diff --git a/CHANGELOG b/CHANGELOG
index d859cad21..a25705ad4 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,6 +1,10 @@
 Unreleased
 -----------------------------------
 
+- fix issue287 by running all finalizers but saving the exception
+  from the last failing finalizer and re-raising it so teardown will
+  still have failed.
+
 - fix issue384 by removing the trial support code
   since the unittest compat enhancements allow
   trial to handle it on its own
diff --git a/_pytest/runner.py b/_pytest/runner.py
index 9abc9a7fe..345080db0 100644
--- a/_pytest/runner.py
+++ b/_pytest/runner.py
@@ -328,9 +328,17 @@ class SetupState(object):
 
     def _callfinalizers(self, colitem):
         finalizers = self._finalizers.pop(colitem, None)
+        exc = None
         while finalizers:
             fin = finalizers.pop()
-            fin()
+            try:
+                fin()
+            except KeyboardInterrupt:
+                raise
+            except:
+                exc = py.std.sys.exc_info()
+        if exc:
+            py.builtin._reraise(*exc)
 
     def _teardown_with_finalization(self, colitem):
         self._callfinalizers(colitem)
diff --git a/testing/test_runner.py b/testing/test_runner.py
index 9b73e2ab2..8a6f4f839 100644
--- a/testing/test_runner.py
+++ b/testing/test_runner.py
@@ -43,6 +43,21 @@ class TestSetupState:
         pytest.raises(ValueError, lambda: ss.prepare(item))
         pytest.raises(ValueError, lambda: ss.prepare(item))
 
+    def test_teardown_multiple_one_fails(self, testdir):
+        r = []
+        def fin1(): r.append('fin1')
+        def fin2(): raise Exception('oops')
+        def fin3(): r.append('fin3')
+        item = testdir.getitem("def test_func(): pass")
+        ss = runner.SetupState()
+        ss.addfinalizer(fin1, item)
+        ss.addfinalizer(fin2, item)
+        ss.addfinalizer(fin3, item)
+        with pytest.raises(Exception) as err:
+            ss._callfinalizers(item)
+        assert err.value.args == ('oops',)
+        assert r == ['fin3', 'fin1']
+
 
 class BaseFunctionalTests:
     def test_passfunction(self, testdir):