diff --git a/core/shared/src/main/scala/cats/effect/IOFiber.scala b/core/shared/src/main/scala/cats/effect/IOFiber.scala
index 727193ac1b..42e0648125 100644
--- a/core/shared/src/main/scala/cats/effect/IOFiber.scala
+++ b/core/shared/src/main/scala/cats/effect/IOFiber.scala
@@ -241,10 +241,11 @@ private final class IOFiber[A](
 
         case 1 =>
           val cur = cur0.asInstanceOf[Error]
-          if (!NonFatal(cur.t))
-            onFatalFailure(cur.t)
+          val ex = cur.t
+          if (!NonFatal(ex))
+            onFatalFailure(ex)
 
-          runLoop(failed(cur.t, 0), nextCancelation, nextAutoCede)
+          runLoop(failed(ex, 0), nextCancelation, nextAutoCede)
 
         case 2 =>
           val cur = cur0.asInstanceOf[Delay[Any]]
@@ -437,6 +438,8 @@ private final class IOFiber[A](
             case 1 =>
               val error = ioa.asInstanceOf[Error]
               val t = error.t
+              if (!NonFatal(t))
+                onFatalFailure(t)
               // We need to augment the exception here because it doesn't get
               // forwarded to the `failed` path.
               Tracing.augmentThrowable(runtime.enhancedExceptions, t, tracingEvents)
diff --git a/tests/jvm/src/test/scala/cats/effect/IOAppSpec.scala b/tests/jvm/src/test/scala/cats/effect/IOAppSpec.scala
index 75688054fd..7838f2cc87 100644
--- a/tests/jvm/src/test/scala/cats/effect/IOAppSpec.scala
+++ b/tests/jvm/src/test/scala/cats/effect/IOAppSpec.scala
@@ -187,6 +187,20 @@ class IOAppSpec extends Specification {
           h.stderr() must contain("Boom!")
         }
 
+        "exit on raising a fatal error with attempt" in {
+          val h = platform(RaiseFatalErrorAttempt, List.empty)
+          h.awaitStatus() mustEqual 1
+          h.stderr() must contain ("Boom!")
+          h.stdout() must not(contain("sadness"))
+        }
+
+        "exit on raising a fatal error with handleError" in {
+          val h = platform(RaiseFatalErrorHandle, List.empty)
+          h.awaitStatus() mustEqual 1
+          h.stderr() must contain ("Boom!")
+          h.stdout() must not(contain("sadness"))
+        }
+
         "warn on global runtime collision" in {
           val h = platform(GlobalRacingInit, List.empty)
           h.awaitStatus() mustEqual 0
diff --git a/tests/shared/src/main/scala/catseffect/examples.scala b/tests/shared/src/main/scala/catseffect/examples.scala
index d1262bec53..b9f5688c3e 100644
--- a/tests/shared/src/main/scala/catseffect/examples.scala
+++ b/tests/shared/src/main/scala/catseffect/examples.scala
@@ -58,6 +58,24 @@ package examples {
     }
   }
 
+  object RaiseFatalErrorAttempt extends IOApp {
+    def run(args: List[String]): IO[ExitCode] = {
+      IO.raiseError[Unit](new OutOfMemoryError("Boom!"))
+        .attempt
+        .flatMap(_ => IO.println("sadness"))
+        .as(ExitCode.Success)
+    }
+  }
+
+  object RaiseFatalErrorHandle extends IOApp {
+    def run(args: List[String]): IO[ExitCode] = {
+      IO.raiseError[Unit](new OutOfMemoryError("Boom!"))
+        .handleError(_ => ())
+        .flatMap(_ => IO.println("sadness"))
+        .as(ExitCode.Success)
+    }
+  }
+
   object Canceled extends IOApp {
     def run(args: List[String]): IO[ExitCode] =
       IO.canceled.as(ExitCode.Success)
diff --git a/tests/shared/src/test/scala/cats/effect/IOSpec.scala b/tests/shared/src/test/scala/cats/effect/IOSpec.scala
index 538dbce557..d8152ccc81 100644
--- a/tests/shared/src/test/scala/cats/effect/IOSpec.scala
+++ b/tests/shared/src/test/scala/cats/effect/IOSpec.scala
@@ -345,20 +345,6 @@ class IOSpec extends BaseSpec with Discipline with IOPlatformSpecification {
         } yield reported
         test must completeAs(true)
       }
-
-      "immediately surface fatal errors" in ticked { implicit ticker =>
-        val error = new VirtualMachineError {}
-        val io = IO.raiseError[Unit](error).voidError
-
-        val fatalThrown =
-          try {
-            unsafeRun[Unit](io)
-            false
-          } catch {
-            case t: Throwable => t eq error
-          }
-        IO(fatalThrown) must completeAs(true)
-      }
     }
 
     "suspension of side effects" should {