diff --git a/sqlmesh/utils/dag.py b/sqlmesh/utils/dag.py
index 1274e0616b..c39fd2a1d2 100644
--- a/sqlmesh/utils/dag.py
+++ b/sqlmesh/utils/dag.py
@@ -99,6 +99,53 @@ def upstream(self, node: T) -> t.Set[T]:
 
         return self._upstream[node]
 
+    def _find_cycle_path(self, nodes_in_cycle: t.Dict[T, t.Set[T]]) -> t.Optional[t.List[T]]:
+        """Find the exact cycle path using DFS when a cycle is detected.
+
+        Args:
+            nodes_in_cycle: Dictionary of nodes that are part of the cycle and their dependencies
+
+        Returns:
+            List of nodes forming the cycle path, or None if no cycle found
+        """
+        if not nodes_in_cycle:
+            return None
+
+        # Use DFS to find a cycle path
+        visited: t.Set[T] = set()
+        path: t.List[T] = []
+
+        def dfs(node: T) -> t.Optional[t.List[T]]:
+            if node in path:
+                # Found a cycle - extract the cycle path
+                cycle_start = path.index(node)
+                return path[cycle_start:] + [node]
+
+            if node in visited:
+                return None
+
+            visited.add(node)
+            path.append(node)
+
+            # Only follow edges to nodes that are still in the unprocessed set
+            for neighbor in nodes_in_cycle.get(node, set()):
+                if neighbor in nodes_in_cycle:
+                    cycle = dfs(neighbor)
+                    if cycle:
+                        return cycle
+
+            path.pop()
+            return None
+
+        # Try starting DFS from each unvisited node
+        for start_node in nodes_in_cycle:
+            if start_node not in visited:
+                cycle = dfs(start_node)
+                if cycle:
+                    return cycle[:-1]  # Remove the duplicate node at the end
+
+        return None
+
     @property
     def roots(self) -> t.Set[T]:
         """Returns all nodes in the graph without any upstream dependencies."""
@@ -125,23 +172,31 @@ def sorted(self) -> t.List[T]:
                 next_nodes = {node for node, deps in unprocessed_nodes.items() if not deps}
 
                 if not next_nodes:
-                    # Sort cycle candidates to make the order deterministic
-                    cycle_candidates_msg = (
-                        "\nPossible candidates to check for circular references: "
-                        + ", ".join(str(node) for node in sorted(cycle_candidates))
-                    )
+                    # A cycle was detected - find the exact cycle path
+                    cycle_path = self._find_cycle_path(unprocessed_nodes)
 
-                    if last_processed_nodes:
-                        last_processed_msg = "\nLast nodes added to the DAG: " + ", ".join(
-                            str(node) for node in last_processed_nodes
+                    last_processed_msg = ""
+                    if cycle_path:
+                        node_output = " ->\n".join(
+                            str(node) for node in (cycle_path + [cycle_path[0]])
                         )
+                        cycle_msg = f"\nCycle:\n{node_output}"
                     else:
-                        last_processed_msg = ""
+                        # Fallback message in case a cycle can't be found
+                        cycle_candidates_msg = (
+                            "\nPossible candidates to check for circular references: "
+                            + ", ".join(str(node) for node in sorted(cycle_candidates))
+                        )
+                        cycle_msg = cycle_candidates_msg
+                        if last_processed_nodes:
+                            last_processed_msg = "\nLast nodes added to the DAG: " + ", ".join(
+                                str(node) for node in last_processed_nodes
+                            )
 
                     raise SQLMeshError(
                         "Detected a cycle in the DAG. "
                         "Please make sure there are no circular references between nodes."
-                        f"{last_processed_msg}{cycle_candidates_msg}"
+                        f"{last_processed_msg}{cycle_msg}"
                     )
 
                 for node in next_nodes:
diff --git a/tests/utils/test_dag.py b/tests/utils/test_dag.py
index 444e78555c..7c142ee4a0 100644
--- a/tests/utils/test_dag.py
+++ b/tests/utils/test_dag.py
@@ -57,8 +57,7 @@ def test_sorted_with_cycles():
 
     expected_error_message = (
         "Detected a cycle in the DAG. Please make sure there are no circular references between nodes.\n"
-        "Last nodes added to the DAG: c\n"
-        "Possible candidates to check for circular references: d, e"
+        "Cycle:\nd ->\ne ->\nd"
     )
 
     assert expected_error_message == str(ex.value)
@@ -70,7 +69,7 @@ def test_sorted_with_cycles():
 
     expected_error_message = (
         "Detected a cycle in the DAG. Please make sure there are no circular references between nodes.\n"
-        "Possible candidates to check for circular references: a, b, c"
+        "Cycle:\na ->\nb ->\nc ->\na"
     )
 
     assert expected_error_message == str(ex.value)
@@ -81,11 +80,11 @@ def test_sorted_with_cycles():
         dag.sorted
 
     expected_error_message = (
-        "Last nodes added to the DAG: c\n"
-        + "Possible candidates to check for circular references: b, d"
+        "Detected a cycle in the DAG. Please make sure there are no circular references between nodes.\n"
+        + "Cycle:\nb ->\nd ->\nb"
     )
 
-    assert expected_error_message in str(ex.value)
+    assert expected_error_message == str(ex.value)
 
 
 def test_reversed_graph():