diff --git a/ChangeLog b/ChangeLog
index b1d554293d..d7fa2b553a 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,10 @@
+Wed Dec 12 03:45:41 2012  Nobuyoshi Nakada  <nobu@ruby-lang.org>
+
+	* vm.c (vm_exec): pass exceptions while handling an exception.
+
+	* vm_trace.c (rb_threadptr_exec_event_hooks): propagate exceptions.
+	  revert r38293 partially.
+
 Wed Dec 12 03:09:05 2012  Nobuyoshi Nakada  <nobu@ruby-lang.org>
 
 	* sample/test.rb (Progress#initialize): add --verbose option and show
diff --git a/test/ruby/test_settracefunc.rb b/test/ruby/test_settracefunc.rb
index c1d4970513..c6738494ae 100644
--- a/test/ruby/test_settracefunc.rb
+++ b/test/ruby/test_settracefunc.rb
@@ -801,7 +801,7 @@ class TestSetTraceFunc < Test::Unit::TestCase
   end
 
   def test_tracepoint_exception_at_line
-    assert_nothing_raised do
+    assert_raise(RuntimeError) do
       TracePoint.new(:line) {raise}.enable {
         1
       }
diff --git a/vm.c b/vm.c
index 118dd13ca8..da15fd2675 100644
--- a/vm.c
+++ b/vm.c
@@ -1162,6 +1162,7 @@ vm_exec(rb_thread_t *th)
     _tag.retval = Qnil;
     if ((state = EXEC_TAG()) == 0) {
       vm_loop_start:
+	_th->tag = &_tag;
 	result = vm_exec_core(th, initial);
 	if ((state = th->state) != 0) {
 	    err = result;
@@ -1180,6 +1181,7 @@ vm_exec(rb_thread_t *th)
 	err = th->errinfo;
 
       exception_handler:
+	TH_POP_TAG2();
 	cont_pc = cont_sp = catch_iseqval = 0;
 
 	while (th->cfp->pc == 0 || th->cfp->iseq == 0) {
@@ -1373,7 +1375,6 @@ vm_exec(rb_thread_t *th)
 	    if (VM_FRAME_TYPE_FINISH_P(th->cfp)) {
 		vm_pop_frame(th);
 		th->errinfo = err;
-		TH_POP_TAG2();
 		JUMP_TAG(state);
 	    }
 	    else {
diff --git a/vm_trace.c b/vm_trace.c
index 161c5d1528..717723c635 100644
--- a/vm_trace.c
+++ b/vm_trace.c
@@ -309,11 +309,15 @@ rb_threadptr_exec_event_hooks(rb_trace_arg_t *targ)
 		state = exec_hooks(th, list, targ, !vm_tracing);
 		if (state) goto terminate;
 	    }
+	    th->errinfo = errinfo;
 	}
       terminate:
-	th->errinfo = errinfo;
 	th->trace_running = 0;
 	th->vm->trace_running = vm_tracing;
+
+	if (state) {
+	    TH_JUMP_TAG(th, state);
+	}
 	th->state = outer_state;
     }
 }