diff --git a/include/pybind11/pybind11.h b/include/pybind11/pybind11.h
index 370e52cff6..e5feca1f24 100644
--- a/include/pybind11/pybind11.h
+++ b/include/pybind11/pybind11.h
@@ -971,11 +971,19 @@ class cpp_function : public function {
             return nullptr;
         }
         if (!result) {
-            std::string msg = "Unable to convert function return value to a "
-                              "Python type! The signature was\n\t";
-            msg += it->signature;
-            append_note_if_missing_header_is_suspected(msg);
-            PyErr_SetString(PyExc_TypeError, msg.c_str());
+            /* Allow the user to raise a Python exception directly using
+               PyErr_SetString() together with returning a null py::object, as
+               that may be significantly faster than throwing a C++ exception
+               in critical code paths. In that case we arrive here with
+               non-null PyErr_Occurred(), so keep that exception instead of
+               overwriting it with another. */
+            if (!PyErr_Occurred()) {
+                std::string msg = "Unable to convert function return value to "
+                                  "a Python type! The signature was\n\t";
+                msg += it->signature;
+                append_note_if_missing_header_is_suspected(msg);
+                PyErr_SetString(PyExc_TypeError, msg.c_str());
+            }
             return nullptr;
         }
         if (overloads->is_constructor && !self_value_and_holder.holder_constructed()) {
diff --git a/tests/test_exceptions.cpp b/tests/test_exceptions.cpp
index 25adb32ed1..b712103179 100644
--- a/tests/test_exceptions.cpp
+++ b/tests/test_exceptions.cpp
@@ -228,6 +228,14 @@ TEST_SUBMODULE(exceptions, m) {
         throw py::error_already_set();
     });
 
+    m.def("raise_without_throw", [](bool return_null, bool set_error) {
+        if (set_error)
+            PyErr_SetString(PyExc_FutureWarning, "this is a robbery!");
+        if (return_null)
+            return py::object{};
+        return py::cast(5);
+    }, py::arg("return_null"), py::arg("set_error"));
+
     m.def("python_call_in_destructor", [](const py::dict &d) {
         bool retval = false;
         try {
diff --git a/tests/test_exceptions.py b/tests/test_exceptions.py
index 3821eadaa4..7015b37479 100644
--- a/tests/test_exceptions.py
+++ b/tests/test_exceptions.py
@@ -3,7 +3,7 @@
 
 import pytest
 
-import env  # noqa: F401
+import env
 import pybind11_cross_module_tests as cm
 from pybind11_tests import exceptions as m
 
@@ -24,6 +24,32 @@ def test_error_already_set(msg):
     assert msg(excinfo.value) == "foo"
 
 
+def test_raise_without_throw(msg):
+    # Not setting an error and returning a non-null object
+    assert m.raise_without_throw(return_null=False, set_error=False) == 5
+
+    # Setting an error and returning a null object is an allowed alternative to
+    # throwing a C++ exception
+    with pytest.raises(FutureWarning) as excinfo:
+        m.raise_without_throw(return_null=True, set_error=True)
+    assert msg(excinfo.value) == "this is a robbery!"
+
+    # Setting an error and returning a non-null object is a Python system error
+    if not env.PY2:
+        with pytest.raises(SystemError) as excinfo:
+            m.raise_without_throw(return_null=False, set_error=True)
+
+    # Returning a null object without error being set is not allowed either, as
+    # that's also the case when function return value can't be converted to a
+    # Python type
+    with pytest.raises(TypeError) as excinfo:
+        m.raise_without_throw(return_null=True, set_error=False)
+    assert msg(excinfo.value) == (
+        "Unable to convert function return value to a Python type! The "
+        "signature was\n\t(return_null: bool, set_error: bool) -> object"
+    )
+
+
 @pytest.mark.skipif("env.PY2")
 def test_raise_from(msg):
     with pytest.raises(ValueError) as excinfo: