diff --git a/instrumentation/active_job/lib/opentelemetry/instrumentation/active_job/subscriber.rb b/instrumentation/active_job/lib/opentelemetry/instrumentation/active_job/subscriber.rb
index fb5cf4824..36c3caed0 100644
--- a/instrumentation/active_job/lib/opentelemetry/instrumentation/active_job/subscriber.rb
+++ b/instrumentation/active_job/lib/opentelemetry/instrumentation/active_job/subscriber.rb
@@ -55,10 +55,12 @@ def finish(_name, _id, payload)
           span = otel&.fetch(:span)
           tokens = otel&.fetch(:ctx_tokens)
 
-          # Unhandled exceptions are reported in `exception_object`
-          # while handled exceptions are reported in `error`
           exception = payload[:error] || payload[:exception_object]
-          on_exception(exception, span) if exception
+          if exception
+            on_exception(exception, span)
+          else
+            span&.status = OpenTelemetry::Trace::Status.ok
+          end
         rescue StandardError => e
           OpenTelemetry.handle_error(exception: e)
         ensure
@@ -68,6 +70,7 @@ def finish(_name, _id, payload)
         def finish_span(span, tokens)
           # closes the span after all attributes have been finalized
           begin
+            # Relies on span status being immutable
             span&.finish
           rescue StandardError => e
             OpenTelemetry.handle_error(exception: e)
diff --git a/instrumentation/active_job/test/opentelemetry/instrumentation/active_job/subscriber_test.rb b/instrumentation/active_job/test/opentelemetry/instrumentation/active_job/subscriber_test.rb
index 5ef2023f9..9e76386ea 100644
--- a/instrumentation/active_job/test/opentelemetry/instrumentation/active_job/subscriber_test.rb
+++ b/instrumentation/active_job/test/opentelemetry/instrumentation/active_job/subscriber_test.rb
@@ -92,10 +92,33 @@
       _(process_span.status.code).must_equal OpenTelemetry::Trace::Status::ERROR
       _(process_span.status.description).must_equal 'discard me'
 
+      _(discard_span.status.code).must_equal OpenTelemetry::Trace::Status::ERROR
+      _(discard_span.status.description).must_equal 'discard me'
       _(discard_span.events.first.name).must_equal 'exception'
       _(discard_span.events.first.attributes['exception.type']).must_equal 'DiscardJob::DiscardError'
       _(discard_span.events.first.attributes['exception.message']).must_equal 'discard me'
     end
+
+    it 'captures errors that were handled by rescue_from in versions earlier than Rails 7' do
+      skip 'rescue_from jobs behave differently in Rails 7 and newer' if ActiveJob.version >= Gem::Version.new('7')
+      RescueFromJob.perform_later
+
+      _(process_span.status.code).must_equal OpenTelemetry::Trace::Status::ERROR
+      _(process_span.status.description).must_equal 'I was handled by rescue_from'
+
+      _(process_span.events.first.name).must_equal 'exception'
+      _(process_span.events.first.attributes['exception.type']).must_equal 'RescueFromJob::RescueFromError'
+      _(process_span.events.first.attributes['exception.message']).must_equal 'I was handled by rescue_from'
+    end
+
+    it 'ignores errors that were handled by rescue_from in versions of Rails 7 or newer' do
+      skip 'rescue_from jobs behave differently in Rails 7 and newer' if ActiveJob.version < Gem::Version.new('7')
+      RescueFromJob.perform_later
+
+      _(process_span.status.code).must_equal OpenTelemetry::Trace::Status::OK
+
+      _(process_span.events).must_be_nil
+    end
   end
 
   describe 'span kind' do
diff --git a/instrumentation/active_job/test/test_helper.rb b/instrumentation/active_job/test/test_helper.rb
index a9fc64a4d..21b022b46 100644
--- a/instrumentation/active_job/test/test_helper.rb
+++ b/instrumentation/active_job/test/test_helper.rb
@@ -76,6 +76,18 @@ def initialize(*)
   end
 end
 
+class RescueFromJob < ActiveJob::Base
+  class RescueFromError < StandardError; end
+
+  rescue_from RescueFromError do
+    # do nothing
+  end
+
+  def perform
+    raise RescueFromError, 'I was handled by rescue_from'
+  end
+end
+
 ActiveJob::Base.queue_adapter = :inline
 ActiveJob::Base.logger = Logger.new($stderr, level: ENV.fetch('OTEL_LOG_LEVEL', 'fatal').to_sym)