diff --git a/include/chaiscript/language/chaiscript_common.hpp b/include/chaiscript/language/chaiscript_common.hpp
index 5d66bd94..73e5f027 100644
--- a/include/chaiscript/language/chaiscript_common.hpp
+++ b/include/chaiscript/language/chaiscript_common.hpp
@@ -480,11 +480,14 @@ namespace chaiscript
     /// Errors generated when loading a file
     struct file_not_found_error : std::runtime_error {
       explicit file_not_found_error(const std::string &t_filename) noexcept
-        : std::runtime_error("File Not Found: " + t_filename)
+        : std::runtime_error("File Not Found: " + t_filename),
+          filename(t_filename)
       { }
 
       file_not_found_error(const file_not_found_error &) = default;
       ~file_not_found_error() noexcept override = default;
+
+      std::string filename;
     };
 
   }
diff --git a/include/chaiscript/language/chaiscript_engine.hpp b/include/chaiscript/language/chaiscript_engine.hpp
index 889955c2..3e6d0d84 100644
--- a/include/chaiscript/language/chaiscript_engine.hpp
+++ b/include/chaiscript/language/chaiscript_engine.hpp
@@ -241,7 +241,7 @@ namespace chaiscript
 
       if (skip_bom(infile)) {
           size-=3; // decrement the BOM size from file size, otherwise we'll get parsing errors
-          assert(size >=0 ); //and check if there's more text
+          assert(size >= 0); //and check if there's more text
       }
 
       if (size == std::streampos(0))
@@ -394,8 +394,8 @@ explicit ChaiScript_Basic(std::unique_ptr<parser::ChaiScript_Parser_Base> &&pars
     {
       for (const auto &path : m_use_paths)
       {
+        const auto appendedpath = path + t_filename;
         try {
-          const auto appendedpath = path + t_filename;
 
           chaiscript::detail::threading::unique_lock<chaiscript::detail::threading::recursive_mutex> l(m_use_mutex);
           chaiscript::detail::threading::unique_lock<chaiscript::detail::threading::shared_mutex> l2(m_mutex);
@@ -411,7 +411,11 @@ explicit ChaiScript_Basic(std::unique_ptr<parser::ChaiScript_Parser_Base> &&pars
           }
 
           return retval; // return, we loaded it, or it was already loaded
-        } catch (const exception::file_not_found_error &) {
+        } catch (const exception::file_not_found_error &e) {
+          if (e.filename != appendedpath) {
+            // a nested file include failed
+            throw;
+          }
           // failed to load, try the next path
         }
       }
diff --git a/unittests/failed_deep_include.chai b/unittests/failed_deep_include.chai
new file mode 100644
index 00000000..a9449bf5
--- /dev/null
+++ b/unittests/failed_deep_include.chai
@@ -0,0 +1,11 @@
+
+
+try {
+  use("failed_deep_include.inc")
+  assert_true(false);
+} catch (e) {
+  puts("Caught exception while trying to use file");
+  assert_equal(e.what(), "File Not Found: totally_missing_file.inc");
+}
+
+
diff --git a/unittests/failed_deep_include.inc b/unittests/failed_deep_include.inc
new file mode 100644
index 00000000..50cf7e77
--- /dev/null
+++ b/unittests/failed_deep_include.inc
@@ -0,0 +1,3 @@
+use("totally_missing_file.inc");
+
+