diff --git a/src/Rebus.Operations/Rebus.Operations.Core/Workflow/ProcessOperationSaga.cs b/src/Rebus.Operations/Rebus.Operations.Core/Workflow/ProcessOperationSaga.cs
index b476cbd..640242f 100644
--- a/src/Rebus.Operations/Rebus.Operations.Core/Workflow/ProcessOperationSaga.cs
+++ b/src/Rebus.Operations/Rebus.Operations.Core/Workflow/ProcessOperationSaga.cs
@@ -212,6 +212,24 @@ await _workflow.Messaging.DispatchOperationStatusEventAsync(new OperationStatusE
 
                 MarkAsComplete();
             }
+            else
+            {
+                // capture failed operations and send status events to initiating task
+                if (message.OperationFailed)
+                {
+                    var initiatingTask = await _workflow.Tasks
+                        .GetByIdAsync(message.TaskId)
+                        .ConfigureAwait(false);
+
+                    if (initiatingTask != null && Data.Tasks.TryGetValue(initiatingTask.Id, out var taskCommandTypeName))
+                    {
+                        message.InitiatingTaskId = initiatingTask.InitiatingTaskId;
+                        message.TaskId = initiatingTask.Id;
+                        await _workflow.Messaging.DispatchTaskStatusEventAsync(taskCommandTypeName, message);
+                    }
+                }
+            }
+
         }
 
     }
diff --git a/test/Rebus.Operations.Tests/StepTwoCommandHandler.cs b/test/Rebus.Operations.Tests/StepTwoCommandHandler.cs
index c6b28ba..96de536 100644
--- a/test/Rebus.Operations.Tests/StepTwoCommandHandler.cs
+++ b/test/Rebus.Operations.Tests/StepTwoCommandHandler.cs
@@ -7,6 +7,7 @@ namespace Dbosoft.Rebus.Operations.Tests;
 public class StepTwoCommandHandler : IHandleMessages<OperationTask<StepTwoCommand>>
 {
     private readonly ITaskMessaging _messaging;
+    public bool Throws { get; set; }
 
     public StepTwoCommandHandler(ITaskMessaging messaging)
     {
@@ -18,6 +19,10 @@ public StepTwoCommandHandler(ITaskMessaging messaging)
     public Task Handle(OperationTask<StepTwoCommand> message)
     {
         Called = true;
+
+        if (Throws)
+            throw new Exception("Failed");
+
         return _messaging.CompleteTask(message);
     }
 }
\ No newline at end of file
diff --git a/test/Rebus.Operations.Tests/TestCommandHandlerWithError.cs b/test/Rebus.Operations.Tests/TestCommandHandlerWithError.cs
index bd1167c..d51db70 100644
--- a/test/Rebus.Operations.Tests/TestCommandHandlerWithError.cs
+++ b/test/Rebus.Operations.Tests/TestCommandHandlerWithError.cs
@@ -7,17 +7,16 @@ namespace Dbosoft.Rebus.Operations.Tests;
 public class TestCommandHandlerWithError : IHandleMessages<OperationTask<TestCommand>>
 {
     private readonly ITaskMessaging _messaging;
-    private readonly bool _throws;
+    public bool Throws { get; set; }
 
-    public TestCommandHandlerWithError(bool throws, ITaskMessaging messaging)
+    public TestCommandHandlerWithError(ITaskMessaging messaging)
     {
-        _throws = throws;
         _messaging = messaging;
     }
     
     public async Task Handle(OperationTask<TestCommand> message)
     {
-        if (_throws)
+        if (Throws)
             throw new InvalidOperationException();
         
         await _messaging.FailTask(message, "error");
diff --git a/test/Rebus.Operations.Tests/WorkflowTests.cs b/test/Rebus.Operations.Tests/WorkflowTests.cs
index 5df182c..6c50de8 100644
--- a/test/Rebus.Operations.Tests/WorkflowTests.cs
+++ b/test/Rebus.Operations.Tests/WorkflowTests.cs
@@ -3,6 +3,7 @@
 using Dbosoft.Rebus.Operations.Events;
 using Dbosoft.Rebus.Operations.Workflow;
 using Microsoft.Extensions.Logging.Abstractions;
+using Rebus.Retry.Simple;
 using Xunit;
 using Xunit.Abstractions;
 
@@ -92,6 +93,62 @@ public async Task MultiStep_Operation_is_processed(bool sendMode, string eventDe
         }
     }
 
+    [Theory]
+    [InlineData(false, "")]
+    [InlineData(true, "")]
+    [InlineData(false, "main")]
+    [InlineData(true, "main")]
+    public async Task MultiStep_Operation_Exception_is_reported(bool sendMode, string eventDestination)
+    {
+        StepOneCommandHandler? stepOneHandler;
+        StepTwoCommandHandler? stepTwoHandler;
+        using var setup = await SetupRebus(sendMode, eventDestination, configureActivator: (activator, wf, tasks, bus) =>
+        {
+            activator.Register(() => new IncomingTaskMessageHandler<MultiStepCommand>(bus,
+                NullLogger<IncomingTaskMessageHandler<MultiStepCommand>>.Instance, new DefaultMessageEnricher()));
+            activator.Register(() => new IncomingTaskMessageHandler<StepOneCommand>(bus,
+                NullLogger<IncomingTaskMessageHandler<StepOneCommand>>.Instance, new DefaultMessageEnricher()));
+            activator.Register(() => new IncomingTaskMessageHandler<StepTwoCommand>(bus,
+                NullLogger<IncomingTaskMessageHandler<StepTwoCommand>>.Instance, new DefaultMessageEnricher()));
+
+            activator.Register(() => new EmptyOperationStatusEventHandler());
+            activator.Register(() => new MultiStepSaga(wf));
+            activator.Register(() => new FailedOperationHandler<OperationTask<StepTwoCommand>>(wf.WorkflowOptions,
+                NullLogger< FailedOperationHandler<OperationTask<StepTwoCommand>>>.Instance,
+                wf.Messaging));
+
+            stepOneHandler = new StepOneCommandHandler(tasks);
+            stepTwoHandler = new StepTwoCommandHandler(tasks){Throws = true};
+            activator.Register(() => stepOneHandler);
+            activator.Register(() => stepTwoHandler);
+        });
+
+        TestOperationManager.Reset();
+        TestTaskManager.Reset();
+        StepOneCommandHandler.Called = false;
+        StepTwoCommandHandler.Called = false;
+
+        await setup.OperationDispatcher.StartNew<MultiStepCommand>();
+
+        var timeout = new CancellationTokenSource(60000);
+        while (
+                !timeout.Token.IsCancellationRequested &&
+                (TestOperationManager.Operations.First().Value.Status == OperationStatus.Running ||
+                 TestOperationManager.Operations.First().Value.Status == OperationStatus.Queued))
+            // ReSharper disable once MethodSupportsCancellation
+        {
+            await Task.Delay(1000);
+        }
+
+        Assert.True(StepOneCommandHandler.Called);
+        Assert.True(StepTwoCommandHandler.Called);
+        Assert.Single(TestOperationManager.Operations);
+        Assert.Equal(3, TestTaskManager.Tasks.Count);
+        Assert.Equal(OperationStatus.Failed, TestOperationManager.Operations.First().Value.Status);
+
+
+    }
+
     [Theory]
     [InlineData(false, "")]
     [InlineData(true, "")]
@@ -132,7 +189,7 @@ public async Task SingleStep_Operation_failure_is_reported(bool throws)
         {
             activator.Register(() => new IncomingTaskMessageHandler<TestCommand>(bus,
                 NullLogger<IncomingTaskMessageHandler<TestCommand>>.Instance, new DefaultMessageEnricher()));
-            activator.Register(() => new TestCommandHandlerWithError(throws, tasks));
+            activator.Register(() => new TestCommandHandlerWithError(tasks){Throws = true});
             activator.Register(() => new EmptyOperationStatusEventHandler());
             activator.Register(() => new EmptyOperationTaskStatusEventHandler<TestCommand>());
             activator.Register(() =>
@@ -145,7 +202,15 @@ public async Task SingleStep_Operation_failure_is_reported(bool throws)
         TestTaskManager.Reset();
         
         await setup.OperationDispatcher.StartNew<TestCommand>();
-        await Task.Delay(throws ? 2000: 1000);
+        var timeout = new CancellationTokenSource(10000);
+        while (
+                !timeout.Token.IsCancellationRequested &&
+                (TestOperationManager.Operations.First().Value.Status == OperationStatus.Running ||
+                 TestOperationManager.Operations.First().Value.Status == OperationStatus.Queued))
+            // ReSharper disable once MethodSupportsCancellation
+        {
+            await Task.Delay(1000);
+        }
         Assert.Equal(OperationStatus.Failed ,TestOperationManager.Operations.First().Value.Status);
 
     }