diff --git a/lib/inngest/function.ex b/lib/inngest/function.ex
index 99dd1f1..f890367 100644
--- a/lib/inngest/function.ex
+++ b/lib/inngest/function.ex
@@ -76,11 +76,6 @@ defmodule Inngest.Function do
   """
   @callback exec(Context.t(), Input.t()) :: {:ok, any()} | {:error, any()}
 
-  @doc """
-  The method to be callbed when the Inngest function fails
-  """
-  @callback on_failure(Context.t(), Input.t()) :: {:ok, any()} | {:error, any()}
-
   defmacro __using__(_opts) do
     quote location: :keep do
       alias Inngest.{Client, Trigger}
@@ -120,31 +115,63 @@ defmodule Inngest.Function do
         |> List.first()
       end
 
-      @impl true
-      def on_failure(_ctx, _input), do: {:ok, "noop"}
-
-      def step(path),
-        do: %{
-          step: %Step{
-            id: :step,
-            name: "step",
-            runtime: %Step.RunTime{
-              url: "#{Config.app_host() <> path}?fnId=#{slug()}&step=step"
-            },
-            retries: %Step.Retry{
-              attempts: retries()
-            }
-          }
-        }
+      def slugs() do
+        failure = if failure_handler_defined?(__MODULE__), do: [failure_slug()], else: []
+        [slug()] ++ failure
+      end
 
       def serve(path) do
-        %{
-          id: slug(),
-          name: name(),
-          triggers: [trigger()],
-          steps: step(path),
-          mod: __MODULE__
-        }
+        handler =
+          if failure_handler_defined?(__MODULE__) do
+            id = failure_slug()
+
+            [
+              %{
+                id: id,
+                name: "#{name()} (failure)",
+                triggers: [
+                  %Trigger{
+                    event: "inngest/function.failed",
+                    expression: "event.data.function_id == \"#{slug()}\""
+                  }
+                ],
+                steps: %{
+                  step: %Step{
+                    id: :step,
+                    name: "step",
+                    runtime: %Step.RunTime{
+                      url: "#{Config.app_host() <> path}?fnId=#{id}&step=step"
+                    },
+                    retries: %Step.Retry{
+                      attempts: 0
+                    }
+                  }
+                }
+              }
+            ]
+          else
+            []
+          end
+
+        [
+          %{
+            id: slug(),
+            name: name(),
+            triggers: [trigger()],
+            steps: %{
+              step: %Step{
+                id: :step,
+                name: "step",
+                runtime: %Step.RunTime{
+                  url: "#{Config.app_host() <> path}?fnId=#{slug()}&step=step"
+                },
+                retries: %Step.Retry{
+                  attempts: retries()
+                }
+              }
+            }
+          }
+        ] ++ handler
       end
 
       defp retries() do
@@ -156,6 +183,12 @@ defmodule Inngest.Function do
           retry -> retry
         end
       end
+
+      defp failure_handler_defined?(mod) do
+        mod.__info__(:functions) |> Keyword.get(:handle_failure) == 2
+      end
+
+      defp failure_slug(), do: "#{slug()}-failure"
     end
   end
 
diff --git a/lib/inngest/router/helper.ex b/lib/inngest/router/helper.ex
index e8c7a1c..1d5587a 100644
--- a/lib/inngest/router/helper.ex
+++ b/lib/inngest/router/helper.ex
@@ -3,15 +3,6 @@ defmodule Inngest.Router.Helper do
 
   alias Inngest.Config
 
-  @spec func_map(list(), binary()) :: map()
-  def func_map(funcs, path) do
-    funcs
-    |> Enum.reduce(%{}, fn func, x ->
-      slug = func.slug()
-      Map.put(x, slug, func.serve(path))
-    end)
-  end
-
   def load_functions(params) do
     if Config.path_runtime_eval() do
       %{funcs: funcs} = load_functions_from_path(params)
diff --git a/lib/inngest/router/invoke.ex b/lib/inngest/router/invoke.ex
index 6bcfa4d..a23b3e7 100644
--- a/lib/inngest/router/invoke.ex
+++ b/lib/inngest/router/invoke.ex
@@ -35,14 +35,15 @@ defmodule Inngest.Router.Invoke do
   end
 
   defp exec(
-         %{request_path: path, private: %{raw_body: [body]}} = conn,
+         %{private: %{raw_body: [body]}} = conn,
          %{"event" => event, "events" => events, "ctx" => ctx, "fnId" => fn_slug} = params
        ) do
     func =
       params
       |> load_functions()
-      |> func_map(path)
-      |> Map.get(fn_slug)
+      |> Enum.find(fn func ->
+        Enum.member?(func.slugs(), fn_slug)
+      end)
 
     ctx = %Inngest.Function.Context{
       attempt: Map.get(ctx, "attempt", 0),
@@ -83,7 +84,11 @@ defmodule Inngest.Router.Invoke do
 
   defp invoke(func, ctx, input) do
     try do
-      func.mod.exec(ctx, input) |> SdkResponse.from_result([])
+      if is_failure?(input) do
+        func.handle_failure(ctx, input) |> SdkResponse.from_result([])
+      else
+        func.exec(ctx, input) |> SdkResponse.from_result([])
+      end
     rescue
       non_retry in Inngest.NonRetriableError ->
         SdkResponse.from_result({:error, non_retry}, retry: false, stacktrace: __STACKTRACE__)
@@ -140,4 +145,7 @@ defmodule Inngest.Router.Invoke do
         {:error, error}
     end
   end
+
+  defp is_failure?(%{event: %{name: "inngest/function.failed"}} = _input), do: true
+  defp is_failure?(_), do: false
 end
diff --git a/lib/inngest/router/register.ex b/lib/inngest/router/register.ex
index 863e979..df9ea88 100644
--- a/lib/inngest/router/register.ex
+++ b/lib/inngest/router/register.ex
@@ -22,7 +22,7 @@ defmodule Inngest.Router.Register do
     funcs =
       params
       |> load_functions()
-      |> func_map(path)
+      |> Enum.flat_map(& &1.serve(path))
 
     {status, resp} =
       case register(path, funcs, framework: framework) do
@@ -54,7 +54,7 @@ defmodule Inngest.Router.Register do
       sdk: Config.sdk_version(),
       framework: framework,
       appName: Config.app_name(),
-      functions: functions |> Enum.map(fn {_, v} -> v.mod.serve(path) end)
+      functions: functions
     }
 
     key = Inngest.Signature.hashed_signing_key(Config.signing_key())
diff --git a/test/inngest/function/cases/failure_handler_test.exs b/test/inngest/function/cases/failure_handler_test.exs
new file mode 100644
index 0000000..5c06ef8
--- /dev/null
+++ b/test/inngest/function/cases/failure_handler_test.exs
@@ -0,0 +1,51 @@
+defmodule Inngest.Function.Cases.RetriableTest do
+  use ExUnit.Case, async: true
+
+  alias Inngest.Test.DevServer
+  import Inngest.Test.Helper
+
+  @default_sleep 10_000
+  @event_name "test/plug.retriable"
+
+  @tag :integration
+  test "should fail after retrying and failure is handled" do
+    event_id = send_test_event(@event_name)
+    Process.sleep(@default_sleep)
+
+    assert {:ok,
+            %{
+              "data" => [
+                %{
+                  "run_id" => _run_id,
+                  "output" => %{
+                    "error" => "invalid status code: 500",
+                    "message" => stacktrace
+                  },
+                  "status" => "Failed"
+                }
+              ]
+            }} = DevServer.run_ids(event_id)
+
+    assert stacktrace =~ "YOLO!!!"
+
+    {:ok, %{"data" => events}} = DevServer.list_events()
+
+    assert %{"id" => failed_id} =
+             events
+             |> Enum.find(fn evt ->
+               Map.get(evt, "name") == "inngest/function.failed" &&
+                 get_in(evt, ["data", "event", "name"]) == @event_name
+             end)
+
+    assert {:ok,
+            %{
+              "data" => [
+                %{
+                  "run_id" => _,
+                  "output" => "error handled",
+                  "status" => "Completed"
+                }
+              ]
+            }} = DevServer.run_ids(failed_id)
+  end
+end
diff --git a/test/inngest/function/cases/retriable_test.exs b/test/inngest/function/cases/retriable_test.exs
deleted file mode 100644
index 3de337b..0000000
--- a/test/inngest/function/cases/retriable_test.exs
+++ /dev/null
@@ -1,30 +0,0 @@
-defmodule Inngest.Function.Cases.RetriableTest do
-  use ExUnit.Case, async: true
-
-  alias Inngest.Test.DevServer
-  import Inngest.Test.Helper
-
-  @default_sleep 10_000
-
-  @tag :integration
-  test "should fail after retrying" do
-    event_id = send_test_event("test/plug.retriable")
-    Process.sleep(@default_sleep)
-
-    assert {:ok,
-            %{
-              "data" => [
-                %{
-                  "run_id" => _run_id,
-                  "output" => %{
-                    "error" => "invalid status code: 500",
-                    "message" => stacktrace
-                  },
-                  "status" => "Failed"
-                }
-              ]
-            }} = DevServer.run_ids(event_id)
-
-    assert stacktrace =~ "YOLO!!!"
-  end
-end
diff --git a/test/inngest/function_test.exs b/test/inngest/function_test.exs
index cbbfa32..6a90693 100644
--- a/test/inngest/function_test.exs
+++ b/test/inngest/function_test.exs
@@ -29,36 +29,40 @@ defmodule Inngest.FunctionTest do
 
   describe "serve/1" do
     test "event function should return approprivate map" do
-      assert %{
-               id: "test-event",
-               name: "App / Email: Awesome Event Func",
-               triggers: [
-                 %Trigger{event: "my/awesome.event"}
-               ],
-               steps: %{
-                 step: %{
-                   id: _,
-                   name: _,
-                   runtime: %{
-                     type: "http",
-                     url: _
-                   },
-                   retries: %{
-                     attempts: _
+      assert [
+               %{
+                 id: "test-event",
+                 name: "App / Email: Awesome Event Func",
+                 triggers: [
+                   %Trigger{event: "my/awesome.event"}
+                 ],
+                 steps: %{
+                   step: %{
+                     id: _,
+                     name: _,
+                     runtime: %{
+                       type: "http",
+                       url: _
+                     },
+                     retries: %{
+                       attempts: _
+                     }
                    }
                  }
                }
-             } = TestEventFn.serve("/api/inngest")
+             ] = TestEventFn.serve("/api/inngest")
     end
 
     test "cron function should return appropriate map" do
-      assert %{
-               id: "test-cron",
-               name: "Awesome Cron Func",
-               triggers: [
-                 %Trigger{cron: "TZ=America/Los_Angeles * * * * *"}
-               ]
-             } = TestCronFn.serve("/api/inngest")
+      assert [
+               %{
+                 id: "test-cron",
+                 name: "Awesome Cron Func",
+                 triggers: [
+                   %Trigger{cron: "TZ=America/Los_Angeles * * * * *"}
+                 ]
+               }
+             ] = TestCronFn.serve("/api/inngest")
     end
   end
 
diff --git a/test/inngest/router/helper_test.exs b/test/inngest/router/helper_test.exs
index aff0ab6..fd345c9 100644
--- a/test/inngest/router/helper_test.exs
+++ b/test/inngest/router/helper_test.exs
@@ -3,33 +3,6 @@ defmodule Inngest.Router.HelperTest do
 
   alias Inngest.Router.Helper
 
-  describe "func_map/2" do
-    test "should return a function map" do
-      path = "/api/inngest"
-      funcs = [Inngest.TestEventFn]
-
-      assert %{
-               "test-event" => %{
-                 id: "test-event",
-                 mod: Inngest.TestEventFn,
-                 steps: %{
-                   step: %Inngest.Function.Step{
-                     id: :step,
-                     name: "step"
-                   }
-                 },
-                 triggers: [
-                   %Inngest.Trigger{
-                     event: "my/awesome.event",
-                     expression: nil,
-                     cron: nil
-                   }
-                 ]
-               }
-             } = Helper.func_map(funcs, path)
-    end
-  end
-
   describe "load_functions_from_path/1" do
     @path "test/support/**/*.ex"
     @paths ["dev/**/*.ex", @path]
diff --git a/test/support/cases/retriable_error.ex b/test/support/cases/retriable_error.ex
index 2e54883..35232d6 100644
--- a/test/support/cases/retriable_error.ex
+++ b/test/support/cases/retriable_error.ex
@@ -24,4 +24,13 @@ defmodule Inngest.Test.Case.RetriableError do
 
     {:ok, "completed"}
   end
+
+  def handle_failure(ctx, %{step: step} = _args) do
+    _ =
+      step.run(ctx, "handle-failure", fn ->
+        "CATCH ERROR!!!"
+      end)
+
+    {:ok, "error handled"}
+  end
 end
diff --git a/test/support/dev_server.ex b/test/support/dev_server.ex
index dd55691..db68eea 100644
--- a/test/support/dev_server.ex
+++ b/test/support/dev_server.ex
@@ -40,6 +40,12 @@ defmodule Inngest.Test.DevServer do
     |> parse_resp()
   end
 
+  def list_events() do
+    client()
+    |> Tesla.get("/v1/events")
+    |> parse_resp()
+  end
+
   defp client() do
     middleware = [
       {Tesla.Middleware.BaseUrl, @base_url},