diff --git a/lib/tapioca/commands/abstract_gem.rb b/lib/tapioca/commands/abstract_gem.rb
index 83c52e355..baabaa1af 100644
--- a/lib/tapioca/commands/abstract_gem.rb
+++ b/lib/tapioca/commands/abstract_gem.rb
@@ -71,6 +71,7 @@ def initialize(
         @include_doc = include_doc #: bool
         @include_loc = include_loc #: bool
         @include_exported_rbis = include_exported_rbis
+        @skipped_gems = [] #: Array[String]
         @halt_upon_load_error = halt_upon_load_error
       end
 
diff --git a/lib/tapioca/commands/gem_generate.rb b/lib/tapioca/commands/gem_generate.rb
index 6362655e5..302e1f0fe 100644
--- a/lib/tapioca/commands/gem_generate.rb
+++ b/lib/tapioca/commands/gem_generate.rb
@@ -30,6 +30,18 @@ def execute
           end
         end
 
+        unless @skipped_gems.empty?
+          say("\nNote: Tapioca skipped RBI generation for the following gems because they are ignored by default:", [:yellow, :bold])
+          say(@skipped_gems.join(", "), [:yellow, :bold])
+        end
+
+        user_excluded_gems = @gem_names & @exclude
+
+        unless user_excluded_gems.empty?
+          say("\nNote: Tapioca skipped RBI generation for the following gems because they were excluded:", [:yellow, :bold])
+          say(user_excluded_gems.join(", "), [:yellow, :bold])
+        end
+
         if anything_done
           validate_rbi_files(
             command: default_command(:gem, @gem_names.join(" ")),
@@ -56,11 +68,15 @@ def gems_to_generate(gem_names)
           gem = @bundle.gem(gem_name)
 
           if gem.nil?
-            next if @lsp_addon
-
-            raise Tapioca::Error, set_color("Error: Cannot find gem '#{gem_name}'", :red)
+            if @lsp_addon
+              next
+            elsif Gemfile::GemSpec::IGNORED_GEMS.include?(gem_name)
+              @skipped_gems << gem_name
+              next
+            else
+              raise Tapioca::Error, set_color("Error: Cannot find gem '#{gem_name}'", :red)
+            end
           end
-
           gems.concat(gem_dependencies(gem)) if @include_dependencies
           gems << gem
         end
diff --git a/spec/tapioca/cli/gem_spec.rb b/spec/tapioca/cli/gem_spec.rb
index 61484ad51..261207ac8 100644
--- a/spec/tapioca/cli/gem_spec.rb
+++ b/spec/tapioca/cli/gem_spec.rb
@@ -877,6 +877,87 @@ class Secret; end
           assert_success_status(result)
         end
 
+        it "reports explicitly requested ignored gems" do
+          result = @project.tapioca("gem sorbet", exclude: [])
+
+          assert_stdout_includes(result, <<~OUT)
+            Note: Tapioca skipped RBI generation for the following gems because they are ignored by default:
+            sorbet
+          OUT
+          refute_includes(result.out, "Compiled sorbet")
+
+          assert_empty_stderr(result)
+          assert_success_status(result)
+        end
+
+        it "reports gems excluded by built-in and user configuration" do
+          result = @project.tapioca("gem sorbet rbi --exclude rbi")
+
+          assert_stdout_includes(result, <<~OUT)
+            Note: Tapioca skipped RBI generation for the following gems because they are ignored by default:
+            sorbet
+          OUT
+          assert_stdout_includes(result, <<~OUT)
+            Note: Tapioca skipped RBI generation for the following gems because they were excluded:
+            rbi
+          OUT
+          refute_includes(result.out, "Compiled rbi")
+
+          assert_empty_stderr(result)
+          assert_success_status(result)
+        end
+
+        it "reports gems excluded by user configuration" do
+          result = @project.tapioca("gem rbi --exclude rbi")
+
+          assert_stdout_includes(result, <<~OUT)
+            Note: Tapioca skipped RBI generation for the following gems because they were excluded:
+            rbi
+          OUT
+          refute_includes(result.out, "Compiled rbi")
+
+          assert_empty_stderr(result)
+          assert_success_status(result)
+        end
+
+        it "does not generate dependencies of explicitly excluded gems" do
+          @project.require_mock_gem(mock_gem("foo", "0.0.1", dependencies: ["bar"]))
+          @project.require_mock_gem(mock_gem("bar", "0.0.1"))
+          # Keep foo materialized after Bundler excludes it as a direct dependency.
+          @project.require_mock_gem(mock_gem("baz", "0.0.1", dependencies: ["foo"]))
+          @project.bundle_install!
+
+          result = @project.tapioca("gem foo --include-dependencies --exclude foo")
+
+          assert_stdout_includes(result, <<~OUT)
+            Note: Tapioca skipped RBI generation for the following gems because they were excluded:
+            foo
+          OUT
+          refute_includes(result.out, "Compiled foo")
+          refute_includes(result.out, "Compiled bar")
+
+          assert_empty_stderr(result)
+          assert_success_status(result)
+        end
+
+        it "does not report exclusions when no gems are explicitly requested" do
+          result = @project.tapioca("gem --exclude rbi")
+
+          refute_includes(result.out, "because they were excluded")
+
+          assert_empty_stderr(result)
+          assert_success_status(result)
+        end
+
+        it "does not report exclusions when all gems are requested" do
+          result = @project.tapioca("gem --all --exclude rbi")
+
+          refute_includes(result.out, "because they were excluded")
+
+          assert_empty_stderr(result)
+          assert_success_status(result)
+        end
+
         it "fails with error when gem cannot be found" do
           result = @project.tapioca("gem non_existent_gem")