A system and method for handling exceptions in a multi-threaded computing environment. Information, such as that relating to an error state or pertaining to the propagation history of an exception, is stored in a separate object from the exception object itself. The separate propagation information object is accessible to the plurality of threads that are used to execute a user task. The separate object allows rich diagnostic information pertaining to the exception and its propagation through multiple threads to be presented to the developer of the software.