diff --git a/src/bun.js.zig b/src/bun.js.zig
index fb59390ea0..2a71f017ca 100644
--- a/src/bun.js.zig
+++ b/src/bun.js.zig
@@ -323,7 +323,7 @@ pub const Run = struct {
         var printed_sourcemap_warning_and_version = false;
 
         if (vm.loadEntryPoint(this.entry_path)) |promise| {
-            if (promise.status(vm.global.vm()) == .rejected) {
+            if (promise.status(vm.global.vm()) == .rejected and !promise.isHandled(vm.global.vm())) {
                 const handled = vm.uncaughtException(vm.global, promise.result(vm.global.vm()), true);
                 promise.setHandled(vm.global.vm());
 
diff --git a/src/bun.js/VirtualMachine.zig b/src/bun.js/VirtualMachine.zig
index bb91dc2be0..ea9028596a 100644
--- a/src/bun.js/VirtualMachine.zig
+++ b/src/bun.js/VirtualMachine.zig
@@ -569,6 +569,15 @@ pub fn unhandledRejection(this: *jsc.VirtualMachine, globalObject: *JSGlobalObje
     switch (this.unhandledRejectionsMode()) {
         .bun => {
             if (Bun__handleUnhandledRejection(globalObject, reason, promise) > 0) return;
+            // Check if the exception is handled by capture callback
+            const wrapped_reason = wrapUnhandledRejectionErrorForUncaughtException(globalObject, reason);
+            if (this.uncaughtException(globalObject, wrapped_reason, true)) {
+                // Mark the promise as handled to prevent double handling
+                if (promise.asAnyPromise()) |internal_promise| {
+                    internal_promise.setHandled(this.global.vm());
+                }
+                return;
+            }
             // continue to default handler
         },
         .none => {
@@ -660,15 +669,17 @@ pub fn uncaughtException(this: *jsc.VirtualMachine, globalObject: *JSGlobalObjec
         bun.api.node.process.exit(globalObject, 7);
         @panic("Uncaught exception while handling uncaught exception");
     }
-    if (this.exit_on_uncaught_exception) {
-        this.runErrorHandler(err, null);
-        bun.api.node.process.exit(globalObject, 1);
-        @panic("made it past Bun__Process__exit");
-    }
     this.is_handling_uncaught_exception = true;
     defer this.is_handling_uncaught_exception = false;
-    const handled = Bun__handleUncaughtException(globalObject, err.toError() orelse err, if (is_rejection) 1 else 0) > 0;
+    const handled_int = Bun__handleUncaughtException(globalObject, err.toError() orelse err, if (is_rejection) 1 else 0);
+    const handled = handled_int > 0;
     if (!handled) {
+        // If the exception was not handled, check if we should exit
+        if (this.exit_on_uncaught_exception) {
+            this.runErrorHandler(err, null);
+            bun.api.node.process.exit(globalObject, 1);
+            @panic("made it past Bun__Process__exit");
+        }
         // TODO maybe we want a separate code path for uncaught exceptions
         this.unhandled_error_counter += 1;
         this.exit_handler.exit_code = 1;
diff --git a/src/bun.js/bindings/BunProcess.cpp b/src/bun.js/bindings/BunProcess.cpp
index b243763dcd..acd46b0cb4 100644
--- a/src/bun.js/bindings/BunProcess.cpp
+++ b/src/bun.js/bindings/BunProcess.cpp
@@ -1109,7 +1109,10 @@ extern "C" int Bun__handleUncaughtException(JSC::JSGlobalObject* lexicalGlobalOb
     auto capture = process->getUncaughtExceptionCaptureCallback();
     if (!capture.isEmpty() && !capture.isUndefinedOrNull()) {
         auto scope = DECLARE_CATCH_SCOPE(vm);
-        (void)call(lexicalGlobalObject, capture, args, "uncaughtExceptionCaptureCallback"_s);
+        // setUncaughtExceptionCaptureCallback expects only the exception, not the event name
+        MarkedArgumentBuffer captureArgs;
+        captureArgs.append(exception);
+        (void)call(lexicalGlobalObject, capture, captureArgs, "uncaughtExceptionCaptureCallback"_s);
         if (auto ex = scope.exception()) {
             scope.clearException();
             // if an exception is thrown in the uncaughtException handler, we abort