diff --git a/falcon/api.py b/falcon/api.py
index 89e805b..65c3f8d 100644
--- a/falcon/api.py
+++ b/falcon/api.py
@@ -375,6 +375,18 @@ class API(object):
     def add_error_handler(self, exception, handler=None):
         """Registers a handler for a given exception error type.
 
+        A handler can either raise an instance of ``HTTPError``
+        or modify `resp` manually in order to communicate
+        information about the issue to the client.
+
+        Error handlers are matched in LIFO order. In other words, when
+        searching for an error handler to match a raised exception, and
+        more than one handler matches the exception type, the framework
+        will choose the one that was most recently registered.
+        Therefore, more general error handlers (e.g., for the
+        ``Exception`` type) should be added first, to avoid masking more
+        specific handlers for subclassed types.
+
         Args:
             exception (type): Whenever an error occurs when handling a request
                 that is an instance of this exception class, the associated
@@ -396,10 +408,6 @@ class API(object):
                             # Convert to an instance of falcon.HTTPError
                             raise falcon.HTTPError(falcon.HTTP_792)
 
-                Note:
-                    A handler can either raise an instance of ``HTTPError``
-                    or modify `resp` manually in order to communicate
-                    information about the issue to the client.
 
         """
 
diff --git a/tests/test_error_handlers.py b/tests/test_error_handlers.py
index 595d22c..66414e3 100644
--- a/tests/test_error_handlers.py
+++ b/tests/test_error_handlers.py
@@ -81,9 +81,29 @@ class TestErrorHandler(testing.TestCase):
         self.assertEqual(result.status_code, 723)
         self.assertEqual(result.text, 'error: CustomException')
 
-    def test_error_order(self):
+    def test_error_order_duplicate(self):
         self.api.add_error_handler(Exception, capture_error)
         self.api.add_error_handler(Exception, handle_error_first)
 
         result = self.simulate_get()
         self.assertEqual(result.text, 'first error handler')
+
+    def test_error_order_subclass(self):
+        self.api.add_error_handler(Exception, capture_error)
+        self.api.add_error_handler(CustomException, handle_error_first)
+
+        result = self.simulate_delete()
+        self.assertEqual(result.status_code, 200)
+        self.assertEqual(result.text, 'first error handler')
+
+        result = self.simulate_get()
+        self.assertEqual(result.status_code, 723)
+        self.assertEqual(result.text, 'error: Plain Exception')
+
+    def test_error_order_subclass_masked(self):
+        self.api.add_error_handler(CustomException, handle_error_first)
+        self.api.add_error_handler(Exception, capture_error)
+
+        result = self.simulate_delete()
+        self.assertEqual(result.status_code, 723)
+        self.assertEqual(result.text, 'error: CustomException')