diff --git a/src/DynamoCoreWpf/ViewModels/Core/DynamoViewModel.cs b/src/DynamoCoreWpf/ViewModels/Core/DynamoViewModel.cs
index c96effb5b2c..2cd2710766e 100644
--- a/src/DynamoCoreWpf/ViewModels/Core/DynamoViewModel.cs
+++ b/src/DynamoCoreWpf/ViewModels/Core/DynamoViewModel.cs
@@ -822,10 +822,18 @@ private void CurrentDispatcher_UnhandledException(object sender, DispatcherUnhan
                 return;
             }
 
-            // Try to handle the exception so that the host app can continue (in most cases).
-            // In some cases Dynamo code might still crash after this handler kicks in. In these edge cases
-            // we might see 2 CER windows (the extra one from the host app) - CER tool might handle this in the future.
-            e.Handled = true;
+            if (DynamoModel.IsTestMode)
+            {
+                // Do not handle the exception in test mode.
+                // Let the test host handle it.
+            }
+            else
+            {
+                // Try to handle the exception so that the host app can continue (in most cases).
+                // In some cases Dynamo code might still crash after this handler kicks in. In these edge cases
+                // we might see 2 CER windows (the extra one from the host app) - CER tool might handle this in the future.
+                e.Handled = true;
+            }
 
             CrashGracefully(e.Exception);
         }
@@ -857,12 +865,6 @@ private void CrashGracefully(Exception ex, bool fatal = false)
                         var crashDetails = new CrashErrorReportArgs(ex);
                         DynamoConsoleLogger.OnLogErrorToDynamoConsole($"Unhandled exception coming from package {faultyPkg.Name} was handled: {crashDetails.Details}");
                         Analytics.TrackException(ex, false);
-
-                        if (DynamoModel.IsTestMode)
-                        {
-                            // Rethrow the exception during testing.
-                            throw ex;
-                        }
                         return;
                     }
                 }
@@ -874,8 +876,8 @@ private void CrashGracefully(Exception ex, bool fatal = false)
 
                 if (DynamoModel.IsTestMode)
                 {
-                    // Rethrow the exception during testing.
-                    throw ex;
+                    // Do not show the crash UI during tests.
+                    return;
                 }
 
                 Model?.OnRequestsCrashPrompt(crashData);
diff --git a/test/DynamoCoreWpfTests/PackageManager/PackageManagerViewExtensionTests.cs b/test/DynamoCoreWpfTests/PackageManager/PackageManagerViewExtensionTests.cs
index af51fb2b1b2..41ee6c73f49 100644
--- a/test/DynamoCoreWpfTests/PackageManager/PackageManagerViewExtensionTests.cs
+++ b/test/DynamoCoreWpfTests/PackageManager/PackageManagerViewExtensionTests.cs
@@ -339,16 +339,11 @@ void DynamoConsoleLogger_LogErrorToDynamoConsole(string obj)
             }
 
             DynamoConsoleLogger.LogErrorToDynamoConsole += DynamoConsoleLogger_LogErrorToDynamoConsole;
-
-            // Test live conditions of exception handling
-            using (Disposable.Create(() => { DynamoModel.IsTestMode = false; }, () => { DynamoModel.IsTestMode = true; }))
+            Assert.Throws<NotImplementedException>(() =>
             {
-                Assert.DoesNotThrow(() =>
-                {
-                    loader.LoadPackages(new List<Package>() { pkg });
-                    DispatcherUtil.DoEventsLoop(() => caughtExceptionFromPkg);
-                });
-            }
+                loader.LoadPackages(new List<Package>() { pkg });
+                DispatcherUtil.DoEventsLoop(() => caughtExceptionFromPkg);
+            });
 
             Assert.AreEqual(1, count);
             Assert.IsTrue(caughtExceptionFromPkg);