diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/CompilationErrorHandler.java b/compiler/backend/src/org/jetbrains/jet/codegen/CompilationErrorHandler.java
new file mode 100644
index 00000000000..b6ea15aa364
--- /dev/null
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/CompilationErrorHandler.java
@@ -0,0 +1,16 @@
+package org.jetbrains.jet.codegen;
+
+/**
+ * @author abreslav
+ */
+public interface CompilationErrorHandler {
+
+    CompilationErrorHandler THROW_EXCEPTION = new CompilationErrorHandler() {
+        @Override
+        public void reportError(String message, String fileUrl) {
+            throw new IllegalStateException(message);
+        }
+    };
+
+    void reportError(String message, String fileUrl);
+}
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java b/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
index 84e40db7f9e..b2097c462e1 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
@@ -100,11 +100,20 @@ public class GenerationState {
     }
 
     public void compileCorrectNamespaces(BindingContext bindingContext, List<JetNamespace> namespaces) {
+        compileCorrectNamespaces(bindingContext, namespaces, CompilationErrorHandler.THROW_EXCEPTION);
+    }
+
+    public void compileCorrectNamespaces(BindingContext bindingContext, List<JetNamespace> namespaces, CompilationErrorHandler errorHandler) {
         typeMapper = new JetTypeMapper(standardLibrary, bindingContext);
         bindingContexts.push(bindingContext);
         try {
             for (JetNamespace namespace : namespaces) {
-                generateNamespace(namespace);
+                try {
+                    generateNamespace(namespace);
+                }
+                catch (Throwable e) {
+                    errorHandler.reportError("Exception: " + e.getClass().getCanonicalName() + ": " + e.getMessage(), namespace.getContainingFile().getVirtualFile().getUrl());
+                }
             }
         }
         finally {
diff --git a/idea/src/org/jetbrains/jet/plugin/compiler/JetCompiler.java b/idea/src/org/jetbrains/jet/plugin/compiler/JetCompiler.java
index f43532c0c28..f09506cd271 100644
--- a/idea/src/org/jetbrains/jet/plugin/compiler/JetCompiler.java
+++ b/idea/src/org/jetbrains/jet/plugin/compiler/JetCompiler.java
@@ -18,6 +18,7 @@ import com.intellij.util.Chunk;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.codegen.ClassBuilderFactory;
 import org.jetbrains.jet.codegen.ClassFileFactory;
+import org.jetbrains.jet.codegen.CompilationErrorHandler;
 import org.jetbrains.jet.codegen.GenerationState;
 import org.jetbrains.jet.lang.cfg.pseudocode.JetControlFlowDataTraceFactory;
 import org.jetbrains.jet.lang.diagnostics.Diagnostic;
@@ -101,7 +102,12 @@ public class JetCompiler implements TranslatingCompiler {
                 }
                 
                 if (!errors) {
-                    generationState.compileCorrectNamespaces(bindingContext, namespaces);
+                    generationState.compileCorrectNamespaces(bindingContext, namespaces, new CompilationErrorHandler() {
+                        @Override
+                        public void reportError(String message, String fileUrl) {
+                            compileContext.addMessage(CompilerMessageCategory.WARNING, message, fileUrl, 0, 0);
+                        }
+                    });
 ///////////
 //                    GenerationState generationState2 = new GenerationState(compileContext.getProject(), ClassBuilderFactory.TEXT);
 //                    generationState2.compileCorrectNamespaces(bindingContext, namespaces);