diff --git a/task_sdk/src/airflow/sdk/execution_time/task_runner.py b/task_sdk/src/airflow/sdk/execution_time/task_runner.py
index 86c51673fcb94..8f636f4fe7673 100644
--- a/task_sdk/src/airflow/sdk/execution_time/task_runner.py
+++ b/task_sdk/src/airflow/sdk/execution_time/task_runner.py
@@ -425,9 +425,17 @@ def run(ti: RuntimeTaskInstance, log: Logger):
         )
 
         # TODO: Run task failure callbacks here
-    except (AirflowTaskTimeout, AirflowException):
+    except AirflowTaskTimeout:
         # TODO: handle the case of up_for_retry here
+        # TODO: coagulate this exception handling with AirflowException
+        # once https://github.com/apache/airflow/issues/45307 is handled
         ...
+    except AirflowException:
+        # TODO: handle the case of up_for_retry here
+        msg = TaskState(
+            state=TerminalTIState.FAILED,
+            end_date=datetime.now(tz=timezone.utc),
+        )
     except AirflowTaskTerminated:
         # External state updates are already handled with `ti_heartbeat` and will be
         # updated already be another UI API. So, these exceptions should ideally never be thrown.
diff --git a/task_sdk/tests/execution_time/test_task_runner.py b/task_sdk/tests/execution_time/test_task_runner.py
index 54a38c3948067..cb756921e1013 100644
--- a/task_sdk/tests/execution_time/test_task_runner.py
+++ b/task_sdk/tests/execution_time/test_task_runner.py
@@ -27,6 +27,7 @@
 from uuid6 import uuid7
 
 from airflow.exceptions import (
+    AirflowException,
     AirflowFailException,
     AirflowSensorTimeout,
     AirflowSkipException,
@@ -330,6 +331,46 @@ def test_run_raises_system_exit(time_machine, mocked_parse, make_ti_context, moc
     )
 
 
+def test_run_raises_airflow_exception(time_machine, mocked_parse, make_ti_context, mock_supervisor_comms):
+    """Test running a basic task that exits with AirflowException."""
+    from airflow.providers.standard.operators.python import PythonOperator
+
+    task = PythonOperator(
+        task_id="af_exception_task",
+        python_callable=lambda: (_ for _ in ()).throw(
+            AirflowException("Oops! I am failing with AirflowException!"),
+        ),
+    )
+
+    what = StartupDetails(
+        ti=TaskInstance(
+            id=uuid7(),
+            task_id="af_exception_task",
+            dag_id="basic_dag_af_exception",
+            run_id="c",
+            try_number=1,
+        ),
+        file="",
+        requests_fd=0,
+        ti_context=make_ti_context(),
+    )
+
+    ti = mocked_parse(what, "basic_dag_af_exception", task)
+
+    instant = timezone.datetime(2024, 12, 3, 10, 0)
+    time_machine.move_to(instant, tick=False)
+
+    run(ti, log=mock.MagicMock())
+
+    mock_supervisor_comms.send_request.assert_called_once_with(
+        msg=TaskState(
+            state=TerminalTIState.FAILED,
+            end_date=instant,
+        ),
+        log=mock.ANY,
+    )
+
+
 def test_startup_basic_templated_dag(mocked_parse, make_ti_context, mock_supervisor_comms):
     """Test running a DAG with templated task."""
     from airflow.providers.standard.operators.bash import BashOperator