diff --git a/py/objset.c b/py/objset.c
index 80ed263340..aefc26aac2 100644
--- a/py/objset.c
+++ b/py/objset.c
@@ -380,7 +380,7 @@ STATIC mp_obj_t set_remove(mp_obj_t self_in, mp_obj_t item) {
     check_set(self_in);
     mp_obj_set_t *self = MP_OBJ_TO_PTR(self_in);
     if (mp_set_lookup(&self->set, item, MP_MAP_LOOKUP_REMOVE_IF_FOUND) == MP_OBJ_NULL) {
-        nlr_raise(mp_obj_new_exception(&mp_type_KeyError));
+        nlr_raise(mp_obj_new_exception_arg1(&mp_type_KeyError, item));
     }
     return mp_const_none;
 }
diff --git a/tests/basics/set_remove.py b/tests/basics/set_remove.py
index 5627516c43..0727239118 100644
--- a/tests/basics/set_remove.py
+++ b/tests/basics/set_remove.py
@@ -4,8 +4,8 @@ print(s.remove(1))
 print(list(s))
 try:
     print(s.remove(1), "!!!")
-except KeyError:
-    pass
+except KeyError as er:
+    print('KeyError', er.args[0])
 else:
     print("failed to raise KeyError")