diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0b8346c8..50802541 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,14 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## Unreleased
+### Added
+ - A new keyword argument configuration `continue_on_error::Bool = false` has been added
+   which controls the behavior of code execution errors. By default (`continue_on_error =
+   false`) execution errors are re-thrown by Literate (as before). If `continue_on_error =
+   true` is set the error is used as the block result and execution continues with following
+   blocks. ([#201], [#257])
+
 ## [v2.19.1] - 2024-09-13
 ### Fixed
  - Set `:SOURCE_PATH` in the task local storage to the output file when executing code so
diff --git a/src/Literate.jl b/src/Literate.jl
index 866962ff..e8612380 100644
--- a/src/Literate.jl
+++ b/src/Literate.jl
@@ -434,9 +434,10 @@ Available options:
   output script. Only applicable for `Literate.script`.
 - `execute` (default: `true` for notebook, `false` for markdown): Whether to execute and
   capture the output. Only applicable for `Literate.notebook` and `Literate.markdown`.
-- `continue_on_error` (default: `false`): Whether to capture and display error messages. If
-  `true`, blocks that error will display the error message. If `false`, errors will be
-  (re)thrown as is. Ignored when `execute == false`.
+- `continue_on_error` (default: `false`): Whether to continue code execution of remaining
+  blocks after encountering an error. By default execution errors are re-thrown. If
+  `continue_on_error = true` the error will be used as the output of the block instead and
+  execution will continue. This option is only applicable when `execute = true`.
 - `codefence` (default: `````"````@example \$(name)" => "````"````` for `DocumenterFlavor()`
   and `````"````julia" => "````"````` otherwise): Pair containing opening and closing
   code fence for wrapping code blocks.