diff --git a/compiler/cpp/src/thrift/generate/t_py_generator.cc b/compiler/cpp/src/thrift/generate/t_py_generator.cc
index 8851c31..3b51714 100644
--- a/compiler/cpp/src/thrift/generate/t_py_generator.cc
+++ b/compiler/cpp/src/thrift/generate/t_py_generator.cc
@@ -1995,17 +1995,16 @@
     indent_down();
 
   } else if (gen_tornado_) {
-    // TODO: Propagate arbitrary exception raised by handler to client as does plain "py"
-
     // Generate the function call
     t_struct* arg_struct = tfunction->get_arglist();
     const std::vector<t_field*>& fields = arg_struct->get_members();
     vector<t_field*>::const_iterator f_iter;
 
-    if (xceptions.size() > 0) {
-      f_service_ << indent() << "try:" << endl;
-      indent_up();
+    if (!tfunction->is_oneway()) {
+      indent(f_service_) << "msg_type = TMessageType.REPLY" << endl;
     }
+    f_service_ << indent() << "try:" << endl;
+    indent_up();
     f_service_ << indent();
     if (!tfunction->is_oneway() && !tfunction->get_returntype()->is_void()) {
       f_service_ << "result.success = ";
@@ -2022,27 +2021,43 @@
     }
     f_service_ << "))" << endl;
 
-    if (!tfunction->is_oneway() && xceptions.size() > 0) {
-      indent_down();
+    indent_down();
+    if (!tfunction->is_oneway()) {
       for (x_iter = xceptions.begin(); x_iter != xceptions.end(); ++x_iter) {
-        f_service_ << indent() << "except " << type_name((*x_iter)->get_type()) << " as "
-                   << (*x_iter)->get_name() << ":" << endl;
-        if (!tfunction->is_oneway()) {
-          indent_up();
-          f_service_ << indent() << "result." << (*x_iter)->get_name() << " = "
-                     << (*x_iter)->get_name() << endl;
-          indent_down();
-        } else {
-          f_service_ << indent() << "pass" << endl;
-        }
+        const string& xname = (*x_iter)->get_name();
+        f_service_ << indent() << "except " << type_name((*x_iter)->get_type()) << " as " << xname
+                   << ":" << endl
+                   << indent() << indent_str() << "result." << xname << " = " << xname << endl;
       }
     }
+    f_service_ << indent() << "except TTransport.TTransportException:" << endl
+               << indent() << indent_str() << "raise" << endl;
+    if (!tfunction->is_oneway()) {
+      f_service_ << indent() << "except TApplicationException as ex:" << endl
+                 << indent() << indent_str()
+                 << "logging.exception('TApplication exception in handler')" << endl
+                 << indent() << indent_str() << "msg_type = TMessageType.EXCEPTION" << endl
+                 << indent() << indent_str() << "result = ex" << endl
+                 << indent() << "except Exception:" << endl
+                 << indent() << indent_str()
+                 << "logging.exception('Unexpected exception in handler')" << endl
+                 << indent() << indent_str() << "msg_type = TMessageType.EXCEPTION" << endl
+                 << indent() << indent_str()
+                 << "result = TApplicationException(TApplicationException.INTERNAL_ERROR, "
+                    "'Internal error')"
+                 << endl;
+    } else {
+      f_service_ << indent() << "except Exception:" << endl
+                 << indent() << indent_str()
+                 << "logging.exception('Exception in oneway handler')" << endl;
+    }
 
     if (!tfunction->is_oneway()) {
       f_service_ << indent() << "oprot.writeMessageBegin(\"" << tfunction->get_name()
-                 << "\", TMessageType.REPLY, seqid)" << endl << indent() << "result.write(oprot)"
-                 << endl << indent() << "oprot.writeMessageEnd()" << endl << indent()
-                 << "oprot.trans.flush()" << endl;
+                 << "\", msg_type, seqid)" << endl
+                 << indent() << "result.write(oprot)" << endl
+                 << indent() << "oprot.writeMessageEnd()" << endl
+                 << indent() << "oprot.trans.flush()" << endl;
     }
 
     // Close function
diff --git a/test/py.tornado/test_suite.py b/test/py.tornado/test_suite.py
index 32d1c2e..447fde6 100755
--- a/test/py.tornado/test_suite.py
+++ b/test/py.tornado/test_suite.py
@@ -21,8 +21,8 @@
 
 import datetime
 import glob
-import sys
 import os
+import sys
 import time
 import unittest
 
@@ -40,8 +40,8 @@
 from tornado.testing import AsyncTestCase, get_unused_port, gen_test
 
 from thrift import TTornado
+from thrift.Thrift import TApplicationException
 from thrift.protocol import TBinaryProtocol
-from thrift.transport.TTransport import TTransportException
 
 from ThriftTest import ThriftTest
 from ThriftTest.ttypes import Xception, Xtruct
@@ -55,6 +55,8 @@
         pass
 
     def testString(self, s):
+        if s == 'unexpected_error':
+            raise Exception(s)
         return s
 
     def testByte(self, b):
@@ -85,7 +87,7 @@
             x.message = s
             raise x
         elif s == 'throw_undeclared':
-            raise ValueError("foo")
+            raise ValueError('testing undeclared exception')
 
     def testOneway(self, seconds):
         start = time.time()
@@ -97,6 +99,7 @@
         self.test_instance.io_loop.add_timeout(
             datetime.timedelta(seconds=seconds),
             fire_oneway)
+        raise Exception('testing exception in oneway method')
 
     def testNest(self, thing):
         return thing
@@ -187,10 +190,11 @@
         self.assertEqual(y.i32_thing, -3)
         self.assertEqual(y.i64_thing, -5)
 
+    @gen_test
     def test_oneway(self):
-        self.client.testOneway(0)
-        start, end, seconds = self.wait(timeout=1)
-        self.assertAlmostEqual(seconds, (end - start), places=3)
+        self.client.testOneway(1)
+        v = yield self.client.testI32(-1)
+        self.assertEqual(v, -1)
 
     @gen_test
     def test_map(self):
@@ -203,8 +207,6 @@
 
     @gen_test
     def test_exception(self):
-        yield self.client.testException('Safe')
-
         try:
             yield self.client.testException('Xception')
         except Xception as ex:
@@ -214,11 +216,13 @@
             self.fail("should have gotten exception")
         try:
             yield self.client.testException('throw_undeclared')
-        except TTransportException as ex:
+        except TApplicationException:
             pass
         else:
             self.fail("should have gotten exception")
 
+        yield self.client.testException('Safe')
+
 
 def suite():
     suite = unittest.TestSuite()