diff --git a/Test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs b/Test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs
index 83fa7f0d1..ed41ea931 100644
--- a/Test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs
+++ b/Test/DurableTask.Core.Tests/ExceptionHandlingIntegrationTests.cs
@@ -15,6 +15,7 @@ namespace DurableTask.Core.Tests
 {
     using System;
     using System.Diagnostics;
+    using System.Runtime.Serialization;
     using System.Threading.Tasks;
     using DurableTask.Core.Exceptions;
     using DurableTask.Emulator;
@@ -203,7 +204,10 @@ await context.ScheduleWithRetry<object>(
                                     tfe.FailureDetails.ErrorMessage == "This is a test exception" &&
                                     tfe.FailureDetails.StackTrace!.Contains(typeof(ThrowInvalidOperationException).Name) &&
                                     tfe.FailureDetails.IsCausedBy<InvalidOperationException>() &&
-                                    tfe.FailureDetails.IsCausedBy<Exception>()) // check that base types work too
+                                    tfe.FailureDetails.IsCausedBy<Exception>() &&
+                                    tfe.FailureDetails.InnerFailure != null &&
+                                    tfe.FailureDetails.InnerFailure.IsCausedBy<CustomException>() &&
+                                    tfe.FailureDetails.InnerFailure.ErrorMessage == "And this is its custom inner exception") 
                                 {
                                     // Stop retrying
                                     return false;
@@ -235,7 +239,8 @@ class ThrowInvalidOperationException : TaskActivity<string, string>
         {
             protected override string Execute(TaskContext context, string input)
             {
-                throw new InvalidOperationException("This is a test exception");
+                throw new InvalidOperationException("This is a test exception",
+                    new CustomException("And this is its custom inner exception"));
             }
         }
 
@@ -243,7 +248,22 @@ class ThrowInvalidOperationExceptionAsync : AsyncTaskActivity<string, string>
         {
             protected override Task<string> ExecuteAsync(TaskContext context, string input)
             {
-                throw new InvalidOperationException("This is a test exception");
+                throw new InvalidOperationException("This is a test exception",
+                    new CustomException("And this is its custom inner exception"));
+            }
+        }
+
+        [Serializable]
+        class CustomException : Exception
+        {
+            public CustomException(string message)
+                : base(message)
+            {
+            }
+
+            protected CustomException(SerializationInfo info, StreamingContext context)
+                : base(info, context)
+            {
             }
         }
     }
diff --git a/src/DurableTask.Core/DurableTask.Core.csproj b/src/DurableTask.Core/DurableTask.Core.csproj
index 536dfc22b..f413cfab4 100644
--- a/src/DurableTask.Core/DurableTask.Core.csproj
+++ b/src/DurableTask.Core/DurableTask.Core.csproj
@@ -17,8 +17,8 @@
   <!-- Version Info -->
   <PropertyGroup>
     <MajorVersion>2</MajorVersion>
-    <MinorVersion>16</MinorVersion>
-    <PatchVersion>2</PatchVersion>
+    <MinorVersion>17</MinorVersion>
+    <PatchVersion>0</PatchVersion>
     <VersionPrefix>$(MajorVersion).$(MinorVersion).$(PatchVersion)</VersionPrefix>
     <FileVersion>$(VersionPrefix).0</FileVersion>
     <!-- FileVersionRevision is expected to be set by the CI. This is useful for distinguishing between multiple builds of the same version. -->
diff --git a/src/DurableTask.Core/Exceptions/OrchestrationException.cs b/src/DurableTask.Core/Exceptions/OrchestrationException.cs
index 07e2ff9e1..8c8a144af 100644
--- a/src/DurableTask.Core/Exceptions/OrchestrationException.cs
+++ b/src/DurableTask.Core/Exceptions/OrchestrationException.cs
@@ -88,8 +88,8 @@ public override void GetObjectData(SerializationInfo info, StreamingContext cont
         public int EventId { get; set; }
 
         /// <summary>
-        /// Gets additional details about the failure. May be <c>null</c> if the failure details collection is not enabled.
+        /// Gets or sets additional details about the failure. May be <c>null</c> if the failure details collection is not enabled.
         /// </summary>
-        public FailureDetails? FailureDetails { get; internal set; }
+        public FailureDetails? FailureDetails { get; set; }
     }
 }
\ No newline at end of file
diff --git a/src/DurableTask.Core/FailureDetails.cs b/src/DurableTask.Core/FailureDetails.cs
index ddf1f1a33..5dfd02ab9 100644
--- a/src/DurableTask.Core/FailureDetails.cs
+++ b/src/DurableTask.Core/FailureDetails.cs
@@ -14,10 +14,16 @@
 namespace DurableTask.Core
 {
     using System;
+    using System.Collections.Generic;
+    using System.Linq;
+    using System.Reflection;
     using System.Runtime.Serialization;
     using DurableTask.Core.Exceptions;
     using Newtonsoft.Json;
 
+    // NOTE: This class is very similar to https://github.com/microsoft/durabletask-dotnet/blob/main/src/Abstractions/TaskFailureDetails.cs.
+    //       Any functional changes to this class should be mirrored in that class and vice versa.
+
     /// <summary>
     /// Details of an activity, orchestration, or entity operation failure.
     /// </summary>
@@ -42,6 +48,16 @@ public FailureDetails(string errorType, string errorMessage, string? stackTrace,
             this.IsNonRetriable = isNonRetriable;
         }
 
+        /// <summary>
+        /// Initializes a new instance of the <see cref="FailureDetails"/> class from an exception object.
+        /// </summary>
+        /// <param name="e">The exception used to generate the failure details.</param>
+        /// <param name="innerFailure">The inner cause of the failure.</param>
+        public FailureDetails(Exception e, FailureDetails innerFailure)
+            : this(e.GetType().FullName, GetErrorMessage(e), e.StackTrace, innerFailure, false)
+        {
+        }
+
         /// <summary>
         /// Initializes a new instance of the <see cref="FailureDetails"/> class from an exception object.
         /// </summary>
@@ -116,7 +132,33 @@ public override string ToString()
         /// <returns>Returns <c>true</c> if the <see cref="ErrorType"/> value matches <typeparamref name="T"/>; <c>false</c> otherwise.</returns>
         public bool IsCausedBy<T>() where T : Exception
         {
+            // This check works for .NET exception types defined in System.Core.PrivateLib (aka mscorelib.dll)
             Type? exceptionType = Type.GetType(this.ErrorType, throwOnError: false);
+
+            // For exception types defined in the same assembly as the target exception type.
+            exceptionType ??= typeof(T).Assembly.GetType(this.ErrorType, throwOnError: false);
+
+            // For custom exception types defined in the app's assembly.
+            exceptionType ??= Assembly.GetCallingAssembly().GetType(this.ErrorType, throwOnError: false);
+
+            if (exceptionType == null)
+            {
+                // This last check works for exception types defined in any loaded assembly (e.g. NuGet packages, etc.).
+                // This is a fallback that should rarely be needed except in obscure cases.
+                List<Type> matchingExceptionTypes = AppDomain.CurrentDomain.GetAssemblies()
+                    .Select(a => a.GetType(this.ErrorType, throwOnError: false))
+                    .Where(t => t is not null)
+                    .ToList();
+                if (matchingExceptionTypes.Count == 1)
+                {
+                    exceptionType = matchingExceptionTypes[0];
+                }
+                else if (matchingExceptionTypes.Count > 1)
+                {
+                    throw new AmbiguousMatchException($"Multiple exception types with the name '{this.ErrorType}' were found.");
+                }
+            }
+
             return exceptionType != null && typeof(T).IsAssignableFrom(exceptionType);
         }
 
diff --git a/src/DurableTask.Core/TaskOrchestrationContext.cs b/src/DurableTask.Core/TaskOrchestrationContext.cs
index eb5b41760..3b2d5a797 100644
--- a/src/DurableTask.Core/TaskOrchestrationContext.cs
+++ b/src/DurableTask.Core/TaskOrchestrationContext.cs
@@ -638,6 +638,12 @@ public void FailOrchestration(Exception failure)
                     details = orchestrationFailureException.Details;
                 }
             }
+            else if (failure is TaskFailedException taskFailedException &&
+                this.ErrorPropagationMode == ErrorPropagationMode.UseFailureDetails)
+            {
+                // Propagate the original FailureDetails
+                failureDetails = taskFailedException.FailureDetails;
+            }
             else
             {
                 if (this.ErrorPropagationMode == ErrorPropagationMode.UseFailureDetails)