diff --git a/src/Abstractions/Entities/TaskEntityOperationExtensions.cs b/src/Abstractions/Entities/TaskEntityOperationExtensions.cs
index 8cff9b66..085bddac 100644
--- a/src/Abstractions/Entities/TaskEntityOperationExtensions.cs
+++ b/src/Abstractions/Entities/TaskEntityOperationExtensions.cs
@@ -2,6 +2,7 @@
 // Licensed under the MIT License.
 
 using System.Reflection;
+using System.Runtime.ExceptionServices;
 
 namespace Microsoft.DurableTask.Entities;
 
@@ -74,9 +75,18 @@ internal static bool TryDispatch(
             i++;
         }
 
-        result = method.Invoke(target, inputs);
-        returnType = method.ReturnType;
-        return true;
+        try
+        {
+            result = method.Invoke(target, inputs);
+            returnType = method.ReturnType;
+            return true;
+        }
+        catch (TargetInvocationException ex) when (ex.InnerException is not null)
+        {
+            // Re-throw the inner exception so that the stack trace is preserved.
+            ExceptionDispatchInfo.Capture(ex.InnerException).Throw();
+            throw; // Unreachable.
+        }
 
         static void ThrowIfDuplicateBinding(
             ParameterInfo? existing, ParameterInfo parameter, string bindingConcept, TaskEntityOperation operation)
diff --git a/test/Abstractions.Tests/Entities/EntityTaskEntityTests.cs b/test/Abstractions.Tests/Entities/EntityTaskEntityTests.cs
index 4ca908b4..f441d9a2 100644
--- a/test/Abstractions.Tests/Entities/EntityTaskEntityTests.cs
+++ b/test/Abstractions.Tests/Entities/EntityTaskEntityTests.cs
@@ -153,6 +153,21 @@ public async Task ExplicitDelete_Overridden(string op)
         operation.State.GetState(typeof(int)).Should().Be(0);
     }
 
+    [Fact]
+    public async Task Throws_ExceptionPreserved()
+    {
+        string error = "this message should be preserved";
+        TestEntityOperation operation = new("throws", error);
+        TestEntity entity = new();
+
+        Func<Task> act = async () => await entity.RunAsync(operation);
+
+        await act.Should()
+            .ThrowAsync<InvalidOperationException>()
+            .WithMessage(error)
+            .Where(x => x.StackTrace!.StartsWith("   at Microsoft.DurableTask.Entities.Tests.EntityTaskEntityTests.TestEntity.Throws(String message)"));
+    }
+
 #pragma warning disable CA1822 // Mark members as static
 #pragma warning disable IDE0060 // Remove unused parameter
     class TestEntity : TaskEntity<int>
@@ -222,6 +237,11 @@ static async Task<string> Slow()
             return sync ? new("success") : new(Slow());
         }
 
+        public void Throws(string message)
+        {
+            throw new InvalidOperationException(message);
+        }
+
         int Add(int? value, Optional<TaskEntityContext> context)
         {
             if (context.HasValue)