diff --git a/CHANGELOG b/CHANGELOG
index be369bc06..912eab216 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -119,6 +119,8 @@ known incompatibilities:
 Changes between 2.3.4 and 2.3.5
 -----------------------------------
 
+- fix issue169: respect --tb=style with setup/teardown errors as well.
+
 - never consider a fixture function for test function collection
 
 - allow re-running of test items / helps to fix pytest-reruntests plugin
diff --git a/testing/test_runner.py b/testing/test_runner.py
index 984f382e3..fcd524f0c 100644
--- a/testing/test_runner.py
+++ b/testing/test_runner.py
@@ -483,3 +483,14 @@ def test_unicode_in_longrepr(testdir):
     assert result.ret == 1
     assert "UnicodeEncodeError" not in result.stderr.str()
 
+
+
+def test_failure_in_setup(testdir):
+    testdir.makepyfile("""
+        def setup_module():
+            0/0
+        def test_func():
+            pass
+    """)
+    result = testdir.runpytest("--tb=line")
+    assert "def setup_module" not in result.stdout.str()