diff --git a/storey/flow.py b/storey/flow.py
index 2c4b559a..e1ded8ed 100644
--- a/storey/flow.py
+++ b/storey/flow.py
@@ -621,35 +621,45 @@ def _init(self):
         self._lazy_init_complete = False
 
     async def _worker(self):
-        async def handle_job(job):
-            if job is _termination_obj:
-                return
-            event = job[0]
-            completed = await job[1]
-            await self._handle_completed(event, completed)
-
         event = None
         try:
             while True:
-                # If we don't handle the event before we remove it from the queue, the effective max_in_flight will
-                # be 1 higher than requested. Hence, we peek.
-                job = await self._q.peek()
-                if job is _termination_obj:
+                try:
+                    # If we don't handle the event before we remove it from the queue, the effective max_in_flight will
+                    # be 1 higher than requested. Hence, we peek.
+                    job = await self._q.peek()
+                    if job is _termination_obj:
+                        await self._q.get()
+                        break
+                    event = job[0]
+                    completed = await job[1]
+                    await self._handle_completed(event, completed)
                     await self._q.get()
-                    break
-                event = job[0]
-                completed = await job[1]
-                await self._handle_completed(event, completed)
-                await self._q.get()
-
-        except BaseException as ex:
-            if event and event._awaitable_result:
-                none_or_coroutine = event._awaitable_result._set_error(ex)
-                if none_or_coroutine:
-                    await none_or_coroutine
-            if not self._q.empty():
-                await self._q.get()
-            raise ex
+                except BaseException as ex:
+                    await self._q.get()
+                    ex._raised_by_storey_step = self
+                    recovery_step = self._get_recovery_step(ex)
+                    try:
+                        if recovery_step is not None:
+                            event.origin_state = self.name
+                            event.error = ex
+                            return await recovery_step._do(event)
+                        else:
+                            if event._awaitable_result:
+                                none_or_coroutine = event._awaitable_result._set_error(ex)
+                                if none_or_coroutine:
+                                    await none_or_coroutine
+                            if self.context and hasattr(self.context, 'push_error'):
+                                message = traceback.format_exc()
+                                if self.logger:
+                                    self.logger.error(f'Pushing error to error stream: {ex}\n{message}')
+                                self.context.push_error(event, f"{ex}\n{message}", source=self.name)
+                            else:
+                                raise ex
+                    except BaseException:
+                        if not self._q.empty():
+                            await self._q.get()
+                        raise
         finally:
             await self._cleanup()
 
diff --git a/tests/test_flow.py b/tests/test_flow.py
index 0e7f2924..a9033046 100644
--- a/tests/test_flow.py
+++ b/tests/test_flow.py
@@ -21,7 +21,7 @@
     Event, Batch, Table, CSVTarget, DataframeSource, MapClass, JoinWithTable, ReduceToDataFrame, ToDataFrame, \
     ParquetTarget, QueryByKey, \
     TSDBTarget, Extend, SendToHttp, HttpRequest, NoSqlTarget, NoopDriver, Driver, Recover, V3ioDriver, ParquetSource
-from storey.flow import _ConcurrentJobExecution
+from storey.flow import _ConcurrentJobExecution, Context
 
 
 class ATestException(Exception):
@@ -2958,6 +2958,66 @@ async def _handle_completed(self, event, response):
     assert concurrent_step.handle_completed_called == num_events
 
 
+def test_concurrent_execution_max_in_flight_error():
+    class _TestConcurrentExecution(_ConcurrentJobExecution):
+        async def _process_event(self, event):
+            raise ATestException()
+
+        async def _handle_completed(self, event, response):
+            pass
+
+    concurrent_step = _TestConcurrentExecution(max_in_flight=2)
+    controller = build_flow([
+        SyncEmitSource(),
+        concurrent_step,
+        Complete()
+    ]).run()
+
+    awaitable_result = controller.emit(0)
+    with pytest.raises(ATestException):
+        awaitable_result.await_result()
+    controller.terminate()
+    with pytest.raises(ATestException):
+        controller.await_termination()
+
+
+def test_concurrent_execution_max_in_flight_push_error():
+    class _TestConcurrentExecution(_ConcurrentJobExecution):
+        def __init__(self, **kwargs):
+            super().__init__(**kwargs)
+            self._should_raise = True
+
+        async def _process_event(self, event):
+            if self._should_raise:
+                self._should_raise = False
+                raise ATestException()
+
+        async def _handle_completed(self, event, response):
+            await self._do_downstream(event)
+
+    class ContextWithPushError(Context):
+        def push_error(self, event, message, source):
+            pass
+
+    context = ContextWithPushError()
+
+    concurrent_step = _TestConcurrentExecution(max_in_flight=2, context=context)
+    controller = build_flow([
+        SyncEmitSource(),
+        concurrent_step,
+        Complete()
+    ]).run()
+
+    awaitable_result = controller.emit(0)
+    with pytest.raises(ATestException):
+        awaitable_result.await_result()
+    for i in range(1, 5):
+        awaitable_result = controller.emit(i)
+        awaitable_result.await_result()
+    controller.terminate()
+    controller.await_termination()
+
+
 class MockLogger:
     def __init__(self):
         self.logs = []