diff --git a/internal/lm/list.go b/internal/lm/list.go
index decf0ee98..8e2d9091d 100644
--- a/internal/lm/list.go
+++ b/internal/lm/list.go
@@ -16,7 +16,9 @@
 
 package lm
 
-import "fmt"
+import (
+	"k8s.io/klog/v2"
+)
 
 // list represents a list of labelers that iself implements the Labeler interface.
 type list []Labeler
@@ -29,13 +31,17 @@ func Merge(labelers ...Labeler) Labeler {
 }
 
 // Labels returns the labels from a set of labelers. Labels later in the list
-// overwrite earlier labels.
+// overwrite earlier labels. If a labeler fails, the error is logged as a
+// warning and the labeler is skipped, allowing the pipeline to continue with
+// partial results. This provides fault tolerance for unhealthy devices or
+// transient errors without crashing the entire labeling process.
 func (labelers list) Labels() (Labels, error) {
 	allLabels := make(Labels)
-	for _, labeler := range labelers {
+	for i, labeler := range labelers {
 		labels, err := labeler.Labels()
 		if err != nil {
-			return nil, fmt.Errorf("error generating labels: %v", err)
+			klog.Warningf("Labeler at index %d failed, skipping: %v", i, err)
+			continue
 		}
 		for k, v := range labels {
 			allLabels[k] = v
diff --git a/internal/lm/list_test.go b/internal/lm/list_test.go
new file mode 100644
index 000000000..756c2171e
--- /dev/null
+++ b/internal/lm/list_test.go
@@ -0,0 +1,141 @@
+/**
+# Copyright (c) 2025, NVIDIA CORPORATION.  All rights reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+**/
+
+package lm
+
+import (
+	"fmt"
+	"testing"
+
+	"github.com/stretchr/testify/require"
+)
+
+// mockLabeler is a test double for the Labeler interface
+type mockLabeler struct {
+	labels Labels
+	err    error
+}
+
+func (m *mockLabeler) Labels() (Labels, error) {
+	return m.labels, m.err
+}
+
+func TestMerge(t *testing.T) {
+	testCases := []struct {
+		description    string
+		labelers       []Labeler
+		expectedLabels Labels
+	}{
+		{
+			description:    "empty list returns empty labels",
+			labelers:       []Labeler{},
+			expectedLabels: Labels{},
+		},
+		{
+			description: "single successful labeler",
+			labelers: []Labeler{
+				&mockLabeler{
+					labels: Labels{"key1": "value1"},
+				},
+			},
+			expectedLabels: Labels{"key1": "value1"},
+		},
+		{
+			description: "multiple successful labelers",
+			labelers: []Labeler{
+				&mockLabeler{labels: Labels{"key1": "value1"}},
+				&mockLabeler{labels: Labels{"key2": "value2"}},
+				&mockLabeler{labels: Labels{"key3": "value3"}},
+			},
+			expectedLabels: Labels{
+				"key1": "value1",
+				"key2": "value2",
+				"key3": "value3",
+			},
+		},
+		{
+			description: "single failing labeler is skipped",
+			labelers: []Labeler{
+				&mockLabeler{labels: Labels{"key1": "value1"}},
+				&mockLabeler{err: fmt.Errorf("device unhealthy: GPU is lost")},
+				&mockLabeler{labels: Labels{"key3": "value3"}},
+			},
+			expectedLabels: Labels{
+				"key1": "value1",
+				"key3": "value3",
+			},
+		},
+		{
+			description: "multiple failing labelers are skipped",
+			labelers: []Labeler{
+				&mockLabeler{labels: Labels{"key1": "value1"}},
+				&mockLabeler{err: fmt.Errorf("error 1")},
+				&mockLabeler{err: fmt.Errorf("error 2")},
+				&mockLabeler{labels: Labels{"key4": "value4"}},
+			},
+			expectedLabels: Labels{
+				"key1": "value1",
+				"key4": "value4",
+			},
+		},
+		{
+			description: "all failing labelers returns empty labels",
+			labelers: []Labeler{
+				&mockLabeler{err: fmt.Errorf("error 1")},
+				&mockLabeler{err: fmt.Errorf("error 2")},
+			},
+			expectedLabels: Labels{},
+		},
+		{
+			description: "later labeler overwrites earlier labels",
+			labelers: []Labeler{
+				&mockLabeler{labels: Labels{"key": "value1"}},
+				&mockLabeler{labels: Labels{"key": "value2"}},
+			},
+			expectedLabels: Labels{"key": "value2"},
+		},
+		{
+			description: "empty labels from labeler are merged",
+			labelers: []Labeler{
+				&mockLabeler{labels: Labels{}},
+				&mockLabeler{labels: Labels{"key": "value"}},
+			},
+			expectedLabels: Labels{"key": "value"},
+		},
+		{
+			description: "failing labeler between successful ones",
+			labelers: []Labeler{
+				&mockLabeler{labels: Labels{"before": "value"}},
+				&mockLabeler{err: fmt.Errorf("GPU XID error")},
+				&mockLabeler{labels: Labels{"after": "value"}},
+			},
+			expectedLabels: Labels{
+				"before": "value",
+				"after":  "value",
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.description, func(t *testing.T) {
+			merged := Merge(tc.labelers...)
+			labels, err := merged.Labels()
+
+			require.NoError(t, err, "Merge should never return error")
+			require.EqualValues(t, tc.expectedLabels, labels)
+		})
+	}
+}