diff --git a/internal/wrapper/wrap_handler.go b/internal/wrapper/wrap_handler.go
index 8cd994cd..a8e101f8 100644
--- a/internal/wrapper/wrap_handler.go
+++ b/internal/wrapper/wrap_handler.go
@@ -13,7 +13,6 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
-
 	"github.com/DataDog/datadog-lambda-go/internal/extension"
 	"github.com/DataDog/datadog-lambda-go/internal/logger"
 	"github.com/aws/aws-lambda-go/lambda"
@@ -133,10 +132,17 @@ func validateHandler(handler interface{}) error {
 	return nil
 }
 
-func callHandler(ctx context.Context, msg json.RawMessage, handler interface{}) (interface{}, error) {
-	ev, err := unmarshalEventForHandler(msg, handler)
-	if err != nil {
-		return nil, err
+func callHandler(ctx context.Context, msg json.RawMessage, handler interface{}) (response interface{}, errResponse error) {
+	defer func() {
+		if r := recover(); r != nil {
+			response = nil
+			errResponse = fmt.Errorf("Panic: %v", r)
+		}
+	}()
+
+	ev, errResponse := unmarshalEventForHandler(msg, handler)
+	if errResponse != nil {
+		return nil, errResponse
 	}
 	handlerType := reflect.TypeOf(handler)
 
@@ -160,9 +166,6 @@ func callHandler(ctx context.Context, msg json.RawMessage, handler interface{})
 	handlerValue := reflect.ValueOf(handler)
 	output := handlerValue.Call(args)
 
-	var response interface{}
-	var errResponse error
-
 	if len(output) > 0 {
 		// If there are any output values, the last should always be an error
 		val := output[len(output)-1].Interface()
diff --git a/internal/wrapper/wrap_handler_test.go b/internal/wrapper/wrap_handler_test.go
index 8c5fe3f0..0ce8d45b 100644
--- a/internal/wrapper/wrap_handler_test.go
+++ b/internal/wrapper/wrap_handler_test.go
@@ -270,6 +270,22 @@ func TestWrapHandlerReturnsErrorOnly(t *testing.T) {
 	assert.Equal(t, nil, response)
 }
 
+func TestWrapHandlerReturnsErrorWhenPanic(t *testing.T) {
+	called := false
+	panicRecoverErr := errors.New("Panic: some panic")
+
+	handler := func(request mockNonProxyEvent) error {
+		called = true
+		panic("some panic")
+	}
+
+	_, response, err := runHandlerWithJSON(t, "../testdata/non-proxy-no-headers.json", handler)
+
+	assert.True(t, called)
+	assert.Equal(t, panicRecoverErr, err)
+	assert.Equal(t, nil, response)
+}
+
 func TestWrapHandlerReturnsOriginalHandlerIfInvalid(t *testing.T) {
 
 	var handler interface{} = func(arg1, arg2, arg3 int) (int, error) {
diff --git a/tests/integration_tests/hello/go.mod b/tests/integration_tests/hello/go.mod
index 1a775d7b..d05c9946 100644
--- a/tests/integration_tests/hello/go.mod
+++ b/tests/integration_tests/hello/go.mod
@@ -7,11 +7,11 @@ toolchain go1.21.5
 require (
 	github.com/DataDog/datadog-lambda-go v1.14.0
 	github.com/aws/aws-lambda-go v1.46.0
-	gopkg.in/DataDog/dd-trace-go.v1 v1.60.0
+	gopkg.in/DataDog/dd-trace-go.v1 v1.60.3
 )
 
 require (
-	github.com/DataDog/appsec-internal-go v1.4.0 // indirect
+	github.com/DataDog/appsec-internal-go v1.4.1 // indirect
 	github.com/DataDog/datadog-agent/pkg/obfuscate v0.50.2 // indirect
 	github.com/DataDog/datadog-agent/pkg/remoteconfig/state v0.50.2 // indirect
 	github.com/DataDog/datadog-go/v5 v5.5.0 // indirect
@@ -67,7 +67,7 @@ require (
 	golang.org/x/xerrors v0.0.0-20231012003039-104605ab7028 // indirect
 	google.golang.org/genproto/googleapis/rpc v0.0.0-20240125205218-1f4bbc51befe // indirect
 	google.golang.org/grpc v1.61.0 // indirect
-	google.golang.org/protobuf v1.32.0 // indirect
+	google.golang.org/protobuf v1.33.0 // indirect
 	inet.af/netaddr v0.0.0-20230525184311-b8eac61e914a // indirect
 )
 
diff --git a/tests/integration_tests/hello/go.sum b/tests/integration_tests/hello/go.sum
index 5c7c12c3..31e870ca 100644
--- a/tests/integration_tests/hello/go.sum
+++ b/tests/integration_tests/hello/go.sum
@@ -3,6 +3,7 @@ github.com/DataDog/appsec-internal-go v1.0.2 h1:Z+YWPlkQN+324zIk+BzKlPA1/6guKgGm
 github.com/DataDog/appsec-internal-go v1.0.2/go.mod h1:+Y+4klVWKPOnZx6XESG7QHydOaUGEXyH2j/vSg9JiNM=
 github.com/DataDog/appsec-internal-go v1.4.0 h1:KFI8ElxkJOgpw+cUm9TXK/jh5EZvRaWM07sXlxGg9Ck=
 github.com/DataDog/appsec-internal-go v1.4.0/go.mod h1:ONW8aV6R7Thgb4g0bB9ZQCm+oRgyz5eWiW7XoQ19wIc=
+github.com/DataDog/appsec-internal-go v1.4.1/go.mod h1:rmZ+tpq5ZPKmeOUMYjWFg+q1mRd13mxZwSLBG+xa1ik=
 github.com/DataDog/datadog-agent/pkg/obfuscate v0.48.0 h1:bUMSNsw1iofWiju9yc1f+kBd33E3hMJtq9GuU602Iy8=
 github.com/DataDog/datadog-agent/pkg/obfuscate v0.48.0/go.mod h1:HzySONXnAgSmIQfL6gOv9hWprKJkx8CicuXuUbmgWfo=
 github.com/DataDog/datadog-agent/pkg/obfuscate v0.50.2 h1:y08IzbpFM/HBaKfgayFZe1FpcbZn6bVPXoZ++93vxv8=
@@ -316,10 +317,12 @@ google.golang.org/protobuf v1.30.0 h1:kPPoIgf3TsEvrm0PFe15JQ+570QVxYzEvvHqChK+cn
 google.golang.org/protobuf v1.30.0/go.mod h1:HV8QOd/L58Z+nl8r43ehVNZIU/HEI6OcFqwMG9pJV4I=
 google.golang.org/protobuf v1.32.0 h1:pPC6BG5ex8PDFnkbrGU3EixyhKcQ2aDuBS36lqK/C7I=
 google.golang.org/protobuf v1.32.0/go.mod h1:c6P6GXX6sHbq/GpV6MGZEdwhWPcYBgnhAHhKbcUYpos=
+google.golang.org/protobuf v1.33.0/go.mod h1:c6P6GXX6sHbq/GpV6MGZEdwhWPcYBgnhAHhKbcUYpos=
 gopkg.in/DataDog/dd-trace-go.v1 v1.58.0 h1:ixIUarsu0RrOt7xfdrE5YSFvjgaWsP3cC3G342jTIuw=
 gopkg.in/DataDog/dd-trace-go.v1 v1.58.0/go.mod h1:SmnEjjV9ZQr4MWRSUYEpoPyNtmtRK5J6UuJdAma+Yxw=
 gopkg.in/DataDog/dd-trace-go.v1 v1.60.0 h1:hjDiU6PWRgMoUeSJkXdtimUP76cFzREPIGIIQJD0mYU=
 gopkg.in/DataDog/dd-trace-go.v1 v1.60.0/go.mod h1:6aArYrAHjnuaofJ3lKuSRQbhrBx1LcSpiEYCIScJE5Y=
+gopkg.in/DataDog/dd-trace-go.v1 v1.60.3/go.mod h1:XF/Y0lFGnmgedNXnltCm6hXkt9iwyeVVVFbKhJvVwtY=
 gopkg.in/check.v1 v0.0.0-20161208181325-20d25e280405/go.mod h1:Co6ibVJAznAaIkqp8huTwlJQCZ016jof/cbN4VW5Yz0=
 gopkg.in/check.v1 v1.0.0-20201130134442-10cb98267c6c h1:Hei/4ADfdWqJk1ZMxUNpqntNwaWcugrBjAiHlqqRiVk=
 gopkg.in/yaml.v2 v2.2.8/go.mod h1:hI93XBmqTisBFMUTm0b8Fm+jr3Dg1NNxqwp+5A1VGuI=