diff --git a/CHANGELOG.md b/CHANGELOG.md
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Changelog
 
+## [0.4.0.4] - 2025-01-07
+
+### Changed
+
+ * Fixed test failure report when using `mkNotEqualButShouldHaveBeenEqual`
+
 ## [0.4.0.3] - 2024-10-13
 
 ### Added
diff --git a/src/Test/Syd/Hspec.hs b/src/Test/Syd/Hspec.hs
--- a/src/Test/Syd/Hspec.hs
+++ b/src/Test/Syd/Hspec.hs
@@ -140,11 +140,13 @@
           niceLocation Hspec.Location {..} = intercalate ":" [locationFile, show locationLine, show locationColumn]
           withLocationContext :: SomeException -> SomeException
           withLocationContext = withExtraContext $ niceLocation <$> mloc
+          withContext :: SomeException -> Contextual
+          withContext e = addContextToException (withLocationContext e) (Hspec.resultInfo result)
+
       exception <- failureReasonToException withExtraContext fr
-      pure
-        ( TestFailed,
-          Just $ SomeException $ addContextToException (withLocationContext exception) (Hspec.resultInfo result)
-        )
+
+      pure (TestFailed, Just $ maybeAddContextToException withContext exception fr)
+
   let testRunResultNumTests = Nothing
   let testRunResultNumShrinks = Nothing
   let testRunResultGoldenCase = Nothing
@@ -165,3 +167,8 @@
 #if MIN_VERSION_hspec_core(2,11,0)
   Hspec.ColorizedReason s -> pure $ SomeException $ ExpectationFailed s
 #endif
+
+maybeAddContextToException :: (SomeException -> Contextual) -> SomeException -> Hspec.FailureReason -> SomeException
+maybeAddContextToException withContext e = \case
+  Hspec.ExpectedButGot {} -> e
+  _ -> SomeException (withContext e)
diff --git a/sydtest-hspec.cabal b/sydtest-hspec.cabal
--- a/sydtest-hspec.cabal
+++ b/sydtest-hspec.cabal
@@ -5,7 +5,7 @@
 -- see: https://github.com/sol/hpack
 
 name:           sydtest-hspec
-version:        0.4.0.3
+version:        0.4.0.4
 synopsis:       An Hspec companion library for sydtest
 category:       Testing
 homepage:       https://github.com/NorfairKing/sydtest#readme
@@ -19,6 +19,7 @@
 extra-source-files:
     CHANGELOG.md
     LICENSE.md
+    test_resources/output-test.txt
 
 source-repository head
   type: git
@@ -46,6 +47,7 @@
   other-modules:
       Spec
       Test.Syd.HspecSpec
+      Test.Syd.OutputSpec
       Paths_sydtest_hspec
   hs-source-dirs:
       test
@@ -55,7 +57,9 @@
   build-depends:
       base >=4.7 && <5
     , hspec
+    , safe-coloured-text
     , stm
     , sydtest
     , sydtest-hspec
+    , text
   default-language: Haskell2010
diff --git a/test/Test/Syd/OutputSpec.hs b/test/Test/Syd/OutputSpec.hs
new file mode 100644
--- /dev/null
+++ b/test/Test/Syd/OutputSpec.hs
@@ -0,0 +1,52 @@
+{-# LANGUAGE OverloadedStrings #-}
+
+module Test.Syd.OutputSpec (spec) where
+
+import Control.Exception (AssertionFailed (..), throwIO)
+import qualified Data.Text.Lazy as LT
+import qualified Data.Text.Lazy.Builder as TLB
+import Test.Hspec
+import qualified Test.Syd as Syd
+import Test.Syd.Hspec (fromHspec)
+import Test.Syd.OptParse (getSettings)
+import Text.Colour
+
+spec :: Syd.Spec
+spec =
+  Syd.describe "Golden Output" $
+    Syd.it "renders output in the same way as before" $
+      Syd.goldenTextFile "test_resources/output-test.txt" $ do
+        settings <- getSettings
+        testForest <- Syd.execTestDefM settings (fromHspec hspecSpec)
+        res <- Syd.timeItT 0 $ Syd.runSpecForestSynchronously settings testForest
+
+        pure
+          $ LT.toStrict
+            . TLB.toLazyText
+            . Syd.renderResultReport settings WithoutColours
+          $ eraseTiming res
+
+hspecSpec :: Spec
+hspecSpec = do
+  it "failure with no reason" False
+
+  it "failure with reason" $ expectationFailure "failure reason"
+
+  it "failure with \"expected x but got y\"" $ 8 `shouldBe` (6 :: Int)
+
+  it "failure with error" $ do
+    throwIO (AssertionFailed "error msg") :: IO ()
+
+eraseTiming :: Syd.Timed Syd.ResultForest -> Syd.Timed Syd.ResultForest
+eraseTiming = fmap erasedTimedInResultForest . eraseTimed
+  where
+    eraseTimed :: Syd.Timed a -> Syd.Timed a
+    eraseTimed t =
+      t
+        { Syd.timedBegin = 0,
+          Syd.timedEnd = 0,
+          Syd.timedWorker = 0
+        }
+
+    erasedTimedInResultForest :: Syd.ResultForest -> Syd.ResultForest
+    erasedTimedInResultForest = fmap (fmap (fmap eraseTimed))
diff --git a/test_resources/output-test.txt b/test_resources/output-test.txt
new file mode 100644
--- /dev/null
+++ b/test_resources/output-test.txt
@@ -0,0 +1,43 @@
+Tests:
+
+✗ failure with no reason                                                   0.00 ms
+  Retries: 3 (does not look flaky)
+✗ failure with reason                                                      0.00 ms
+  Retries: 3 (does not look flaky)
+✗ failure with "expected x but got y"                                      0.00 ms
+  Retries: 3 (does not look flaky)
+✗ failure with error                                                       0.00 ms
+  Retries: 3 (does not look flaky)
+
+
+Failures:
+
+    src/Test/Syd/Hspec.hs:68
+  ✗ 1 failure with no reason
+      Retries: 3 (does not look flaky)
+      ExpectationFailed "Hspec had no more information about this failure."
+  
+    src/Test/Syd/Hspec.hs:68
+  ✗ 2 failure with reason
+      Retries: 3 (does not look flaky)
+      Contextual "ExpectationFailed \"failure reason\"" "test/Test/Syd/OutputSpec.hs:33:30"
+  
+    src/Test/Syd/Hspec.hs:68
+  ✗ 3 failure with "expected x but got y"
+      Retries: 3 (does not look flaky)
+      Expected these values to be equal:
+      Actual:   8
+      Expected: 6
+  
+    src/Test/Syd/Hspec.hs:68
+  ✗ 4 failure with error
+      Retries: 3 (does not look flaky)
+      error msg
+  
+
+  Examples:                     12
+  Passed:                       0
+  Failed:                       4
+  Sum of test runtimes:         0.00 seconds
+  Test suite took:              0.00 seconds
+