sql
new file mode 100644
index 00000000..d09b4113
--- /dev/null
+++ b/pkg/sqlcmd/testdata/teststdouterr.sql
@@ -0,0 +1,4 @@
+select $(X
+go
+select '1'
+go
\ No newline at end of file