diff --git a/sdk/release_notes.md b/sdk/release_notes.md
index 4988d71c7..67afe6f17 100644
--- a/sdk/release_notes.md
+++ b/sdk/release_notes.md
@@ -4,14 +4,10 @@
 - My change description (#PR/#issue)
 -->
 
-### Microsoft.Azure.Functions.Worker.Sdk 1.18.1
+### Microsoft.Azure.Functions.Worker.Sdk <version>
 
-- Updated `Microsoft.Azure.Functions.Worker.Sdk.Generators` reference to 1.3.4.
+- Changed exception handling in function invocation path to ensure fatal exceptions bubble up.
 
-### Microsoft.Azure.Functions.Worker.Sdk.Generators 1.3.4
-
-- Changed `FunctionExecutorGenerator` to avoid generation of long `if`/`else` chains for apps with a large number of functions.
-
-- Use full namespace for `Task.FromResult` in function metadata provider generator to avoid namespace conflict (#2681)
+### Microsoft.Azure.Functions.Worker.Sdk.Generators <version>
 
 - <entry>
diff --git a/src/DotNetWorker.Core/ExceptionExtensions.cs b/src/DotNetWorker.Core/ExceptionExtensions.cs
new file mode 100644
index 000000000..5080d4f7a
--- /dev/null
+++ b/src/DotNetWorker.Core/ExceptionExtensions.cs
@@ -0,0 +1,31 @@
+// Copyright (c) .NET Foundation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+
+using System;
+
+namespace Microsoft.Azure.Functions.Worker.Core
+{
+    internal static class ExceptionExtensions
+    {
+        public static bool IsFatal(this Exception? exception)
+        {
+            while (exception is not null)
+            {
+                if (exception 
+                    is (OutOfMemoryException and not InsufficientMemoryException)
+                    or AppDomainUnloadedException
+                    or BadImageFormatException
+                    or CannotUnloadAppDomainException
+                    or InvalidProgramException
+                    or AccessViolationException)
+                {
+                    return true;
+                }
+
+                exception = exception.InnerException;
+            }
+
+            return false;
+        }
+    }
+}
diff --git a/src/DotNetWorker.Grpc/Handlers/InvocationHandler.cs b/src/DotNetWorker.Grpc/Handlers/InvocationHandler.cs
index 52688ea7a..8ddfaea64 100644
--- a/src/DotNetWorker.Grpc/Handlers/InvocationHandler.cs
+++ b/src/DotNetWorker.Grpc/Handlers/InvocationHandler.cs
@@ -6,6 +6,7 @@
 using System.Threading;
 using System.Threading.Tasks;
 using Microsoft.Azure.Functions.Worker.Context.Features;
+using Microsoft.Azure.Functions.Worker.Core;
 using Microsoft.Azure.Functions.Worker.Grpc;
 using Microsoft.Azure.Functions.Worker.Grpc.Features;
 using Microsoft.Azure.Functions.Worker.Grpc.Messages;
@@ -113,7 +114,7 @@ public async Task<InvocationResponse> InvokeAsync(InvocationRequest request)
 
                 response.Result.Status = StatusResult.Types.Status.Success;
             }
-            catch (Exception ex)
+            catch (Exception ex) when (!ex.IsFatal())
             {
                 response.Result.Exception = _workerOptions.EnableUserCodeException ? ex.ToUserRpcException() : ex.ToRpcException();
                 response.Result.Status = StatusResult.Types.Status.Failure;
diff --git a/test/DotNetWorkerTests/ExceptionExtensionTests.cs b/test/DotNetWorkerTests/ExceptionExtensionTests.cs
new file mode 100644
index 000000000..edf020c44
--- /dev/null
+++ b/test/DotNetWorkerTests/ExceptionExtensionTests.cs
@@ -0,0 +1,36 @@
+// Copyright (c) .NET Foundation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+
+using System;
+using Microsoft.Azure.Functions.Worker.Core;
+using Xunit;
+
+namespace Microsoft.Azure.Functions.Worker.Tests
+{
+    public class ExceptionExtensionTests
+    {
+        [Theory]
+        [ClassData(typeof(ExceptionTestData))]
+        public void IsFatal_ReturnsTrueForFatalExceptions(Exception exception, bool isFatal)
+        {
+            var result = exception.IsFatal();
+            
+            Assert.Equal(result, isFatal);
+        }
+
+        public class ExceptionTestData : TheoryData<Exception, bool>
+        {
+            public ExceptionTestData()
+            {
+                Add(new OutOfMemoryException(), true);
+                Add(new AppDomainUnloadedException(), true);
+                Add(new BadImageFormatException(), true);
+                Add(new CannotUnloadAppDomainException(), true);
+                Add(new InvalidProgramException(), true);
+                Add(new AccessViolationException(), true);
+                Add(new InsufficientMemoryException(), false);
+                Add(new Exception("test", new OutOfMemoryException()), true);
+            }
+        }
+    }
+}