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..732c2c0cb 100644
--- a/lib/tapioca/commands/gem_generate.rb
+++ b/lib/tapioca/commands/gem_generate.rb
@@ -17,7 +17,9 @@ def execute
           halt_upon_load_error: @halt_upon_load_error,
         )
 
-        gem_queue = gems_to_generate(@gem_names).reject { |gem| @exclude.include?(gem.name) }
+        gem_queue = gems_to_generate(@gem_names)
+        user_excluded_gems = user_excluded_gem_names(gem_queue)
+        gem_queue.reject! { |gem| @exclude.include?(gem.name) }
         anything_done = [
           perform_removals,
           gem_queue.any?,
@@ -44,6 +46,14 @@ def execute
         else
           say("No operations performed, all RBIs are up-to-date.", [:green, :bold])
         end
+        unless @skipped_gems.empty?
+          say("\nNote: Tapioca is skipping gem rbi generation for following gems due to the built-in configuration:", [:yellow, :bold])
+          say(@skipped_gems.join(", "), [:yellow, :bold])
+        end
+        unless user_excluded_gems.empty?
+          say("\nNote: Tapioca is skipping gem rbi generation for following gems due to user configuration:", [:yellow, :bold])
+          say(user_excluded_gems.join(", "), [:yellow, :bold])
+        end
       ensure
         GitAttributes.create_generated_attribute_file(@outpath)
       end
@@ -56,16 +66,28 @@ 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
       end
 
+      #: (Array[Gemfile::GemSpec] gem_queue) -> Array[String]
+      def user_excluded_gem_names(gem_queue)
+        @exclude.uniq.select do |gem_name|
+          @bundle.gem(gem_name) &&
+            (@gem_names.include?(gem_name) || gem_queue.any? { |gem| gem.name == gem_name })
+        end
+      end
+
       #: (Gemfile::GemSpec gem, ?Array[Gemfile::GemSpec] dependencies) -> Array[Gemfile::GemSpec]
       def gem_dependencies(gem, dependencies = [])
         direct_dependencies = gem.dependencies.filter_map { |dependency| @bundle.gem(dependency.name) }
diff --git a/spec/tapioca/cli/gem_spec.rb b/spec/tapioca/cli/gem_spec.rb
index 61484ad51..5b8be1f4d 100644
--- a/spec/tapioca/cli/gem_spec.rb
+++ b/spec/tapioca/cli/gem_spec.rb
@@ -877,6 +877,49 @@ 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 is skipping gem rbi generation for following gems due to the built-in configuration:
+            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 is skipping gem rbi generation for following gems due to the built-in configuration:
+            sorbet
+          OUT
+          assert_stdout_includes(result, <<~OUT)
+            Note: Tapioca is skipping gem rbi generation for following gems due to user configuration:
+            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 is skipping gem rbi generation for following gems due to user configuration:
+            rbi
+          OUT
+          refute_includes(result.out, "Compiled rbi")
+
+          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")