diff --git a/functions/errors/contract/src/main/proto/errors.proto b/functions/errors/contract/src/main/proto/errors.proto
index 3b7c624f..b0293513 100644
--- a/functions/errors/contract/src/main/proto/errors.proto
+++ b/functions/errors/contract/src/main/proto/errors.proto
@@ -14,6 +14,7 @@ service FailingService {
   rpc Fail (ErrorMessage) returns (google.protobuf.Empty);
   rpc FailAndHandle (ErrorMessage) returns (ErrorMessage);
   rpc InvokeExternalAndHandleFailure(FailRequest) returns (ErrorMessage);
+  rpc HandleNotFound (FailRequest) returns (ErrorMessage);
 }
 
 message FailRequest {
diff --git a/functions/errors/impl/src/main/java/dev/restate/e2e/functions/errors/FailingService.java b/functions/errors/impl/src/main/java/dev/restate/e2e/functions/errors/FailingService.java
index 9353a100..c02bcc8b 100644
--- a/functions/errors/impl/src/main/java/dev/restate/e2e/functions/errors/FailingService.java
+++ b/functions/errors/impl/src/main/java/dev/restate/e2e/functions/errors/FailingService.java
@@ -1,8 +1,10 @@
 package dev.restate.e2e.functions.errors;
 
 import com.google.protobuf.Empty;
+import com.google.rpc.Code;
 import dev.restate.e2e.functions.utils.NumberSortHttpServerUtils;
 import dev.restate.sdk.RestateContext;
+import io.grpc.MethodDescriptor;
 import io.grpc.Status;
 import io.grpc.StatusRuntimeException;
 import io.grpc.stub.StreamObserver;
@@ -85,4 +87,24 @@ public void invokeExternalAndHandleFailure(
     responseObserver.onNext(ErrorMessage.newBuilder().setErrorMessage(finalMessage).build());
     responseObserver.onCompleted();
   }
+
+  @Override
+  public void handleNotFound(FailRequest request, StreamObserver<ErrorMessage> responseObserver) {
+    var methodDescriptor =
+        FailingServiceGrpc.getFailMethod().toBuilder()
+            .setFullMethodName(
+                MethodDescriptor.generateFullMethodName(
+                    FailingServiceGrpc.SERVICE_NAME, "UnknownFn"))
+            .build();
+    try {
+      RestateContext.current().call(methodDescriptor, ErrorMessage.getDefaultInstance()).await();
+    } catch (StatusRuntimeException e) {
+      if (e.getStatus().getCode().value() == Code.NOT_FOUND_VALUE) {
+        responseObserver.onNext(ErrorMessage.newBuilder().setErrorMessage("notfound").build());
+        responseObserver.onCompleted();
+      }
+    }
+
+    throw new IllegalStateException("This should be unreachable");
+  }
 }
diff --git a/tests/src/test/kotlin/dev/restate/e2e/ErrorsTest.kt b/tests/src/test/kotlin/dev/restate/e2e/ErrorsTest.kt
index 48e1e1db..f8d84094 100644
--- a/tests/src/test/kotlin/dev/restate/e2e/ErrorsTest.kt
+++ b/tests/src/test/kotlin/dev/restate/e2e/ErrorsTest.kt
@@ -67,4 +67,13 @@ class ErrorsTest {
         .extracting(ErrorMessage::getErrorMessage)
         .isEqualTo("begin:external_call:internal_call")
   }
+
+  @Test
+  fun propagate404(@InjectBlockingStub stub: FailingServiceBlockingStub) {
+    assertThat(
+            stub.handleNotFound(
+                FailRequest.newBuilder().setKey(UUID.randomUUID().toString()).build()))
+        .extracting(ErrorMessage::getErrorMessage)
+        .isEqualTo("notfound")
+  }
 }