diff --git a/py/modbuiltins.c b/py/modbuiltins.c
index c9a49685a4..a7e49a1ed9 100644
--- a/py/modbuiltins.c
+++ b/py/modbuiltins.c
@@ -322,7 +322,7 @@ STATIC mp_obj_t mp_builtin_next(size_t n_args, const mp_obj_t *args) {
     if (n_args == 1) {
         mp_obj_t ret = mp_iternext_allow_raise(args[0]);
         if (ret == MP_OBJ_STOP_ITERATION) {
-            mp_raise_type(&mp_type_StopIteration);
+            mp_raise_StopIteration(MP_STATE_THREAD(stop_iteration_arg));
         } else {
             return ret;
         }
@@ -336,7 +336,7 @@ MP_DEFINE_CONST_FUN_OBJ_VAR_BETWEEN(mp_builtin_next_obj, 1, 2, mp_builtin_next);
 STATIC mp_obj_t mp_builtin_next(mp_obj_t o) {
     mp_obj_t ret = mp_iternext_allow_raise(o);
     if (ret == MP_OBJ_STOP_ITERATION) {
-        mp_raise_type(&mp_type_StopIteration);
+        mp_raise_StopIteration(MP_STATE_THREAD(stop_iteration_arg));
     } else {
         return ret;
     }
diff --git a/py/mpstate.h b/py/mpstate.h
index e42d13fb20..07335bae4c 100644
--- a/py/mpstate.h
+++ b/py/mpstate.h
@@ -266,6 +266,9 @@ typedef struct _mp_state_thread_t {
     // pending exception object (MP_OBJ_NULL if not pending)
     volatile mp_obj_t mp_pending_exception;
 
+    // If MP_OBJ_STOP_ITERATION is propagated then this holds its argument.
+    mp_obj_t stop_iteration_arg;
+
     #if MICROPY_PY_SYS_SETTRACE
     mp_obj_t prof_trace_callback;
     bool prof_callback_is_executing;
diff --git a/py/objgenerator.c b/py/objgenerator.c
index 1ee7b8b1db..784310092e 100644
--- a/py/objgenerator.c
+++ b/py/objgenerator.c
@@ -238,16 +238,20 @@ mp_vm_return_kind_t mp_obj_gen_resume(mp_obj_t self_in, mp_obj_t send_value, mp_
     return ret_kind;
 }
 
-STATIC mp_obj_t gen_resume_and_raise(mp_obj_t self_in, mp_obj_t send_value, mp_obj_t throw_value) {
+STATIC mp_obj_t gen_resume_and_raise(mp_obj_t self_in, mp_obj_t send_value, mp_obj_t throw_value, bool raise_stop_iteration) {
     mp_obj_t ret;
     switch (mp_obj_gen_resume(self_in, send_value, throw_value, &ret)) {
         case MP_VM_RETURN_NORMAL:
         default:
-            // Optimize return w/o value in case generator is used in for loop
-            if (ret == mp_const_none || ret == MP_OBJ_STOP_ITERATION) {
-                return MP_OBJ_STOP_ITERATION;
+            // A normal return is a StopIteration, either raise it or return
+            // MP_OBJ_STOP_ITERATION as an optimisation.
+            if (ret == mp_const_none) {
+                ret = MP_OBJ_NULL;
+            }
+            if (raise_stop_iteration) {
+                mp_raise_StopIteration(ret);
             } else {
-                nlr_raise(mp_obj_new_exception_arg1(&mp_type_StopIteration, ret));
+                return mp_make_stop_iteration(ret);
             }
 
         case MP_VM_RETURN_YIELD:
@@ -259,16 +263,11 @@ STATIC mp_obj_t gen_resume_and_raise(mp_obj_t self_in, mp_obj_t send_value, mp_o
 }
 
 STATIC mp_obj_t gen_instance_iternext(mp_obj_t self_in) {
-    return gen_resume_and_raise(self_in, mp_const_none, MP_OBJ_NULL);
+    return gen_resume_and_raise(self_in, mp_const_none, MP_OBJ_NULL, false);
 }
 
 STATIC mp_obj_t gen_instance_send(mp_obj_t self_in, mp_obj_t send_value) {
-    mp_obj_t ret = gen_resume_and_raise(self_in, send_value, MP_OBJ_NULL);
-    if (ret == MP_OBJ_STOP_ITERATION) {
-        mp_raise_type(&mp_type_StopIteration);
-    } else {
-        return ret;
-    }
+    return gen_resume_and_raise(self_in, send_value, MP_OBJ_NULL, true);
 }
 STATIC MP_DEFINE_CONST_FUN_OBJ_2(gen_instance_send_obj, gen_instance_send);
 
@@ -290,12 +289,7 @@ STATIC mp_obj_t gen_instance_throw(size_t n_args, const mp_obj_t *args) {
         exc = args[2];
     }
 
-    mp_obj_t ret = gen_resume_and_raise(args[0], mp_const_none, exc);
-    if (ret == MP_OBJ_STOP_ITERATION) {
-        mp_raise_type(&mp_type_StopIteration);
-    } else {
-        return ret;
-    }
+    return gen_resume_and_raise(args[0], mp_const_none, exc, true);
 }
 STATIC MP_DEFINE_CONST_FUN_OBJ_VAR_BETWEEN(gen_instance_throw_obj, 2, 4, gen_instance_throw);
 
diff --git a/py/objgetitemiter.c b/py/objgetitemiter.c
index 2670314ab2..31ed4a9228 100644
--- a/py/objgetitemiter.c
+++ b/py/objgetitemiter.c
@@ -48,7 +48,6 @@ STATIC mp_obj_t it_iternext(mp_obj_t self_in) {
         // an exception was raised
         mp_obj_type_t *t = (mp_obj_type_t *)((mp_obj_base_t *)nlr.ret_val)->type;
         if (t == &mp_type_StopIteration || t == &mp_type_IndexError) {
-            // return MP_OBJ_STOP_ITERATION instead of raising
             return MP_OBJ_STOP_ITERATION;
         } else {
             // re-raise exception
diff --git a/py/runtime.c b/py/runtime.c
index b53711bbe2..2c849fe950 100644
--- a/py/runtime.c
+++ b/py/runtime.c
@@ -1217,6 +1217,7 @@ mp_obj_t mp_getiter(mp_obj_t o_in, mp_obj_iter_buf_t *iter_buf) {
 mp_obj_t mp_iternext_allow_raise(mp_obj_t o_in) {
     const mp_obj_type_t *type = mp_obj_get_type(o_in);
     if (type->iternext != NULL) {
+        MP_STATE_THREAD(stop_iteration_arg) = MP_OBJ_NULL;
         return type->iternext(o_in);
     } else {
         // check for __next__ method
@@ -1242,6 +1243,7 @@ mp_obj_t mp_iternext(mp_obj_t o_in) {
     MP_STACK_CHECK(); // enumerate, filter, map and zip can recursively call mp_iternext
     const mp_obj_type_t *type = mp_obj_get_type(o_in);
     if (type->iternext != NULL) {
+        MP_STATE_THREAD(stop_iteration_arg) = MP_OBJ_NULL;
         return type->iternext(o_in);
     } else {
         // check for __next__ method
@@ -1256,7 +1258,7 @@ mp_obj_t mp_iternext(mp_obj_t o_in) {
                 return ret;
             } else {
                 if (mp_obj_is_subclass_fast(MP_OBJ_FROM_PTR(((mp_obj_base_t *)nlr.ret_val)->type), MP_OBJ_FROM_PTR(&mp_type_StopIteration))) {
-                    return MP_OBJ_STOP_ITERATION;
+                    return mp_make_stop_iteration(mp_obj_exception_get_value(MP_OBJ_FROM_PTR(nlr.ret_val)));
                 } else {
                     nlr_jump(nlr.ret_val);
                 }
@@ -1281,14 +1283,18 @@ mp_vm_return_kind_t mp_resume(mp_obj_t self_in, mp_obj_t send_value, mp_obj_t th
     }
 
     if (type->iternext != NULL && send_value == mp_const_none) {
+        MP_STATE_THREAD(stop_iteration_arg) = MP_OBJ_NULL;
         mp_obj_t ret = type->iternext(self_in);
         *ret_val = ret;
         if (ret != MP_OBJ_STOP_ITERATION) {
             return MP_VM_RETURN_YIELD;
         } else {
             // The generator is finished.
-            // This is an optimised "raise StopIteration(None)".
-            *ret_val = mp_const_none;
+            // This is an optimised "raise StopIteration(*ret_val)".
+            *ret_val = MP_STATE_THREAD(stop_iteration_arg);
+            if (*ret_val == MP_OBJ_NULL) {
+                *ret_val = mp_const_none;
+            }
             return MP_VM_RETURN_NORMAL;
         }
     }
@@ -1559,6 +1565,14 @@ NORETURN void mp_raise_NotImplementedError(mp_rom_error_text_t msg) {
 
 #endif
 
+NORETURN void mp_raise_StopIteration(mp_obj_t arg) {
+    if (arg == MP_OBJ_NULL) {
+        mp_raise_type(&mp_type_StopIteration);
+    } else {
+        nlr_raise(mp_obj_new_exception_arg1(&mp_type_StopIteration, arg));
+    }
+}
+
 NORETURN void mp_raise_OSError(int errno_) {
     nlr_raise(mp_obj_new_exception_arg1(&mp_type_OSError, MP_OBJ_NEW_SMALL_INT(errno_)));
 }
diff --git a/py/runtime.h b/py/runtime.h
index 7d2cb94e84..8484479a54 100644
--- a/py/runtime.h
+++ b/py/runtime.h
@@ -154,6 +154,11 @@ mp_obj_t mp_iternext_allow_raise(mp_obj_t o); // may return MP_OBJ_STOP_ITERATIO
 mp_obj_t mp_iternext(mp_obj_t o); // will always return MP_OBJ_STOP_ITERATION instead of raising StopIteration(...)
 mp_vm_return_kind_t mp_resume(mp_obj_t self_in, mp_obj_t send_value, mp_obj_t throw_value, mp_obj_t *ret_val);
 
+static inline mp_obj_t mp_make_stop_iteration(mp_obj_t o) {
+    MP_STATE_THREAD(stop_iteration_arg) = o;
+    return MP_OBJ_STOP_ITERATION;
+}
+
 mp_obj_t mp_make_raise_obj(mp_obj_t o);
 
 mp_obj_t mp_import_name(qstr name, mp_obj_t fromlist, mp_obj_t level);
@@ -179,6 +184,7 @@ NORETURN void mp_raise_TypeError(mp_rom_error_text_t msg);
 NORETURN void mp_raise_NotImplementedError(mp_rom_error_text_t msg);
 #endif
 
+NORETURN void mp_raise_StopIteration(mp_obj_t arg);
 NORETURN void mp_raise_OSError(int errno_);
 NORETURN void mp_raise_recursion_depth(void);
 
diff --git a/tests/basics/gen_yield_from_stopped.py b/tests/basics/gen_yield_from_stopped.py
index 468679b615..82feefed08 100644
--- a/tests/basics/gen_yield_from_stopped.py
+++ b/tests/basics/gen_yield_from_stopped.py
@@ -16,3 +16,15 @@ try:
     next(run())
 except StopIteration:
     print("StopIteration")
+
+
+# Where "f" is a native generator
+def run():
+    print((yield from f))
+
+
+f = zip()
+try:
+    next(run())
+except StopIteration:
+    print("StopIteration")
diff --git a/tests/basics/stopiteration.py b/tests/basics/stopiteration.py
new file mode 100644
index 0000000000..d4719c9bc3
--- /dev/null
+++ b/tests/basics/stopiteration.py
@@ -0,0 +1,63 @@
+# test StopIteration interaction with generators
+
+try:
+    enumerate, exec
+except:
+    print("SKIP")
+    raise SystemExit
+
+
+def get_stop_iter_arg(msg, code):
+    try:
+        exec(code)
+        print("FAIL")
+    except StopIteration as er:
+        print(msg, er.args)
+
+
+class A:
+    def __iter__(self):
+        return self
+
+    def __next__(self):
+        raise StopIteration(42)
+
+
+class B:
+    def __getitem__(self, index):
+        # argument to StopIteration should get ignored
+        raise StopIteration(42)
+
+
+def gen(x):
+    return x
+    yield
+
+
+def gen2(x):
+    try:
+        yield
+    except ValueError:
+        pass
+    return x
+
+
+get_stop_iter_arg("next", "next(A())")
+get_stop_iter_arg("iter", "next(iter(B()))")
+get_stop_iter_arg("enumerate", "next(enumerate(A()))")
+get_stop_iter_arg("map", "next(map(lambda x:x, A()))")
+get_stop_iter_arg("zip", "next(zip(A()))")
+g = gen(None)
+get_stop_iter_arg("generator0", "next(g)")
+get_stop_iter_arg("generator1", "next(g)")
+g = gen(42)
+get_stop_iter_arg("generator0", "next(g)")
+get_stop_iter_arg("generator1", "next(g)")
+get_stop_iter_arg("send", "gen(None).send(None)")
+get_stop_iter_arg("send", "gen(42).send(None)")
+g = gen2(None)
+next(g)
+get_stop_iter_arg("throw", "g.throw(ValueError)")
+g = gen2(42)
+next(g)
+get_stop_iter_arg("throw", "g.throw(ValueError)")