diff --git a/examples/async-error-handling.js b/examples/async-error-handling.js
new file mode 100644
index 000000000..cd5e7a540
--- /dev/null
+++ b/examples/async-error-handling.js
@@ -0,0 +1,109 @@
+#!/usr/bin/env node
+
+// This example demonstrates proper error handling in async action handlers.
+// It shows how to handle errors gracefully without crashing the CLI.
+
+const { Command } = require('../');
+const program = new Command();
+
+// Simulate an async operation that might fail
+async function fetchData(id) {
+  return new Promise((resolve, reject) => {
+    setTimeout(() => {
+      if (!id || id === 'error') {
+        reject(new Error(`Failed to fetch data for ID: ${id}`));
+      } else {
+        resolve({ id, name: `Item ${id}`, timestamp: new Date().toISOString() });
+      }
+    }, 100);
+  });
+}
+
+program
+  .name('async-error-demo')
+  .description('Demonstrates async error handling patterns in Commander.js')
+  .version('1.0.0');
+
+program
+  .command('fetch <id>')
+  .description('Fetch data by ID (use "error" to simulate failure)')
+  .option('-r, --retry <count>', 'number of retries on failure', '0')
+  .action(async (id, options) => {
+    const maxRetries = parseInt(options.retry, 10);
+    let lastError;
+
+    for (let attempt = 0; attempt <= maxRetries; attempt++) {
+      try {
+        if (attempt > 0) {
+          console.log(`Retry attempt ${attempt}/${maxRetries}...`);
+        }
+        
+        const data = await fetchData(id);
+        console.log('Success:', data);
+        return; // Success - exit the action
+      } catch (error) {
+        lastError = error;
+        
+        if (attempt < maxRetries) {
+          // Wait before retrying
+          await new Promise(resolve => setTimeout(resolve, 500));
+        }
+      }
+    }
+
+    // All retries exhausted or no retries configured
+    console.error('Error:', lastError.message);
+    
+    // Exit with non-zero code for CI/automation compatibility
+    process.exit(1);
+  });
+
+program
+  .command('batch <ids...>')
+  .description('Fetch multiple items (continues on partial failure)')
+  .option('--fail-fast', 'stop on first error instead of continuing')
+  .action(async (ids, options) => {
+    const results = [];
+    const errors = [];
+
+    for (const id of ids) {
+      try {
+        const data = await fetchData(id);
+        results.push({ id, status: 'success', data });
+        console.log(`✓ ${id}`);
+      } catch (error) {
+        errors.push({ id, error: error.message });
+        console.error(`✗ ${id}: ${error.message}`);
+        
+        if (options.failFast) {
+          console.error('\nFailed fast due to --fail-fast flag');
+          process.exit(1);
+        }
+      }
+    }
+
+    // Summary
+    console.log('\n--- Summary ---');
+    console.log(`Successful: ${results.length}`);
+    console.log(`Failed: ${errors.length}`);
+
+    if (errors.length > 0) {
+      process.exit(1);
+    }
+  });
+
+// IMPORTANT: Use parseAsync() instead of parse() when you have async actions
+// parseAsync() properly handles rejected promises from async action handlers
+program.parseAsync(process.argv).catch((error) => {
+  // This catches any uncaught errors from parseAsync itself
+  console.error('Unexpected error:', error.message);
+  process.exit(1);
+});
+
+// Try the following:
+//    node async-error-handling.js fetch 123
+//    node async-error-handling.js fetch error
+//    node async-error-handling.js fetch error --retry 3
+//    node async-error-handling.js batch 1 2 3
+//    node async-error-handling.js batch 1 error 3
+//    node async-error-handling.js batch 1 error 3 --fail-fast