diff --git a/crates/turborepo-lib/src/cli/mod.rs b/crates/turborepo-lib/src/cli/mod.rs
index 990edce842b7c..8d26cd3ea359d 100644
--- a/crates/turborepo-lib/src/cli/mod.rs
+++ b/crates/turborepo-lib/src/cli/mod.rs
@@ -357,6 +357,46 @@ pub enum LinkTarget {
     Spaces,
 }
 
+/// Formats clap error messages to improve readability of pipe-separated options
+fn format_error_message(mut err_str: String) -> String {
+    // Replace pipe separators in usage line with newlines for better readability
+    // The usage line typically looks like: "Usage: turbo <--opt1|--opt2|--opt3>"
+    if let Some(usage_start) = err_str.find("Usage: ") {
+        if let Some(usage_end) = err_str[usage_start..].find('\n') {
+            let usage_end = usage_start + usage_end;
+            let usage_line = &err_str[usage_start..usage_end];
+
+            // Check if this usage line contains the pipe-separated options pattern
+            if usage_line.contains('<') && usage_line.contains('>') && usage_line.contains('|') {
+                // Find the angle bracket enclosed section
+                if let Some(bracket_start) = usage_line.find('<') {
+                    if let Some(bracket_end) = usage_line.rfind('>') {
+                        let prefix = &usage_line[..bracket_start];
+                        let options_str = &usage_line[bracket_start + 1..bracket_end];
+
+                        // Split the options by pipe and format them as a list
+                        let formatted_options: Vec<String> = options_str
+                            .split('|')
+                            .map(|opt| format!("    {}", opt))
+                            .collect();
+
+                        // Build the new usage string
+                        let new_usage = format!(
+                            "{} [OPTIONS] [TASKS]... [-- <PASS_THROUGH_ARGS>...]\n\nOptions:\n{}",
+                            prefix.trim_end(),
+                            formatted_options.join("\n")
+                        );
+
+                        // Replace the old usage line with the new formatted one
+                        err_str.replace_range(usage_start..usage_end, &new_usage);
+                    }
+                }
+            }
+        }
+    }
+    err_str
+}
+
 impl Args {
     pub fn new(os_args: Vec<OsString>) -> Self {
         let clap_args = match Args::parse(os_args) {
@@ -372,7 +412,7 @@ impl Args {
                 process::exit(1);
             }
             Err(e) if e.use_stderr() => {
-                let err_str = e.to_string();
+                let err_str = format_error_message(e.to_string());
                 // A cleaner solution would be to implement our own clap::error::ErrorFormatter
                 // but that would require copying the default formatter just to remove this
                 // line: https://docs.rs/clap/latest/src/clap/error/format.rs.html#100
diff --git a/turborepo-tests/integration/tests/bad-flag.t b/turborepo-tests/integration/tests/bad-flag.t
index a5c5a4ea978ec..09e8589b8e5a4 100644
--- a/turborepo-tests/integration/tests/bad-flag.t
+++ b/turborepo-tests/integration/tests/bad-flag.t
@@ -19,7 +19,35 @@ Bad flag with an implied run command should display run flags
   
     tip: to pass '--bad-flag' as a value, use '-- --bad-flag'
   
-  Usage: turbo(\.exe)? <--cache-dir <CACHE_DIR>|--cache-workers <CACHE_WORKERS>|--concurrency <CONCURRENCY>|--continue|--dry-run [<DRY_RUN>]|--single-package|--filter <FILTER>|--force [<FORCE>]|--framework-inference [<BOOL>]|--global-deps <GLOBAL_DEPS>|--graph [<GRAPH>]|--env-mode [<ENV_MODE>]|--ignore <IGNORE>|--no-cache|--no-daemon|--output-logs <OUTPUT_LOGS>|--log-order <LOG_ORDER>|--only|--parallel|--pkg-inference-root <PKG_INFERENCE_ROOT>|--profile <PROFILE>|--remote-only [<BOOL>]|--summarize [<SUMMARIZE>]|--log-prefix <LOG_PREFIX>|TASKS|PASS_THROUGH_ARGS> (re)
+  Usage: turbo(\.exe)? \[OPTIONS\] \[TASKS\]... \[-- <PASS_THROUGH_ARGS>...\] (re)
+  
+  Options:
+      --cache-dir <CACHE_DIR>
+      --cache-workers <CACHE_WORKERS>
+      --concurrency <CONCURRENCY>
+      --continue
+      --dry-run \[<DRY_RUN>\] (re)
+      --single-package
+      --filter <FILTER>
+      --force \[<FORCE>\] (re)
+      --framework-inference \[<BOOL>\] (re)
+      --global-deps <GLOBAL_DEPS>
+      --graph \[<GRAPH>\] (re)
+      --env-mode \[<ENV_MODE>\] (re)
+      --ignore <IGNORE>
+      --no-cache
+      --no-daemon
+      --output-logs <OUTPUT_LOGS>
+      --log-order <LOG_ORDER>
+      --only
+      --parallel
+      --pkg-inference-root <PKG_INFERENCE_ROOT>
+      --profile <PROFILE>
+      --remote-only \[<BOOL>\] (re)
+      --summarize \[<SUMMARIZE>\] (re)
+      --log-prefix <LOG_PREFIX>
+      TASKS
+      PASS_THROUGH_ARGS
   
   For more information, try '--help'.