diff --git a/asynq/asynq_to_async.py b/asynq/asynq_to_async.py
index 9885fa7..3aebd5e 100644
--- a/asynq/asynq_to_async.py
+++ b/asynq/asynq_to_async.py
@@ -27,6 +27,16 @@ def is_asyncio_mode():
     return _asyncio_mode > 0
 
 
+async def _gather(*awaitables):
+    """Gather awaitables, but cancel all of them if one of them fails."""
+    try:
+        futures = asyncio.gather(*awaitables)
+        return await futures
+    except Exception:
+        futures.cancel()
+        raise
+
+
 async def resolve_awaitables(x: Any):
     """
     Resolve a possibly-nested collection of awaitables.
@@ -38,11 +48,11 @@ async def resolve_awaitables(x: Any):
     if isinstance(x, BatchItemBase):
         raise RuntimeError("asynq BatchItem is not supported in asyncio mode")
     if isinstance(x, list):
-        return await asyncio.gather(*[resolve_awaitables(item) for item in x])
+        return await _gather(*[resolve_awaitables(item) for item in x])
     if isinstance(x, tuple):
-        return tuple(await asyncio.gather(*[resolve_awaitables(item) for item in x]))
+        return tuple(await _gather(*[resolve_awaitables(item) for item in x]))
     if isinstance(x, dict):
-        resolutions = await asyncio.gather(
+        resolutions = await _gather(
             *[resolve_awaitables(value) for value in x.values()]
         )
         return {key: resolution for (key, resolution) in zip(x.keys(), resolutions)}
diff --git a/asynq/decorators.py b/asynq/decorators.py
index f7233e6..e8f1fc9 100644
--- a/asynq/decorators.py
+++ b/asynq/decorators.py
@@ -15,6 +15,7 @@
 
 import asyncio
 import inspect
+import sys
 from typing import Any, Coroutine
 
 import qcore.decorators
@@ -141,17 +142,30 @@ def asyncio(self, *args, **kwargs) -> Coroutine[Any, Any, Any]:
                 async def wrapped(*_args, **_kwargs):
                     task = asyncio.current_task()
                     with asynq_to_async.AsyncioMode():
-                        send = None
+                        send, exception = None, None
+
                         generator = self.fn(*_args, **_kwargs)
                         while True:
                             resume_contexts_asyncio(task)
                             try:
-                                result = generator.send(send)
+                                if exception is None:
+                                    result = generator.send(send)
+                                else:
+                                    result = generator.throw(
+                                        type(exception),
+                                        exception,
+                                        exception.__traceback__,
+                                    )
                             except StopIteration as exc:
                                 return exc.value
 
                             pause_contexts_asyncio(task)
-                            send = await asynq_to_async.resolve_awaitables(result)
+                            try:
+                                send = await asynq_to_async.resolve_awaitables(result)
+                                exception = None
+                            except Exception as exc:
+                                traceback = sys.exc_info()[2]
+                                exception = exc
 
                 self.asyncio_fn = wrapped
             else:
diff --git a/asynq/tests/test_asynq_to_async.py b/asynq/tests/test_asynq_to_async.py
index c6194f9..31b0b19 100644
--- a/asynq/tests/test_asynq_to_async.py
+++ b/asynq/tests/test_asynq_to_async.py
@@ -14,6 +14,7 @@
 
 
 import asyncio
+import pytest
 import time
 
 from qcore.asserts import assert_eq
@@ -51,6 +52,26 @@ def g(x):
     assert asyncio.run(g.asyncio(5)) == {"a": [1, 2], "b": (3, 4), "c": 5, "d": 200}
 
 
+def test_asyncio_exception():
+    async def f2_async():
+        assert False
+
+    @asynq.asynq(asyncio_fn=f2_async)
+    def f2():
+        assert False
+
+    @asynq.asynq()
+    def f3():
+        yield f2.asynq()
+
+    @asynq.asynq()
+    def f():
+        with pytest.raises(AssertionError):
+            yield [f3.asynq(), f3.asynq()]
+
+    asyncio.run(f.asyncio())
+
+
 def test_context():
     async def blocking_op():
         await asyncio.sleep(0.1)