diff --git a/Source/Testably.Abstractions.Testing/TimeSystem/ITimerStrategy.cs b/Source/Testably.Abstractions.Testing/TimeSystem/ITimerStrategy.cs
index 8fb45dec6..6ead4badc 100644
--- a/Source/Testably.Abstractions.Testing/TimeSystem/ITimerStrategy.cs
+++ b/Source/Testably.Abstractions.Testing/TimeSystem/ITimerStrategy.cs
@@ -1,4 +1,6 @@
-namespace Testably.Abstractions.Testing.TimeSystem;
+using System.Threading;
+
+namespace Testably.Abstractions.Testing.TimeSystem;
 
 /// <summary>
 ///     The strategy how to handle mocked timers for testing.
@@ -9,4 +11,12 @@ public interface ITimerStrategy
 	///     The timer mode.
 	/// </summary>
 	TimerMode Mode { get; }
+
+	/// <summary>
+	///     Flag indicating, if exceptions in the <see cref="TimerCallback" /> should be swallowed or thrown.
+	///     <para />
+	///     The real <see cref="Timer" /> will crash the application in case of an exception in the
+	///     <see cref="TimerCallback" />.
+	/// </summary>
+	bool SwallowExceptions { get; }
 }
diff --git a/Source/Testably.Abstractions.Testing/TimeSystem/TimerExecution.cs b/Source/Testably.Abstractions.Testing/TimeSystem/TimerExecution.cs
index 16d32f584..6dffcad13 100644
--- a/Source/Testably.Abstractions.Testing/TimeSystem/TimerExecution.cs
+++ b/Source/Testably.Abstractions.Testing/TimeSystem/TimerExecution.cs
@@ -17,9 +17,15 @@ public class TimerExecution
 	/// </summary>
 	public ITimerMock Timer { get; }
 
-	internal TimerExecution(DateTime time, ITimerMock timer)
+	/// <summary>
+	///     The exception thrown during this timer execution.
+	/// </summary>
+	public Exception? Exception { get; }
+
+	internal TimerExecution(DateTime time, ITimerMock timer, Exception? exception)
 	{
 		Time = time;
 		Timer = timer;
+		Exception = exception;
 	}
 }
diff --git a/Source/Testably.Abstractions.Testing/TimeSystem/TimerMock.cs b/Source/Testably.Abstractions.Testing/TimeSystem/TimerMock.cs
index 3f7da598b..34d5b8d22 100644
--- a/Source/Testably.Abstractions.Testing/TimeSystem/TimerMock.cs
+++ b/Source/Testably.Abstractions.Testing/TimeSystem/TimerMock.cs
@@ -22,6 +22,7 @@ internal sealed class TimerMock : ITimerMock
 	private CountdownEvent? _countdownEvent;
 	private readonly ManualResetEventSlim _continueEvent = new();
 	private int _executionCount;
+	private Exception? _exception;
 
 	internal TimerMock(MockTimeSystem timeSystem,
 		NotificationHandler callbackHandler,
@@ -76,7 +77,6 @@ private void Start()
 		}
 
 		CancellationToken token = runningCancellationTokenSource.Token;
-		Exception? backgroundEx = null;
 		ManualResetEventSlim startCreateTimerThreads = new();
 		Thread t = new(() =>
 		{
@@ -87,8 +87,7 @@ private void Start()
 			}
 			catch (Exception ex)
 			{
-				backgroundEx = ex;
-				Interlocked.MemoryBarrier();
+				_exception = ex;
 			}
 			finally
 			{
@@ -108,10 +107,6 @@ private void Start()
 		};
 		t.Start();
 		startCreateTimerThreads.Wait(token);
-		if (backgroundEx != null)
-		{
-			throw new AggregateException(backgroundEx);
-		}
 	}
 
 	internal void RegisterOnDispose(Action? onDispose)
@@ -126,16 +121,32 @@ private void RunTimer(CancellationToken cancellationToken = default)
 		while (!cancellationToken.IsCancellationRequested)
 		{
 			nextPlannedExecution += _period;
-			_callback(_state);
+			Exception? exception = null;
+			try
+			{
+				_callback(_state);
+			}
+			catch (Exception swallowedException)
+			{
+				_exception = exception = swallowedException;
+			}
 			Interlocked.Increment(ref _executionCount);
 			_callbackHandler.InvokeTimerExecutedCallbacks(
-				new TimerExecution(_mockTimeSystem.DateTime.UtcNow, this));
+				new TimerExecution(
+					_mockTimeSystem.DateTime.UtcNow,
+					this,
+					exception));
 			if (_countdownEvent?.Signal() == true)
 			{
 				_continueEvent.Wait(cancellationToken);
 				_continueEvent.Reset();
 			}
 
+			if (_exception != null && !_timerStrategy.SwallowExceptions)
+			{
+				break;
+			}
+
 			if (_period.TotalMilliseconds <= 0)
 			{
 				return;
@@ -310,6 +321,10 @@ public ITimerMock Wait(
 			// In case of an ArgumentOutOfRangeException, the executionCount is already reached.
 		}
 
+		if (_exception != null)
+		{
+			throw _exception;
+		}
 		callback?.Invoke(this);
 		_continueEvent.Set();
 
diff --git a/Source/Testably.Abstractions.Testing/TimeSystem/TimerStrategy.cs b/Source/Testably.Abstractions.Testing/TimeSystem/TimerStrategy.cs
index 589a3bba6..4af50d0c9 100644
--- a/Source/Testably.Abstractions.Testing/TimeSystem/TimerStrategy.cs
+++ b/Source/Testably.Abstractions.Testing/TimeSystem/TimerStrategy.cs
@@ -11,17 +11,22 @@ public class TimerStrategy : ITimerStrategy
 	public static ITimerStrategy Default { get; }
 		= new TimerStrategy(TimerMode.StartImmediately);
 
-	/// <summary>
-	///     The timer mode.
-	/// </summary>
+	/// <inheritdoc cref="ITimerStrategy.Mode"/>
 	public TimerMode Mode { get; }
 
+	/// <inheritdoc cref="ITimerStrategy.SwallowExceptions"/>
+	public bool SwallowExceptions { get; }
+
 	/// <summary>
 	///     Initializes a new instance of <see cref="TimerStrategy" />.
 	/// </summary>
 	/// <param name="mode">The timer mode.</param>
-	public TimerStrategy(TimerMode mode)
+	/// <param name="swallowExceptions">Flag, indicating if exceptions should be swallowed.</param>
+	public TimerStrategy(
+		TimerMode mode = TimerMode.StartImmediately,
+		bool swallowExceptions = false)
 	{
 		Mode = mode;
+		SwallowExceptions = swallowExceptions;
 	}
 }
diff --git a/Tests/Testably.Abstractions.Testing.Tests/TimeSystem/TimerMockTests.cs b/Tests/Testably.Abstractions.Testing.Tests/TimeSystem/TimerMockTests.cs
index 7839a9497..b50c34a49 100644
--- a/Tests/Testably.Abstractions.Testing.Tests/TimeSystem/TimerMockTests.cs
+++ b/Tests/Testably.Abstractions.Testing.Tests/TimeSystem/TimerMockTests.cs
@@ -1,4 +1,6 @@
 using System.Threading;
+using Testably.Abstractions.Testing.FileSystemInitializer;
+using Testably.Abstractions.Testing.Tests.TestHelpers;
 using Testably.Abstractions.Testing.TimeSystem;
 using Testably.Abstractions.TimeSystem;
 
@@ -24,6 +26,77 @@ public void Dispose_WithUnknownWaitHandle_ShouldThrowNotSupportedException()
 		exception.Should().BeOfType<NotSupportedException>();
 	}
 
+	[Fact]
+	public void Exception_ShouldBeIncludedInTimerExecutedNotification()
+	{
+		TestingException exception = new("foo");
+		MockTimeSystem timeSystem = new MockTimeSystem()
+			.WithTimerStrategy(new TimerStrategy(swallowExceptions: true));
+		ITimerHandler timerHandler = timeSystem.TimerHandler;
+		TimerExecution? receivedTimeout = null;
+
+		using (timeSystem.On.TimerExecuted(d => receivedTimeout = d))
+		{
+			timeSystem.Timer.New(_ => throw exception, null,
+				TimeTestHelper.GetRandomInterval(),
+				TimeTestHelper.GetRandomInterval());
+			try
+			{
+				timerHandler[0].Wait();
+			}
+			catch (TestingException)
+			{
+				// Expect a TestingException to be thrown
+			}
+		}
+
+		receivedTimeout!.Exception.Should().Be(exception);
+	}
+
+	[Fact]
+	public void Exception_WhenSwallowExceptionsIsSet_ShouldContinueTimerExecution()
+	{
+		MockTimeSystem timeSystem = new();
+		timeSystem.WithTimerStrategy(
+			new TimerStrategy(swallowExceptions: true));
+		Exception exception = new("foo");
+		int count = 0;
+		ManualResetEventSlim ms = new();
+		using ITimer timer = timeSystem.Timer.New(_ =>
+		{
+			if (count++ == 1)
+			{
+				throw exception;
+			}
+
+			if (count == 3)
+			{
+				ms.Set();
+			}
+		}, null, 0, 20);
+
+		ms.Wait(10000).Should().BeTrue();
+
+		count.Should().BeGreaterThanOrEqualTo(3);
+	}
+
+	[Fact]
+	public void Exception_WhenSwallowExceptionsIsNotSet_ShouldThrowExceptionOnWait()
+	{
+		MockTimeSystem timeSystem = new MockTimeSystem()
+			.WithTimerStrategy(new TimerStrategy(swallowExceptions: false));
+		Exception expectedException = new("foo");
+		using ITimer timer = timeSystem.Timer.New(
+			_ => throw expectedException, null, 0, 20);
+
+		Exception? exception = Record.Exception(() =>
+		{
+			timeSystem.TimerHandler[0].Wait();
+		});
+
+		exception.Should().Be(expectedException);
+	}
+
 	[Fact]
 	public void New_WithStartOnMockWaitMode_ShouldOnlyStartWhenCallingWait()
 	{
diff --git a/Tests/Testably.Abstractions.Tests/TimeSystem/TimerTests.cs b/Tests/Testably.Abstractions.Tests/TimeSystem/TimerTests.cs
index 0dbef2d81..b7254873d 100644
--- a/Tests/Testably.Abstractions.Tests/TimeSystem/TimerTests.cs
+++ b/Tests/Testably.Abstractions.Tests/TimeSystem/TimerTests.cs
@@ -42,7 +42,8 @@ public void Change_InvalidDueTime_ShouldThrowArgumentOutOfRangeException(int due
 		});
 
 		exception.Should()
-			.BeException<ArgumentOutOfRangeException>(hResult: -2146233086, paramName: nameof(dueTime));
+			.BeException<ArgumentOutOfRangeException>(hResult: -2146233086,
+				paramName: nameof(dueTime));
 	}
 
 	[SkippableTheory]
@@ -60,7 +61,8 @@ public void Change_InvalidPeriod_ShouldThrowArgumentOutOfRangeException(int peri
 		});
 
 		exception.Should()
-			.BeException<ArgumentOutOfRangeException>(hResult: -2146233086, paramName: nameof(period));
+			.BeException<ArgumentOutOfRangeException>(hResult: -2146233086,
+				paramName: nameof(period));
 	}
 
 	[SkippableFact]