diff --git a/contracts/dynamic-callee-contract/src/contract.rs b/contracts/dynamic-callee-contract/src/contract.rs
index bbc982b74..328f2df31 100644
--- a/contracts/dynamic-callee-contract/src/contract.rs
+++ b/contracts/dynamic-callee-contract/src/contract.rs
@@ -53,6 +53,11 @@ fn pong_env() -> Env {
     GlobalApi::env()
 }
 
+#[callable_point]
+fn do_panic() {
+    panic!();
+}
+
 #[derive(Contract)]
 struct Me {
     address: Addr,
diff --git a/contracts/dynamic-callee-contract/tests/integration.rs b/contracts/dynamic-callee-contract/tests/integration.rs
index 144ef2a67..8e9bbd3cf 100644
--- a/contracts/dynamic-callee-contract/tests/integration.rs
+++ b/contracts/dynamic-callee-contract/tests/integration.rs
@@ -3,7 +3,7 @@ use cosmwasm_vm::testing::{
     mock_backend, mock_env, read_data_from_mock_env, write_data_to_mock_env, Contract, MockApi,
     MockInstanceOptions, MockQuerier, MockStorage, MOCK_CONTRACT_ADDR,
 };
-use cosmwasm_vm::Instance;
+use cosmwasm_vm::{Instance, VmError};
 use dynamic_callee_contract::contract::ExampleStruct;
 use std::collections::HashMap;
 use wasmer_types::{FunctionType, Type};
@@ -27,6 +27,7 @@ fn required_exports() -> Vec<(String, FunctionType)> {
             ([Type::I32, Type::I32], [Type::I32]).into(),
         ),
         (String::from("pong_env"), ([], [Type::I32]).into()),
+        (String::from("do_panic"), ([], []).into()),
     ]
 }
 
@@ -207,3 +208,26 @@ fn callable_point_pong_env_works() {
     let result: Env = from_slice(&serialized_return).unwrap();
     assert_eq!(result.contract.address, Addr::unchecked(MOCK_CONTRACT_ADDR));
 }
+
+#[test]
+fn callable_point_do_panic_raises_runtime_error() {
+    let instance = make_callee_instance();
+
+    let required_exports = required_exports();
+    instance
+        .env
+        .set_serialized_env(&to_vec(&mock_env()).unwrap());
+    let export_index = 5;
+    assert_eq!("do_panic".to_string(), required_exports[export_index].0);
+    let call_result =
+        instance.call_function_strict(&required_exports[export_index].1, "do_panic", &[]);
+
+    match call_result.unwrap_err() {
+        VmError::RuntimeErr { msg, .. } => {
+            // Because content in the latter part depends on the environment,
+            // comparing whether the error begins with panic error or not.
+            assert!(msg.starts_with("Wasmer runtime error: RuntimeError: unreachable"))
+        }
+        e => panic!("Unexpected error: {:?}", e),
+    }
+}
diff --git a/contracts/dynamic-caller-contract/schema/execute_msg.json b/contracts/dynamic-caller-contract/schema/execute_msg.json
index 50b3af4d3..c1fe958b4 100644
--- a/contracts/dynamic-caller-contract/schema/execute_msg.json
+++ b/contracts/dynamic-caller-contract/schema/execute_msg.json
@@ -33,6 +33,18 @@
         }
       },
       "additionalProperties": false
+    },
+    {
+      "type": "object",
+      "required": [
+        "do_panic"
+      ],
+      "properties": {
+        "do_panic": {
+          "type": "object"
+        }
+      },
+      "additionalProperties": false
     }
   ],
   "definitions": {
diff --git a/contracts/dynamic-caller-contract/src/contract.rs b/contracts/dynamic-caller-contract/src/contract.rs
index e4bab16ec..077863231 100644
--- a/contracts/dynamic-caller-contract/src/contract.rs
+++ b/contracts/dynamic-caller-contract/src/contract.rs
@@ -32,6 +32,7 @@ trait Callee: Contract {
     fn pong_with_tuple_takes_2_args(&self, input1: String, input2: i32) -> (String, i32);
     fn pong_env(&self) -> Env;
     fn reentrancy(&self, addr: Addr);
+    fn do_panic(&self);
 }
 
 #[cfg(not(target_arch = "wasm32"))]
@@ -62,6 +63,10 @@ impl Callee for CalleeContract {
     fn reentrancy(&self, _addr: Addr) {
         panic!()
     }
+
+    fn do_panic(&self) {
+        panic!()
+    }
 }
 
 // Note, you can use StdResult in some functions where you do not
@@ -90,6 +95,7 @@ pub fn execute(
     match msg {
         ExecuteMsg::Ping { ping_num } => try_ping(deps, ping_num),
         ExecuteMsg::TryReEntrancy {} => try_re_entrancy(deps, env),
+        ExecuteMsg::DoPanic {} => try_do_panic(deps, env),
     }
 }
 
@@ -131,6 +137,13 @@ pub fn try_re_entrancy(deps: DepsMut, env: Env) -> Result<Response, ContractErro
     Ok(Response::default())
 }
 
+pub fn try_do_panic(deps: DepsMut, _env: Env) -> Result<Response, ContractError> {
+    let address = from_slice(&deps.storage.get(b"dynamic_callee_contract").unwrap())?;
+    let contract = CalleeContract { address };
+    contract.do_panic();
+    Ok(Response::default())
+}
+
 #[callable_point]
 fn should_never_be_called() {}
 
diff --git a/contracts/dynamic-caller-contract/src/msg.rs b/contracts/dynamic-caller-contract/src/msg.rs
index 251ba7918..53c702e6b 100644
--- a/contracts/dynamic-caller-contract/src/msg.rs
+++ b/contracts/dynamic-caller-contract/src/msg.rs
@@ -12,6 +12,7 @@ pub struct InstantiateMsg {
 pub enum ExecuteMsg {
     Ping { ping_num: Uint128 },
     TryReEntrancy {},
+    DoPanic {},
 }
 
 #[derive(Serialize, Deserialize, Clone, Debug, PartialEq, JsonSchema)]
diff --git a/contracts/dynamic-caller-contract/tests/integration.rs b/contracts/dynamic-caller-contract/tests/integration.rs
index 562139678..7c227d771 100644
--- a/contracts/dynamic-caller-contract/tests/integration.rs
+++ b/contracts/dynamic-caller-contract/tests/integration.rs
@@ -32,6 +32,11 @@ fn required_imports() -> Vec<(String, String, FunctionType)> {
             String::from("CalleeContract"),
             ([Type::I32], [Type::I32]).into(),
         ),
+        (
+            String::from("do_panic"),
+            String::from("CalleeContract"),
+            ([Type::I32], []).into(),
+        ),
     ]
 }