diff --git a/src/object/stl_iterator.cpp b/src/object/stl_iterator.cpp
index e2b66cea..e32d3214 100755
--- a/src/object/stl_iterator.cpp
+++ b/src/object/stl_iterator.cpp
@@ -2,6 +2,10 @@
 // Distributed under the Boost Software License, Version 1.0. (See
 // accompanying file LICENSE_1_0.txt or copy at
 // http://www.boost.org/LICENSE_1_0.txt)
+//
+// Credits:
+//   Andreas Kl\:ockner for fixing increment() to handle
+//   error conditions.
 
 #include <boost/python/object.hpp>
 #include <boost/python/handle.hpp>
@@ -27,6 +31,8 @@ void stl_input_iterator_impl::increment()
 {
     this->ob_ = boost::python::handle<>(
         boost::python::allow_null(PyIter_Next(this->it_.ptr())));
+    if (PyErr_Occurred())
+        throw boost::python::error_already_set();
 }
 
 bool stl_input_iterator_impl::equal(stl_input_iterator_impl const &that) const
diff --git a/test/stl_iterator.py b/test/stl_iterator.py
index c044e85a..2c324c0a 100644
--- a/test/stl_iterator.py
+++ b/test/stl_iterator.py
@@ -12,6 +12,16 @@
 3
 4
 5
+>>> def generator():
+...   yield 1
+...   yield 2
+...   raise RuntimeError, "oops"
+>>> try:
+...   x.assign(iter(generator()))
+...   print "NOT OK"
+... except RuntimeError:
+...   print "OK"
+OK
 '''
 def run(args = None):
     import sys