diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/step/AbstractStep.java b/spring-batch-core/src/main/java/org/springframework/batch/core/step/AbstractStep.java
index 5a1de1ce3..5df121a7b 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/step/AbstractStep.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/step/AbstractStep.java
@@ -326,7 +326,7 @@ public abstract class AbstractStep implements Step, InitializingBean, BeanNameAw
 	 * {@link BatchStatus#UNKNOWN} as step's status.
 	 */
 	protected static class FatalException extends RuntimeException {
-		public FatalException(String string, Exception e) {
+		public FatalException(String string, Throwable e) {
 			super(string, e);
 		}
 	}
diff --git a/spring-batch-core/src/main/java/org/springframework/batch/core/step/item/ItemOrientedStep.java b/spring-batch-core/src/main/java/org/springframework/batch/core/step/item/ItemOrientedStep.java
index 0f5e7591c..ee1d25fa3 100644
--- a/spring-batch-core/src/main/java/org/springframework/batch/core/step/item/ItemOrientedStep.java
+++ b/spring-batch-core/src/main/java/org/springframework/batch/core/step/item/ItemOrientedStep.java
@@ -265,18 +265,23 @@ public class ItemOrientedStep extends AbstractStep {
 						throw new FatalException("Fatal error detected during save of step execution context", e);
 					}
 
+					itemHandler.mark();
+
 					try {
-						itemHandler.mark();
 						transactionManager.commit(transaction);
 					}
 					catch (Exception e) {
-						fatalException.setException(e);
-						stepExecution.setStatus(BatchStatus.UNKNOWN);
 						logger.error("Fatal error detected during commit.");
-						throw new FatalException("Fatal error detected during commit", e);
+						throw new CommitException("Fatal error detected during commit - "
+								+ "the execution is in undefined state and restart will not be possible", e);
 					}
 
 				}
+				catch (CommitException e) {
+					// trying to rollback after failed commit would just be
+					// asking for more trouble - die ASAP
+					throw e;
+				}
 				catch (Error e) {
 					processRollback(stepExecution, contribution, fatalException, transaction);
 					throw e;
@@ -382,6 +387,15 @@ public class ItemOrientedStep extends AbstractStep {
 
 	}
 
+	/**
+	 * Encapsulates exception thrown while committing transaction.
+	 */
+	private static class CommitException extends FatalException {
+		public CommitException(String msg, Throwable cause) {
+			super(msg, cause);
+		}
+	}
+
 	protected void close(ExecutionContext ctx) throws Exception {
 		stream.close(ctx);
 	}
diff --git a/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/ItemOrientedStepTests.java b/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/ItemOrientedStepTests.java
index e48e7dc67..667ff3566 100644
--- a/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/ItemOrientedStepTests.java
+++ b/spring-batch-core/src/test/java/org/springframework/batch/core/step/item/ItemOrientedStepTests.java
@@ -654,9 +654,9 @@ public class ItemOrientedStepTests extends TestCase {
 		catch (RuntimeException ex) {
 			assertEquals(BatchStatus.UNKNOWN, stepExecution.getStatus());
 			String msg = stepExecution.getExitStatus().getExitDescription();
-			assertTrue(msg.contains("Fatal error detected during commit"));
+			assertTrue(msg.contains("Fatal error detected during commit - the execution is in undefined state and restart will not be possible"));
 			msg = ex.getMessage();
-			assertTrue(msg.contains("Fatal error detected during commit"));
+			assertTrue(msg.contains("Fatal error detected during commit - the execution is in undefined state and restart will not be possible"));
 			// The original rollback was caused by this one:
 			assertEquals("Bar", ex.getCause().getMessage());
 		}