diff --git a/packages/rstream/src/stream.ts b/packages/rstream/src/stream.ts
index ae5c9faf8d..efc3e89754 100644
--- a/packages/rstream/src/stream.ts
+++ b/packages/rstream/src/stream.ts
@@ -69,10 +69,15 @@ import { optsWithID } from "./utils/idgen";
  * @param src -
  * @param opts -
  */
-export function stream<T>(opts?: Partial<CommonOpts>): Stream<T>;
-// prettier-ignore
-export function stream<T>(src: StreamSource<T>, opts?: Partial<CommonOpts>): Stream<T>;
-export function stream<T>(src?: any, opts?: Partial<CommonOpts>): Stream<T> {
+export function stream<T>(opts?: Partial<WithErrorHandlerOpts>): Stream<T>;
+export function stream<T>(
+    src: StreamSource<T>,
+    opts?: Partial<WithErrorHandlerOpts>
+): Stream<T>;
+export function stream<T>(
+    src?: any,
+    opts?: Partial<WithErrorHandlerOpts>
+): Stream<T> {
     return new Stream<T>(src, opts);
 }
 
@@ -131,7 +136,16 @@ export class Stream<T> extends Subscription<T, T> implements IStream<T> {
     ): any {
         const $sub = super.subscribe(sub, opts);
         if (!this._inited) {
-            this._cancel = (this.src && this.src(this)) || (() => void 0);
+            if (this.src) {
+                try {
+                    this._cancel = this.src(this) || (() => void 0);
+                } catch (e) {
+                    let s = this.wrapped;
+                    if (!s || !s.error || !s.error(e)) {
+                        this.unhandledError(e);
+                    }
+                }
+            }
             this._inited = true;
         }
         return $sub;
diff --git a/packages/rstream/test/subscription.ts b/packages/rstream/test/subscription.ts
index d8a4309d1d..0cc9be8972 100644
--- a/packages/rstream/test/subscription.ts
+++ b/packages/rstream/test/subscription.ts
@@ -5,11 +5,12 @@ import {
     fromIterable,
     fromIterableSync,
     State,
+    stream,
     Stream,
     subscription,
 } from "../src";
 import { TIMEOUT } from "./config";
-import { assertUnsub } from "./utils";
+import { assertError, assertIdle, assertUnsub } from "./utils";
 
 describe("Subscription", function () {
     this.retries(3);
@@ -163,4 +164,23 @@ describe("Subscription", function () {
         );
         assert.deepStrictEqual(buf, [11]);
     });
+
+    it("stream source error", () => {
+        let err: any;
+        const src = stream(
+            () => {
+                throw "eek";
+            },
+            {
+                error(e) {
+                    err = e;
+                    return false;
+                },
+            }
+        );
+        const sub = src.subscribe({});
+        assert.strictEqual(err, "eek");
+        assertError(src);
+        assertIdle(sub);
+    });
 });