diff --git a/src/archivematica/MCPServer/server/packages.py b/src/archivematica/MCPServer/server/packages.py
index 389fba2fb8..b7c0540190 100644
--- a/src/archivematica/MCPServer/server/packages.py
+++ b/src/archivematica/MCPServer/server/packages.py
@@ -375,7 +375,7 @@ def wrap(*args, **kwargs):
         except Exception as err:
             # The main purpose of this decorator is to update the Transfer with
             # the new state (fail). If the Transfer does not exist we give up.
-            if isinstance(err, models.Transfer.DoesNotExist, ValidationError):
+            if isinstance(err, (models.Transfer.DoesNotExist, ValidationError)):
                 raise
             else:
                 logger.exception("Exception occurred during transfer processing")
diff --git a/tests/MCPServer/test_package.py b/tests/MCPServer/test_package.py
index d84a3dde36..4472037a72 100644
--- a/tests/MCPServer/test_package.py
+++ b/tests/MCPServer/test_package.py
@@ -11,6 +11,7 @@
 from archivematica.MCPServer.server.packages import SIP
 from archivematica.MCPServer.server.packages import Package
 from archivematica.MCPServer.server.packages import Transfer
+from archivematica.MCPServer.server.packages import _capture_transfer_failure
 from archivematica.MCPServer.server.packages import _determine_transfer_paths
 from archivematica.MCPServer.server.packages import _move_to_internal_shared_dir
 from archivematica.MCPServer.server.packages import (
@@ -430,3 +431,34 @@ def test_create_package(tmp_path, admin_user, settings):
 
     # Verify a transfer was added.
     assert models.Transfer.objects.count() == 1
+
+
+def test_capture_transfer_failure_propagates_transfer_does_not_exist():
+    @_capture_transfer_failure
+    def fn():
+        raise models.Transfer.DoesNotExist
+
+    with pytest.raises(models.Transfer.DoesNotExist):
+        fn()
+
+
+def test_capture_transfer_failure_propagates_validation_error():
+    @_capture_transfer_failure
+    def fn():
+        raise ValidationError("invalid argument")
+
+    with pytest.raises(ValidationError):
+        fn()
+
+
+def test_capture_transfer_failure_logs_other_exceptions():
+    @_capture_transfer_failure
+    def fn():
+        raise RuntimeError("something went wrong")
+
+    with mock.patch("archivematica.MCPServer.server.packages.logger") as mock_logger:
+        fn()
+
+    mock_logger.exception.assert_called_once_with(
+        "Exception occurred during transfer processing"
+    )