diff --git a/src/Dapr.Actors/Runtime/Actor.cs b/src/Dapr.Actors/Runtime/Actor.cs
index d7291cb58..ddfc266e9 100644
--- a/src/Dapr.Actors/Runtime/Actor.cs
+++ b/src/Dapr.Actors/Runtime/Actor.cs
@@ -1,4 +1,4 @@
-// ------------------------------------------------------------------------
+// ------------------------------------------------------------------------
 // Copyright 2021 The Dapr Authors
 // Licensed under the Apache License, Version 2.0 (the "License");
 // you may not use this file except in compliance with the License.
@@ -101,10 +101,11 @@ internal async Task OnPostActorMethodAsyncInternal(ActorMethodContext actorMetho
             await this.SaveStateAsync();
         }
 
-        internal Task OnInvokeFailedAsync()
+        internal async Task OnActorMethodFailedInternalAsync(ActorMethodContext actorMethodContext, Exception e)
         {
+            await this.OnActorMethodFailedAsync(actorMethodContext, e);
             // Exception has been thrown by user code, reset the state in state manager.
-            return this.ResetStateAsync();
+            await this.ResetStateAsync();
         }
 
         internal Task ResetStateAsync()
@@ -190,6 +191,30 @@ protected virtual Task OnPostActorMethodAsync(ActorMethodContext actorMethodCont
             return Task.CompletedTask;
         }
 
+        /// <summary>
+        /// Override this method for performing any action when invoking actor method has thrown an exception.
+        /// This method is invoked by actor runtime when invoking actor method has thrown an exception.
+        /// </summary>
+        /// <param name="actorMethodContext">
+        /// An <see cref="ActorMethodContext"/> describing the method that was invoked by actor runtime prior to this method.
+        /// </param>
+        /// <param name="e">Exception thrown by either actor method or by OnPreActorMethodAsync/OnPostActorMethodAsync overriden methods.</param>
+        /// <returns>
+        /// Returns a <see cref="Task">Task</see> representing post-actor-method operation.
+        /// </returns>
+        /// /// <remarks>
+        /// This method is invoked by actor runtime prior to:
+        /// <list type="bullet">
+        /// <item><description>Invoking an actor interface method when a client request comes.</description></item>
+        /// <item><description>Invoking a method when a reminder fires.</description></item>
+        /// <item><description>Invoking a timer callback when timer fires.</description></item>
+        /// </list>
+        /// </remarks>
+        protected virtual Task OnActorMethodFailedAsync(ActorMethodContext actorMethodContext, Exception e)
+        {
+            return Task.CompletedTask;
+        }
+
         /// <summary>
         /// Registers a reminder with the actor.
         /// </summary>
diff --git a/src/Dapr.Actors/Runtime/ActorManager.cs b/src/Dapr.Actors/Runtime/ActorManager.cs
index e7f29f5cc..6278b0ded 100644
--- a/src/Dapr.Actors/Runtime/ActorManager.cs
+++ b/src/Dapr.Actors/Runtime/ActorManager.cs
@@ -1,4 +1,4 @@
-// ------------------------------------------------------------------------
+// ------------------------------------------------------------------------
 // Copyright 2021 The Dapr Authors
 // Licensed under the Apache License, Version 2.0 (the "License");
 // you may not use this file except in compliance with the License.
@@ -355,9 +355,9 @@ private async Task<T> DispatchInternalAsync<T>(ActorId actorId, ActorMethodConte
                 // PostActivate will save the state, its not invoked when actorFunc invocation throws.
                 await actor.OnPostActorMethodAsyncInternal(actorMethodContext);
             }
-            catch (Exception)
+            catch (Exception e)
             {
-                await actor.OnInvokeFailedAsync();
+                await actor.OnActorMethodFailedInternalAsync(actorMethodContext, e);
                 throw;
             }
             finally