diff --git a/sdks/go/pkg/beam/runners/prism/internal/engine/elementmanager.go b/sdks/go/pkg/beam/runners/prism/internal/engine/elementmanager.go
index 0781efd5ff0c..ed9c0ddc0f89 100644
--- a/sdks/go/pkg/beam/runners/prism/internal/engine/elementmanager.go
+++ b/sdks/go/pkg/beam/runners/prism/internal/engine/elementmanager.go
@@ -349,6 +349,12 @@ func (em *ElementManager) Bundles(ctx context.Context, upstreamCancelFn context.
 	}()
 	// Watermark evaluation goroutine.
 	go func() {
+		defer func() {
+			// In case of panics in bundle generation, fail and cancel the job.
+			if e := recover(); e != nil {
+				upstreamCancelFn(fmt.Errorf("panic in ElementManager.Bundles watermark evaluation goroutine: %v", e))
+			}
+		}()
 		defer close(runStageCh)
 
 		// If we have a test stream, clear out existing refreshes, so the test stream can
diff --git a/sdks/go/pkg/beam/runners/prism/internal/stage.go b/sdks/go/pkg/beam/runners/prism/internal/stage.go
index 1a62f2f6f420..3d1e506f5e32 100644
--- a/sdks/go/pkg/beam/runners/prism/internal/stage.go
+++ b/sdks/go/pkg/beam/runners/prism/internal/stage.go
@@ -76,7 +76,13 @@ type stage struct {
 	OutputsToCoders   map[string]engine.PColInfo
 }
 
-func (s *stage) Execute(ctx context.Context, j *jobservices.Job, wk *worker.W, comps *pipepb.Components, em *engine.ElementManager, rb engine.RunBundle) error {
+func (s *stage) Execute(ctx context.Context, j *jobservices.Job, wk *worker.W, comps *pipepb.Components, em *engine.ElementManager, rb engine.RunBundle) (err error) {
+	defer func() {
+		// Convert execution panics to errors to fail the bundle.
+		if e := recover(); e != nil {
+			err = fmt.Errorf("panic in stage.Execute bundle processing goroutine: %v, stage: %+v", e, s)
+		}
+	}()
 	slog.Debug("Execute: starting bundle", "bundle", rb)
 
 	var b *worker.B