diff --git a/NEWS b/NEWS
index 0e0a6652d4f..0bb5fe988a5 100644
--- a/NEWS
+++ b/NEWS
@@ -9,6 +9,8 @@ PHP                                                                        NEWS
 - Core:
   . Fixed line number of JMP instruction over else block. (ilutov)
   . Fixed use-of-uninitialized-value with ??= on assert. (ilutov)
+  . Fixed bug GH-11601 (Incorrect handling of unwind and graceful exit
+    exceptions). (ilutov)
 
 - OpenSSL
   . Added support for additional EC parameters in openssl_pkey_new. (Eno-CN)
diff --git a/Zend/zend_exceptions.c b/Zend/zend_exceptions.c
index ed062958f50..7dcf2ad65b7 100644
--- a/Zend/zend_exceptions.c
+++ b/Zend/zend_exceptions.c
@@ -199,8 +199,14 @@ ZEND_API ZEND_COLD void zend_throw_exception_internal(zend_object *exception) /*
 			return;
 		}
 		if (EG(exception)) {
-			if (Z_TYPE(EG(user_exception_handler)) != IS_UNDEF) {
+			if (Z_TYPE(EG(user_exception_handler)) != IS_UNDEF
+			 && !zend_is_unwind_exit(EG(exception))
+			 && !zend_is_graceful_exit(EG(exception))) {
 				zend_user_exception_handler();
+				if (EG(exception)) {
+					zend_exception_error(EG(exception), E_ERROR);
+				}
+				return;
 			} else {
 				zend_exception_error(EG(exception), E_ERROR);
 			}
diff --git a/Zend/zend_execute_API.c b/Zend/zend_execute_API.c
index dfb13005f64..c1a5e31f7e6 100644
--- a/Zend/zend_execute_API.c
+++ b/Zend/zend_execute_API.c
@@ -1010,11 +1010,7 @@ cleanup_args:
 
 	if (UNEXPECTED(EG(exception))) {
 		if (UNEXPECTED(!EG(current_execute_data))) {
-			if (Z_TYPE(EG(user_exception_handler)) != IS_UNDEF) {
-				zend_user_exception_handler();
-			} else {
-				zend_throw_exception_internal(NULL);
-			}
+			zend_throw_exception_internal(NULL);
 		} else if (EG(current_execute_data)->func &&
 		           ZEND_USER_CODE(EG(current_execute_data)->func->common.type)) {
 			zend_rethrow_exception(EG(current_execute_data));