diff --git a/libexec/bats-exec-test b/libexec/bats-exec-test
index 6f5d811..e873e81 100755
--- a/libexec/bats-exec-test
+++ b/libexec/bats-exec-test
@@ -89,12 +89,17 @@ bats_capture_stack_trace() {
     BATS_LINE_NUMBER_="$2"
 
     local test_pattern=" $BATS_TEST_NAME $BATS_TEST_SOURCE"
+    local setup_pattern=" setup $BATS_TEST_SOURCE"
+    local teardown_pattern=" teardown $BATS_TEST_SOURCE"
+
     local index=0
     local frame
 
     while frame="$(caller "$index")"; do
       BATS_STACK_TRACE[$index]="$frame"
-      if [[ "$frame" = *"$test_pattern" ]]; then
+      if [[ "$frame" = *"$test_pattern"     || \
+            "$frame" = *"$setup_pattern"    || \
+            "$frame" = *"$teardown_pattern" ]]; then
         break
       else
         let index+=1
@@ -117,12 +122,16 @@ bats_print_stack_trace() {
       echo -n "#  "
     fi
 
+    local fn="$(bats_frame_function "$frame")"
+    if [ "$fn" != "$BATS_TEST_NAME" ]; then
+      echo -n "from function \`$fn' "
+    fi
+
     if [ $index -eq $count ]; then
       echo "in test file $BATS_TEST_FILENAME, line $line)"
     else
-      local fn="$(bats_frame_function "$frame")"
       local filename="$(bats_frame_filename "$frame")"
-      echo "from function \`$fn' in file $filename, line $line,"
+      echo "in file $filename, line $line,"
     fi
 
     let index+=1
@@ -160,7 +169,11 @@ bats_error_trap() {
 
 bats_teardown_trap() {
   trap bats_exit_trap exit
-  teardown >>"$BATS_OUT" 2>&1
+  if teardown >>"$BATS_OUT" 2>&1; then
+    BATS_TEARDOWN_COMPLETED=1
+  elif [ -n "$BATS_TEST_COMPLETED" ]; then
+    BATS_LINE_NUMBER="$BATS_LINE_NUMBER_"
+  fi
   bats_exit_trap
 }
 
@@ -177,7 +190,7 @@ bats_exit_trap() {
     fi
   fi
 
-  if [ -z "$BATS_TEST_COMPLETED" ]; then
+  if [ -z "$BATS_TEST_COMPLETED" ] || [ -z "$BATS_TEARDOWN_COMPLETED" ]; then
     echo "not ok $BATS_TEST_NUMBER $BATS_TEST_DESCRIPTION" >&3
     bats_print_stack_trace >&3
     sed -e "s/^/# /" < "$BATS_OUT" >&3
@@ -212,6 +225,7 @@ bats_perform_test() {
     fi
 
     BATS_TEST_COMPLETED=""
+    BATS_TEARDOWN_COMPLETED=""
     BATS_ERROR_LINE=""
     trap "bats_capture_stack_trace \"\$BASH_SOURCE\" \$LINENO" debug
     trap "bats_error_trap" err
diff --git a/test/bats.bats b/test/bats.bats
index 9994433..d9f6d91 100755
--- a/test/bats.bats
+++ b/test/bats.bats
@@ -57,6 +57,14 @@ fixtures bats
   [ ${lines[3]} = "ok 2 a passing test" ]
 }
 
+@test "failing helper function logs the test case's line number" {
+  run bats "$FIXTURE_ROOT/failing_helper.bats"
+  [ $status -eq 1 ]
+  [ "${lines[1]}" = "not ok 1 failing helper function" ]
+  [ "${lines[2]}" = "# (from function \`failing_helper' in file $FIXTURE_ROOT/test_helper.bash, line 6," ]
+  [ "${lines[3]}" = "#  in test file $FIXTURE_ROOT/failing_helper.bats, line 5)" ]
+}
+
 @test "test environments are isolated" {
   run bats "$FIXTURE_ROOT/environment.bats"
   [ $status -eq 0 ]
@@ -78,6 +86,27 @@ fixtures bats
   [ ${#lines[@]} -eq 3 ]
 }
 
+@test "setup failure should reuslt in test failure" {
+  run bats "$FIXTURE_ROOT/failing_setup.bats"
+  [ $status -eq 1 ]
+  [ "${lines[1]}" = "not ok 1 truth" ]
+  [ "${lines[2]}" = "# (from function \`setup' in test file $FIXTURE_ROOT/failing_setup.bats, line 2)" ]
+}
+
+@test "passing test with teardown failure should result in test failure" {
+  PASS=1 run bats "$FIXTURE_ROOT/failing_teardown.bats"
+  [ $status -eq 1 ]
+  [ "${lines[1]}" = "not ok 1 truth" ]
+  [ "${lines[2]}" = "# (from function \`teardown' in test file $FIXTURE_ROOT/failing_teardown.bats, line 2)" ]
+}
+
+@test "failing test with teardown failure should result in test failure" {
+  PASS=0 run bats "$FIXTURE_ROOT/failing_teardown.bats"
+  [ $status -eq 1 ]
+  [ "${lines[1]}" = "not ok 1 truth" ]
+  [ "${lines[2]}" = "# (in test file $FIXTURE_ROOT/failing_teardown.bats, line 6)" ]
+}
+
 @test "load sources scripts relative to the current test file" {
   run bats "$FIXTURE_ROOT/load.bats"
   [ $status -eq 0 ]
@@ -157,11 +186,3 @@ fixtures bats
   [ "${lines[0]}" = "This isn't TAP!" ]
   [ "${lines[1]}" = "Good day to you" ]
 }
-
-@test "failing helper function logs the test case's line number" {
-  run bats "$FIXTURE_ROOT/failing_helper.bats"
-  [ $status -eq 1 ]
-  [ "${lines[1]}" = "not ok 1 failing helper function" ]
-  [ "${lines[2]}" = "# (from function \`failing_helper' in file $FIXTURE_ROOT/test_helper.bash, line 6," ]
-  [ "${lines[3]}" = "#  in test file $FIXTURE_ROOT/failing_helper.bats, line 5)" ]
-}
diff --git a/test/fixtures/bats/failing_setup.bats b/test/fixtures/bats/failing_setup.bats
new file mode 100644
index 0000000..9a35587
--- /dev/null
+++ b/test/fixtures/bats/failing_setup.bats
@@ -0,0 +1,7 @@
+setup() {
+  false
+}
+
+@test "truth" {
+  true
+}
diff --git a/test/fixtures/bats/failing_teardown.bats b/test/fixtures/bats/failing_teardown.bats
new file mode 100644
index 0000000..0b59e26
--- /dev/null
+++ b/test/fixtures/bats/failing_teardown.bats
@@ -0,0 +1,7 @@
+teardown() {
+  false
+}
+
+@test "truth" {
+  [ "$PASS" = "1" ]
+}