diff --git a/.changeset/twenty-carrots-jog.md b/.changeset/twenty-carrots-jog.md
index 71858ccd11..f4b4db8fcb 100644
--- a/.changeset/twenty-carrots-jog.md
+++ b/.changeset/twenty-carrots-jog.md
@@ -10,22 +10,22 @@ backend:
   startup:
     plugins:
       plugin-x:
-        optional: true
+        onPluginBootFailure: continue
 ```
 
-This configuration permits `plugin-x` to fail on startup. Omitting the `startup`
-configuration matches the previous behavior, wherein any individual plugin
-failure is fatal to backend startup.
+This configuration permits `plugin-x` to fail on startup. Omitting the
+`onPluginBootFailure` configuration matches the previous behavior, wherein any
+individual plugin failure aborts backend startup.
 
-The default can also be changed, so that all plugins are considered optional
+The default can also be changed, so that continuing on failure is the default
 unless otherwise specified:
 
 ```yaml
 backend:
   startup:
     default:
-      optional: true
+      onPluginBootFailure: continue
     plugins:
       catalog:
-        optional: false
+        onPluginBootFailure: abort
 ```
diff --git a/packages/backend-app-api/config.d.ts b/packages/backend-app-api/config.d.ts
index 8af778ca42..0cf91852a1 100644
--- a/packages/backend-app-api/config.d.ts
+++ b/packages/backend-app-api/config.d.ts
@@ -27,22 +27,25 @@ export interface Config {
     startup?: {
       default?: {
         /**
-         * The default value for `optional` if not specified for a particular plugin. This defaults to
-         * false, which means `optional: true` must be specified for individual plugins to be considered
-         * optional. This can also be set to true, which flips the logic for individual plugins so that
-         * they must be set to `optional: false` to be required.
+         * The default value for `onPluginBootFailure` if not specified for a particular plugin.
+         * This defaults to 'abort', which means `onPluginBootFailure: continue` must be specified
+         * for backend startup to continue on plugin boot failure. This can also be set to
+         * 'continue', which flips the logic for individual plugins so that they must be set to
+         * `onPluginBootFailure: abort` to be required.
          */
-        optional?: boolean;
+        onPluginBootFailure?: 'continue' | 'abort';
       };
       plugins?: {
         [pluginId: string]: {
           /**
-           * Used to mark plugins as optional, which allows the backend to start up even in the event
-           * of a plugin failure. Plugin failures without this configuration are fatal. This can
-           * enable leaving a crashing plugin installed, but still permit backend startup, which may
-           * help troubleshoot data-dependent issues.
+           * Used to control backend startup behavior when this plugin fails to boot up. Setting
+           * this to `continue` allows the backend to continue starting up, even if this plugin
+           * fails. This can enable leaving a crashing plugin installed, but still permit backend
+           * startup, which may help troubleshoot data-dependent issues. Plugin failures for plugins
+           * set to `abort` are fatal (this is the default unless overridden by the `default`
+           * setting).
            */
-          optional?: boolean;
+          onPluginBootFailure?: 'continue' | 'abort';
         };
       };
     };
diff --git a/packages/backend-app-api/src/wiring/BackendInitializer.test.ts b/packages/backend-app-api/src/wiring/BackendInitializer.test.ts
index 4edfc7275f..fe0a4f526b 100644
--- a/packages/backend-app-api/src/wiring/BackendInitializer.test.ts
+++ b/packages/backend-app-api/src/wiring/BackendInitializer.test.ts
@@ -560,13 +560,15 @@ describe('BackendInitializer', () => {
     );
   });
 
-  it('should permit startup errors for plugins marked as optional', async () => {
+  it('should permit startup errors for plugins with onPluginBootFailure: continue', async () => {
     const init = new BackendInitializer([
       mockServices.rootLifecycle.factory(),
       mockServices.rootLogger.factory(),
       mockServices.rootConfig.factory({
         data: {
-          backend: { startup: { plugins: { test: { optional: true } } } },
+          backend: {
+            startup: { plugins: { test: { onPluginBootFailure: 'continue' } } },
+          },
         },
       }),
     ]);
@@ -586,12 +588,16 @@ describe('BackendInitializer', () => {
     await expect(init.start()).resolves.not.toThrow();
   });
 
-  it('should permit startup errors if the default is set', async () => {
+  it('should permit startup errors if the default onPluginBootFailure is continue', async () => {
     const init = new BackendInitializer([
       mockServices.rootLifecycle.factory(),
       mockServices.rootLogger.factory(),
       mockServices.rootConfig.factory({
-        data: { backend: { startup: { default: { optional: true } } } },
+        data: {
+          backend: {
+            startup: { default: { onPluginBootFailure: 'continue' } },
+          },
+        },
       }),
     ]);
     init.add(
@@ -610,7 +616,7 @@ describe('BackendInitializer', () => {
     await expect(init.start()).resolves.not.toThrow();
   });
 
-  it('should forward errors for plugins explicitly marked as not optional when the default is true', async () => {
+  it('should forward errors for plugins explicitly marked to abort when the default is continue', async () => {
     const init = new BackendInitializer([
       mockServices.rootLifecycle.factory(),
       mockServices.rootLogger.factory(),
@@ -618,8 +624,8 @@ describe('BackendInitializer', () => {
         data: {
           backend: {
             startup: {
-              default: { optional: true },
-              plugins: { test: { optional: false } },
+              default: { onPluginBootFailure: 'continue' },
+              plugins: { test: { onPluginBootFailure: 'abort' } },
             },
           },
         },
diff --git a/packages/backend-app-api/src/wiring/BackendInitializer.ts b/packages/backend-app-api/src/wiring/BackendInitializer.ts
index 5384423bfe..f521966d4d 100644
--- a/packages/backend-app-api/src/wiring/BackendInitializer.ts
+++ b/packages/backend-app-api/src/wiring/BackendInitializer.ts
@@ -330,7 +330,7 @@ export class BackendInitializer {
     // All plugins are initialized in parallel
     const results = await Promise.allSettled(
       allPluginIds.map(async pluginId => {
-        const isPluginOptional = this.#getPluginOptionalityPredicate(
+        const isBootFailurePermitted = this.#getPluginBootFailurePredicate(
           pluginId,
           rootConfig,
         );
@@ -403,8 +403,8 @@ export class BackendInitializer {
           await lifecycleService.startup();
         } catch (error: unknown) {
           assertError(error);
-          if (isPluginOptional) {
-            initLogger.onOptionalPluginFailed(pluginId, error);
+          if (isBootFailurePermitted) {
+            initLogger.onPermittedPluginFailure(pluginId, error);
           } else {
             initLogger.onPluginFailed(pluginId, error);
             throw error;
@@ -636,15 +636,18 @@ export class BackendInitializer {
     }
   }
 
-  #getPluginOptionalityPredicate(pluginId: string, config?: Config): boolean {
-    const defaultStartupOptionalValue =
-      config?.getOptionalBoolean('backend.startup.default.optional') ?? false;
+  #getPluginBootFailurePredicate(pluginId: string, config?: Config): boolean {
+    const defaultStartupBootFailureValue =
+      config?.getOptionalString(
+        'backend.startup.default.onPluginBootFailure',
+      ) ?? 'abort';
 
-    return (
-      config?.getOptionalBoolean(
-        `backend.startup.plugins.${pluginId}.optional`,
-      ) ?? defaultStartupOptionalValue
-    );
+    const pluginStartupBootFailureValue =
+      config?.getOptionalString(
+        `backend.startup.plugins.${pluginId}.onPluginBootFailure`,
+      ) ?? defaultStartupBootFailureValue;
+
+    return pluginStartupBootFailureValue === 'continue';
   }
 }
 
diff --git a/packages/backend-app-api/src/wiring/createInitializationLogger.ts b/packages/backend-app-api/src/wiring/createInitializationLogger.ts
index 9aea45c33f..0978cfb0c8 100644
--- a/packages/backend-app-api/src/wiring/createInitializationLogger.ts
+++ b/packages/backend-app-api/src/wiring/createInitializationLogger.ts
@@ -28,7 +28,7 @@ export function createInitializationLogger(
 ): {
   onPluginStarted(pluginId: string): void;
   onPluginFailed(pluginId: string, error: Error): void;
-  onOptionalPluginFailed(pluginId: string, error: Error): void;
+  onPermittedPluginFailure(pluginId: string, error: Error): void;
   onAllStarted(): void;
 } {
   const logger = rootLogger?.child({ type: 'initialization' });
@@ -80,10 +80,10 @@ export function createInitializationLogger(
         error,
       );
     },
-    onOptionalPluginFailed(pluginId: string, error: Error) {
+    onPermittedPluginFailure(pluginId: string, error: Error) {
       starting.delete(pluginId);
       logger?.error(
-        `Plugin '${pluginId}' threw an error during startup, but the plugin is marked optional in config so startup will continue.`,
+        `Plugin '${pluginId}' threw an error during startup, but boot failure is permitted for this plugin so startup will continue.`,
         error,
       );
     },