diff --git a/godot-core/src/init/mod.rs b/godot-core/src/init/mod.rs
index 94cfaeb27..90c19c410 100644
--- a/godot-core/src/init/mod.rs
+++ b/godot-core/src/init/mod.rs
@@ -68,8 +68,11 @@ pub unsafe fn __gdext_load_library<E: ExtensionLibrary>(
         success as u8
     };
 
-    let ctx = || "error when loading GDExtension library";
-    let is_success = crate::private::handle_panic(ctx, init_code);
+    // Use std::panic::catch_unwind instead of handle_panic: handle_panic uses TLS, which
+    // calls `thread_atexit` on linux, which sets the hot reloading flag on linux.
+    // Using std::panic::catch_unwind avoids this, although we lose out on context information
+    // for debugging.
+    let is_success = std::panic::catch_unwind(init_code);
 
     is_success.unwrap_or(0)
 }