diff --git a/.changeset/pr-122.md b/.changeset/pr-122.md
new file mode 100644
index 0000000..9d6aad0
--- /dev/null
+++ b/.changeset/pr-122.md
@@ -0,0 +1,5 @@
+---
+"@wdio/browserstack-service": minor
+---
+
+- Tests that never run because Mocha's `bail` halted a spec are now reported as `skipped`, instead of being left out of the report entirely — so a Test Run accounts for every test in that spec.
diff --git a/packages/browserstack-service/README.md b/packages/browserstack-service/README.md
index cd0127d..17f3216 100644
--- a/packages/browserstack-service/README.md
+++ b/packages/browserstack-service/README.md
@@ -76,6 +76,14 @@ export const config = {
 
 You can explore all the features of Test Reporting and Analytics in [this sandbox](https://automation.browserstack.com/) or read more about it [here](https://www.browserstack.com/docs/test-reporting-and-analytics/overview/what-is-test-observability).
 
+#### Reporting of tests skipped by `bail`
+
+With `mochaOpts: { bail: true }`, Mocha halts a spec on its first failure and the remaining tests in that file never run. Those tests are now reported with the status `skipped`, so the report accounts for every test in the spec rather than silently omitting them. Tests in sibling `describe` blocks in the same file are covered too.
+
+Requires `mocha` as the framework and Test Reporting enabled.
+
+Note that WebdriverIO's own top-level `bail` option is a different setting: it counts failed *spec files* and stops scheduling further ones, rather than stopping tests within a spec. Tests in spec files that never start are not currently reported.
+
 ### browserstackLocal
 Set this to true to enable routing connections from BrowserStack cloud through your computer.
 
diff --git a/packages/browserstack-service/src/service.ts b/packages/browserstack-service/src/service.ts
index b9e2bbe..04156b4 100644
--- a/packages/browserstack-service/src/service.ts
+++ b/packages/browserstack-service/src/service.ts
@@ -8,6 +8,7 @@ import {
     isBrowserstackSession,
     patchConsoleLogs,
     isTrue,
+    isFalse,
     getUniqueIdentifier,
     getHookType
 } from './util.js'
@@ -87,6 +88,13 @@ export default class BrowserstackService implements Services.ServiceInstance {
     private _percyCaptureMode: string | undefined = undefined
     private _percyHandler?: PercyHandler
     private _turboScale
+    /**
+     * Only mocha's own bail drops the rest of a spec. wdio's top-level `bail` is a launcher
+     * spec-scheduling filter (it stops queueing further specs once N runners have failed) and
+     * never reaches mocha, so under it every test in the current spec still runs — enumerating
+     * on it would report tests as skipped that are about to execute.
+     */
+    private _mochaBail: boolean = false
 
     constructor (
         options: BrowserstackConfig & Options.Testrunner,
@@ -104,6 +112,10 @@ export default class BrowserstackService implements Services.ServiceInstance {
         this._percy = isTrue(process.env.BROWSERSTACK_PERCY)
         this._percyCaptureMode = process.env.BROWSERSTACK_PERCY_CAPTURE_MODE
         this._turboScale = this._options.turboScale
+        // mirror mocha's own truthiness check on the option rather than isTrue(), which is a
+        // strict 'true' string compare and would miss a numeric `bail: 1`
+        const bailOpt: unknown = this._config?.mochaOpts?.bail
+        this._mochaBail = this._config?.framework === 'mocha' && Boolean(bailOpt) && !isFalse(bailOpt)
 
         PerformanceTester.startMonitoring('performance-report-service.csv')
         if (shouldProcessEventForTesthub('')) {
@@ -542,6 +554,7 @@ export default class BrowserstackService implements Services.ServiceInstance {
             }
             await BrowserstackCLI.getInstance().getTestFramework()!.trackEvent(TestFrameworkState.LOG_REPORT, HookState.POST, { test, result: results })
             await BrowserstackCLI.getInstance().getTestFramework()!.trackEvent(TestFrameworkState.TEST, HookState.POST, { test, result: results, suiteTitle: this._suiteTitle })
+            await this.reportBailSkippedTests(test, results)
             return
         }
 
@@ -550,6 +563,35 @@ export default class BrowserstackService implements Services.ServiceInstance {
         await this._percyHandler?.afterTest()
     }
 
+    /**
+     * mocha's `bail` aborts the run on the first failure, so every test the spec had not reached
+     * yet is dropped without emitting any event and never appears on the dashboard. Report them
+     * as skipped — same cascade the failed-hook path uses, from the spec's root suite so sibling
+     * describes are covered too (bail kills the whole spec, not just the failing describe).
+     */
+    private async reportBailSkippedTests(test: Frameworks.Test, results: Frameworks.TestResult) {
+        if (!this._mochaBail || results.passed || results.skipped) {
+            return
+        }
+        // a retry is still queued — mocha has not dropped anything yet
+        if (results.retries && results.retries.attempts < results.retries.limit) {
+            return
+        }
+        try {
+            const framework = BrowserstackCLI.getInstance().getTestFramework()
+            let suite = test.ctx?.test?.parent
+            if (!framework || !suite) {
+                return
+            }
+            while (suite.parent) {
+                suite = suite.parent
+            }
+            await reportSuiteSkipped(framework, suite)
+        } catch (err) {
+            BStackLogger.debug(`Failed reporting bail-skipped tests: ${err}`)
+        }
+    }
+
     @PerformanceTester.Measure(PERFORMANCE_SDK_EVENTS.EVENTS.SDK_HOOK, { hookType: 'after' })
     async after (result: number) {
         try {
diff --git a/packages/browserstack-service/tests/service.test.ts b/packages/browserstack-service/tests/service.test.ts
index 95a2e32..5e6e1d4 100644
--- a/packages/browserstack-service/tests/service.test.ts
+++ b/packages/browserstack-service/tests/service.test.ts
@@ -2427,3 +2427,85 @@ describe('_isAppAutomate honors skipAppOverride', () => {
         expect(svc._isAppAutomate()).toBe(false)
     })
 })
+
+describe('afterTest bail skip cascade (SDK-7063)', () => {
+    let getInstanceSpy: ReturnType<typeof vi.spyOn>
+
+    // reportSkippedTest de-dupes on `${parent} - ${title}` in a module-scope Set that outlives
+    // each test, so every case here needs its own titles.
+    const buildTree = (tag: string) => {
+        const root: any = { title: '', tests: [], suites: [], parent: undefined }
+        const suiteA: any = { title: `${tag} Suite A`, tests: [], suites: [], parent: root }
+        const suiteB: any = { title: `${tag} Suite B`, tests: [], suites: [], parent: root }
+        root.suites.push(suiteA, suiteB)
+
+        const ran: any = { title: `${tag} A1`, state: 'passed', parent: suiteA, file: '/spec/a.js' }
+        const failing: any = { title: `${tag} A2`, state: 'failed', parent: suiteA, file: '/spec/a.js' }
+        const dropped: any = { title: `${tag} A3`, parent: suiteA, file: '/spec/a.js' }
+        suiteA.tests.push(ran, failing, dropped)
+        // sibling top-level describe — only reachable because the cascade walks up to root
+        suiteB.tests.push({ title: `${tag} B1`, parent: suiteB, file: '/spec/a.js' })
+
+        failing.ctx = { test: { parent: suiteA } }
+        return { failing, root }
+    }
+
+    const makeService = (config: Record<string, unknown>) => new BrowserstackService(
+        { testObservability: false } as any,
+        [] as any,
+        { user: 'foo', key: 'bar', ...config } as any
+    )
+
+    const runAfterTest = async (svc: BrowserstackService, failing: any, results: Record<string, unknown>) => {
+        const trackEvent = vi.fn().mockResolvedValue(undefined)
+        getInstanceSpy = vi.spyOn(BrowserstackCLI, 'getInstance').mockReturnValue({
+            isRunning: () => true,
+            getTestFramework: () => ({ trackEvent })
+        } as any)
+        await svc.afterTest(failing, undefined as never, results as any)
+        return trackEvent
+    }
+
+    afterEach(() => {
+        getInstanceSpy?.mockRestore()
+    })
+
+    it('reports un-run tests across sibling describes when mocha bail is on', async () => {
+        const { failing } = buildTree('bail1')
+        const svc = makeService({ framework: 'mocha', mochaOpts: { bail: true } })
+        const trackEvent = await runAfterTest(svc, failing, { passed: false })
+
+        // 2 events close the failing test (LOG_REPORT/POST + TEST/POST), then 4 per skipped test.
+        // A3 (same describe) and B1 (SIBLING describe) => 2 skipped => 8.
+        expect(trackEvent).toHaveBeenCalledTimes(2 + 8)
+    })
+
+    it('does not cascade when only wdio-level bail is set', async () => {
+        // wdio's `bail` never halts a spec, so those tests still run — reporting them
+        // as skipped here would double-report them.
+        const { failing } = buildTree('bail2')
+        const svc = makeService({ framework: 'mocha', bail: 1 })
+        const trackEvent = await runAfterTest(svc, failing, { passed: false })
+
+        expect(trackEvent).toHaveBeenCalledTimes(2)
+    })
+
+    it('does not cascade while a retry is still queued', async () => {
+        const { failing } = buildTree('bail3')
+        const svc = makeService({ framework: 'mocha', mochaOpts: { bail: true } })
+        const trackEvent = await runAfterTest(svc, failing, {
+            passed: false,
+            retries: { attempts: 0, limit: 2 }
+        })
+
+        expect(trackEvent).toHaveBeenCalledTimes(2)
+    })
+
+    it('does not cascade when the test passed', async () => {
+        const { failing } = buildTree('bail4')
+        const svc = makeService({ framework: 'mocha', mochaOpts: { bail: true } })
+        const trackEvent = await runAfterTest(svc, failing, { passed: true })
+
+        expect(trackEvent).toHaveBeenCalledTimes(2)
+    })
+})