diff --git a/package.json b/package.json
index f029c615ce4..504d74f5ff9 100644
--- a/package.json
+++ b/package.json
@@ -91,7 +91,7 @@
     "strip-ansi": "^6.0.0",
     "ts-jest": "^26.4.3",
     "typescript": "^4.1.3",
-    "webpack": "^5.17.0",
+    "webpack": "^5.18.0",
     "webpack-bundle-analyzer": "^4.3.0",
     "webpack-dev-server": "^3.11.1",
     "yeoman-test": "^2.7.0"
diff --git a/packages/serve/src/index.ts b/packages/serve/src/index.ts
index 5b72fd66a3a..508b5cee234 100644
--- a/packages/serve/src/index.ts
+++ b/packages/serve/src/index.ts
@@ -113,7 +113,7 @@ class ServeCommand {
                 try {
                     servers = await startDevServer(compiler, devServerOptions, options, logger);
                 } catch (error) {
-                    if (error.name === 'ValidationError') {
+                    if (cli.isValidationError(error)) {
                         logger.error(error.message);
                     } else {
                         logger.error(error);
diff --git a/packages/webpack-cli/lib/webpack-cli.js b/packages/webpack-cli/lib/webpack-cli.js
index b945f9b189f..0baf614ee13 100644
--- a/packages/webpack-cli/lib/webpack-cli.js
+++ b/packages/webpack-cli/lib/webpack-cli.js
@@ -1172,7 +1172,13 @@ class WebpackCLI {
                 }
             } catch (error) {
                 logger.error(`Failed to load '${configPath}' config`);
-                logger.error(error);
+
+                if (this.isValidationError(error)) {
+                    logger.error(error.message);
+                } else {
+                    logger.error(error);
+                }
+
                 process.exit(2);
             }
 
@@ -1602,15 +1608,15 @@ class WebpackCLI {
         return compiler.options.watchOptions && compiler.options.watchOptions.stdin;
     }
 
-    async createCompiler(options, callback) {
-        const isValidationError = (error) => {
-            // https://github.com/webpack/webpack/blob/master/lib/index.js#L267
-            // https://github.com/webpack/webpack/blob/v4.44.2/lib/webpack.js#L90
-            const ValidationError = this.webpack.ValidationError || this.webpack.WebpackOptionsValidationError;
+    isValidationError(error) {
+        // https://github.com/webpack/webpack/blob/master/lib/index.js#L267
+        // https://github.com/webpack/webpack/blob/v4.44.2/lib/webpack.js#L90
+        const ValidationError = this.webpack.ValidationError || this.webpack.WebpackOptionsValidationError;
 
-            return error instanceof ValidationError;
-        };
+        return error instanceof ValidationError || error.name === 'ValidationError';
+    }
 
+    async createCompiler(options, callback) {
         let config = await this.resolveConfig(options);
 
         config = await this.applyOptions(config, options);
@@ -1623,7 +1629,7 @@ class WebpackCLI {
                 config.options,
                 callback
                     ? (error, stats) => {
-                          if (isValidationError(error)) {
+                          if (error && this.isValidationError(error)) {
                               logger.error(error.message);
                               process.exit(2);
                           }
@@ -1633,7 +1639,7 @@ class WebpackCLI {
                     : callback,
             );
         } catch (error) {
-            if (isValidationError(error)) {
+            if (this.isValidationError(error)) {
                 logger.error(error.message);
             } else {
                 logger.error(error);
diff --git a/test/error/invalid-schema/invalid-schema.test.js b/test/error/invalid-schema/invalid-schema.test.js
index cfcb54542da..05c04c8d735 100644
--- a/test/error/invalid-schema/invalid-schema.test.js
+++ b/test/error/invalid-schema/invalid-schema.test.js
@@ -3,15 +3,23 @@ const { run, isWebpack5 } = require('../../utils/test-utils');
 
 describe('invalid schema', () => {
     it('should log error on invalid config', () => {
-        const { exitCode, stderr, stdout } = run(__dirname, ['--config', './webpack.config.mock.js']);
+        const { exitCode, stderr, stdout } = run(__dirname, ['--config', './webpack.mock.config.js']);
 
         expect(exitCode).toEqual(2);
         expect(stderr).toContain('Invalid configuration object');
         expect(stdout).toBeFalsy();
     });
 
+    it('should log error on invalid plugin options', () => {
+        const { exitCode, stderr, stdout } = run(__dirname, ['--config', './webpack.plugin-mock.config.js']);
+
+        expect(exitCode).toEqual(2);
+        expect(stderr).toContain(isWebpack5 ? 'Invalid options object' : 'Invalid Options');
+        expect(stdout).toBeFalsy();
+    });
+
     it('should log error on invalid config using the "bundle" command', () => {
-        const { exitCode, stderr, stdout } = run(__dirname, ['bundle', '--config', './webpack.config.mock.js']);
+        const { exitCode, stderr, stdout } = run(__dirname, ['bundle', '--config', './webpack.mock.config.js']);
 
         expect(exitCode).toEqual(2);
         expect(stderr).toContain('Invalid configuration object');
@@ -19,7 +27,7 @@ describe('invalid schema', () => {
     });
 
     it('should log error on invalid config using the "serve" command', () => {
-        const { exitCode, stderr, stdout } = run(__dirname, ['serve', '--config', './webpack.config.mock.js']);
+        const { exitCode, stderr, stdout } = run(__dirname, ['serve', '--config', './webpack.mock.config.js']);
 
         expect(exitCode).toEqual(2);
         expect(stderr).toContain('Invalid configuration object');
@@ -41,6 +49,21 @@ describe('invalid schema', () => {
         expect(stdout).toBeFalsy();
     });
 
+    it('should log error on invalid option using "build" command', () => {
+        const { exitCode, stderr, stdout } = run(__dirname, ['build', '--mode', 'Yukihira']);
+
+        expect(exitCode).toEqual(2);
+
+        if (isWebpack5) {
+            expect(stderr).toContain("Invalid value 'Yukihira' for the '--mode' option");
+            expect(stderr).toContain("Expected: 'development | production | none'");
+        } else {
+            expect(stderr).toContain('Invalid configuration object');
+        }
+
+        expect(stdout).toBeFalsy();
+    });
+
     it('should log error on invalid option using "bundle" command', () => {
         const { exitCode, stderr, stdout } = run(__dirname, ['bundle', '--mode', 'Yukihira']);
 
@@ -56,6 +79,51 @@ describe('invalid schema', () => {
         expect(stdout).toBeFalsy();
     });
 
+    it('should log error on invalid option using "b" command', () => {
+        const { exitCode, stderr, stdout } = run(__dirname, ['b', '--mode', 'Yukihira']);
+
+        expect(exitCode).toEqual(2);
+
+        if (isWebpack5) {
+            expect(stderr).toContain("Invalid value 'Yukihira' for the '--mode' option");
+            expect(stderr).toContain("Expected: 'development | production | none'");
+        } else {
+            expect(stderr).toContain('Invalid configuration object');
+        }
+
+        expect(stdout).toBeFalsy();
+    });
+
+    it('should log error on invalid option using "watch" command', () => {
+        const { exitCode, stderr, stdout } = run(__dirname, ['watch', '--mode', 'Yukihira']);
+
+        expect(exitCode).toEqual(2);
+
+        if (isWebpack5) {
+            expect(stderr).toContain("Invalid value 'Yukihira' for the '--mode' option");
+            expect(stderr).toContain("Expected: 'development | production | none'");
+        } else {
+            expect(stderr).toContain('Invalid configuration object');
+        }
+
+        expect(stdout).toBeFalsy();
+    });
+
+    it('should log error on invalid option using "w" command', () => {
+        const { exitCode, stderr, stdout } = run(__dirname, ['w', '--mode', 'Yukihira']);
+
+        expect(exitCode).toEqual(2);
+
+        if (isWebpack5) {
+            expect(stderr).toContain("Invalid value 'Yukihira' for the '--mode' option");
+            expect(stderr).toContain("Expected: 'development | production | none'");
+        } else {
+            expect(stderr).toContain('Invalid configuration object');
+        }
+
+        expect(stdout).toBeFalsy();
+    });
+
     it('should log error on invalid option using "server" command', () => {
         const { exitCode, stderr, stdout } = run(__dirname, ['serve', '--mode', 'Yukihira']);
 
@@ -70,4 +138,19 @@ describe('invalid schema', () => {
 
         expect(stdout).toBeFalsy();
     });
+
+    it('should log error on invalid option using "s" command', () => {
+        const { exitCode, stderr, stdout } = run(__dirname, ['s', '--mode', 'Yukihira']);
+
+        expect(exitCode).toEqual(2);
+
+        if (isWebpack5) {
+            expect(stderr).toContain("Invalid value 'Yukihira' for the '--mode' option");
+            expect(stderr).toContain("Expected: 'development | production | none'");
+        } else {
+            expect(stderr).toContain('Invalid configuration object');
+        }
+
+        expect(stdout).toBeFalsy();
+    });
 });
diff --git a/test/error/invalid-schema/webpack.config.mock.js b/test/error/invalid-schema/webpack.mock.config.js
similarity index 100%
rename from test/error/invalid-schema/webpack.config.mock.js
rename to test/error/invalid-schema/webpack.mock.config.js
diff --git a/test/error/invalid-schema/webpack.plugin-mock.config.js b/test/error/invalid-schema/webpack.plugin-mock.config.js
new file mode 100644
index 00000000000..24a228b9d92
--- /dev/null
+++ b/test/error/invalid-schema/webpack.plugin-mock.config.js
@@ -0,0 +1,10 @@
+const webpack = require('webpack');
+
+module.exports = {
+    mode: 'development',
+    plugins: [
+        new webpack.BannerPlugin({
+            unknown: 'unknown',
+        }),
+    ],
+};
diff --git a/yarn.lock b/yarn.lock
index 0dbfd643050..a05832ed73a 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1895,11 +1895,16 @@
     jest-diff "^26.0.0"
     pretty-format "^26.0.0"
 
-"@types/json-schema@*", "@types/json-schema@^7.0.3", "@types/json-schema@^7.0.6":
+"@types/json-schema@*", "@types/json-schema@^7.0.3":
   version "7.0.6"
   resolved "https://registry.yarnpkg.com/@types/json-schema/-/json-schema-7.0.6.tgz#f4c7ec43e81b319a9815115031709f26987891f0"
   integrity sha512-3c+yGKvVP5Y9TYBEibGNR+kLtijnj7mYrXRg+WpFb2X9xm04g/DXYkfg4hmzJQosc9snFNUPkbYIhu+KAm6jJw==
 
+"@types/json-schema@^7.0.6":
+  version "7.0.7"
+  resolved "https://registry.yarnpkg.com/@types/json-schema/-/json-schema-7.0.7.tgz#98a993516c859eb0d5c4c8f098317a9ea68db9ad"
+  integrity sha512-cxWFQVseBm6O9Gbw1IWb8r6OS4OhSt3hPZLkFApLjM8TEXROBuQGLAH2i2gZpcXdLBIrpXuTDhH7Vbm1iXmNGA==
+
 "@types/keyv@*":
   version "3.1.1"
   resolved "https://registry.yarnpkg.com/@types/keyv/-/keyv-3.1.1.tgz#e45a45324fca9dab716ab1230ee249c9fb52cfa7"
@@ -2863,15 +2868,15 @@ browser-process-hrtime@^1.0.0:
   integrity sha512-9o5UecI3GhkpM6DrXr69PblIuWxPKk9Y0jHBRhdocZ2y7YECBFCsHm79Pr3OyR2AvjhDkabFJaDJMYRazHgsow==
 
 browserslist@^4.14.5:
-  version "4.15.0"
-  resolved "https://registry.yarnpkg.com/browserslist/-/browserslist-4.15.0.tgz#3d48bbca6a3f378e86102ffd017d9a03f122bdb0"
-  integrity sha512-IJ1iysdMkGmjjYeRlDU8PQejVwxvVO5QOfXH7ylW31GO6LwNRSmm/SgRXtNsEXqMLl2e+2H5eEJ7sfynF8TCaQ==
+  version "4.16.1"
+  resolved "https://registry.yarnpkg.com/browserslist/-/browserslist-4.16.1.tgz#bf757a2da376b3447b800a16f0f1c96358138766"
+  integrity sha512-UXhDrwqsNcpTYJBTZsbGATDxZbiVDsx6UjpmRUmtnP10pr8wAYr5LgFoEFw9ixriQH2mv/NX2SfGzE/o8GndLA==
   dependencies:
-    caniuse-lite "^1.0.30001164"
+    caniuse-lite "^1.0.30001173"
     colorette "^1.2.1"
-    electron-to-chromium "^1.3.612"
+    electron-to-chromium "^1.3.634"
     escalade "^3.1.1"
-    node-releases "^1.1.67"
+    node-releases "^1.1.69"
 
 bs-logger@0.x:
   version "0.2.6"
@@ -3066,10 +3071,10 @@ camelcase@^6.0.0:
   resolved "https://registry.yarnpkg.com/camelcase/-/camelcase-6.2.0.tgz#924af881c9d525ac9d87f40d964e5cea982a1809"
   integrity sha512-c7wVvbw3f37nuobQNtgsgG9POC9qMbNuMQmTCqZv23b6MIz0fcYpBiOlv9gEN/hdLdnZTDQhg6e9Dq5M1vKvfg==
 
-caniuse-lite@^1.0.30001164:
-  version "1.0.30001165"
-  resolved "https://registry.yarnpkg.com/caniuse-lite/-/caniuse-lite-1.0.30001165.tgz#32955490d2f60290bb186bb754f2981917fa744f"
-  integrity sha512-8cEsSMwXfx7lWSUMA2s08z9dIgsnR5NAqjXP23stdsU3AUWkCr/rr4s4OFtHXn5XXr6+7kam3QFVoYyXNPdJPA==
+caniuse-lite@^1.0.30001173:
+  version "1.0.30001180"
+  resolved "https://registry.yarnpkg.com/caniuse-lite/-/caniuse-lite-1.0.30001180.tgz#67abcd6d1edf48fa5e7d1e84091d1d65ab76e33b"
+  integrity sha512-n8JVqXuZMVSPKiPiypjFtDTXc4jWIdjxull0f92WLo7e1MSi3uJ3NvveakSh/aCl1QKFAvIz3vIj0v+0K+FrXw==
 
 capture-exit@^2.0.0:
   version "2.0.0"
@@ -4147,10 +4152,10 @@ ejs@^3.0.1:
   dependencies:
     jake "^10.6.1"
 
-electron-to-chromium@^1.3.612:
-  version "1.3.621"
-  resolved "https://registry.yarnpkg.com/electron-to-chromium/-/electron-to-chromium-1.3.621.tgz#0bbe2100ef0b28f88d0b1101fbdf433312f69be0"
-  integrity sha512-FeIuBzArONbAmKmZIsZIFGu/Gc9AVGlVeVbhCq+G2YIl6QkT0TDn2HKN/FMf1btXEB9kEmIuQf3/lBTVAbmFOg==
+electron-to-chromium@^1.3.634:
+  version "1.3.647"
+  resolved "https://registry.yarnpkg.com/electron-to-chromium/-/electron-to-chromium-1.3.647.tgz#8f1750ab7a5137f1a9a27f8f4ebdf550e08ae10b"
+  integrity sha512-Or2Nu8TjkmSywY9hk85K/Y6il28hchlonITz30fkC87qvSNupQl29O12BzDDDTnUFlo6kEIFL2QGSpkZDMxH8g==
 
 elegant-spinner@^1.0.1:
   version "1.0.1"
@@ -8019,10 +8024,10 @@ node-preload@^0.2.1:
   dependencies:
     process-on-spawn "^1.0.0"
 
-node-releases@^1.1.67:
-  version "1.1.67"
-  resolved "https://registry.yarnpkg.com/node-releases/-/node-releases-1.1.67.tgz#28ebfcccd0baa6aad8e8d4d8fe4cbc49ae239c12"
-  integrity sha512-V5QF9noGFl3EymEwUYzO+3NTDpGfQB4ve6Qfnzf3UNydMhjQRVPR1DZTuvWiLzaFJYw2fmDwAfnRNEVb64hSIg==
+node-releases@^1.1.69:
+  version "1.1.70"
+  resolved "https://registry.yarnpkg.com/node-releases/-/node-releases-1.1.70.tgz#66e0ed0273aa65666d7fe78febe7634875426a08"
+  integrity sha512-Slf2s69+2/uAD79pVVQo8uSiC34+g8GWY8UH2Qtqv34ZfhYrxpYpfzs9Js9d6O0mbDmALuxaTlplnBTnSELcrw==
 
 nopt@^4.0.1:
   version "4.0.3"
@@ -11072,7 +11077,7 @@ webpack-sources@^2.1.1:
     source-list-map "^2.0.1"
     source-map "^0.6.1"
 
-webpack@^5.17.0:
+webpack@^5.18.0:
   version "5.18.0"
   resolved "https://registry.yarnpkg.com/webpack/-/webpack-5.18.0.tgz#bbcf13094aa0da0534d513f27d7ee72d74e499c6"
   integrity sha512-RmiP/iy6ROvVe/S+u0TrvL/oOmvP+2+Bs8MWjvBwwY/j82Q51XJyDJ75m0QAGntL1Wx6B//Xc0+4VPP/hlNHmw==