diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 9b52c46503..08f840ea26 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -28,6 +28,8 @@ Fixed
 * Update ``st2-pack-install`` and ``st2 pack install`` command so it works with local git repos
   (``file://<path to local git repo>``) which are in a detached head state (e.g. specific revision
   is checked out). (improvement) #4366
+* st2 login now exits with non zero exit code when login fails due to invalid credentials.
+  (improvement) #4338
 
 2.9.0 - September 16, 2018
 --------------------------
diff --git a/st2client/st2client/commands/auth.py b/st2client/st2client/commands/auth.py
index 7c4489e545..438ed0296b 100644
--- a/st2client/st2client/commands/auth.py
+++ b/st2client/st2client/commands/auth.py
@@ -152,11 +152,10 @@ def run_and_print(self, args, **kwargs):
         try:
             self.run(args, **kwargs)
         except Exception as e:
-            print('Failed to log in as %s: %s' % (args.username, str(e)))
             if self.app.client.debug:
                 raise
 
-            return
+            raise Exception('Failed to log in as %s: %s' % (args.username, str(e)))
 
         print('Logged in as %s' % (args.username))
 
diff --git a/st2client/tests/unit/test_auth.py b/st2client/tests/unit/test_auth.py
index d2e49c100f..8d82518b56 100644
--- a/st2client/tests/unit/test_auth.py
+++ b/st2client/tests/unit/test_auth.py
@@ -289,7 +289,7 @@ def runTest(self, mock_gp):
 
         self.assertTrue('Failed to log in as %s' % expected_username in self.stdout.getvalue())
         self.assertTrue('Logged in as' not in self.stdout.getvalue())
-        self.assertEqual(retcode, 0)
+        self.assertEqual(retcode, 1)
 
 
 class TestAuthToken(base.BaseCLITestCase):