diff --git a/src/test/java/com/github/nylle/javafixture/InstanceFactoryTest.java b/src/test/java/com/github/nylle/javafixture/InstanceFactoryTest.java
index 7ab4421..f52dc10 100644
--- a/src/test/java/com/github/nylle/javafixture/InstanceFactoryTest.java
+++ b/src/test/java/com/github/nylle/javafixture/InstanceFactoryTest.java
@@ -12,6 +12,7 @@
 import com.github.nylle.javafixture.testobjects.factorymethod.TestObjectWithNonPublicFactoryMethods;
 import com.github.nylle.javafixture.testobjects.interfaces.InterfaceWithDefaultMethod;
 import com.github.nylle.javafixture.testobjects.withconstructor.ConstructorExceptionAndNoFactoryMethod;
+import com.github.nylle.javafixture.testobjects.withconstructor.ConstructorExceptionAndThrowingFactoryMethod;
 import com.github.nylle.javafixture.testobjects.withconstructor.TestObjectWithConstructedField;
 import com.github.nylle.javafixture.testobjects.withconstructor.TestObjectWithGenericConstructor;
 import com.github.nylle.javafixture.testobjects.withconstructor.TestObjectWithPrivateConstructor;
@@ -125,6 +126,22 @@ void fallbackToFactoryMethodWhenConstructorThrowsException() {
             assertThat(result.getValue()).isNotNull();
         }
 
+        @Test
+        @DisplayName("will fallback to factory method and fail on exception")
+        void throwWhenFallbackFails() {
+            var sut = new InstanceFactory(new SpecimenFactory(new Context(Configuration.configure())));
+
+            assertThatExceptionOfType(SpecimenException.class)
+                    .isThrownBy(() -> sut.construct(new SpecimenType<ConstructorExceptionAndThrowingFactoryMethod>() {}, new CustomizationContext(List.of(), Map.of(), false)))
+                    .withMessageContaining("Cannot create instance of class")
+                    .havingCause()
+                    .isInstanceOf(InvocationTargetException.class)
+                    .havingCause()
+                    .isInstanceOf(IllegalArgumentException.class)
+                    .withMessage("expected for tests")
+                    .withNoCause();
+        }
+
         @Test
         @DisplayName("will fallback to factory method and pass exceptions on")
         void passExceptionToFallbackWhenConstructorThrows() {
diff --git a/src/test/java/com/github/nylle/javafixture/testobjects/withconstructor/ConstructorExceptionAndThrowingFactoryMethod.java b/src/test/java/com/github/nylle/javafixture/testobjects/withconstructor/ConstructorExceptionAndThrowingFactoryMethod.java
new file mode 100644
index 0000000..7254880
--- /dev/null
+++ b/src/test/java/com/github/nylle/javafixture/testobjects/withconstructor/ConstructorExceptionAndThrowingFactoryMethod.java
@@ -0,0 +1,10 @@
+package com.github.nylle.javafixture.testobjects.withconstructor;
+
+public class ConstructorExceptionAndThrowingFactoryMethod {
+    public ConstructorExceptionAndThrowingFactoryMethod() {
+        throw new IllegalArgumentException("expected for tests");
+    }
+    public static ConstructorExceptionAndThrowingFactoryMethod factoryMethod() {
+        throw new IllegalStateException("expected for tests");
+    }
+}