diff --git a/packages/nats/changelog.yml b/packages/nats/changelog.yml
index f121c250f5c..9aa4c546bde 100644
--- a/packages/nats/changelog.yml
+++ b/packages/nats/changelog.yml
@@ -1,4 +1,9 @@
 # newer versions go on top
+- version: "1.4.0"
+  changes:
+    - description: Ensure event.kind is correctly set for pipeline errors.
+      type: enhancement
+      link: https://github.com/elastic/integrations/pull/7072
 - version: "1.3.1"
   changes:
     - description: Added categories and/or subcategories.
diff --git a/packages/nats/data_stream/log/elasticsearch/ingest_pipeline/default.yml b/packages/nats/data_stream/log/elasticsearch/ingest_pipeline/default.yml
index b9556f56f56..28db414fd93 100644
--- a/packages/nats/data_stream/log/elasticsearch/ingest_pipeline/default.yml
+++ b/packages/nats/data_stream/log/elasticsearch/ingest_pipeline/default.yml
@@ -203,5 +203,8 @@ processors:
       ignore_missing: true
 on_failure:
   - set:
+      field: event.kind
+      value: pipeline_error
+  - append:
       field: error.message
-      value: '{{ _ingest.on_failure_message }}'
+      value: '{{{ _ingest.on_failure_message }}}'
diff --git a/packages/nats/manifest.yml b/packages/nats/manifest.yml
index a100ed36a97..dc38dc48927 100644
--- a/packages/nats/manifest.yml
+++ b/packages/nats/manifest.yml
@@ -1,6 +1,6 @@
 name: nats
 title: NATS
-version: 1.3.1
+version: 1.4.0
 release: ga
 description: Collect logs and metrics from NATS servers with Elastic Agent.
 type: integration