diff --git a/nextgen/config/src/inherited_tasks_config.rs b/nextgen/config/src/inherited_tasks_config.rs
index 842ec202244..9be70a8c52c 100644
--- a/nextgen/config/src/inherited_tasks_config.rs
+++ b/nextgen/config/src/inherited_tasks_config.rs
@@ -1,6 +1,6 @@
 use crate::language_platform::{LanguageType, PlatformType};
 use crate::project::{validate_deps, TaskConfig};
-use crate::project_config::{validate_tasks, ProjectType};
+use crate::project_config::ProjectType;
 use crate::shapes::InputPath;
 use crate::validate::check_yml_extension;
 use moon_common::path::standardize_separators;
@@ -51,7 +51,7 @@ cacheable!(
         #[setting(merge = merge::append_vec)]
         pub implicit_inputs: Vec<InputPath>,
 
-        #[setting(nested, merge = merge::merge_btreemap, validate = validate_tasks)]
+        #[setting(nested, merge = merge::merge_btreemap)]
         pub tasks: BTreeMap<Id, TaskConfig>,
     }
 );
diff --git a/nextgen/config/src/project_config.rs b/nextgen/config/src/project_config.rs
index d49e0c56455..4aa7bd6847a 100644
--- a/nextgen/config/src/project_config.rs
+++ b/nextgen/config/src/project_config.rs
@@ -19,25 +19,6 @@ fn validate_channel<D, C>(value: &str, _data: &D, _ctx: &C) -> Result<(), Valida
     Ok(())
 }
 
-pub fn validate_tasks<D, C>(
-    tasks: &BTreeMap<Id, PartialTaskConfig>,
-    _data: &D,
-    _ctx: &C,
-) -> Result<(), ValidateError> {
-    for (id, config) in tasks {
-        if let Some(extends_from) = &config.extends {
-            if !tasks.contains_key(extends_from) {
-                return Err(ValidateError::new(format!(
-                    "task {} is extending an unknown task {}",
-                    id, extends_from
-                )));
-            }
-        }
-    }
-
-    Ok(())
-}
-
 derive_enum!(
     #[derive(ConfigEnum, Copy, Default)]
     pub enum ProjectType {
@@ -108,7 +89,7 @@ cacheable!(
 
         pub tags: Vec<Id>,
 
-        #[setting(nested, validate = validate_tasks)]
+        #[setting(nested)]
         pub tasks: BTreeMap<Id, TaskConfig>,
 
         #[setting(nested)]
diff --git a/nextgen/config/tests/project_config_test.rs b/nextgen/config/tests/project_config_test.rs
index f0f34b2d52d..4d35e1f8076 100644
--- a/nextgen/config/tests/project_config_test.rs
+++ b/nextgen/config/tests/project_config_test.rs
@@ -578,23 +578,6 @@ tasks:
             assert!(config.tasks.contains_key("base"));
             assert!(config.tasks.contains_key("extender"));
         }
-
-        #[test]
-        #[should_panic(expected = "task extender is extending an unknown task unknown")]
-        fn errors_if_extending_unknown_task() {
-            test_load_config(
-                CONFIG_PROJECT_FILENAME,
-                r"
-tasks:
-  base:
-    command: 'base'
-  extender:
-    extends: 'unknown'
-    args: '--more'
-",
-                |path| ProjectConfig::load_from(path, "."),
-            );
-        }
     }
 
     mod toolchain {
diff --git a/nextgen/task-builder/src/lib.rs b/nextgen/task-builder/src/lib.rs
index ec931c60acf..1ca4da4d144 100644
--- a/nextgen/task-builder/src/lib.rs
+++ b/nextgen/task-builder/src/lib.rs
@@ -1,3 +1,5 @@
 mod tasks_builder;
+mod tasks_builder_error;
 
 pub use tasks_builder::*;
+pub use tasks_builder_error::*;
diff --git a/nextgen/task-builder/src/tasks_builder.rs b/nextgen/task-builder/src/tasks_builder.rs
index 2ff7582ae0a..ae4058348a0 100644
--- a/nextgen/task-builder/src/tasks_builder.rs
+++ b/nextgen/task-builder/src/tasks_builder.rs
@@ -1,5 +1,6 @@
 #![allow(dead_code)]
 
+use crate::tasks_builder_error::TasksBuilderError;
 use moon_args::split_args;
 use moon_common::{color, Id};
 use moon_config::{
@@ -23,21 +24,43 @@ struct ConfigChain<'proj> {
 
 // This is a standalone function as recursive closures are not possible!
 fn extract_config<'builder, 'proj>(
-    task_id: &'builder Id,
-    tasks_map: &'builder FxHashMap<&'proj Id, &'proj TaskConfig>,
     configs: &'builder mut Vec<ConfigChain<'proj>>,
-    global: bool,
-) {
-    if let Some(config) = tasks_map.get(task_id) {
+    task_id: &'builder Id,
+    tasks: &'builder FxHashMap<&'proj Id, &'proj TaskConfig>,
+    extendable_tasks: &'builder FxHashMap<&'proj Id, &'proj TaskConfig>,
+    inherited: bool,
+    extended: bool,
+) -> miette::Result<()> {
+    let config = if extended {
+        extendable_tasks.get(task_id)
+    } else {
+        tasks.get(task_id)
+    };
+
+    if let Some(config) = config {
         if let Some(extend_task_id) = &config.extends {
-            extract_config(extend_task_id, tasks_map, configs, global);
+            if !extendable_tasks.contains_key(extend_task_id) {
+                return Err(TasksBuilderError::UnknownExtendsSource {
+                    source_id: task_id.to_owned(),
+                    target_id: extend_task_id.to_owned(),
+                }
+                .into());
+            }
+
+            extract_config(
+                configs,
+                extend_task_id,
+                tasks,
+                extendable_tasks,
+                inherited,
+                true,
+            )?;
         }
 
-        configs.push(ConfigChain {
-            config,
-            inherited: global,
-        });
+        configs.push(ConfigChain { config, inherited });
     }
+
+    Ok(())
 }
 
 #[derive(Debug)]
@@ -230,7 +253,7 @@ impl<'proj> TasksBuilder<'proj> {
         );
 
         let mut task = Task::default();
-        let chain = self.get_config_inherit_chain(id);
+        let chain = self.get_config_inherit_chain(id)?;
 
         // Determine command and args before building options and the task,
         // as we need to figure out if we're running in local mode or not.
@@ -413,7 +436,7 @@ impl<'proj> TasksBuilder<'proj> {
         };
 
         let configs = self
-            .get_config_inherit_chain(id)
+            .get_config_inherit_chain(id)?
             .iter()
             .map(|link| &link.config.options)
             .collect::<Vec<_>>();
@@ -589,13 +612,34 @@ impl<'proj> TasksBuilder<'proj> {
         Ok((command, args))
     }
 
-    fn get_config_inherit_chain(&self, id: &Id) -> Vec<ConfigChain> {
+    fn get_config_inherit_chain(&self, id: &Id) -> miette::Result<Vec<ConfigChain>> {
         let mut configs = vec![];
 
-        extract_config(id, &self.global_tasks, &mut configs, true);
-        extract_config(id, &self.local_tasks, &mut configs, false);
-
-        configs
+        let mut extendable_tasks = FxHashMap::default();
+        extendable_tasks.extend(&self.global_tasks);
+        extendable_tasks.extend(&self.local_tasks);
+
+        // Inherit all global first
+        extract_config(
+            &mut configs,
+            id,
+            &self.global_tasks,
+            &extendable_tasks,
+            true,
+            false,
+        )?;
+
+        // Then all local
+        extract_config(
+            &mut configs,
+            id,
+            &self.local_tasks,
+            &extendable_tasks,
+            false,
+            false,
+        )?;
+
+        Ok(configs)
     }
 
     fn apply_filters_to_deps(&self, deps: Vec<Target>) -> Vec<Target> {
diff --git a/nextgen/task-builder/src/tasks_builder_error.rs b/nextgen/task-builder/src/tasks_builder_error.rs
new file mode 100644
index 00000000000..8f3e20afdbd
--- /dev/null
+++ b/nextgen/task-builder/src/tasks_builder_error.rs
@@ -0,0 +1,14 @@
+use miette::Diagnostic;
+use moon_common::{Id, Style, Stylize};
+use thiserror::Error;
+
+#[derive(Error, Debug, Diagnostic)]
+pub enum TasksBuilderError {
+    #[diagnostic(code(task_builder::unknown_extends))]
+    #[error(
+        "Task {} is extending an unknown task {}.",
+        .source_id.style(Style::Id),
+        .target_id.style(Style::Id),
+    )]
+    UnknownExtendsSource { source_id: Id, target_id: Id },
+}
diff --git a/nextgen/task-builder/tests/__fixtures__/builder/extends-unknown/moon.yml b/nextgen/task-builder/tests/__fixtures__/builder/extends-unknown/moon.yml
new file mode 100644
index 00000000000..0341d87fed7
--- /dev/null
+++ b/nextgen/task-builder/tests/__fixtures__/builder/extends-unknown/moon.yml
@@ -0,0 +1,5 @@
+tags: [extends]
+
+tasks:
+  base:
+    extends: unknown
diff --git a/nextgen/task-builder/tests/__fixtures__/builder/extends/moon.yml b/nextgen/task-builder/tests/__fixtures__/builder/extends/moon.yml
index 2ba37affad0..5fc008309ca 100644
--- a/nextgen/task-builder/tests/__fixtures__/builder/extends/moon.yml
+++ b/nextgen/task-builder/tests/__fixtures__/builder/extends/moon.yml
@@ -36,8 +36,6 @@ tasks:
     extends: base
     local: false
 
-  # Tests global inheritance
-
   local-base:
     inputs:
       - 'local-base'
@@ -52,3 +50,9 @@ tasks:
       - 'local-extender'
     options:
       mergeArgs: 'prepend'
+
+  local-extends-global:
+    extends: 'global-base'
+    inputs:
+      - 'local-extender'
+
diff --git a/nextgen/task-builder/tests/tasks_builder_test.rs b/nextgen/task-builder/tests/tasks_builder_test.rs
index 217d78fc5ea..76e54401f00 100644
--- a/nextgen/task-builder/tests/tasks_builder_test.rs
+++ b/nextgen/task-builder/tests/tasks_builder_test.rs
@@ -1212,6 +1212,15 @@ mod tasks_builder {
     mod extending {
         use super::*;
 
+        #[tokio::test]
+        #[should_panic(expected = "Task base is extending an unknown task unknown.")]
+        async fn errors_for_unknown_extend_task() {
+            let sandbox = create_sandbox("builder");
+            let tasks = build_tasks(sandbox.path(), "extends-unknown/moon.yml").await;
+
+            tasks.get("base").unwrap();
+        }
+
         #[tokio::test]
         async fn handles_args() {
             let sandbox = create_sandbox("builder");
@@ -1286,6 +1295,24 @@ mod tasks_builder {
             assert_eq!(task.options.retry_count, 3);
         }
 
+        #[tokio::test]
+        async fn can_extend_a_global_from_local() {
+            let sandbox = create_sandbox("builder");
+            let tasks = build_tasks(sandbox.path(), "extends/moon.yml").await;
+            let task = tasks.get("local-extends-global").unwrap();
+
+            assert_eq!(task.command, "global-base");
+            assert_eq!(
+                task.inputs,
+                vec![
+                    InputPath::ProjectFile("global-base".into()),
+                    InputPath::ProjectFile("local-extender".into()),
+                    InputPath::WorkspaceGlob(".moon/*.yml".into()),
+                    InputPath::WorkspaceFile("global/tasks/tag-extends.yml".into()),
+                ]
+            );
+        }
+
         #[tokio::test]
         async fn can_create_extends_chains() {
             let sandbox = create_sandbox("builder");
diff --git a/packages/cli/CHANGELOG.md b/packages/cli/CHANGELOG.md
index 32db7728580..e6213b99683 100644
--- a/packages/cli/CHANGELOG.md
+++ b/packages/cli/CHANGELOG.md
@@ -16,6 +16,10 @@
 
 - Updated `moon dep-graph` to support a task in closest project, similar to `moon run`.
 
+#### 🐞 Fixes
+
+- Fixed an issue where local tasks could not extend global tasks using the `extends` setting.
+
 ## 1.14.2
 
 #### 🐞 Fixes