diff --git a/sdk/storage/storage-file-datalake/review/storage-file-datalake.api.md b/sdk/storage/storage-file-datalake/review/storage-file-datalake.api.md
index ce14785ab425..aae1d8979508 100644
--- a/sdk/storage/storage-file-datalake/review/storage-file-datalake.api.md
+++ b/sdk/storage/storage-file-datalake/review/storage-file-datalake.api.md
@@ -152,6 +152,13 @@ export abstract class CredentialPolicy extends BaseRequestPolicy {
 // @public
 export type CredentialPolicyCreator = (nextPolicy: RequestPolicy, options: RequestPolicyOptions) => CredentialPolicy;
 
+// @public
+export class DataLakeAclChangeFailedError extends Error {
+    constructor(error: RestError | Error, continuationToken?: string);
+    continuationToken?: string;
+    internalError: RestError | Error;
+}
+
 // @public
 export class DataLakeDirectoryClient extends DataLakePathClient {
     create(resourceType: PathResourceTypeModel, options?: PathCreateOptions): Promise<PathCreateResponse>;
diff --git a/sdk/storage/storage-file-datalake/src/clients.ts b/sdk/storage/storage-file-datalake/src/clients.ts
index 883e8ab19e8c..3dca03ba8938 100644
--- a/sdk/storage/storage-file-datalake/src/clients.ts
+++ b/sdk/storage/storage-file-datalake/src/clients.ts
@@ -5,6 +5,7 @@ import { BlobClient, BlockBlobClient } from "@azure/storage-blob";
 import { CanonicalCode } from "@opentelemetry/api";
 import { Readable } from "stream";
 
+import { BufferScheduler } from "../../storage-common/src";
 import { AnonymousCredential } from "./credentials/AnonymousCredential";
 import { StorageSharedKeyCredential } from "./credentials/StorageSharedKeyCredential";
 import { DataLakeLeaseClient } from "./DataLakeLeaseClient";
@@ -21,12 +22,16 @@ import {
   FileCreateIfNotExistsResponse,
   FileCreateOptions,
   FileCreateResponse,
+  FileExpiryMode,
   FileFlushOptions,
   FileFlushResponse,
   FileParallelUploadOptions,
+  FileQueryOptions,
   FileReadOptions,
   FileReadResponse,
   FileReadToBufferOptions,
+  FileSetExpiryOptions,
+  FileSetExpiryResponse,
   FileUploadResponse,
   Metadata,
   PathAccessControlItem,
@@ -57,11 +62,7 @@ import {
   PathSetMetadataResponse,
   PathSetPermissionsOptions,
   PathSetPermissionsResponse,
-  RemovePathAccessControlItem,
-  FileQueryOptions,
-  FileExpiryMode,
-  FileSetExpiryOptions,
-  FileSetExpiryResponse
+  RemovePathAccessControlItem
 } from "./models";
 import { PathSetAccessControlRecursiveMode } from "./models.internal";
 import { newPipeline, Pipeline, StoragePipelineOptions } from "./Pipeline";
@@ -74,7 +75,6 @@ import {
   toProperties
 } from "./transforms";
 import { Batch } from "./utils/Batch";
-
 import {
   BLOCK_BLOB_MAX_BLOCKS,
   DEFAULT_HIGH_LEVEL_CONCURRENCY,
@@ -84,10 +84,10 @@ import {
   FILE_UPLOAD_DEFAULT_CHUNK_SIZE,
   FILE_UPLOAD_MAX_CHUNK_SIZE
 } from "./utils/constants";
+import { DataLakeAclChangeFailedError } from "./utils/DataLakeAclChangeFailedError";
 import { createSpan } from "./utils/tracing";
 import { appendToURLPath, setURLPath } from "./utils/utils.common";
-import { fsStat, fsCreateReadStream } from "./utils/utils.node";
-import { BufferScheduler } from "../../storage-common/src";
+import { fsCreateReadStream, fsStat } from "./utils/utils.node";
 
 /**
  * A DataLakePathClient represents a URL to the Azure Storage path (directory or file).
@@ -159,14 +159,20 @@ export class DataLakePathClient extends StorageClient {
       let batchCounter = 0;
       let reachMaxBatches = false;
       do {
-        const response = await this.pathContext.setAccessControlRecursive(mode, {
-          ...options,
-          acl: toAclString(acl as PathAccessControlItem[]),
-          maxRecords: options.batchSize,
-          continuation: continuationToken,
-          forceFlag: options.continueOnFailure,
-          spanOptions
-        });
+        let response;
+        try {
+          response = await this.pathContext.setAccessControlRecursive(mode, {
+            ...options,
+            acl: toAclString(acl as PathAccessControlItem[]),
+            maxRecords: options.batchSize,
+            continuation: continuationToken,
+            forceFlag: options.continueOnFailure,
+            spanOptions
+          });
+        } catch (e) {
+          throw new DataLakeAclChangeFailedError(e, continuationToken);
+        }
+
         batchCounter++;
         continuationToken = response.continuation;
 
diff --git a/sdk/storage/storage-file-datalake/src/index.browser.ts b/sdk/storage/storage-file-datalake/src/index.browser.ts
index 84fd3c410ff6..72359067aeaa 100644
--- a/sdk/storage/storage-file-datalake/src/index.browser.ts
+++ b/sdk/storage/storage-file-datalake/src/index.browser.ts
@@ -13,6 +13,7 @@ export * from "./policies/AnonymousCredentialPolicy";
 export * from "./policies/CredentialPolicy";
 export * from "./StorageRetryPolicyFactory";
 export * from "./models";
+export * from "./utils/DataLakeAclChangeFailedError";
 export { CommonOptions } from "./StorageClient";
 export { ToBlobEndpointHostMappings, ToDfsEndpointHostMappings } from "./utils/constants";
 export { RestError } from "@azure/core-http";
diff --git a/sdk/storage/storage-file-datalake/src/index.ts b/sdk/storage/storage-file-datalake/src/index.ts
index 07ebfc43e6d4..a383df6f001c 100644
--- a/sdk/storage/storage-file-datalake/src/index.ts
+++ b/sdk/storage/storage-file-datalake/src/index.ts
@@ -23,6 +23,7 @@ export * from "./StorageRetryPolicyFactory";
 export * from "./policies/StorageSharedKeyCredentialPolicy";
 export * from "./sas/SASQueryParameters";
 export * from "./models";
+export * from "./utils/DataLakeAclChangeFailedError";
 export { CommonOptions } from "./StorageClient";
 export { SasIPRange } from "./sas/SasIPRange";
 export { ToBlobEndpointHostMappings, ToDfsEndpointHostMappings } from "./utils/constants";
diff --git a/sdk/storage/storage-file-datalake/src/utils/DataLakeAclChangeFailedError.ts b/sdk/storage/storage-file-datalake/src/utils/DataLakeAclChangeFailedError.ts
new file mode 100644
index 000000000000..b0312e562cf2
--- /dev/null
+++ b/sdk/storage/storage-file-datalake/src/utils/DataLakeAclChangeFailedError.ts
@@ -0,0 +1,36 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT license.
+import { RestError } from "@azure/core-http";
+
+/**
+ * An error thrown when an operation is interrupted and can be continued later on.
+ *
+ * @export
+ * @class DataLakeAclChangeFailedError
+ * @extends {Error}
+ */
+export class DataLakeAclChangeFailedError extends Error {
+  /**
+   * Continuation token to continue next batch of operations.
+   *
+   * @type {string}
+   * @memberof DataLakeAclChangeFailedError
+   */
+  public continuationToken?: string;
+
+  /**
+   * Internal error.
+   *
+   * @type {(RestError | Error)}
+   * @memberof DataLakeAclChangeFailedError
+   */
+  public internalError: RestError | Error;
+
+  constructor(error: RestError | Error, continuationToken?: string) {
+    super(error.message);
+    this.name = "DataLakeAclChangeFailedError";
+    this.internalError = error;
+    this.continuationToken = continuationToken;
+    Object.setPrototypeOf(this, DataLakeAclChangeFailedError.prototype);
+  }
+}