diff --git a/runtime/observatory/tests/service/notify_debugger_on_exception_yielding_test.dart b/runtime/observatory/tests/service/notify_debugger_on_exception_yielding_test.dart
new file mode 100644
index 00000000000..1cab6a7d938
--- /dev/null
+++ b/runtime/observatory/tests/service/notify_debugger_on_exception_yielding_test.dart
@@ -0,0 +1,64 @@
+// Copyright (c) 2021, the Dart project authors.  Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+//
+// VMOptions=--verbose_debug
+
+// See: https://github.com/dart-lang/sdk/issues/45673
+
+import 'test_helper.dart';
+import 'service_test_common.dart';
+
+const int LINE_A = 19;
+const int LINE_B = 29;
+const int LINE_C = 39;
+
+@pragma('vm:notify-debugger-on-exception')
+Future<void> throwFromAsync() async {
+  try {
+    throw 'Throw from throwFromAsync'; // LINE_A
+  } catch (e) {
+    // Ignore. Internals will notify debugger.
+  }
+  return Future.value();
+}
+
+@pragma('vm:notify-debugger-on-exception')
+Stream<int> throwFromAsyncStar() async* {
+  try {
+    throw 'Throw from throwFromAsyncStar'; // LINE_B
+  } catch (e) {
+    // Ignore. Internals will notify debugger.
+  }
+  yield 13;
+}
+
+@pragma('vm:notify-debugger-on-exception')
+Iterable<int> throwFromSyncStar() sync* {
+  try {
+    throw 'Throw from throwFromSyncStar'; // LINE_C
+  } catch (e) {
+    // Ignore. Internals will notify debugger.
+  }
+  yield 7;
+}
+
+testMain() async {
+  throwFromAsync();
+  await for (var e in throwFromAsyncStar()) {/*ignore*/}
+  for (var e in throwFromSyncStar()) {/*ignore*/}
+}
+
+final tests = <IsolateTest>[
+  hasStoppedWithUnhandledException,
+  stoppedAtLine(LINE_A),
+  resumeIsolate,
+  hasStoppedWithUnhandledException,
+  stoppedAtLine(LINE_B),
+  resumeIsolate,
+  hasStoppedWithUnhandledException,
+  stoppedAtLine(LINE_C),
+];
+
+main([args = const <String>[]]) => runIsolateTests(args, tests,
+    testeeConcurrent: testMain, pause_on_unhandled_exceptions: true);
diff --git a/runtime/observatory_2/tests/service_2/notify_debugger_on_exception_yielding_test.dart b/runtime/observatory_2/tests/service_2/notify_debugger_on_exception_yielding_test.dart
new file mode 100644
index 00000000000..1cab6a7d938
--- /dev/null
+++ b/runtime/observatory_2/tests/service_2/notify_debugger_on_exception_yielding_test.dart
@@ -0,0 +1,64 @@
+// Copyright (c) 2021, the Dart project authors.  Please see the AUTHORS file
+// for details. All rights reserved. Use of this source code is governed by a
+// BSD-style license that can be found in the LICENSE file.
+//
+// VMOptions=--verbose_debug
+
+// See: https://github.com/dart-lang/sdk/issues/45673
+
+import 'test_helper.dart';
+import 'service_test_common.dart';
+
+const int LINE_A = 19;
+const int LINE_B = 29;
+const int LINE_C = 39;
+
+@pragma('vm:notify-debugger-on-exception')
+Future<void> throwFromAsync() async {
+  try {
+    throw 'Throw from throwFromAsync'; // LINE_A
+  } catch (e) {
+    // Ignore. Internals will notify debugger.
+  }
+  return Future.value();
+}
+
+@pragma('vm:notify-debugger-on-exception')
+Stream<int> throwFromAsyncStar() async* {
+  try {
+    throw 'Throw from throwFromAsyncStar'; // LINE_B
+  } catch (e) {
+    // Ignore. Internals will notify debugger.
+  }
+  yield 13;
+}
+
+@pragma('vm:notify-debugger-on-exception')
+Iterable<int> throwFromSyncStar() sync* {
+  try {
+    throw 'Throw from throwFromSyncStar'; // LINE_C
+  } catch (e) {
+    // Ignore. Internals will notify debugger.
+  }
+  yield 7;
+}
+
+testMain() async {
+  throwFromAsync();
+  await for (var e in throwFromAsyncStar()) {/*ignore*/}
+  for (var e in throwFromSyncStar()) {/*ignore*/}
+}
+
+final tests = <IsolateTest>[
+  hasStoppedWithUnhandledException,
+  stoppedAtLine(LINE_A),
+  resumeIsolate,
+  hasStoppedWithUnhandledException,
+  stoppedAtLine(LINE_B),
+  resumeIsolate,
+  hasStoppedWithUnhandledException,
+  stoppedAtLine(LINE_C),
+];
+
+main([args = const <String>[]]) => runIsolateTests(args, tests,
+    testeeConcurrent: testMain, pause_on_unhandled_exceptions: true);
diff --git a/runtime/vm/debugger.cc b/runtime/vm/debugger.cc
index dc9d048b6f8..0f18a4756f4 100644
--- a/runtime/vm/debugger.cc
+++ b/runtime/vm/debugger.cc
@@ -2248,11 +2248,27 @@ bool Debugger::ShouldPauseOnException(DebuggerStackTrace* stack_trace,
     // it will be caught once we unwind the stack.
     return true;
   }
+
+  auto& handler_function = Function::Handle(handler_frame->function().ptr());
+  // If the handler function is an synthetic inner function, we need to look for
+  // the annotations on the outer function.
+  if (handler_function.IsAsyncClosure()) {
+    // async :async_op
+    handler_function = handler_function.parent_function();
+  } else if (handler_frame->function().IsAsyncGenClosure()) {
+    // async* :async_op
+    handler_function = handler_function.parent_function();
+  } else if (handler_frame->function().IsSyncGenClosure()) {
+    // sync* :sync_op + :sync_op_gen
+    handler_function = handler_function.parent_function();
+    handler_function = handler_function.parent_function();
+  }
+
   // If handler_frame's function is annotated with
   // @pragma('vm:notify-debugger-on-exception'), we specifically want to notify
   // the debugger of this otherwise ignored exception.
   if (Library::FindPragma(Thread::Current(), /*only_core=*/false,
-                          handler_frame->function(),
+                          handler_function,
                           Symbols::vm_notify_debugger_on_exception())) {
     return true;
   }