diff --git a/_todo/pending/graceful-no-files-exit.md b/_todo/pending/graceful-no-files-exit.md
new file mode 100644
index 0000000..dd90087
--- /dev/null
+++ b/_todo/pending/graceful-no-files-exit.md
@@ -0,0 +1,111 @@
+# Task Proposal: Graceful Exit When No Files Found
+
+## Original Objective
+When no .ipynb files (or .qmd files) are found to process, the CLI currently terminates with error code 1. This should be handled gracefully - just exit with code 0 since there's no work to do.
+
+## Current Behavior
+The CLI exits with error code 1 in two scenarios:
+1. **No files found initially** (quarto_batch_convert.py:301-303): When input paths contain no files with the target extension
+2. **No files after regex filtering** (quarto_batch_convert.py:321-326): When regex pattern matches no files
+
+Both cases print error messages and call `ctx.exit(1)`.
+
+## Proposed Changes
+
+### 1. Exit with Code 0 for "No Work to Do" Scenarios
+**File**: `src/quarto_batch_convert/quarto_batch_convert.py`
+
+**Change 1** (lines 301-303):
+```python
+# Before:
+if not files:
+    click.echo("Error: No files found to process")
+    ctx.exit(1)
+
+# After:
+if not files:
+    click.echo("No files found to process")
+    return  # Exit gracefully with code 0
+```
+
+**Change 2** (lines 321-326):
+```python
+# Before:
+if not files:
+    if match_regex:
+        click.echo(f"No files found matching the regex pattern: {match_regex}")
+    else:
+        click.echo("No files found to process")
+    ctx.exit(1)
+
+# After:
+if not files:
+    if match_regex:
+        click.echo(f"No files found matching the regex pattern: {match_regex}")
+    else:
+        click.echo("No files found to process")
+    return  # Exit gracefully with code 0
+```
+
+### 2. Update Tests (if needed)
+**File**: `tests/test_quarto_batch_convert.py`
+
+Check if any tests expect exit code 1 for "no files found" scenarios. Update them to expect code 0 instead.
+
+## Implementation Steps
+
+1. Read `src/quarto_batch_convert/quarto_batch_convert.py`
+2. Update lines 301-303: Remove "Error:" prefix, change `ctx.exit(1)` to `return`
+3. Update lines 321-326: Change `ctx.exit(1)` to `return`
+4. Read `tests/test_quarto_batch_convert.py` to check for affected tests
+5. Update any tests that assert exit code 1 for "no files found"
+6. Run test suite: `uv run pytest tests -v`
+7. Verify locally with test case: run CLI on empty directory
+
+## Rationale
+
+- **Exit code 0**: No files to process is not an error condition - it's a valid state where the tool has nothing to do
+- **Remove "Error:" prefix**: Since this isn't an error, the message shouldn't be labeled as such
+- **Graceful termination**: Tools that find no work shouldn't fail CI/CD pipelines or automated scripts
+- **Consistency**: Many Unix tools (grep, find, etc.) exit with 0 when finding no matches
+
+## Testing Scenarios
+
+1. Empty directory with `-r` flag
+2. Directory with files but wrong extension
+3. Regex pattern that matches no files
+4. Non-existent glob pattern
+
+All should exit with code 0 and informative (non-error) message.
+
+## Implementation Summary
+
+**Status**: ✅ Completed
+
+### Changes Made
+
+1. **quarto_batch_convert.py:301-303** - Updated first exit point
+   - Removed "Error:" prefix from message
+   - Changed `ctx.exit(1)` to `return` for graceful exit
+
+2. **quarto_batch_convert.py:321-326** - Updated second exit point
+   - Changed `ctx.exit(1)` to `return` for graceful exit
+   - Kept informative message about regex pattern
+
+3. **test_quarto_batch_convert.py:128-145** - Updated test
+   - Changed `test_no_match_found()` to expect exit code 0
+   - Updated docstring to reflect graceful exit behavior
+
+### Test Results
+All 17 tests passed successfully:
+- ✅ test_no_match_found now validates exit code 0
+- ✅ All other tests remain passing
+- ✅ Test suite completed in 7.79s
+
+### Verification
+The CLI now exits gracefully (code 0) when:
+- No files with target extension are found in input paths
+- Regex pattern matches no files
+- Directory is empty
+
+Non-error scenarios no longer fail CI/CD pipelines or automated scripts.
diff --git a/_todo/todo.md b/_todo/todo.md
index 37dd5ae..78dff41 100644
--- a/_todo/todo.md
+++ b/_todo/todo.md
@@ -2,7 +2,7 @@
 
 ## Active Tasks
 
-<!-- Add tasks here. When creating a proposal, move the task description to the proposal file -->
+1. **graceful-no-files-exit** - In progress in `pending/graceful-no-files-exit.md`
 
 ## Proposed Tasks (Awaiting Review)
 
diff --git a/pyproject.toml b/pyproject.toml
index 78154d2..ce33f6a 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "quarto-batch-convert"
-version = "2025.9.1"
+version = "2025.9.2"
 description = "Converts multiple Jupyter notebooks to Quarto documents at once"
 readme = "README.md"
 license = "MIT"
diff --git a/src/quarto_batch_convert/quarto_batch_convert.py b/src/quarto_batch_convert/quarto_batch_convert.py
index 7a6119f..0816b4e 100644
--- a/src/quarto_batch_convert/quarto_batch_convert.py
+++ b/src/quarto_batch_convert/quarto_batch_convert.py
@@ -299,8 +299,8 @@ def convert_files(
 
     # Check if any files were found
     if not files:
-        click.echo("Error: No files found to process")
-        ctx.exit(1)
+        click.echo("No files found to process")
+        return
 
     if output_path is None:
         output_path = base_input_path
@@ -323,7 +323,7 @@ def convert_files(
             click.echo(f"No files found matching the regex pattern: {match_regex}")
         else:
             click.echo("No files found to process")
-        ctx.exit(1)
+        return
 
     print(f"Found {len(files)} file(s) to be converted:\n")
     print(f"\n\t{files}\n")
diff --git a/tests/test_quarto_batch_convert.py b/tests/test_quarto_batch_convert.py
index 58c351d..7fe917e 100644
--- a/tests/test_quarto_batch_convert.py
+++ b/tests/test_quarto_batch_convert.py
@@ -128,20 +128,20 @@ def test_invalid_regex_pattern() -> None:
 def test_no_match_found(setup_teardown_test_env: str) -> None:
     """Test that a non-matching pattern results in no files being processed.
 
-    Verifies that when a regex pattern matches no files, the CLI exits with
-    an error code and displays an appropriate message.
+    Verifies that when a regex pattern matches no files, the CLI exits gracefully
+    with exit code 0 and displays an appropriate message.
 
     Args:
         setup_teardown_test_env: Path to the temporary test directory.
     """
     runner = CliRunner()
     test_dir = setup_teardown_test_env
-    
+
     input_files = glob.glob(test_dir + "/**/*", recursive=True)
-    
+
     result = runner.invoke(quarto_batch_convert, [*input_files, "-m", "non_existent_pattern"])
-    
-    assert result.exit_code != 0
+
+    assert result.exit_code == 0
     assert "No files found matching the regex pattern" in result.output
     
 def test_prefix_option(setup_teardown_test_env: str) -> None:
diff --git a/uv.lock b/uv.lock
index da994a5..38df720 100644
--- a/uv.lock
+++ b/uv.lock
@@ -81,7 +81,7 @@ wheels = [
 
 [[package]]
 name = "quarto-batch-convert"
-version = "2025.9.1"
+version = "2025.9.2"
 source = { editable = "." }
 dependencies = [
     { name = "click" },