diff --git a/Cargo.toml b/Cargo.toml
index 04efe78a8..602ddf675 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -50,8 +50,12 @@ allow_attributes = "warn"
 # Cargo only looks at the profile settings 
 # in the Cargo.toml manifest at the root of the workspace
 
+[profile.dev]
+panic = "unwind"
+
 [profile.release]
 lto = "thin"
+panic = "unwind"
 
 # Release profile configuration with Link Time Optimization (LTO) enabled.
 #
diff --git a/osdk/src/commands/build/mod.rs b/osdk/src/commands/build/mod.rs
index c862ccbd4..1b241f294 100644
--- a/osdk/src/commands/build/mod.rs
+++ b/osdk/src/commands/build/mod.rs
@@ -207,9 +207,8 @@ fn build_kernel_elf(
         &rustc_linker_script_arg,
         "-C relocation-model=static",
         "-C relro-level=off",
-        // We do not really allow unwinding except for kernel testing. However, we need to specify
-        // this to show backtraces when panicking.
-        "-C panic=unwind",
+        // Even if we disabled unwinding on panic, we need to specify this to show backtraces.
+        "-C force-unwind-tables=yes",
         // This is to let rustc know that "cfg(ktest)" is our well-known configuration.
         // See the [Rust Blog](https://blog.rust-lang.org/2024/05/06/check-cfg.html) for details.
         "--check-cfg cfg(ktest)",
diff --git a/osdk/src/commands/test.rs b/osdk/src/commands/test.rs
index 701351acb..aa0d2a612 100644
--- a/osdk/src/commands/test.rs
+++ b/osdk/src/commands/test.rs
@@ -98,7 +98,7 @@ pub static KTEST_CRATE_WHITELIST: Option<&[&str]> = Some(&{:#?});
         &cargo_target_directory,
         config,
         ActionChoice::Test,
-        &["--cfg ktest"],
+        &["--cfg ktest", "-C panic=unwind"],
     );
     std::env::remove_var("RUSTFLAGS");
     drop(dir_guard);