diff --git a/releasenotes.txt b/releasenotes.txt
index 584bc5714e0..2ba1d97fddd 100644
--- a/releasenotes.txt
+++ b/releasenotes.txt
@@ -1,3 +1,11 @@
+Tentative for 4.1:
+
+  Possible breaking change: Proxies for classes that used lazy fields (not collections)
+  would have any exceptions from the entity wrapped in TargetInvocationException. This
+  wrapping exception have now been removed. Where relevant, you should instead catch
+  the original exception type you throw.
+
+
 Build 4.0.4.GA
 =============================
 
diff --git a/src/NHibernate.Test/DynamicProxyTests/LazyFieldInterceptorSerializable.cs b/src/NHibernate.Test/DynamicProxyTests/LazyFieldInterceptorTests.cs
similarity index 60%
rename from src/NHibernate.Test/DynamicProxyTests/LazyFieldInterceptorSerializable.cs
rename to src/NHibernate.Test/DynamicProxyTests/LazyFieldInterceptorTests.cs
index c21eba615f4..70d020796af 100644
--- a/src/NHibernate.Test/DynamicProxyTests/LazyFieldInterceptorSerializable.cs
+++ b/src/NHibernate.Test/DynamicProxyTests/LazyFieldInterceptorTests.cs
@@ -6,12 +6,18 @@
 
 namespace NHibernate.Test.DynamicProxyTests
 {
-	public class LazyFieldInterceptorSerializable
+	public class LazyFieldInterceptorTests
 	{
 		[Serializable]
 		public class MyClass
 		{
 			public virtual int Id { get; set; }
+
+			public virtual void ThrowError()
+			{
+				// Use some specific exception type to avoid using the base class.
+				throw new FormatException("test");
+			}
 		}
 
 		[Test]
@@ -31,5 +37,16 @@ public void LazyFieldInterceptorIsBinarySerializable()
 
 			Assert.That(fieldInterceptionProxy, Is.BinarySerializable);
 		}
+
+
+		[Test]
+		public void DefaultDynamicLazyFieldInterceptorUnWrapsTIEExceptions()
+		{
+			var pf = new DefaultProxyFactory();
+			var propertyInfo = typeof(MyClass).GetProperty("Id");
+			pf.PostInstantiate("MyClass", typeof(MyClass), new HashSet<System.Type>(), propertyInfo.GetGetMethod(), propertyInfo.GetSetMethod(), null);
+			var myClassProxied = (MyClass)pf.GetFieldInterceptionProxy(new MyClass());
+			Assert.Throws<FormatException>(() => myClassProxied.ThrowError(), "test");
+		}
 	}
-}
\ No newline at end of file
+}
diff --git a/src/NHibernate.Test/NHibernate.Test.csproj b/src/NHibernate.Test/NHibernate.Test.csproj
index 8371f405311..255dd1596af 100644
--- a/src/NHibernate.Test/NHibernate.Test.csproj
+++ b/src/NHibernate.Test/NHibernate.Test.csproj
@@ -258,7 +258,7 @@
     <Compile Include="DynamicProxyTests\InterfaceProxySerializationTests\MyProxyImpl.cs" />
     <Compile Include="DynamicProxyTests\InterfaceProxySerializationTests\ProxyFixture.cs" />
     <Compile Include="DynamicProxyTests\InterfaceWithEqualsGethashcodeTests.cs" />
-    <Compile Include="DynamicProxyTests\LazyFieldInterceptorSerializable.cs" />
+    <Compile Include="DynamicProxyTests\LazyFieldInterceptorTests.cs" />
     <Compile Include="DynamicProxyTests\PassThroughInterceptor.cs" />
     <Compile Include="DynamicProxyTests\PeVerifier.cs" />
     <Compile Include="DynamicProxyTests\ProxiedMembers\Fixture.cs" />
@@ -3754,7 +3754,6 @@
     <Folder Include="Properties\" />
   </ItemGroup>
   <ItemGroup>
-
   </ItemGroup>
   <Import Project="$(MSBuildBinPath)\Microsoft.CSharp.targets" />
   <!-- To modify your build process, add your task inside one of the targets below and uncomment it. 
diff --git a/src/NHibernate/Intercept/DefaultDynamicLazyFieldInterceptor.cs b/src/NHibernate/Intercept/DefaultDynamicLazyFieldInterceptor.cs
index b10d3058757..a7b2e78095d 100644
--- a/src/NHibernate/Intercept/DefaultDynamicLazyFieldInterceptor.cs
+++ b/src/NHibernate/Intercept/DefaultDynamicLazyFieldInterceptor.cs
@@ -1,4 +1,5 @@
 using System;
+using System.Reflection;
 using NHibernate.Proxy.DynamicProxy;
 using NHibernate.Util;
 
@@ -50,7 +51,16 @@ public object Intercept(InvocationInfo info)
 				}
 			}
 
-			return info.InvokeMethodOnTarget();
+			object returnValue;
+			try
+			{
+				returnValue = info.InvokeMethodOnTarget();
+			}
+			catch (TargetInvocationException ex)
+			{
+				throw ReflectHelper.UnwrapTargetInvocationException(ex);
+			}
+			return returnValue;
 		}
 	}
-}
\ No newline at end of file
+}