diff --git a/server/src/main/java/org/elasticsearch/repositories/blobstore/BlobStoreRepository.java b/server/src/main/java/org/elasticsearch/repositories/blobstore/BlobStoreRepository.java
index e4626578864a8..9c1c24a35fbe4 100644
--- a/server/src/main/java/org/elasticsearch/repositories/blobstore/BlobStoreRepository.java
+++ b/server/src/main/java/org/elasticsearch/repositories/blobstore/BlobStoreRepository.java
@@ -31,7 +31,6 @@
 import org.apache.lucene.store.IndexOutput;
 import org.apache.lucene.store.RateLimiter;
 import org.apache.lucene.util.SetOnce;
-import org.elasticsearch.ExceptionsHelper;
 import org.elasticsearch.action.ActionListener;
 import org.elasticsearch.action.ActionRunnable;
 import org.elasticsearch.action.StepListener;
@@ -1042,10 +1041,6 @@ public void snapshotShard(Store store, MapperService mapperService, SnapshotId s
                               ActionListener<String> listener) {
         final ShardId shardId = store.shardId();
         final long startTime = threadPool.absoluteTimeInMillis();
-        final ActionListener<String> snapshotDoneListener = ActionListener.wrap(listener::onResponse, e -> {
-            snapshotStatus.moveToFailed(threadPool.absoluteTimeInMillis(), ExceptionsHelper.stackTrace(e));
-            listener.onFailure(e instanceof IndexShardSnapshotFailedException ? e : new IndexShardSnapshotFailedException(shardId, e));
-        });
         try {
             final String generation = snapshotStatus.generation();
             logger.debug("[{}] [{}] snapshot to [{}] [{}] ...", shardId, snapshotId, metadata.name(), generation);
@@ -1191,8 +1186,8 @@ public void snapshotShard(Store store, MapperService mapperService, SnapshotId s
                     }
                 }
                 snapshotStatus.moveToDone(threadPool.absoluteTimeInMillis(), indexGeneration);
-                snapshotDoneListener.onResponse(indexGeneration);
-            }, snapshotDoneListener::onFailure);
+                listener.onResponse(indexGeneration);
+            }, listener::onFailure);
             if (indexIncrementalFileCount == 0) {
                 allFilesUploadedListener.onResponse(Collections.emptyList());
                 return;
@@ -1222,7 +1217,7 @@ public void snapshotShard(Store store, MapperService mapperService, SnapshotId s
                 }));
             }
         } catch (Exception e) {
-            snapshotDoneListener.onFailure(e);
+            listener.onFailure(e);
         }
     }
 
diff --git a/server/src/main/java/org/elasticsearch/snapshots/SnapshotShardsService.java b/server/src/main/java/org/elasticsearch/snapshots/SnapshotShardsService.java
index 9b256ecaa077c..96bc4969d9d91 100644
--- a/server/src/main/java/org/elasticsearch/snapshots/SnapshotShardsService.java
+++ b/server/src/main/java/org/elasticsearch/snapshots/SnapshotShardsService.java
@@ -298,8 +298,10 @@ public void onResponse(String newGeneration) {
 
                     @Override
                     public void onFailure(Exception e) {
+                        final String failure = ExceptionsHelper.stackTrace(e);
+                        snapshotStatus.moveToFailed(threadPool.absoluteTimeInMillis(), failure);
                         logger.warn(() -> new ParameterizedMessage("[{}][{}] failed to snapshot shard", shardId, snapshot), e);
-                        notifyFailedSnapshotShard(snapshot, shardId, ExceptionsHelper.stackTrace(e));
+                        notifyFailedSnapshotShard(snapshot, shardId, failure);
                     }
                 });
             }
diff --git a/server/src/test/java/org/elasticsearch/snapshots/DedicatedClusterSnapshotRestoreIT.java b/server/src/test/java/org/elasticsearch/snapshots/DedicatedClusterSnapshotRestoreIT.java
index 5dc55ce3b2bba..a11fb9d13bc04 100644
--- a/server/src/test/java/org/elasticsearch/snapshots/DedicatedClusterSnapshotRestoreIT.java
+++ b/server/src/test/java/org/elasticsearch/snapshots/DedicatedClusterSnapshotRestoreIT.java
@@ -1219,6 +1219,12 @@ public void testDataNodeRestartWithBusyMasterDuringSnapshot() throws Exception {
         disruption.startDisrupting();
         logger.info("-->  restarting data node, which should cause primary shards to be failed");
         internalCluster().restartNode(dataNode, InternalTestCluster.EMPTY_CALLBACK);
+
+        logger.info("-->  wait for shard snapshots to show as failed");
+        assertBusy(() -> assertThat(
+            client().admin().cluster().prepareSnapshotStatus("test-repo").setSnapshots("test-snap").get().getSnapshots()
+                .get(0).getShardsStats().getFailedShards(), greaterThanOrEqualTo(1)), 60L, TimeUnit.SECONDS);
+
         unblockNode("test-repo", dataNode);
         disruption.stopDisrupting();
         // check that snapshot completes