diff --git a/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/Mdc.scala b/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/Mdc.scala
index 4b939335..52265f25 100644
--- a/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/Mdc.scala
+++ b/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/Mdc.scala
@@ -28,11 +28,19 @@ object Mdc {
 
   def withMdc[A](block: => Future[A], mdcData: Map[String, String])(implicit ec: ExecutionContext): Future[A] =
     block.map { a =>
-      mdcData.foreach {
-        case (k, v) => MDC.put(k, v)
-      }
+      putMdc(mdcData)
       a
-    }(ec)
+    }.recover {
+      case t =>
+        putMdc(mdcData)
+        throw t
+    }
+
+  private def putMdc(mdc: Map[String, String]): Unit = {
+    mdc.foreach {
+      case (k, v) => MDC.put(k, v)
+    }
+  }
 
   /** Restores MDC data to the continuation of a block, which may be discarding MDC data (e.g. uses a different execution context)
     */
diff --git a/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/MdcLoggingExecutionContext.scala b/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/MdcLoggingExecutionContext.scala
index fd42ebc3..d92141e6 100644
--- a/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/MdcLoggingExecutionContext.scala
+++ b/http-verbs-common/src/main/scala/uk/gov/hmrc/play/http/logging/MdcLoggingExecutionContext.scala
@@ -20,7 +20,7 @@ import org.slf4j.MDC
 
 import scala.concurrent.ExecutionContext
 
-class MdcLoggingExecutionContext(wrapped: ExecutionContext, mdcData: Map[String, String]) 
+class MdcLoggingExecutionContext(wrapped: ExecutionContext, mdcData: Map[String, String])
   extends ExecutionContext {
 
   def execute(runnable: Runnable) {
diff --git a/http-verbs-common/src/test/scala/uk/gov/hmrc/http/logging/MdcSpec.scala b/http-verbs-common/src/test/scala/uk/gov/hmrc/http/logging/MdcSpec.scala
new file mode 100644
index 00000000..e178ba44
--- /dev/null
+++ b/http-verbs-common/src/test/scala/uk/gov/hmrc/http/logging/MdcSpec.scala
@@ -0,0 +1,121 @@
+/*
+ * Copyright 2021 HM Revenue & Customs
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package uk.gov.hmrc.http.logging
+
+import akka.dispatch.ExecutorServiceDelegate
+import org.scalatest.BeforeAndAfter
+import org.scalatest.concurrent.{IntegrationPatience, ScalaFutures}
+import org.scalatest.matchers.should.Matchers
+import org.scalatest.wordspec.AnyWordSpecLike
+import org.scalatestplus.mockito.MockitoSugar
+import org.slf4j.MDC
+import uk.gov.hmrc.play.http.logging.Mdc
+
+import java.util.concurrent.{ExecutorService, Executors}
+import scala.concurrent.duration.DurationInt
+import scala.concurrent.{ExecutionContext, Future}
+
+class MdcSpec extends AnyWordSpecLike with Matchers with MockitoSugar with ScalaFutures with BeforeAndAfter with IntegrationPatience {
+
+  before {
+    MDC.clear()
+  }
+
+  "mdcData" should {
+    "return a Scala Map" in {
+      MDC.put("something1", "something2")
+      Mdc.mdcData shouldBe Map("something1" -> "something2")
+    }
+  }
+
+  "Preserving MDC" should {
+    "show that MDC is lost when switching contexts" in {
+      implicit val mdcEc: ExecutionContext = mdcPropagatingExecutionContext()
+
+      (for {
+        _ <- Future.successful(org.slf4j.MDC.put("k", "v"))
+        _ <- runActionWhichLosesMdc()
+      } yield
+        Option(MDC.get("k"))
+      ).futureValue shouldBe None
+    }
+
+    "restore MDC" in {
+      implicit val mdcEc: ExecutionContext = mdcPropagatingExecutionContext()
+
+      (for {
+        _ <- Future.successful(org.slf4j.MDC.put("k", "v"))
+        _ <- Mdc.preservingMdc(runActionWhichLosesMdc())
+      } yield
+        Option(MDC.get("k"))
+      ).futureValue shouldBe Some("v")
+    }
+
+    "restore MDC when exception is thrown" in {
+      implicit val mdcEc: ExecutionContext = mdcPropagatingExecutionContext()
+
+      (for {
+         _ <- Future.successful(org.slf4j.MDC.put("k", "v"))
+         _ <- Mdc.preservingMdc(runActionWhichLosesMdc(fail = true))
+       } yield ()
+      )
+      .recover { case _ =>
+        Option(MDC.get("k"))
+      }.futureValue shouldBe Some("v")
+    }
+  }
+
+  private def runActionWhichLosesMdc(fail: Boolean = false): Future[Any] = {
+    val as = akka.actor.ActorSystem("different-as")
+    akka.pattern.after(1.second, as.scheduler)(Future(())(as.dispatcher))(as.dispatcher)
+      .map(a => if (fail) sys.error("expected test exception") else a)(as.dispatcher)
+  }
+
+  private def mdcPropagatingExecutionContext() =
+    ExecutionContext.fromExecutor(new MDCPropagatingExecutorService(Executors.newFixedThreadPool(2)))
+
+}
+
+// This class is copied from bootstrap-play.
+// There is a ticket in the backlog to consider extracting it neatly. For now, it is needed for this test.
+class MDCPropagatingExecutorService(val executor: ExecutorService) extends ExecutorServiceDelegate {
+
+  override def execute(command: Runnable): Unit = {
+
+    val mdcData = MDC.getCopyOfContextMap
+
+    executor.execute(new Runnable {
+      override def run(): Unit = {
+        val oldMdcData = MDC.getCopyOfContextMap
+        setMDC(mdcData)
+        try {
+          command.run()
+        } finally {
+          setMDC(oldMdcData)
+        }
+      }
+    })
+  }
+
+  private def setMDC(context: java.util.Map[String, String]): Unit = {
+    if (context == null) {
+      MDC.clear()
+    } else {
+      MDC.setContextMap(context)
+    }
+  }
+}