diff --git a/packages/node-integration-tests/suites/public-api/LocalVariables/local-variables-caught.js b/packages/node-integration-tests/suites/public-api/LocalVariables/local-variables-caught.js
new file mode 100644
index 000000000000..823fa966aa2a
--- /dev/null
+++ b/packages/node-integration-tests/suites/public-api/LocalVariables/local-variables-caught.js
@@ -0,0 +1,36 @@
+/* eslint-disable no-unused-vars */
+const Sentry = require('@sentry/node');
+
+Sentry.init({
+  dsn: 'https://public@dsn.ingest.sentry.io/1337',
+  includeLocalVariables: true,
+  integrations: [new Sentry.Integrations.LocalVariables({ captureAllExceptions: true })],
+  beforeSend: event => {
+    // eslint-disable-next-line no-console
+    console.log(JSON.stringify(event));
+  },
+});
+
+class Some {
+  two(name) {
+    throw new Error('Enough!');
+  }
+}
+
+function one(name) {
+  const arr = [1, '2', null];
+  const obj = {
+    name,
+    num: 5,
+  };
+
+  const ty = new Some();
+
+  ty.two(name);
+}
+
+try {
+  one('some name');
+} catch (e) {
+  Sentry.captureException(e);
+}
diff --git a/packages/node-integration-tests/suites/public-api/LocalVariables/test.ts b/packages/node-integration-tests/suites/public-api/LocalVariables/test.ts
index 6603202a3013..649f7cc9ba06 100644
--- a/packages/node-integration-tests/suites/public-api/LocalVariables/test.ts
+++ b/packages/node-integration-tests/suites/public-api/LocalVariables/test.ts
@@ -51,4 +51,32 @@ describe('LocalVariables integration', () => {
       done();
     });
   });
+
+  test('Includes local variables for caught exceptions when enabled', done => {
+    expect.assertions(4);
+
+    const testScriptPath = path.resolve(__dirname, 'local-variables-caught.js');
+
+    childProcess.exec(`node ${testScriptPath}`, { encoding: 'utf8' }, (_, stdout) => {
+      const event = JSON.parse(stdout) as Event;
+
+      const frames = event.exception?.values?.[0].stacktrace?.frames || [];
+      const lastFrame = frames[frames.length - 1];
+
+      expect(lastFrame.function).toBe('Some.two');
+      expect(lastFrame.vars).toEqual({ name: 'some name' });
+
+      const penultimateFrame = frames[frames.length - 2];
+
+      expect(penultimateFrame.function).toBe('one');
+      expect(penultimateFrame.vars).toEqual({
+        name: 'some name',
+        arr: [1, '2', null],
+        obj: { name: 'some name', num: 5 },
+        ty: '<Some>',
+      });
+
+      done();
+    });
+  });
 });
diff --git a/packages/node/src/integrations/localvariables.ts b/packages/node/src/integrations/localvariables.ts
index 2f28c548fa85..ac23e67af910 100644
--- a/packages/node/src/integrations/localvariables.ts
+++ b/packages/node/src/integrations/localvariables.ts
@@ -6,7 +6,10 @@ import type { NodeClientOptions } from '../types';
 
 export interface DebugSession {
   /** Configures and connects to the debug session */
-  configureAndConnect(onPause: (message: InspectorNotification<Debugger.PausedEventDataType>) => void): void;
+  configureAndConnect(
+    onPause: (message: InspectorNotification<Debugger.PausedEventDataType>) => void,
+    captureAll: boolean,
+  ): void;
   /** Gets local variables for an objectId */
   getLocalVariables(objectId: string): Promise<Record<string, unknown>>;
 }
@@ -32,12 +35,15 @@ class AsyncSession implements DebugSession {
   }
 
   /** @inheritdoc */
-  public configureAndConnect(onPause: (message: InspectorNotification<Debugger.PausedEventDataType>) => void): void {
+  public configureAndConnect(
+    onPause: (message: InspectorNotification<Debugger.PausedEventDataType>) => void,
+    captureAll: boolean,
+  ): void {
     this._session.connect();
     this._session.on('Debugger.paused', onPause);
     this._session.post('Debugger.enable');
     // We only want to pause on uncaught exceptions
-    this._session.post('Debugger.setPauseOnExceptions', { state: 'uncaught' });
+    this._session.post('Debugger.setPauseOnExceptions', { state: captureAll ? 'all' : 'uncaught' });
   }
 
   /** @inheritdoc */
@@ -164,7 +170,14 @@ export interface FrameVariables {
 
 /** There are no options yet. This allows them to be added later without breaking changes */
 // eslint-disable-next-line @typescript-eslint/no-empty-interface
-interface Options {}
+interface Options {
+  /**
+   * Capture local variables for both handled and unhandled exceptions
+   *
+   * Default: false - Only captures local variables for uncaught exceptions
+   */
+  captureAllExceptions?: boolean;
+}
 
 /**
  * Adds local variables to exception frames
@@ -177,7 +190,7 @@ export class LocalVariables implements Integration {
   private readonly _cachedFrames: LRUMap<string, Promise<FrameVariables[]>> = new LRUMap(20);
 
   public constructor(
-    _options: Options = {},
+    private readonly _options: Options = {},
     private readonly _session: DebugSession | undefined = tryNewAsyncSession(),
   ) {}
 
@@ -194,8 +207,9 @@ export class LocalVariables implements Integration {
     clientOptions: NodeClientOptions | undefined,
   ): void {
     if (this._session && clientOptions?.includeLocalVariables) {
-      this._session.configureAndConnect(ev =>
-        this._handlePaused(clientOptions.stackParser, ev as InspectorNotification<PausedExceptionEvent>),
+      this._session.configureAndConnect(
+        ev => this._handlePaused(clientOptions.stackParser, ev as InspectorNotification<PausedExceptionEvent>),
+        !!this._options.captureAllExceptions,
       );
 
       addGlobalEventProcessor(async event => this._addLocalVariables(event));
diff --git a/packages/node/test/integrations/localvariables.test.ts b/packages/node/test/integrations/localvariables.test.ts
index 6d0124296ea3..8653b048b257 100644
--- a/packages/node/test/integrations/localvariables.test.ts
+++ b/packages/node/test/integrations/localvariables.test.ts
@@ -17,7 +17,10 @@ class MockDebugSession implements DebugSession {
 
   constructor(private readonly _vars: Record<string, Record<string, unknown>>, private readonly _throwOn?: ThrowOn) {}
 
-  public configureAndConnect(onPause: (message: InspectorNotification<Debugger.PausedEventDataType>) => void): void {
+  public configureAndConnect(
+    onPause: (message: InspectorNotification<Debugger.PausedEventDataType>) => void,
+    _captureAll: boolean,
+  ): void {
     if (this._throwOn?.configureAndConnect) {
       throw new Error('configureAndConnect should not be called');
     }