diff --git a/docs/releases/unreleased.md b/docs/releases/unreleased.md
index c29cde0dd..6bcd3b76b 100644
--- a/docs/releases/unreleased.md
+++ b/docs/releases/unreleased.md
@@ -34,6 +34,8 @@ When a change has user-facing documentation, include a canonical tasknotes.dev l
 
 ## Fixed
 
+- Stop plugin startup when an existing settings file cannot be read, preserving it for recovery instead of starting services with default settings.
+
 - (#1849) Fixed context menus stacking on top of each other. Only one menu stays open at a time, and clicking the same indicator again closes its menu. This previously applied to date fields only, and now covers priority, status, recurrence, reminders, task, ICS event, and batch menus.
   - Thanks to @3zra47 for reporting and @YBKF for the contribution.
 
diff --git a/src/main.ts b/src/main.ts
index 4a967ff72..d1fe8ad43 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -744,6 +744,10 @@ export default class TaskNotesPlugin extends Plugin {
 				},
 			});
 		}
+		if (result.compromised)
+			throw new Error(
+				"TaskNotes settings are unreadable; restore settings before loading the plugin."
+			);
 		return result.data;
 	}
 
diff --git a/tests/unit/issues/issue-1591-settings-lost-on-update.test.ts b/tests/unit/issues/issue-1591-settings-lost-on-update.test.ts
index bcd377f6e..4f151779d 100644
--- a/tests/unit/issues/issue-1591-settings-lost-on-update.test.ts
+++ b/tests/unit/issues/issue-1591-settings-lost-on-update.test.ts
@@ -38,8 +38,8 @@ describe("issue #1591 settings reset on update", () => {
 		const plugin = createPlugin({ dataFileExists: true });
 		plugin.loadData = jest.fn().mockResolvedValue(null);
 
-		await plugin.loadSettings();
-		await plugin.checkForVersionUpdate();
+		await expect(plugin.loadSettings()).rejects.toThrow("settings are unreadable");
+		await plugin.saveSettingsDataOnly();
 
 		expect(plugin.loadData).toHaveBeenCalledTimes(4);
 		expect(plugin.saveData).not.toHaveBeenCalled();