--- a/hotspot/src/share/vm/prims/jvmtiThreadState.cpp	Wed Jan 18 11:45:14 2012 -0500
+++ b/hotspot/src/share/vm/prims/jvmtiThreadState.cpp	Mon Jan 23 17:45:32 2012 -0800
@@ -319,6 +319,15 @@
   // clearing the flag indicates we are done with the PopFrame() dance
   clr_pending_step_for_popframe();
 
+  // If exception was thrown in this frame, need to reset jvmti thread state.
+  // Single stepping may not get enabled correctly by the agent since
+  // exception state is passed in MethodExit event which may be sent at some
+  // time in the future. JDWP agent ignores MethodExit events if caused by
+  // an exception.
+  //
+  if (is_exception_detected()) {
+    clear_exception_detected();
+  }
   // If step is pending for popframe then it may not be
   // a repeat step. The new_bci and method_id is same as current_bci
   // and current method_id after pop and step for recursive calls.
@@ -385,6 +394,15 @@
   // the ForceEarlyReturn() dance
   clr_pending_step_for_earlyret();
 
+  // If exception was thrown in this frame, need to reset jvmti thread state.
+  // Single stepping may not get enabled correctly by the agent since
+  // exception state is passed in MethodExit event which may be sent at some
+  // time in the future. JDWP agent ignores MethodExit events if caused by
+  // an exception.
+  //
+  if (is_exception_detected()) {
+    clear_exception_detected();
+  }
   // If step is pending for earlyret then it may not be a repeat step.
   // The new_bci and method_id is same as current_bci and current
   // method_id after earlyret and step for recursive calls.

--- a/hotspot/src/share/vm/prims/jvmtiThreadState.hpp	Wed Jan 18 11:45:14 2012 -0500
+++ b/hotspot/src/share/vm/prims/jvmtiThreadState.hpp	Mon Jan 23 17:45:32 2012 -0800
@@ -165,6 +165,10 @@
   inline bool is_exception_caught()    { return _exception_caught;  }
   inline void set_exception_detected() { _exception_detected = true;
                                          _exception_caught = false; }
+  inline void clear_exception_detected() {
+    _exception_detected = false;
+    assert(_exception_caught == false, "_exception_caught is out of phase");
+  }
   inline void set_exception_caught()   { _exception_caught = true;
                                          _exception_detected = false; }