diff --git a/v2/blockstore/readonly.go b/v2/blockstore/readonly.go
index fcd973456e5e51a0410d3a281d31e35b1647f23d..dbf7bf61b896078f9fa3d62fc839b69d2fed6081 100644
--- a/v2/blockstore/readonly.go
+++ b/v2/blockstore/readonly.go
@@ -24,26 +24,34 @@ import (
 
 var _ blockstore.Blockstore = (*ReadOnly)(nil)
 
-// ReadOnly provides a read-only CAR Block Store.
-type ReadOnly struct {
-	// mu allows ReadWrite to be safe for concurrent use.
-	// It's in ReadOnly so that read operations also grab read locks,
-	// given that ReadWrite embeds ReadOnly for methods like Get and Has.
-	//
-	// The main fields guarded by the mutex are the index and the underlying writers.
-	// For simplicity, the entirety of the blockstore methods grab the mutex.
-	mu sync.RWMutex
-
-	// The backing containing the data payload in CARv1 format.
-	backing io.ReaderAt
-	// The CARv1 content index.
-	idx index.Index
-
-	// If we called carv2.NewReaderMmap, remember to close it too.
-	carv2Closer io.Closer
-
-	ropts carv2.ReadOptions
-}
+var errZeroLengthSection = fmt.Errorf("zero-length section not allowed by default; see WithZeroLengthSectionAsEOF option")
+
+type (
+	// ReadOnly provides a read-only CAR Block Store.
+	ReadOnly struct {
+		// mu allows ReadWrite to be safe for concurrent use.
+		// It's in ReadOnly so that read operations also grab read locks,
+		// given that ReadWrite embeds ReadOnly for methods like Get and Has.
+		//
+		// The main fields guarded by the mutex are the index and the underlying writers.
+		// For simplicity, the entirety of the blockstore methods grab the mutex.
+		mu sync.RWMutex
+
+		// The backing containing the data payload in CARv1 format.
+		backing io.ReaderAt
+		// The CARv1 content index.
+		idx index.Index
+
+		// If we called carv2.NewReaderMmap, remember to close it too.
+		carv2Closer io.Closer
+
+		ropts carv2.ReadOptions
+	}
+
+	contextKey string
+)
+
+const asyncErrHandlerKey contextKey = "asyncErrorHandlerKey"
 
 // UseWholeCIDs is a read option which makes a CAR blockstore identify blocks by
 // whole CIDs, and not just their multihashes. The default is to use
@@ -303,7 +311,19 @@ func (b *ReadOnly) PutMany([]blocks.Block) error {
 	panic("called write method on a read-only blockstore")
 }
 
-// AllKeysChan returns the list of keys in the CAR.
+// WithAsyncErrorHandler returns a context with async error handling set to the given errHandler.
+// Any errors that occur during asynchronous operations of AllKeysChan will be passed to the given
+// handler.
+func WithAsyncErrorHandler(ctx context.Context, errHandler func(error)) context.Context {
+	return context.WithValue(ctx, asyncErrHandlerKey, errHandler)
+}
+
+// AllKeysChan returns the list of keys in the CAR data payload.
+// If the ctx is constructed using WithAsyncErrorHandler any errors that occur during asynchronous
+// retrieval of CIDs will be passed to the error handler function set in context.
+// Otherwise, errors will terminate the asynchronous operation silently.
+//
+// See WithAsyncErrorHandler
 func (b *ReadOnly) AllKeysChan(ctx context.Context) (<-chan cid.Cid, error) {
 	// We release the lock when the channel-sending goroutine stops.
 	b.mu.RLock()
@@ -334,7 +354,10 @@ func (b *ReadOnly) AllKeysChan(ctx context.Context) (<-chan cid.Cid, error) {
 		for {
 			length, err := varint.ReadUvarint(rdr)
 			if err != nil {
-				return // TODO: log this error
+				if err != io.EOF {
+					maybeReportError(ctx, err)
+				}
+				return
 			}
 
 			// Null padding; by default it's an error.
@@ -342,18 +365,20 @@ func (b *ReadOnly) AllKeysChan(ctx context.Context) (<-chan cid.Cid, error) {
 				if b.ropts.ZeroLengthSectionAsEOF {
 					break
 				} else {
-					return // TODO: log this error
-					// return fmt.Errorf("carv1 null padding not allowed by default; see WithZeroLegthSectionAsEOF")
+					maybeReportError(ctx, errZeroLengthSection)
+					return
 				}
 			}
 
 			thisItemForNxt := rdr.Offset()
 			_, c, err := cid.CidFromReader(rdr)
 			if err != nil {
-				return // TODO: log this error
+				maybeReportError(ctx, err)
+				return
 			}
 			if _, err := rdr.Seek(thisItemForNxt+int64(length), io.SeekStart); err != nil {
-				return // TODO: log this error
+				maybeReportError(ctx, err)
+				return
 			}
 
 			// If we're just using multihashes, flatten to the "raw" codec.
@@ -364,7 +389,7 @@ func (b *ReadOnly) AllKeysChan(ctx context.Context) (<-chan cid.Cid, error) {
 			select {
 			case ch <- c:
 			case <-ctx.Done():
-				// TODO: log ctx error
+				maybeReportError(ctx, ctx.Err())
 				return
 			}
 		}
@@ -372,6 +397,15 @@ func (b *ReadOnly) AllKeysChan(ctx context.Context) (<-chan cid.Cid, error) {
 	return ch, nil
 }
 
+// maybeReportError checks if an error handler is present in context associated to the key
+// asyncErrHandlerKey, and if preset it will pass the error to it.
+func maybeReportError(ctx context.Context, err error) {
+	value := ctx.Value(asyncErrHandlerKey)
+	if eh, _ := value.(func(error)); eh != nil {
+		eh(err)
+	}
+}
+
 // HashOnRead is currently unimplemented; hashing on reads never happens.
 func (b *ReadOnly) HashOnRead(bool) {
 	// TODO: implement before the final release?
diff --git a/v2/blockstore/readonly_test.go b/v2/blockstore/readonly_test.go
index 470ace2cc68e7bd27f29e7860bf41fcc86ae9330..ecc30e1d1005d71d7b93140572f5a3931d790e8f 100644
--- a/v2/blockstore/readonly_test.go
+++ b/v2/blockstore/readonly_test.go
@@ -131,6 +131,84 @@ func TestNewReadOnlyFailsOnUnknownVersion(t *testing.T) {
 	require.Nil(t, subject)
 }
 
+func TestReadOnlyAllKeysChanErrHandlerCalledOnTimeout(t *testing.T) {
+	expiredCtx, cancel := context.WithTimeout(context.Background(), -time.Millisecond)
+	t.Cleanup(cancel)
+
+	subject, err := OpenReadOnly("../testdata/sample-v1.car")
+	require.NoError(t, err)
+	t.Cleanup(func() { require.NoError(t, subject.Close()) })
+
+	// Make a channel to be able to select and block on until error handler is called.
+	errHandlerCalled := make(chan interface{})
+	expiredErrHandlingCtx := WithAsyncErrorHandler(expiredCtx, func(err error) {
+		defer close(errHandlerCalled)
+		require.EqualError(t, err, "context deadline exceeded")
+	})
+	_, err = subject.AllKeysChan(expiredErrHandlingCtx)
+	require.NoError(t, err)
+
+	// Assert error handler was called with required condition, waiting at most 3 seconds.
+	select {
+	case <-errHandlerCalled:
+		break
+	case <-time.After(time.Second * 3):
+		require.Fail(t, "error handler was not called within expected time window")
+	}
+}
+
+func TestReadOnlyAllKeysChanErrHandlerNeverCalled(t *testing.T) {
+	tests := []struct {
+		name       string
+		path       string
+		errHandler func(err error)
+		wantCIDs   []cid.Cid
+	}{
+		{
+			"ReadingValidCarV1ReturnsNoErrors",
+			"../testdata/sample-v1.car",
+			func(err error) {
+				require.Fail(t, "unexpected call", "error handler called unexpectedly with err: %v", err)
+			},
+			listCids(t, newV1ReaderFromV1File(t, "../testdata/sample-v1.car", false)),
+		},
+		{
+			"ReadingValidCarV2ReturnsNoErrors",
+			"../testdata/sample-wrapped-v2.car",
+			func(err error) {
+				require.Fail(t, "unexpected call", "error handler called unexpectedly with err: %v", err)
+			},
+			listCids(t, newV1ReaderFromV2File(t, "../testdata/sample-wrapped-v2.car", false)),
+		},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			subject, err := OpenReadOnly(tt.path, UseWholeCIDs(true))
+			require.NoError(t, err)
+			ctx := WithAsyncErrorHandler(context.Background(), tt.errHandler)
+			keysChan, err := subject.AllKeysChan(ctx)
+			require.NoError(t, err)
+			var gotCids []cid.Cid
+			for k := range keysChan {
+				gotCids = append(gotCids, k)
+			}
+			require.Equal(t, tt.wantCIDs, gotCids)
+		})
+	}
+}
+
+func listCids(t *testing.T, v1r *carv1.CarReader) (cids []cid.Cid) {
+	for {
+		block, err := v1r.Next()
+		if err == io.EOF {
+			break
+		}
+		require.NoError(t, err)
+		cids = append(cids, block.Cid())
+	}
+	return
+}
+
 func newV1ReaderFromV1File(t *testing.T, carv1Path string, zeroLenSectionAsEOF bool) *carv1.CarReader {
 	f, err := os.Open(carv1Path)
 	require.NoError(t, err)