diff --git a/compile.c b/compile.c
index 7b784b8560..2c388b8a8c 100644
--- a/compile.c
+++ b/compile.c
@@ -1246,6 +1246,15 @@ new_child_iseq_ifunc(rb_iseq_t *iseq, const struct vm_ifunc *ifunc,
     return ret_iseq;
 }
 
+static void
+set_catch_except_p(struct rb_iseq_constant_body *body)
+{
+    body->catch_except_p = TRUE;
+    if (body->parent_iseq != NULL) {
+        set_catch_except_p(body->parent_iseq->body);
+    }
+}
+
 /* Set body->catch_except_p to TRUE if the ISeq may catch an exception. If it is FALSE,
    JIT-ed code may be optimized.  If we are extremely conservative, we should set TRUE
    if catch table exists.  But we want to optimize while loop, which always has catch
@@ -1273,7 +1282,7 @@ update_catch_except_flags(struct rb_iseq_constant_body *body)
 #endif
             if (insn == BIN(throw)) {
                 struct rb_iseq_constant_body *parent_body = body->parent_iseq->body;
-                parent_body->catch_except_p = TRUE;
+                set_catch_except_p(parent_body);
             }
             pos += insn_len(insn);
         }
diff --git a/test/ruby/test_jit.rb b/test/ruby/test_jit.rb
index 5af79bc76e..a53f89bd66 100644
--- a/test/ruby/test_jit.rb
+++ b/test/ruby/test_jit.rb
@@ -510,6 +510,25 @@ class TestJIT < Test::Unit::TestCase
     end;
   end
 
+  def test_catching_deep_exception
+    assert_eval_with_jit("#{<<~"begin;"}\n#{<<~"end;"}", stdout: '1', success_count: 4)
+    begin;
+      def catch_true(paths, prefixes) # catch_except_p: TRUE
+        prefixes.each do |prefix| # catch_except_p: TRUE
+          paths.each do |path| # catch_except_p: FALSE
+            return path
+          end
+        end
+      end
+
+      def wrapper(paths, prefixes)
+        catch_true(paths, prefixes)
+      end
+
+      print wrapper(['1'], ['2'])
+    end;
+  end
+
   private
 
   # The shortest way to test one proc