diff --git a/heat/engine/scheduler.py b/heat/engine/scheduler.py
index 7ad19a6858..b4f750695a 100644
--- a/heat/engine/scheduler.py
+++ b/heat/engine/scheduler.py
@@ -215,10 +215,18 @@ def wrappertask(task):
     def wrapper(*args, **kwargs):
         parent = task(*args, **kwargs)
 
-        for subtask in parent:
+        subtask = next(parent)
+
+        while True:
             try:
                 if subtask is not None:
-                    for step in subtask:
+                    subtask_running = True
+                    try:
+                        step = next(subtask)
+                    except StopIteration:
+                        subtask_running = False
+
+                    while subtask_running:
                         try:
                             yield step
                         except GeneratorExit as exit:
@@ -226,19 +234,23 @@ def wrappertask(task):
                             raise exit
                         except:
                             try:
-                                subtask.throw(*sys.exc_info())
+                                step = subtask.throw(*sys.exc_info())
                             except StopIteration:
-                                break
+                                subtask_running = False
+                        else:
+                            try:
+                                step = next(subtask)
+                            except StopIteration:
+                                subtask_running = False
                 else:
                     yield
             except GeneratorExit as exit:
                 parent.close()
                 raise exit
             except:
-                try:
-                    parent.throw(*sys.exc_info())
-                except StopIteration:
-                    break
+                subtask = parent.throw(*sys.exc_info())
+            else:
+                subtask = next(parent)
 
     return wrapper
 
diff --git a/heat/tests/test_scheduler.py b/heat/tests/test_scheduler.py
index f331085b4e..95b0caebb1 100644
--- a/heat/tests/test_scheduler.py
+++ b/heat/tests/test_scheduler.py
@@ -691,6 +691,143 @@ class WrapperTaskTest(mox.MoxTestBase):
         task.next()
         task.next()
 
+    def test_child_exception_swallow_next(self):
+        class MyException(Exception):
+            pass
+
+        def child_task():
+            yield
+
+            raise MyException()
+
+        dummy = DummyTask()
+
+        @scheduler.wrappertask
+        def parent_task():
+            try:
+                yield child_task()
+            except MyException:
+                pass
+            else:
+                self.fail('No exception raised in parent_task')
+
+            yield dummy()
+
+        task = parent_task()
+        task.next()
+
+        self.mox.StubOutWithMock(dummy, 'do_step')
+        for i in range(1, dummy.num_steps + 1):
+            dummy.do_step(i).AndReturn(None)
+        self.mox.ReplayAll()
+
+        for i in range(1, dummy.num_steps + 1):
+            task.next()
+        self.assertRaises(StopIteration, task.next)
+
+    def test_thrown_exception_swallow_next(self):
+        class MyException(Exception):
+            pass
+
+        dummy = DummyTask()
+
+        @scheduler.wrappertask
+        def child_task():
+            try:
+                yield
+            except MyException:
+                yield dummy()
+            else:
+                self.fail('No exception raised in child_task')
+
+        @scheduler.wrappertask
+        def parent_task():
+            yield child_task()
+
+        task = parent_task()
+
+        self.mox.StubOutWithMock(dummy, 'do_step')
+        for i in range(1, dummy.num_steps + 1):
+            dummy.do_step(i).AndReturn(None)
+        self.mox.ReplayAll()
+
+        next(task)
+        task.throw(MyException)
+
+        for i in range(2, dummy.num_steps + 1):
+            task.next()
+        self.assertRaises(StopIteration, task.next)
+
+    def test_thrown_exception_raise(self):
+        class MyException(Exception):
+            pass
+
+        dummy = DummyTask()
+
+        @scheduler.wrappertask
+        def child_task():
+            try:
+                yield
+            except MyException:
+                raise
+            else:
+                self.fail('No exception raised in child_task')
+
+        @scheduler.wrappertask
+        def parent_task():
+            try:
+                yield child_task()
+            except MyException:
+                yield dummy()
+
+        task = parent_task()
+
+        self.mox.StubOutWithMock(dummy, 'do_step')
+        for i in range(1, dummy.num_steps + 1):
+            dummy.do_step(i).AndReturn(None)
+        self.mox.ReplayAll()
+
+        next(task)
+        task.throw(MyException)
+
+        for i in range(2, dummy.num_steps + 1):
+            task.next()
+        self.assertRaises(StopIteration, task.next)
+
+    def test_thrown_exception_exit(self):
+        class MyException(Exception):
+            pass
+
+        dummy = DummyTask()
+
+        @scheduler.wrappertask
+        def child_task():
+            try:
+                yield
+            except MyException:
+                return
+            else:
+                self.fail('No exception raised in child_task')
+
+        @scheduler.wrappertask
+        def parent_task():
+            yield child_task()
+            yield dummy()
+
+        task = parent_task()
+
+        self.mox.StubOutWithMock(dummy, 'do_step')
+        for i in range(1, dummy.num_steps + 1):
+            dummy.do_step(i).AndReturn(None)
+        self.mox.ReplayAll()
+
+        next(task)
+        task.throw(MyException)
+
+        for i in range(2, dummy.num_steps + 1):
+            task.next()
+        self.assertRaises(StopIteration, task.next)
+
     def test_parent_exception(self):
         class MyException(Exception):
             pass