diff --git a/lib/webmachine/decision/fsm.rb b/lib/webmachine/decision/fsm.rb
index 79d3728a..75210a11 100644
--- a/lib/webmachine/decision/fsm.rb
+++ b/lib/webmachine/decision/fsm.rb
@@ -37,11 +37,15 @@ def run
       rescue MalformedRequest => malformed
         Webmachine.render_error(400, request, response, :message => malformed.message)
         respond(400)
-      rescue => e # Handle all exceptions without crashing the server
-        error_response(e, state)
+      rescue Exception => e # Handle all exceptions without crashing the server
+        response.end_state = state
+        code = resource.handle_exception(e)
+        code = (100...600).include?(code) ? (code) : (500) 
+        respond(code)
       end
 
       private
+
       def respond(code, headers={})
         response.headers.merge!(headers)
         case code
@@ -56,14 +60,6 @@ def respond(code, headers={})
         # TODO: add logging/tracing
       end
 
-      # Renders a 500 error by capturing the exception information.
-      def error_response(exception, state)
-        response.error = [exception.message, exception.backtrace].flatten.join("\n    ")
-        response.end_state = state
-        Webmachine.render_error(500, request, response)
-        respond(500)
-      end
-
     end # class FSM
   end # module Decision
 end # module Webmachine
diff --git a/lib/webmachine/resource/callbacks.rb b/lib/webmachine/resource/callbacks.rb
index b967c723..11780a4d 100644
--- a/lib/webmachine/resource/callbacks.rb
+++ b/lib/webmachine/resource/callbacks.rb
@@ -360,6 +360,22 @@ def generate_etag
       # @api callback
       def finish_request; end
 
+      #
+      # This method is called when an exception is raised within a subclass of 
+      # {Webmachine::Resource}.
+      #
+      # @param [Exception] e
+      #   The exception.
+      #
+      # @return [void]
+      #
+      # @api callback
+      #
+      def handle_exception(e)
+        response.error = [e.message, e.backtrace].flatten.join("\n    ")
+        Webmachine.render_error(500, request, response)
+      end
+
       # This method is called when verifying the Content-MD5 header
       # against the request body. To do your own validation, implement
       # it in this callback, returning true or false. To bypass header
diff --git a/spec/webmachine/decision/flow_spec.rb b/spec/webmachine/decision/flow_spec.rb
index 00b51060..9ea3df34 100644
--- a/spec/webmachine/decision/flow_spec.rb
+++ b/spec/webmachine/decision/flow_spec.rb
@@ -1029,4 +1029,58 @@ def accept_all
       end
     end
   end
+
+  describe "On exception" do
+    context "handle_exception is inherited." do
+      let :resource do
+        resource_with do
+          def to_html
+            raise
+          end
+        end
+      end
+
+      it "calls handle_exception." do
+        resource.should_receive(:handle_exception).with instance_of(RuntimeError)
+        subject.run
+      end
+
+      it "sets the response code to 500." do
+        subject.run
+        response.code.should == 500
+      end
+
+      it "sets the end state properly." do
+        subject.run
+        response.end_state.should == :o18
+      end
+    end
+
+    context "handle_exception is defined." do
+      let :resource do
+        resource_with do
+          def handle_exception(e)
+            response.body = "error"
+            501
+          end
+
+          def to_html
+            raise
+          end
+        end
+      end
+
+      it "can define a response body." do
+        subject.run
+        response.body.should == "error"
+      end
+
+      it "uses the return value as a response code." do
+        subject.run
+        response.code.should == 501
+      end
+    end
+  end
+  
+
 end