diff --git a/rpyc/core/consts.py b/rpyc/core/consts.py
index 5604c2c6..877999bb 100644
--- a/rpyc/core/consts.py
+++ b/rpyc/core/consts.py
@@ -32,6 +32,7 @@
 HANDLE_INSPECT     = 16
 HANDLE_BUFFITER    = 17
 HANDLE_OLDSLICING  = 18
+HANDLE_CTXEXIT     = 19
 
 # optimized exceptions
 EXC_STOP_ITERATION = 1
diff --git a/rpyc/core/netref.py b/rpyc/core/netref.py
index 9c009741..aacd0166 100644
--- a/rpyc/core/netref.py
+++ b/rpyc/core/netref.py
@@ -14,7 +14,7 @@
     '__dir__', '__doc__', '__getattr__', '__getattribute__', '__hash__',
     '__init__', '__metaclass__', '__module__', '__new__', '__reduce__',
     '__reduce_ex__', '__repr__', '__setattr__', '__slots__', '__str__',
-    '__weakref__', '__dict__', '__members__', '__methods__',
+    '__weakref__', '__dict__', '__members__', '__methods__', '__exit__',
 ])
 """the set of attributes that are local to the netref object"""
 
@@ -173,7 +173,8 @@ def __repr__(self):
         return syncreq(self, consts.HANDLE_REPR)
     def __str__(self):
         return syncreq(self, consts.HANDLE_STR)
-
+    def __exit__(self, exc, typ, tb):
+        return syncreq(self, consts.HANDLE_CTXEXIT, exc)  # can't pass type nor traceback
     # support for pickling netrefs
     def __reduce_ex__(self, proto):
         return pickle.loads, (syncreq(self, consts.HANDLE_PICKLE, proto),)
diff --git a/rpyc/core/protocol.py b/rpyc/core/protocol.py
index d71a3619..5345a14d 100644
--- a/rpyc/core/protocol.py
+++ b/rpyc/core/protocol.py
@@ -634,6 +634,15 @@ def _handle_setattr(self, oid, name, value):
         return self._access_attr(oid, name, (value,), "_rpyc_setattr", "allow_setattr", setattr)
     def _handle_callattr(self, oid, name, args, kwargs):
         return self._handle_getattr(oid, name)(*args, **dict(kwargs))
+    def _handle_ctxexit(self, oid, exc):
+        if exc:
+            try:
+                raise exc
+            except:
+                exc, typ, tb = sys.exc_info()
+        else:
+            typ = tb = None
+        return self._handle_getattr(oid, "__exit__")(exc, typ, tb)
     def _handle_pickle(self, oid, proto):
         if not self._config["allow_pickle"]:
             raise ValueError("pickling is disabled")
diff --git a/tests/test_context_managers.py b/tests/test_context_managers.py
index 761d4ca4..1b61b2b1 100644
--- a/tests/test_context_managers.py
+++ b/tests/test_context_managers.py
@@ -4,16 +4,24 @@
 
 from contextlib import contextmanager
 
-on_context_enter = False
-on_context_exit = False
 
 class MyService(rpyc.Service):
+
+    def exposed_reset(self):
+        global on_context_enter, on_context_exit, on_context_exc
+        on_context_enter = False
+        on_context_exit = False
+        on_context_exc = False
+
     @contextmanager
     def exposed_context(self, y):
-        global on_context_enter, on_context_exit
+        global on_context_enter, on_context_exit, on_context_exc
         on_context_enter = True
         try:
             yield 17 + y
+        except:
+            on_context_exc = True
+            raise
         finally:
             on_context_exit = True
 
@@ -21,21 +29,37 @@ def exposed_context(self, y):
 class TestContextManagers(unittest.TestCase):
     def setUp(self):
         self.conn = rpyc.connect_thread(remote_service=MyService)
+        self.conn.root.reset()
 
     def tearDown(self):
         self.conn.close()
-    
+
     def test_context(self):
         with self.conn.root.context(3) as x:
             print( "entering test" )
             self.assertTrue(on_context_enter)
+            self.assertFalse(on_context_exc)
             self.assertFalse(on_context_exit)
             print( "got past context enter" )
             self.assertEqual(x, 20)
             print( "got past x=20" )
+        self.assertFalse(on_context_exc)
         self.assertTrue(on_context_exit)
         print( "got past on_context_exit" )
 
+    def test_context_exception(self):
+        class MyException(Exception):
+            pass
+
+        with self.assertRaises(MyException):
+            with self.conn.root.context(3):
+                self.assertTrue(on_context_enter)
+                self.assertFalse(on_context_exc)
+                self.assertFalse(on_context_exit)
+                raise MyException()
+
+        self.assertTrue(on_context_exc)
+        self.assertTrue(on_context_exit)
 
 if __name__ == "__main__":
     unittest.main()