diff --git a/opentelemetry-sdk/src/opentelemetry/sdk/trace/__init__.py b/opentelemetry-sdk/src/opentelemetry/sdk/trace/__init__.py
index 7f305dcc0d9..f7d471a78f3 100644
--- a/opentelemetry-sdk/src/opentelemetry/sdk/trace/__init__.py
+++ b/opentelemetry-sdk/src/opentelemetry/sdk/trace/__init__.py
@@ -524,7 +524,7 @@ def use_span(
                     )
                 )
 
-                raise
+            raise
 
         finally:
             if end_on_exit:
diff --git a/opentelemetry-sdk/tests/trace/test_trace.py b/opentelemetry-sdk/tests/trace/test_trace.py
index 188c019acc1..9592d9a15ed 100644
--- a/opentelemetry-sdk/tests/trace/test_trace.py
+++ b/opentelemetry-sdk/tests/trace/test_trace.py
@@ -679,6 +679,32 @@ def error_status_test(context):
             .start_as_current_span("root")
         )
 
+    def test_override_error_status(self):
+        def error_status_test(context):
+            with self.assertRaises(AssertionError):
+                with context as root:
+                    root.set_status(
+                        trace_api.status.Status(
+                            StatusCanonicalCode.UNAVAILABLE,
+                            "Error: Unavailable",
+                        )
+                    )
+                    raise AssertionError("unknown")
+
+            self.assertIs(
+                root.status.canonical_code, StatusCanonicalCode.UNAVAILABLE
+            )
+            self.assertEqual(root.status.description, "Error: Unavailable")
+
+        error_status_test(
+            trace.TracerProvider().get_tracer(__name__).start_span("root")
+        )
+        error_status_test(
+            trace.TracerProvider()
+            .get_tracer(__name__)
+            .start_as_current_span("root")
+        )
+
 
 def span_event_start_fmt(span_processor_name, span_name):
     return span_processor_name + ":" + span_name + ":start"