diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OperatorModifierChecker.kt b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OperatorModifierChecker.kt
index 27715890d1c..f534d8b36ec 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/OperatorModifierChecker.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/OperatorModifierChecker.kt
@@ -57,9 +57,8 @@ object OperatorModifierChecker {
 
         val checkResult = OperatorChecks.checkOperator(functionDescriptor)
         if (checkResult.isSuccess) {
-            if (functionDescriptor.name == OperatorNameConventions.COROUTINE_HANDLE_RESULT
-                    && !languageFeatureSettings.supportsFeature(LanguageFeature.Coroutines)
-            ) {
+            if (functionDescriptor.name in COROUTINE_OPERATOR_NAMES
+                    && !languageFeatureSettings.supportsFeature(LanguageFeature.Coroutines)) {
                 diagnosticHolder.report(Errors.UNSUPPORTED_FEATURE.on(modifier, LanguageFeature.Coroutines))
             }
             return
@@ -73,3 +72,6 @@ object OperatorModifierChecker {
         diagnosticHolder.report(Errors.INAPPLICABLE_OPERATOR_MODIFIER.on(modifier, errorDescription))
     }
 }
+
+private val COROUTINE_OPERATOR_NAMES =
+        setOf(OperatorNameConventions.COROUTINE_HANDLE_RESULT, OperatorNameConventions.COROUTINE_HANDLE_EXCEPTION)
diff --git a/compiler/testData/diagnostics/tests/coroutines/unsupported.kt b/compiler/testData/diagnostics/tests/coroutines/unsupported.kt
index 139519b1f1c..0e4837f0cb6 100644
--- a/compiler/testData/diagnostics/tests/coroutines/unsupported.kt
+++ b/compiler/testData/diagnostics/tests/coroutines/unsupported.kt
@@ -7,6 +7,9 @@ class Controller {
     }
 
     <!UNSUPPORTED_FEATURE!>operator<!> fun handleResult(x: String, y: Continuation<Nothing>) {}
+
+    <!UNSUPPORTED_FEATURE!>operator<!> fun handleException(x: Throwable, y: Continuation<Nothing>) {
+    }
 }
 
 fun builder(<!UNSUPPORTED_FEATURE!>coroutine<!> c: Controller.() -> Continuation<Unit>) {
diff --git a/compiler/testData/diagnostics/tests/coroutines/unsupported.txt b/compiler/testData/diagnostics/tests/coroutines/unsupported.txt
index c554e40fa6d..15887f61bca 100644
--- a/compiler/testData/diagnostics/tests/coroutines/unsupported.txt
+++ b/compiler/testData/diagnostics/tests/coroutines/unsupported.txt
@@ -6,6 +6,7 @@ public fun builder(/*0*/ coroutine c: Controller.() -> kotlin.coroutines.Continu
 public final class Controller {
     public constructor Controller()
     public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable, /*1*/ y: kotlin.coroutines.Continuation<kotlin.Nothing>): kotlin.Unit
     public final operator fun handleResult(/*0*/ x: kotlin.String, /*1*/ y: kotlin.coroutines.Continuation<kotlin.Nothing>): kotlin.Unit
     public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
     public final suspend fun suspendHere(/*0*/ x: kotlin.coroutines.Continuation<kotlin.String>): kotlin.Unit
diff --git a/compiler/testData/diagnostics/tests/coroutines/wrongHandleException.kt b/compiler/testData/diagnostics/tests/coroutines/wrongHandleException.kt
new file mode 100644
index 00000000000..e9aca72775b
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/coroutines/wrongHandleException.kt
@@ -0,0 +1,35 @@
+// !DIAGNOSTICS: -UNUSED_PARAMETER
+class A1 {
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun handleException(x: Throwable) {
+    }
+}
+
+class A2 {
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun handleException(x: Throwable, y: Int) {
+    }
+}
+
+class A3 {
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun handleException(x: Throwable, y: Continuation<Any>) {
+    }
+}
+
+class A4 {
+    operator fun handleException(x: Throwable, y: Continuation<Nothing>) {
+    }
+}
+
+class A5 {
+    // TODO: Allow?
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun handleException(x: Throwable, y: Continuation<Nothing>): Int = 1
+}
+
+class A6 {
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun handleException(x: Throwable = Exception(), y: Continuation<Nothing>) {}
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun handleException(x: Throwable, vararg y: Continuation<Nothing>) {}
+}
+
+class A7 {
+    <!INAPPLICABLE_OPERATOR_MODIFIER!>operator<!> fun <T> handleException(x: Throwable, y: Continuation<Nothing>) {
+    }
+}
diff --git a/compiler/testData/diagnostics/tests/coroutines/wrongHandleException.txt b/compiler/testData/diagnostics/tests/coroutines/wrongHandleException.txt
new file mode 100644
index 00000000000..3e9ec24ec3a
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/coroutines/wrongHandleException.txt
@@ -0,0 +1,58 @@
+package
+
+public final class A1 {
+    public constructor A1()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A2 {
+    public constructor A2()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable, /*1*/ y: kotlin.Int): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A3 {
+    public constructor A3()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable, /*1*/ y: kotlin.coroutines.Continuation<kotlin.Any>): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A4 {
+    public constructor A4()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable, /*1*/ y: kotlin.coroutines.Continuation<kotlin.Nothing>): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A5 {
+    public constructor A5()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable, /*1*/ y: kotlin.coroutines.Continuation<kotlin.Nothing>): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A6 {
+    public constructor A6()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable, /*1*/ vararg y: kotlin.coroutines.Continuation<kotlin.Nothing> /*kotlin.Array<out kotlin.coroutines.Continuation<kotlin.Nothing>>*/): kotlin.Unit
+    public final operator fun handleException(/*0*/ x: kotlin.Throwable = ..., /*1*/ y: kotlin.coroutines.Continuation<kotlin.Nothing>): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class A7 {
+    public constructor A7()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public final operator fun </*0*/ T> handleException(/*0*/ x: kotlin.Throwable, /*1*/ y: kotlin.coroutines.Continuation<kotlin.Nothing>): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
index 7f75f914c1e..e11f2b4984d 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/DiagnosticsTestGenerated.java
@@ -3957,6 +3957,12 @@ public class DiagnosticsTestGenerated extends AbstractDiagnosticsTest {
                 doTest(fileName);
             }
 
+            @TestMetadata("wrongHandleException.kt")
+            public void testWrongHandleException() throws Exception {
+                String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/coroutines/wrongHandleException.kt");
+                doTest(fileName);
+            }
+
             @TestMetadata("wrongHandleResult.kt")
             public void testWrongHandleResult() throws Exception {
                 String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/coroutines/wrongHandleResult.kt");
diff --git a/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt b/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt
index 96ea85fe2ca..564acbfc672 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/types/TypeUtils.kt
@@ -19,8 +19,11 @@ package org.jetbrains.kotlin.types.typeUtil
 import org.jetbrains.kotlin.builtins.KotlinBuiltIns
 import org.jetbrains.kotlin.descriptors.*
 import org.jetbrains.kotlin.descriptors.annotations.Annotations
+import org.jetbrains.kotlin.name.FqName
 import org.jetbrains.kotlin.resolve.DescriptorUtils
 import org.jetbrains.kotlin.resolve.calls.inference.isCaptured
+import org.jetbrains.kotlin.resolve.descriptorUtil.fqNameSafe
+import org.jetbrains.kotlin.resolve.descriptorUtil.fqNameUnsafe
 import org.jetbrains.kotlin.types.*
 import org.jetbrains.kotlin.types.checker.KotlinTypeChecker
 import java.util.*
@@ -56,6 +59,10 @@ fun KotlinType.isNullableAny(): Boolean = KotlinBuiltIns.isNullableAny(this)
 fun KotlinType.isBoolean(): Boolean = KotlinBuiltIns.isBoolean(this)
 fun KotlinType.isPrimitiveNumberType(): Boolean = KotlinBuiltIns.isPrimitiveType(this) && !isBoolean()
 fun KotlinType.isBooleanOrNullableBoolean(): Boolean = KotlinBuiltIns.isBooleanOrNullableBoolean(this)
+fun KotlinType.isThrowable(): Boolean = isConstructedFromClassWithGivenFqName(KotlinBuiltIns.FQ_NAMES.throwable) && !isMarkedNullable
+
+fun KotlinType.isConstructedFromClassWithGivenFqName(fqName: FqName) =
+        (constructor.declarationDescriptor as? ClassDescriptor)?.fqNameUnsafe == fqName.toUnsafe()
 
 fun KotlinType.isTypeParameter(): Boolean = TypeUtils.isTypeParameter(this)
 
diff --git a/core/descriptors/src/org/jetbrains/kotlin/util/OperatorChecker.kt b/core/descriptors/src/org/jetbrains/kotlin/util/OperatorChecker.kt
index cdb18eab35f..e11c38c3049 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/util/OperatorChecker.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/util/OperatorChecker.kt
@@ -23,11 +23,12 @@ import org.jetbrains.kotlin.descriptors.DeclarationDescriptor
 import org.jetbrains.kotlin.descriptors.FunctionDescriptor
 import org.jetbrains.kotlin.name.Name
 import org.jetbrains.kotlin.resolve.DescriptorUtils
-import org.jetbrains.kotlin.resolve.descriptorUtil.*
+import org.jetbrains.kotlin.resolve.descriptorUtil.builtIns
+import org.jetbrains.kotlin.resolve.descriptorUtil.hasDefaultValue
+import org.jetbrains.kotlin.resolve.descriptorUtil.isExtension
+import org.jetbrains.kotlin.resolve.descriptorUtil.module
 import org.jetbrains.kotlin.types.KotlinType
-import org.jetbrains.kotlin.types.typeUtil.isNothing
-import org.jetbrains.kotlin.types.typeUtil.isSubtypeOf
-import org.jetbrains.kotlin.types.typeUtil.makeNotNullable
+import org.jetbrains.kotlin.types.typeUtil.*
 import org.jetbrains.kotlin.util.MemberKindCheck.Member
 import org.jetbrains.kotlin.util.MemberKindCheck.MemberOrExtension
 import org.jetbrains.kotlin.util.OperatorNameConventions.ASSIGNMENT_OPERATIONS
@@ -35,6 +36,7 @@ import org.jetbrains.kotlin.util.OperatorNameConventions.BINARY_OPERATION_NAMES
 import org.jetbrains.kotlin.util.OperatorNameConventions.COMPARE_TO
 import org.jetbrains.kotlin.util.OperatorNameConventions.COMPONENT_REGEX
 import org.jetbrains.kotlin.util.OperatorNameConventions.CONTAINS
+import org.jetbrains.kotlin.util.OperatorNameConventions.COROUTINE_HANDLE_EXCEPTION
 import org.jetbrains.kotlin.util.OperatorNameConventions.COROUTINE_HANDLE_RESULT
 import org.jetbrains.kotlin.util.OperatorNameConventions.DEC
 import org.jetbrains.kotlin.util.OperatorNameConventions.EQUALS
@@ -188,19 +190,29 @@ object OperatorChecks {
             },
             Checks(ASSIGNMENT_OPERATIONS, MemberOrExtension, ReturnsUnit, SingleValueParameter, NoDefaultAndVarargsCheck),
             Checks(COMPONENT_REGEX, MemberOrExtension, NoValueParameters),
-            Checks(
-                    COROUTINE_HANDLE_RESULT, Member, ValueParameterCountCheck.Equals(2), ReturnsUnit,
-                    NoDefaultAndVarargsCheck, NoTypeParametersCheck) {
-                val secondParameter = valueParameters[1]
-                ensure(
-                        secondParameter.type.constructor.declarationDescriptor?.fqNameUnsafe == DescriptorUtils.CONTINUATION_INTERFACE_FQ_NAME.toUnsafe()
-                            && secondParameter.type.arguments[0].type.isNothing()
-                ) {
-                    "Second parameter should be Continuation<Nothing>"
+            Checks(COROUTINE_HANDLE_RESULT, Member, ValueParameterCountCheck.Equals(2), ReturnsUnit, NoDefaultAndVarargsCheck,
+                   NoTypeParametersCheck) {
+                checkHandleSecondParameter()
+            },
+            Checks(COROUTINE_HANDLE_EXCEPTION, Member, ValueParameterCountCheck.Equals(2), ReturnsUnit, NoDefaultAndVarargsCheck,
+                   NoTypeParametersCheck) {
+                checkHandleSecondParameter()
+                ?: ensure(valueParameters[0].type.isThrowable()) {
+                    "First parameter should be 'Throwable'"
                 }
             }
     )
 
+    private fun FunctionDescriptor.checkHandleSecondParameter(): String? {
+        val secondParameter = valueParameters[1]
+        return ensure(
+                secondParameter.type.isConstructedFromClassWithGivenFqName(DescriptorUtils.CONTINUATION_INTERFACE_FQ_NAME)
+                && secondParameter.type.arguments[0].type.isNothing()
+        ) {
+            "Second parameter should be Continuation<Nothing>"
+        }
+    }
+
     fun checkOperator(functionDescriptor: FunctionDescriptor): CheckResult {
         for (check in CHECKS) {
             if (!check.isApplicable(functionDescriptor)) continue
diff --git a/core/descriptors/src/org/jetbrains/kotlin/util/OperatorNameConventions.kt b/core/descriptors/src/org/jetbrains/kotlin/util/OperatorNameConventions.kt
index ac423719a28..3c33a2394cd 100644
--- a/core/descriptors/src/org/jetbrains/kotlin/util/OperatorNameConventions.kt
+++ b/core/descriptors/src/org/jetbrains/kotlin/util/OperatorNameConventions.kt
@@ -57,6 +57,7 @@ object OperatorNameConventions {
     @JvmField val PLUS_ASSIGN = Name.identifier("plusAssign")
     @JvmField val MINUS_ASSIGN = Name.identifier("minusAssign")
     @JvmField val COROUTINE_HANDLE_RESULT = Name.identifier("handleResult")
+    @JvmField val COROUTINE_HANDLE_EXCEPTION = Name.identifier("handleException")
 
     // If you add new unary, binary or assignment operators, add it to OperatorConventions as well