The failure mode of lava—dilatant or compactant—depends on the physical attributes of the lava, primarily the porosity and pore size, and the conditions under which it deforms. The failure mode for edifice host rock has attendant implications for the structural stability of the edifice and the efficiency of the sidewall outgassing of the volcanic conduit. In this contribution we present a systematic experimental study on the failure mode of edifice-forming andesitic rocks (porosity from 7 to 25%) from Volcán de Colima, Mexico. The experiments show that, at shallow depths (< 1 km), both low and high porosity lavas dilate and fail by shear fracturing. However, deeper in the edifice (> 1 km), while low porosity (< 10%) lava remains dilatant, the failure of high porosity lava is compactant and driven by cataclastic pore collapse. Although inelastic compaction is typically characterised by the absence of strain localisation, we observe compactive localisation features in our porous andesite lavas manifest as subplanar surfaces of collapsed pores. In terms of volcano stability, faulting in the upper edifice could destabilise the volcano, leading to an increased risk of flank or large-scale dome collapse, while compactive deformation deeper in the edifice may emerge as a viable mechanism driving volcano subsidence, spreading, and destabilisation. The failure mode influences the evolution of rock physical properties: permeability measurements demonstrate that a throughgoing tensile fracture increases sample permeability (i.e., equivalent permeability) by about a factor of two, and that inelastic compaction to an axial strain of 4.5% reduces sample permeability by an order of magnitude. The implication of these data is that sidewall outgassing may therefore be efficient in the shallow edifice, where rock can fracture, but may be impeded deeper in the edifice due to compaction. The explosive potential of a volcano may therefore be subject to increase over time if the progressive compaction and permeability reduction in the lower edifice cannot be offset by the formation of permeable fracture pathways in the upper edifice. The mode of failure of the edifice host rock is therefore likely to be an important factor controlling lateral outgassing and thus eruption style (effusive versus explosive) at stratovolcanoes.