diff --git a/deps/chakrashim/core/lib/Backend/BailOut.cpp b/deps/chakrashim/core/lib/Backend/BailOut.cpp
index 50c28e157a1..35ee85856f4 100644
--- a/deps/chakrashim/core/lib/Backend/BailOut.cpp
+++ b/deps/chakrashim/core/lib/Backend/BailOut.cpp
@@ -1217,6 +1217,12 @@ BailOutRecord::BailOutInlinedCommon(Js::JavascriptCallStackLayout * layout, Bail
     BailOutReturnValue bailOutReturnValue;
     Js::ScriptFunction * innerMostInlinee = nullptr;
     BailOutInlinedHelper(layout, currentBailOutRecord, bailOutOffset, returnAddress, bailOutKind, registerSaves, &bailOutReturnValue, &innerMostInlinee, false, branchValue);
+
+    bool * hasBailOutBit = layout->functionObject->GetScriptContext()->GetThreadContext()->GetHasBailedOutBitPtr();
+    if (hasBailOutBit != nullptr && bailOutRecord->ehBailoutData)
+    {
+        *hasBailOutBit = true;
+    }
     Js::Var result = BailOutCommonNoCodeGen(layout, currentBailOutRecord, currentBailOutRecord->bailOutOffset, returnAddress, bailOutKind, branchValue,
         registerSaves, &bailOutReturnValue);
     ScheduleFunctionCodeGen(Js::ScriptFunction::FromVar(layout->functionObject), innerMostInlinee, currentBailOutRecord, bailOutKind, bailOutOffset, savedImplicitCallFlags, returnAddress);
@@ -1255,6 +1261,11 @@ BailOutRecord::BailOutFromLoopBodyInlinedCommon(Js::JavascriptCallStackLayout *
     BailOutReturnValue bailOutReturnValue;
     Js::ScriptFunction * innerMostInlinee = nullptr;
     BailOutInlinedHelper(layout, currentBailOutRecord, bailOutOffset, returnAddress, bailOutKind, registerSaves, &bailOutReturnValue, &innerMostInlinee, true, branchValue);
+    bool * hasBailOutBit = layout->functionObject->GetScriptContext()->GetThreadContext()->GetHasBailedOutBitPtr();
+    if (hasBailOutBit != nullptr && bailOutRecord->ehBailoutData)
+    {
+        *hasBailOutBit = true;
+    }
     uint32 result = BailOutFromLoopBodyHelper(layout, currentBailOutRecord, currentBailOutRecord->bailOutOffset,
         bailOutKind, nullptr, registerSaves, &bailOutReturnValue);
     ScheduleLoopBodyCodeGen(Js::ScriptFunction::FromVar(layout->functionObject), innerMostInlinee, currentBailOutRecord, bailOutKind);
diff --git a/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.cpp b/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.cpp
index 9cec9aa0b35..40413025d4a 100644
--- a/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.cpp
+++ b/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.cpp
@@ -93,6 +93,7 @@ ThreadContext::ThreadContext(AllocationPolicyManager * allocationPolicyManager,
     stackProber(nullptr),
     isThreadBound(false),
     hasThrownPendingException(false),
+    hasBailedOutBitPtr(nullptr),
     pendingFinallyException(nullptr),
     noScriptScope(false),
     heapEnum(nullptr),
diff --git a/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.h b/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.h
index 668b141efa8..79ead8092d5 100644
--- a/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.h
+++ b/deps/chakrashim/core/lib/Runtime/Base/ThreadContext.h
@@ -638,6 +638,7 @@ class ThreadContext sealed :
     StackProber * stackProber;
     bool isThreadBound;
     bool hasThrownPendingException;
+    bool * hasBailedOutBitPtr;
     bool callDispose;
 #if ENABLE_JS_REENTRANCY_CHECK
     bool noJsReentrancy;
@@ -1531,6 +1532,16 @@ class ThreadContext sealed :
         this->hasThrownPendingException = true;
     }
 
+    bool * GetHasBailedOutBitPtr()
+    {
+        return this->hasBailedOutBitPtr;
+    }
+
+    void SetHasBailedOutBitPtr(bool *setValue)
+    {
+        this->hasBailedOutBitPtr = setValue;
+    }
+
     void SetRecordedException(Js::JavascriptExceptionObject* exceptionObject, bool propagateToDebugger = false)
     {
         this->recyclableData->exceptionObject = exceptionObject;
diff --git a/deps/chakrashim/core/lib/Runtime/Language/JavascriptExceptionOperators.cpp b/deps/chakrashim/core/lib/Runtime/Language/JavascriptExceptionOperators.cpp
index a850feea9c1..452bd169686 100644
--- a/deps/chakrashim/core/lib/Runtime/Language/JavascriptExceptionOperators.cpp
+++ b/deps/chakrashim/core/lib/Runtime/Language/JavascriptExceptionOperators.cpp
@@ -94,10 +94,11 @@ namespace Js
         void *continuation = nullptr;
         JavascriptExceptionObject *exception = nullptr;
         void *tryCatchFrameAddr = nullptr;
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr((bool*)((char*)frame + hasBailedOutOffset));
+
         PROBE_STACK(scriptContext, Constants::MinStackDefault + spillSize + argsSize);
         {
             Js::JavascriptExceptionOperators::TryCatchFrameAddrStack tryCatchFrameAddrStack(scriptContext, frame);
-
             try
             {
                 Js::JavascriptExceptionOperators::AutoCatchHandlerExists autoCatchHandlerExists(scriptContext);
@@ -129,18 +130,22 @@ namespace Js
 
             exception = exception->CloneIfStaticExceptionObject(scriptContext);
             bool hasBailedOut = *(bool*)((char*)frame + hasBailedOutOffset); // stack offsets are negative
+            // If an inlinee bailed out due to some reason, the execution of the current function enclosing the try catch will also continue in the interpreter
+            // During execution in the interpreter, if we throw outside the region enclosed in try/catch, this catch ends up catching that exception because its present on the call stack
             if (hasBailedOut)
             {
                 // If we have bailed out, this exception is coming from the interpreter. It should not have been caught;
                 // it so happens that this catch was on the stack and caught the exception.
                 // Re-throw!
+                scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
                 JavascriptExceptionOperators::DoThrow(exception, scriptContext);
-            }
+            }  
+
             Var exceptionObject = exception->GetThrownObject(scriptContext);
             AssertMsg(exceptionObject, "Caught object is null.");
             continuation = amd64_CallWithFakeFrame(catchAddr, frame, spillSize, argsSize, exceptionObject);
         }
-
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
         return continuation;
     }
 
@@ -154,6 +159,7 @@ namespace Js
     {
         void                      *tryContinuation     = nullptr;
         JavascriptExceptionObject *exception           = nullptr;
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr((bool*)((char*)frame + hasBailedOutOffset));
 
         PROBE_STACK(scriptContext, Constants::MinStackDefault + spillSize + argsSize);
 
@@ -189,6 +195,7 @@ namespace Js
                 // If we have bailed out, this exception is coming from the interpreter. It should not have been caught;
                 // it so happens that this catch was on the stack and caught the exception.
                 // Re-throw!
+                scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
                 JavascriptExceptionOperators::DoThrow(exception, scriptContext);
             }
 
@@ -197,6 +204,7 @@ namespace Js
             return continuation;
         }
 
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
         return tryContinuation;
     }
 
@@ -250,6 +258,7 @@ namespace Js
         void *continuation = nullptr;
         JavascriptExceptionObject *exception = nullptr;
         void * tryCatchFrameAddr = nullptr;
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr((bool*)((char*)localsPtr + hasBailedOutOffset));
 
         PROBE_STACK(scriptContext, Constants::MinStackDefault + argsSize);
         {
@@ -295,8 +304,10 @@ namespace Js
                 // If we have bailed out, this exception is coming from the interpreter. It should not have been caught;
                 // it so happens that this catch was on the stack and caught the exception.
                 // Re-throw!
+                scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
                 JavascriptExceptionOperators::DoThrow(exception, scriptContext);
             }
+
             Var exceptionObject = exception->GetThrownObject(scriptContext);
             AssertMsg(exceptionObject, "Caught object is null.");
 #if defined(_M_ARM)
@@ -306,6 +317,7 @@ namespace Js
 #endif
         }
 
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
         return continuation;
     }
 
@@ -320,9 +332,9 @@ namespace Js
     {
         void                      *tryContinuation     = nullptr;
         JavascriptExceptionObject *exception           = nullptr;
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr((bool*)((char*)localsPtr + hasBailedOutOffset));
 
         PROBE_STACK(scriptContext, Constants::MinStackDefault + argsSize);
-
         try
         {
 #if defined(_M_ARM)
@@ -355,8 +367,10 @@ namespace Js
                 // If we have bailed out, this exception is coming from the interpreter. It should not have been caught;
                 // it so happens that this catch was on the stack and caught the exception.
                 // Re-throw!
+                scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
                 JavascriptExceptionOperators::DoThrow(exception, scriptContext);
             }
+
             scriptContext->GetThreadContext()->SetPendingFinallyException(exception);
 #if defined(_M_ARM)
             void * finallyContinuation = arm_CallEhFrame(finallyAddr, framePtr, localsPtr, argsSize);
@@ -366,6 +380,7 @@ namespace Js
             return finallyContinuation;
         }
 
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
         return tryContinuation;
     }
 
@@ -429,6 +444,7 @@ namespace Js
         void* continuationAddr = NULL;
         Js::JavascriptExceptionObject* pExceptionObject = NULL;
         void *tryCatchFrameAddr = nullptr;
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr((bool*)((char*)framePtr + hasBailedOutOffset));
 
         PROBE_STACK(scriptContext, Constants::MinStackDefault);
         {
@@ -526,8 +542,10 @@ namespace Js
                 // If we have bailed out, this exception is coming from the interpreter. It should not have been caught;
                 // it so happens that this catch was on the stack and caught the exception.
                 // Re-throw!
+                scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
                 JavascriptExceptionOperators::DoThrow(pExceptionObject, scriptContext);
             }
+
             Var catchObject = pExceptionObject->GetThrownObject(scriptContext);
             AssertMsg(catchObject, "Caught object is NULL");
 #ifdef _M_IX86
@@ -581,6 +599,7 @@ namespace Js
 #endif
         }
 
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
         return continuationAddr;
     }
 
@@ -588,7 +607,7 @@ namespace Js
     {
         Js::JavascriptExceptionObject* pExceptionObject = NULL;
         void* continuationAddr = NULL;
-
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr((bool*)((char*)framePtr + hasBailedOutOffset));
         PROBE_STACK(scriptContext, Constants::MinStackDefault);
 
         try
@@ -676,8 +695,10 @@ namespace Js
                 // If we have bailed out, this exception is coming from the interpreter. It should not have been caught;
                 // it so happens that this catch was on the stack and caught the exception.
                 // Re-throw!
+                scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
                 JavascriptExceptionOperators::DoThrow(pExceptionObject, scriptContext);
             }
+
             scriptContext->GetThreadContext()->SetPendingFinallyException(pExceptionObject);
 
             void* newContinuationAddr = NULL;
@@ -733,6 +754,8 @@ namespace Js
 #endif
             return newContinuationAddr;
         }
+
+        scriptContext->GetThreadContext()->SetHasBailedOutBitPtr(nullptr);
         return continuationAddr;
     }
 
diff --git a/deps/chakrashim/core/test/EH/hasBailedOutBug.baseline b/deps/chakrashim/core/test/EH/hasBailedOutBug.baseline
new file mode 100644
index 00000000000..3a45d1d2cc9
--- /dev/null
+++ b/deps/chakrashim/core/test/EH/hasBailedOutBug.baseline
@@ -0,0 +1 @@
+TypeError: Assignment to read-only properties is not allowed in strict mode
diff --git a/deps/chakrashim/core/test/EH/hasBailedOutBug.js b/deps/chakrashim/core/test/EH/hasBailedOutBug.js
new file mode 100644
index 00000000000..611118be580
--- /dev/null
+++ b/deps/chakrashim/core/test/EH/hasBailedOutBug.js
@@ -0,0 +1,48 @@
+//-------------------------------------------------------------------------------------------------------
+// Copyright (C) Microsoft. All rights reserved.
+// Licensed under the MIT license. See LICENSE.txt file in the project root for full license information.
+//-------------------------------------------------------------------------------------------------------
+
+var shouldBailout = false;
+function test0() {
+  var obj0 = {};
+  var func0 = function () {
+  };
+  var func1 = function () {
+    (function () {
+      'use strict';
+      try {
+        function func8() {
+          obj0.prop2;
+        }
+        var uniqobj4 = func8();
+      } catch (ex) {
+        return 'somestring';
+      } finally {
+      }
+      func0(ary.push(ary.unshift(Object.prototype.length = protoObj0)));
+    }(shouldBailout ? (Object.defineProperty(Object.prototype, 'length', {
+      get: function () {
+      }
+    })) : arguments));
+  };
+  var ary = Array();
+  var protoObj0 = Object();
+  ({
+    prop7: shouldBailout ? (Object.defineProperty(obj0, 'prop2', {
+      set: function () {
+      }
+    })) : Object
+  });
+  for (; func1(); ) {
+  }
+}
+test0();
+test0();
+shouldBailout = true;
+try {
+  test0();
+}
+catch(ex) {
+  print(ex);
+}
diff --git a/deps/chakrashim/core/test/EH/rlexe.xml b/deps/chakrashim/core/test/EH/rlexe.xml
index af75ca7873e..41009e625de 100644
--- a/deps/chakrashim/core/test/EH/rlexe.xml
+++ b/deps/chakrashim/core/test/EH/rlexe.xml
@@ -176,4 +176,10 @@
       <compile-flags> -force:inline </compile-flags>
     </default>
   </test>
+  <test>
+    <default>
+       <files>hasBailedOutBug.js</files>
+       <baseline>hasBailedOutBug.baseline</baseline>
+  </default>
+  </test>
 </regress-exe>