diff --git a/src/python/pants/engine/native.py b/src/python/pants/engine/native.py
index e62074d8db9..1b5bb4e2896 100644
--- a/src/python/pants/engine/native.py
+++ b/src/python/pants/engine/native.py
@@ -729,4 +729,7 @@ def tc(constraint):
     return self.gc(scheduler, self.lib.scheduler_destroy)
 
   def set_panic_handler(self):
-    self.lib.set_panic_handler()
+    if os.getenv("RUST_BACKTRACE", "0") != "1":
+      # The panic handler hides a lot of rust tracing which may be useful.
+      # Don't activate it when the user explicitly asks for rust backtraces.
+      self.lib.set_panic_handler()