diff --git a/apps/system/js/app_window.js b/apps/system/js/app_window.js
index ea8e2df3dd34..cb8d5e426e0c 100644
--- a/apps/system/js/app_window.js
+++ b/apps/system/js/app_window.js
@@ -930,7 +930,6 @@
         this.inError = true;
         return;
       }
-      this.isCrashed = true;
       // Send event instead of call crash reporter directly.
       this.publish('crashed');
 
@@ -941,6 +940,7 @@
           this.frontWindow.kill();
         }
       } else {
+        this.isCrashed = true;
         this.kill(evt);
       }
     };
diff --git a/apps/system/test/unit/app_window_test.js b/apps/system/test/unit/app_window_test.js
index 6b383d71ddee..08d507558a8d 100644
--- a/apps/system/test/unit/app_window_test.js
+++ b/apps/system/test/unit/app_window_test.js
@@ -1520,10 +1520,11 @@ suite('system/AppWindow', function() {
       assert.isNull(sheets[1].previousWindow);
     });
 
-    test('Error event', function() {
+    test('App crashed and suspending is disabled', function() {
       var app1 = new AppWindow(fakeAppConfig1);
       var stubKill = this.sinon.stub(app1, 'kill');
       var stubPublish = this.sinon.stub(app1, 'publish');
+      AppWindow.SUSPENDING_ENABLED = false;
       app1.handleEvent({
         type: 'mozbrowsererror',
         detail: {
@@ -1535,8 +1536,8 @@ suite('system/AppWindow', function() {
       assert.isTrue(stubPublish.calledWith('crashed'));
     });
 
-    test('Destroy only the browser when app crashed and ' +
-          'suspending is enabled',
+    test('App crashed and suspending is enabled' +
+          'when app is inactive',
       function() {
         var apps = openPopups(2);
         var app1 = apps[0];
@@ -1553,13 +1554,13 @@ suite('system/AppWindow', function() {
             type: 'fatal'
           }
         });
-        assert.isTrue(app1.isCrashed);
+        assert.isFalse(app1.isCrashed);
         assert.isTrue(stubDestroyBrowser.called);
         assert.isTrue(stubKill.called);
         AppWindow.SUSPENDING_ENABLED = false;
       });
 
-    test('Kill the app directly even suspending is enabled ' +
+    test('App crashed and suspending is enabled ' +
           'when the app is active',
       function() {
         var app1 = new AppWindow(fakeAppConfig1);