diff --git a/actor-tests/src/test/scala/org/apache/pekko/actor/ActorLifeCycleSpec.scala b/actor-tests/src/test/scala/org/apache/pekko/actor/ActorLifeCycleSpec.scala
index da5c03875f1..fe0dd5a139e 100644
--- a/actor-tests/src/test/scala/org/apache/pekko/actor/ActorLifeCycleSpec.scala
+++ b/actor-tests/src/test/scala/org/apache/pekko/actor/ActorLifeCycleSpec.scala
@@ -160,6 +160,33 @@ class ActorLifeCycleSpec extends PekkoSpec with BeforeAndAfterEach with Implicit
       a ! "hello"
       expectMsg(42)
     }
+
+    "not break supervisor strategy due to unhandled exception in preStart" in {
+      val id = newUuid.toString
+      val gen = new AtomicInteger(0)
+      val maxRetryNum = 3
+
+      val childProps = Props(new LifeCycleTestActor(testActor, id, gen) {
+        override def preStart(): Unit = {
+          report("preStart")
+          throw new Exception("test exception")
+        }
+      }).withDeploy(Deploy.local)
+
+      val supervisorStrategy: SupervisorStrategy =
+        OneForOneStrategy(maxNrOfRetries = maxRetryNum, timeout.duration) {
+          case _: ActorInitializationException => SupervisorStrategy.Restart
+          case _                               => SupervisorStrategy.Escalate
+        }
+      val supervisor = system.actorOf(Props(classOf[Supervisor], supervisorStrategy))
+      Await.result((supervisor ? childProps).mapTo[ActorRef], timeout.duration)
+
+      (0 to maxRetryNum).foreach(i => {
+        expectMsg(("preStart", id, i))
+      })
+      expectNoMessage()
+      system.stop(supervisor)
+    }
   }
 
   "have a non null context after termination" in {
diff --git a/actor-tests/src/test/scala/org/apache/pekko/actor/SupervisorSpec.scala b/actor-tests/src/test/scala/org/apache/pekko/actor/SupervisorSpec.scala
index 5d16c504ef6..22801ed2e1d 100644
--- a/actor-tests/src/test/scala/org/apache/pekko/actor/SupervisorSpec.scala
+++ b/actor-tests/src/test/scala/org/apache/pekko/actor/SupervisorSpec.scala
@@ -95,6 +95,17 @@ object SupervisorSpec {
     }
   }
 
+  class Child(cnt: Int) extends Actor {
+    override def preStart(): Unit = {
+      if (cnt == 0) throw new RuntimeException("deliberate test failure")
+    }
+
+    def receive = {
+      case PingMessage =>
+        sender() ! PongMessage
+    }
+  }
+
   def creator(target: ActorRef, fail: Boolean = false) = {
     val p = Props(new Creator(target))
     if (fail) p.withMailbox("error-mailbox") else p
@@ -532,6 +543,31 @@ class SupervisorSpec
       }
 
     }
+
+    "supervise exceptions on child actor initialize" in {
+      val parent = system.actorOf(Props(new Actor {
+          val cnt: AtomicInteger = new AtomicInteger(0)
+          var childRef: ActorRef = _
+
+          override def supervisorStrategy: SupervisorStrategy = OneForOneStrategy() {
+            case _: ActorInitializationException => SupervisorStrategy.Restart
+            case _                               => SupervisorStrategy.Stop
+          }
+
+          override def preStart(): Unit = {
+            childRef = context.actorOf(Props(new Child(cnt.getAndIncrement())), "child")
+          }
+
+          def receive = {
+            case msg if msg == PingMessage && childRef != null =>
+              childRef.tell(PingMessage, sender())
+          }
+        }), "parent")
+
+      val probe = TestProbe()
+      probe.send(parent, PingMessage)
+      probe.expectMsg(PongMessage)
+    }
   }
 
   "restarts a child infinitely if maxNrOfRetries = -1 and withinTimeRange = Duration.Inf" in {
diff --git a/actor/src/main/scala/org/apache/pekko/actor/ActorCell.scala b/actor/src/main/scala/org/apache/pekko/actor/ActorCell.scala
index b6a085bacdd..63af89af0cd 100644
--- a/actor/src/main/scala/org/apache/pekko/actor/ActorCell.scala
+++ b/actor/src/main/scala/org/apache/pekko/actor/ActorCell.scala
@@ -643,7 +643,6 @@ private[pekko] class ActorCell(
     def failActor(): Unit =
       if (_actor != null) {
         clearActorFields(actor, recreate = false)
-        setFailedFatally()
         _actor = null // ensure that we know that we failed during creation
       }
 
@@ -657,10 +656,13 @@ private[pekko] class ActorCell(
         publish(Debug(self.path.toString, clazz(created), "started (" + created + ")"))
     } catch {
       case e: InterruptedException =>
+        setFailedFatally()
         failActor()
         Thread.currentThread().interrupt()
         throw ActorInitializationException(self, "interruption during creation", e)
       case NonFatal(e) =>
+        if (actor == null) setFailed(system.deadLetters)
+        else setFailed(actor.self)
         failActor()
         e match {
           case i: InstantiationException =>
diff --git a/actor/src/main/scala/org/apache/pekko/actor/dungeon/FaultHandling.scala b/actor/src/main/scala/org/apache/pekko/actor/dungeon/FaultHandling.scala
index 2e57945a8cf..c952b685b35 100644
--- a/actor/src/main/scala/org/apache/pekko/actor/dungeon/FaultHandling.scala
+++ b/actor/src/main/scala/org/apache/pekko/actor/dungeon/FaultHandling.scala
@@ -76,7 +76,7 @@ private[pekko] trait FaultHandling { this: ActorCell =>
     case FailedRef(ref) => ref
     case _              => null
   }
-  private def setFailed(perpetrator: ActorRef): Unit = _failed = _failed match {
+  protected def setFailed(perpetrator: ActorRef): Unit = _failed = _failed match {
     case FailedFatally => FailedFatally
     case _             => FailedRef(perpetrator)
   }
@@ -214,34 +214,34 @@ private[pekko] trait FaultHandling { this: ActorCell =>
   @InternalStableApi
   final def handleInvokeFailure(childrenNotToSuspend: immutable.Iterable[ActorRef], t: Throwable): Unit = {
     // prevent any further messages to be processed until the actor has been restarted
-    if (!isFailed)
-      try {
-        suspendNonRecursive()
-        // suspend children
-        val skip: Set[ActorRef] = currentMessage match {
-          case Envelope(Failed(_, _, _), child) => setFailed(child); Set(child)
-          case _                                => setFailed(self); Set.empty
-        }
-        suspendChildren(exceptFor = skip ++ childrenNotToSuspend)
-        t match {
-          // tell supervisor
-          case _: InterruptedException =>
-            // ➡➡➡ NEVER SEND THE SAME SYSTEM MESSAGE OBJECT TO TWO ACTORS ⬅⬅⬅
-            parent.sendSystemMessage(Failed(self, new ActorInterruptedException(t), uid))
-          case _ =>
-            // ➡➡➡ NEVER SEND THE SAME SYSTEM MESSAGE OBJECT TO TWO ACTORS ⬅⬅⬅
-            parent.sendSystemMessage(Failed(self, t, uid))
-        }
-      } catch handleNonFatalOrInterruptedException { e =>
-          publish(
-            Error(
-              e,
-              self.path.toString,
-              clazz(actor),
-              "emergency stop: exception in failure handling for " + t.getClass + Logging.stackTraceFor(t)))
-          try children.foreach(stop)
-          finally finishTerminate()
-        }
+    try {
+      suspendNonRecursive()
+      // suspend children
+      val skip: Set[ActorRef] = currentMessage match {
+        case Envelope(Failed(_, _, _), child) if !isFailed => setFailed(child); Set(child)
+        case _ if !isFailed                                => setFailed(self); Set.empty
+        case _                                             => Set.empty
+      }
+      suspendChildren(exceptFor = skip ++ childrenNotToSuspend)
+      t match {
+        // tell supervisor
+        case _: InterruptedException =>
+          // ➡➡➡ NEVER SEND THE SAME SYSTEM MESSAGE OBJECT TO TWO ACTORS ⬅⬅⬅
+          parent.sendSystemMessage(Failed(self, new ActorInterruptedException(t), uid))
+        case _ =>
+          // ➡➡➡ NEVER SEND THE SAME SYSTEM MESSAGE OBJECT TO TWO ACTORS ⬅⬅⬅
+          parent.sendSystemMessage(Failed(self, t, uid))
+      }
+    } catch handleNonFatalOrInterruptedException { e =>
+        publish(
+          Error(
+            e,
+            self.path.toString,
+            clazz(actor),
+            "emergency stop: exception in failure handling for " + t.getClass + Logging.stackTraceFor(t)))
+        try children.foreach(stop)
+        finally finishTerminate()
+      }
   }
 
   private def finishTerminate(): Unit = {