diff --git a/src/main/mod.rs b/src/main/mod.rs
index d3108e53..a6fd9cef 100644
--- a/src/main/mod.rs
+++ b/src/main/mod.rs
@@ -7,6 +7,7 @@ use conduwuit_core::{debug_info, error};
 mod clap;
 mod logging;
 mod mods;
+mod panic;
 mod restart;
 mod runtime;
 mod sentry;
@@ -19,6 +20,8 @@ use server::Server;
 pub use crate::clap::Args;
 
 pub fn run() -> Result<()> {
+	panic::init();
+
 	let args = clap::parse();
 	run_with_args(&args)
 }
diff --git a/src/main/panic.rs b/src/main/panic.rs
new file mode 100644
index 00000000..45be7881
--- /dev/null
+++ b/src/main/panic.rs
@@ -0,0 +1,34 @@
+use std::{backtrace::Backtrace, panic};
+
+/// Initialize the panic hook to capture backtraces at the point of panic.
+/// This is needed to capture the backtrace before the unwind destroys it.
+pub(crate) fn init() {
+	let default_hook = panic::take_hook();
+
+	panic::set_hook(Box::new(move |info| {
+		let backtrace = Backtrace::force_capture();
+
+		let location_str = info.location().map_or_else(String::new, |loc| {
+			format!(" at {}:{}:{}", loc.file(), loc.line(), loc.column())
+		});
+
+		let message = if let Some(s) = info.payload().downcast_ref::<&str>() {
+			(*s).to_owned()
+		} else if let Some(s) = info.payload().downcast_ref::<String>() {
+			s.clone()
+		} else {
+			"Box<dyn Any>".to_owned()
+		};
+
+		let thread_name = std::thread::current()
+			.name()
+			.map_or_else(|| "<unnamed>".to_owned(), ToOwned::to_owned);
+
+		eprintln!(
+			"\nthread '{thread_name}' panicked{location_str}: \
+			 {message}\n\nBacktrace:\n{backtrace}"
+		);
+
+		default_hook(info);
+	}));
+}