diff --git a/grails-web/src/main/groovy/org/codehaus/groovy/grails/web/servlet/GrailsDispatcherServlet.java b/grails-web/src/main/groovy/org/codehaus/groovy/grails/web/servlet/GrailsDispatcherServlet.java
index 90201d0cda7..30807c97cc7 100644
--- a/grails-web/src/main/groovy/org/codehaus/groovy/grails/web/servlet/GrailsDispatcherServlet.java
+++ b/grails-web/src/main/groovy/org/codehaus/groovy/grails/web/servlet/GrailsDispatcherServlet.java
@@ -347,6 +347,8 @@ public Locale getLocale() {
                 }
             }
             catch (ModelAndViewDefiningException ex) {
+                // Exceptions inside includes should propogate up so the original dispatcher handles the exception
+                if(WebUtils.isIncludeRequest(request)) throw ex;
                 handlerException = ex;
                 if (logger.isDebugEnabled()) {
                     logger.debug("ModelAndViewDefiningException encountered", ex);
@@ -354,6 +356,8 @@ public Locale getLocale() {
                 mv = ex.getModelAndView();
             }
             catch (Exception ex) {
+                // Exceptions inside includes should propogate up so the original dispatcher handles the exception
+                if(WebUtils.isIncludeRequest(request)) throw ex;
                 handlerException = ex;
                 Object handler = (mappedHandler != null ? mappedHandler.getHandler() : null);
                 mv = processHandlerException(request, response, handler, ex);