diff --git a/vllm/engine/multiprocessing/engine.py b/vllm/engine/multiprocessing/engine.py
index eb1512ca17822..a73b4c825b11c 100644
--- a/vllm/engine/multiprocessing/engine.py
+++ b/vllm/engine/multiprocessing/engine.py
@@ -5,6 +5,7 @@
 
 import cloudpickle
 import zmq
+from ray.exceptions import RayTaskError
 
 from vllm import AsyncEngineArgs, SamplingParams
 # yapf conflicts with isort for this block
@@ -305,6 +306,11 @@ def _health_check(self):
     def _send_outputs(self, outputs: REQUEST_OUTPUTS_T):
         """Send List of RequestOutput to RPCClient."""
         if outputs:
+            # RayTaskError might not pickelable here. We need to unpack the
+            # underlying exception as the real exception in the output.
+            if (isinstance(outputs, RPCError)
+                    and isinstance(outputs.exception, RayTaskError)):
+                outputs.exception = outputs.exception.cause
             output_bytes = pickle.dumps(outputs)
             self.output_socket.send_multipart((output_bytes, ), copy=False)