diff --git a/Cargo.lock b/Cargo.lock
index 4f371c8356e5..878d61a62889 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -475,6 +475,7 @@ dependencies = [
  "strum_macros",
  "tracing",
  "tracing-subscriber",
+ "tracing-tree",
 ]
 
 [[package]]
@@ -617,6 +618,15 @@ dependencies = [
  "winapi",
 ]
 
+[[package]]
+name = "nu-ansi-term"
+version = "0.50.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d4a28e057d01f97e61255210fcff094d74ed0466038633e95017f5beb68e4399"
+dependencies = [
+ "windows-sys 0.52.0",
+]
+
 [[package]]
 name = "num"
 version = "0.4.3"
@@ -1263,7 +1273,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ad0f048c97dbd9faa9b7df56362b8ebcaa52adb06b498c050d2f4e32f90a7a8b"
 dependencies = [
  "matchers",
- "nu-ansi-term",
+ "nu-ansi-term 0.46.0",
  "once_cell",
  "parking_lot",
  "regex",
@@ -1278,6 +1288,18 @@ dependencies = [
  "tracing-serde",
 ]
 
+[[package]]
+name = "tracing-tree"
+version = "0.4.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f459ca79f1b0d5f71c54ddfde6debfc59c8b6eeb46808ae492077f739dc7b49c"
+dependencies = [
+ "nu-ansi-term 0.50.1",
+ "tracing-core",
+ "tracing-log",
+ "tracing-subscriber",
+]
+
 [[package]]
 name = "unicode-ident"
 version = "1.0.12"
diff --git a/kani-compiler/Cargo.toml b/kani-compiler/Cargo.toml
index 24ed00f54338..fcb33b8074e4 100644
--- a/kani-compiler/Cargo.toml
+++ b/kani-compiler/Cargo.toml
@@ -24,6 +24,7 @@ strum_macros = "0.26"
 shell-words = "1.0.0"
 tracing = {version = "0.1", features = ["max_level_trace", "release_max_level_debug"]}
 tracing-subscriber = {version = "0.3.8", features = ["env-filter", "json", "fmt"]}
+tracing-tree = "0.4.0"
 
 # Future proofing: enable backend dependencies using feature.
 [features]
diff --git a/kani-compiler/src/session.rs b/kani-compiler/src/session.rs
index 7ec2b79a0469..ecc084e0cc85 100644
--- a/kani-compiler/src/session.rs
+++ b/kani-compiler/src/session.rs
@@ -19,6 +19,7 @@ use std::io::IsTerminal;
 use std::panic;
 use std::sync::LazyLock;
 use tracing_subscriber::{layer::SubscriberExt, EnvFilter, Registry};
+use tracing_tree::HierarchicalLayer;
 
 /// Environment variable used to control this session log tracing.
 const LOG_ENV_VAR: &str = "KANI_LOG";
@@ -114,10 +115,13 @@ fn hier_logs(args: &Arguments, filter: EnvFilter) {
     let use_colors = std::io::stdout().is_terminal() || args.color_output;
     let subscriber = Registry::default().with(filter);
     let subscriber = subscriber.with(
-        tracing_subscriber::fmt::layer()
+        HierarchicalLayer::default()
             .with_writer(std::io::stderr)
+            .with_indent_lines(true)
             .with_ansi(use_colors)
-            .with_target(true),
+            .with_targets(true)
+            .with_verbose_exit(true)
+            .with_indent_amount(4),
     );
     tracing::subscriber::set_global_default(subscriber).unwrap();
 }