diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index c3da414a..21dafa53 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -24,6 +24,7 @@ Changed:
 
 - `AsyncioDispatcher cleanup tasks atexit <../../pull/138>`_
 - `Ensure returned numpy arrays are not writeable <../../pull/164>`_
+- `Ensure records do not get stuck in processing state <../../pull/175>`_
 
 Fixed:
 
diff --git a/softioc/asyncio_dispatcher.py b/softioc/asyncio_dispatcher.py
index d4886b5f..78b84b2d 100644
--- a/softioc/asyncio_dispatcher.py
+++ b/softioc/asyncio_dispatcher.py
@@ -84,10 +84,11 @@ async def async_wrapper():
                 ret = func(*func_args)
                 if inspect.isawaitable(ret):
                     await ret
-                if completion:
-                    completion(*completion_args)
             except Exception:
                 logging.exception("Exception when running dispatched callback")
+            finally:
+                if completion:
+                    completion(*completion_args)
         asyncio.run_coroutine_threadsafe(async_wrapper(), self.loop)
 
     def __enter__(self):
diff --git a/softioc/cothread_dispatcher.py b/softioc/cothread_dispatcher.py
index 3f9d23b8..4aa579ff 100644
--- a/softioc/cothread_dispatcher.py
+++ b/softioc/cothread_dispatcher.py
@@ -1,3 +1,5 @@
+import inspect
+import logging
 
 class CothreadDispatcher:
     def __init__(self, dispatcher = None):
@@ -28,7 +30,15 @@ def __call__(
             completion = None,
             completion_args=()):
         def wrapper():
-            func(*func_args)
-            if completion:
-                completion(*completion_args)
+            try:
+                func(*func_args)
+            except Exception:
+                logging.exception("Exception when running dispatched callback")
+            finally:
+                if completion:
+                    completion(*completion_args)
+
+        assert not inspect.iscoroutinefunction(func)
+        assert not inspect.iscoroutinefunction(completion)
+
         self.__dispatcher(wrapper)
diff --git a/tests/test_records.py b/tests/test_records.py
index 094c19b1..bf0c1bd9 100644
--- a/tests/test_records.py
+++ b/tests/test_records.py
@@ -912,6 +912,136 @@ async def query_record(index):
             if process.exitcode is None:
                 pytest.fail("Process did not terminate")
 
+
+    def blocking_test_func_broken_on_update(
+        self, device_name, conn, use_asyncio
+    ):
+
+        builder.SetDeviceName(device_name)
+
+        count_rec = builder.longIn("BLOCKING-COUNTER", initial_value=0)
+
+        async def async_blocking_broken_on_update(new_val):
+            """on_update function that always throws an exception"""
+            log("CHILD: blocking_broken_on_update starting")
+            completed_count = count_rec.get() + 1
+            count_rec.set(completed_count)
+            log(
+                f"CHILD: blocking_update_func updated count: {completed_count}",
+            )
+            raise Exception("on_update is broken!")
+
+        def sync_blocking_broken_on_update(new_val):
+            """on_update function that always throws an exception"""
+            log("CHILD: blocking_broken_on_update starting")
+            completed_count = count_rec.get() + 1
+            count_rec.set(completed_count)
+            log(
+                f"CHILD: blocking_update_func updated count: {completed_count}",
+            )
+            raise Exception("on_update is broken!")
+
+        if use_asyncio:
+            on_update_callback = async_blocking_broken_on_update
+        else:
+            on_update_callback = sync_blocking_broken_on_update
+
+        builder.longOut(
+            "BLOCKING-BROKEN-ON-UPDATE",
+            on_update=on_update_callback,
+            always_update=True,
+            blocking=True
+        )
+
+        if use_asyncio:
+            dispatcher = asyncio_dispatcher.AsyncioDispatcher()
+        else:
+            dispatcher = None
+        builder.LoadDatabase()
+        softioc.iocInit(dispatcher)
+
+        conn.send("R")  # "Ready"
+
+        log("CHILD: Sent R over Connection to Parent")
+
+        # Keep process alive while main thread runs CAGET
+        if not use_asyncio:
+            log("CHILD: Beginning cothread poll_list")
+            import cothread
+            cothread.poll_list([(conn.fileno(), cothread.POLLIN)], TIMEOUT)
+        if conn.poll(TIMEOUT):
+            val = conn.recv()
+            assert val == "D", "Did not receive expected Done character"
+
+        log("CHILD: Received exit command, child exiting")
+
+    @requires_cothread
+    @pytest.mark.asyncio
+    @pytest.mark.parametrize("use_asyncio", [True, False])
+    async def test_blocking_broken_on_update(self, use_asyncio):
+        """Test that a blocking record with an on_update record that will
+        always throw an exception will not permanently block record processing.
+
+        Runs using both cothread and asyncio dispatchers in the IOC."""
+        ctx = get_multiprocessing_context()
+
+        parent_conn, child_conn = ctx.Pipe()
+
+        device_name = create_random_prefix()
+
+        process = ctx.Process(
+            target=self.blocking_test_func_broken_on_update,
+            args=(device_name, child_conn, use_asyncio),
+        )
+
+        process.start()
+
+        log("PARENT: Child started, waiting for R command")
+
+        from aioca import caget, caput
+
+        try:
+            # Wait for message that IOC has started
+            select_and_recv(parent_conn, "R")
+
+            log("PARENT: received R command")
+
+            assert await caget(device_name + ":BLOCKING-COUNTER") == 0
+
+            log("PARENT: BLOCKING-COUNTER was 0")
+
+            await caput(
+                device_name + ":BLOCKING-BROKEN-ON-UPDATE",
+                1,
+                wait=True,
+                timeout=TIMEOUT
+            )
+
+            assert await caget(device_name + ":BLOCKING-COUNTER") == 1
+
+            await caput(
+                device_name + ":BLOCKING-BROKEN-ON-UPDATE",
+                2,
+                wait=True,
+                timeout=TIMEOUT
+            )
+
+            assert await caget(device_name + ":BLOCKING-COUNTER") == 2
+
+
+        finally:
+            # Clear the cache before stopping the IOC stops
+            # "channel disconnected" error messages
+            aioca_cleanup()
+
+            log("PARENT: Sending Done command to child")
+            parent_conn.send("D")  # "Done"
+            process.join(timeout=TIMEOUT)
+            log(f"PARENT: Join completed with exitcode {process.exitcode}")
+            if process.exitcode is None:
+                pytest.fail("Process did not terminate")
+
+
 class TestGetSetField:
     """Tests related to get_field and set_field on records"""