diff --git a/guidance/_guidance.py b/guidance/_guidance.py
index 510cac9e0..67cab91af 100644
--- a/guidance/_guidance.py
+++ b/guidance/_guidance.py
@@ -53,15 +53,20 @@ def wrapped(*args, **kwargs):
                     if no_args:
                         f._self_call_placeholder_ = Placeholder()
 
-                    # call the function to get the grammar node
-                    node = f(_null_grammar, *args, **kwargs)
-                    if not isinstance(node, (Terminal, str)):
-                        node.name = f.__name__
-
-                    # replace all the placeholders with our generated node
-                    if no_args:
-                        replace_grammar_node(node, f._self_call_placeholder_, node)
-                        del f._self_call_placeholder_
+                    try:
+                        # call the function to get the grammar node
+                        node = f(_null_grammar, *args, **kwargs)
+                    except:
+                        raise
+                    else:
+                        if not isinstance(node, (Terminal, str)):
+                            node.name = f.__name__
+                        # replace all the placeholders with our generated node
+                        if no_args:
+                            replace_grammar_node(node, f._self_call_placeholder_, node)
+                    finally:
+                        if no_args:
+                            del f._self_call_placeholder_
 
                     return node
 
diff --git a/tests/unit/test_decorator.py b/tests/unit/test_decorator.py
index 9c38feba5..62042f814 100644
--- a/tests/unit/test_decorator.py
+++ b/tests/unit/test_decorator.py
@@ -1,5 +1,6 @@
+import pytest
 import guidance
-from guidance import gen, models
+from guidance import gen
 
 def test_dedent_basic():
     """Test that dedent functionality in f-strings works across Python versions."""
@@ -133,4 +134,16 @@ def inconsistent_indentation(lm):
 
 #     lm = guidance.models.Mock()
 #     result = lm + outer_function()
-#     assert result == "Inner function variable:\nouter_var: outer_value\n"
\ No newline at end of file
+#     assert result == "Inner function variable:\nouter_var: outer_value\n"
+
+def test_exception_on_repeat_calls():
+    @guidance(stateless=True, dedent=False)
+    def raises(lm):
+        assert False
+    with pytest.raises(AssertionError):
+        raises()
+    with pytest.raises(AssertionError):
+        # Test against failure to reset the grammar function;
+        # improper handling may not raise and may instead return
+        # a Placeholder grammar node
+        raises()