diff --git a/docs/release-notes/.FSharp.Compiler.Service/8.0.400.md b/docs/release-notes/.FSharp.Compiler.Service/8.0.400.md
index 744d041341e..7180cc1aef8 100644
--- a/docs/release-notes/.FSharp.Compiler.Service/8.0.400.md
+++ b/docs/release-notes/.FSharp.Compiler.Service/8.0.400.md
@@ -15,6 +15,7 @@
 * Fix state machines compilation, when big decision trees are involved, by removing code split when resumable code is detected ([PR #17076](https://github.com/dotnet/fsharp/pull/17076))
 * Fix for exponential runtime in CE builders when using nested implicit yields [PR #17096](https://github.com/dotnet/fsharp/pull/17096)
 * Fix several AND operator parser bugs and regressions ([Issue #16447](https://github.com/dotnet/fsharp/issues/16447), [Issue #17134](https://github.com/dotnet/fsharp/issues/17134), [Issue #16309](https://github.com/dotnet/fsharp/issues/16309), [PR #17113](https://github.com/dotnet/fsharp/pull/17113))
+* Treat exceptions as types in a namespace for graph based type checking ([Issue #17262](https://github.com/dotnet/fsharp/issues/17262), [PR #17268](https://github.com/dotnet/fsharp/pull/17268))
 
 ### Added
 
diff --git a/src/Compiler/Driver/GraphChecking/TrieMapping.fs b/src/Compiler/Driver/GraphChecking/TrieMapping.fs
index add261d570c..7eeb40108bd 100644
--- a/src/Compiler/Driver/GraphChecking/TrieMapping.fs
+++ b/src/Compiler/Driver/GraphChecking/TrieMapping.fs
@@ -215,7 +215,8 @@ let rec mkTrieNodeFor (file: FileInProject) : FileIndex * TrieNode =
                         let hasTypesOrAutoOpenNestedModules =
                             decls
                             |> List.exists (function
-                                | SynModuleSigDecl.Types _ -> true
+                                | SynModuleSigDecl.Types _
+                                | SynModuleSigDecl.Exception _ -> true
                                 | SynModuleSigDecl.NestedModule(moduleInfo = SynComponentInfo(attributes = attributes)) ->
                                     isAnyAttributeAutoOpen attributes
                                 | _ -> false)
@@ -230,7 +231,8 @@ let rec mkTrieNodeFor (file: FileInProject) : FileIndex * TrieNode =
                         let hasTypesOrAutoOpenNestedModules =
                             List.exists
                                 (function
-                                | SynModuleDecl.Types _ -> true
+                                | SynModuleDecl.Types _
+                                | SynModuleDecl.Exception _ -> true
                                 | SynModuleDecl.NestedModule(moduleInfo = SynComponentInfo(attributes = attributes)) ->
                                     isAnyAttributeAutoOpen attributes
                                 | _ -> false)
diff --git a/tests/FSharp.Compiler.ComponentTests/TypeChecks/Graph/Scenarios.fs b/tests/FSharp.Compiler.ComponentTests/TypeChecks/Graph/Scenarios.fs
index 12b13b88beb..6bd170a9dbf 100644
--- a/tests/FSharp.Compiler.ComponentTests/TypeChecks/Graph/Scenarios.fs
+++ b/tests/FSharp.Compiler.ComponentTests/TypeChecks/Graph/Scenarios.fs
@@ -964,4 +964,62 @@ let _ = nameof Task<A.B.C.D>
 """
                     (set [| 0 |])
             ]
+        scenario
+            "exception syntax in namespace"
+            [
+                sourceFile
+                    "A.fs"
+                    """
+namespace Foo
+
+exception internal Blah
+"""
+                    Set.empty
+                sourceFile
+                    "B.fs"
+                    """
+namespace Foo
+
+module Program =
+
+    [<EntryPoint>]
+    let main _ =
+        raise Blah
+        0
+"""
+                    (set [| 0 |])
+        ]
+        scenario
+            "exception syntax in namespace signature"
+            [
+                sourceFile
+                    "A.fsi"
+                    """
+namespace Foo
+
+exception internal Blah
+"""
+                    Set.empty
+                sourceFile
+                    "A.fs"
+                    """
+namespace Foo
+
+exception internal Blah
+"""
+                    (set [| 0 |])
+                sourceFile
+                    "B.fs"
+                    """
+namespace Foo
+
+module Program =
+
+    [<EntryPoint>]
+    let main _ =
+        raise Blah
+        0
+"""
+                    (set [| 0 |])
+        ]
     ]
\ No newline at end of file