diff --git a/java/runtime/src/main/java/org/ray/runtime/AbstractRayRuntime.java b/java/runtime/src/main/java/org/ray/runtime/AbstractRayRuntime.java
index 117153423..049e4a9c0 100644
--- a/java/runtime/src/main/java/org/ray/runtime/AbstractRayRuntime.java
+++ b/java/runtime/src/main/java/org/ray/runtime/AbstractRayRuntime.java
@@ -48,11 +48,6 @@ public abstract class AbstractRayRuntime implements RayRuntime {
   protected ObjectStoreProxy objectStoreProxy;
   protected FunctionManager functionManager;
 
-  /**
-   * Actor ID -> local actor instance.
-   */
-  Map<UniqueId, Object> localActors = new HashMap<>();
-
   public AbstractRayRuntime(RayConfig rayConfig) {
     this.rayConfig = rayConfig;
     functionManager = new FunctionManager(rayConfig.driverResourcePath);
diff --git a/java/runtime/src/main/java/org/ray/runtime/Worker.java b/java/runtime/src/main/java/org/ray/runtime/Worker.java
index 929f343be..d97f4d2a6 100644
--- a/java/runtime/src/main/java/org/ray/runtime/Worker.java
+++ b/java/runtime/src/main/java/org/ray/runtime/Worker.java
@@ -1,5 +1,6 @@
 package org.ray.runtime;
 
+import com.google.common.base.Preconditions;
 import org.ray.api.exception.RayException;
 import org.ray.api.id.UniqueId;
 import org.ray.runtime.functionmanager.RayFunction;
@@ -18,6 +19,21 @@ public class Worker {
 
   private final AbstractRayRuntime runtime;
 
+  /**
+   * The current actor object, if this worker is an actor, otherwise null.
+   */
+  private Object currentActor = null;
+
+  /**
+   * Id of the current actor object, if the worker is an actor, otherwise NIL.
+   */
+  private UniqueId currentActorId = UniqueId.NIL;
+
+  /**
+   * The exception that failed the actor creation task, if any.
+   */
+  private Exception actorCreationException = null;
+
   public Worker(AbstractRayRuntime runtime) {
     this.runtime = runtime;
   }
@@ -46,7 +62,14 @@ public class Worker {
       runtime.getWorkerContext().setCurrentTask(spec, rayFunction.classLoader);
       Thread.currentThread().setContextClassLoader(rayFunction.classLoader);
       // Get local actor object and arguments.
-      Object actor = spec.isActorTask() ? runtime.localActors.get(spec.actorId) : null;
+      Object actor = null;
+      if (spec.isActorTask()) {
+        Preconditions.checkState(spec.actorId.equals(currentActorId));
+        if (actorCreationException != null) {
+          throw actorCreationException;
+        }
+        actor = currentActor;
+      }
       Object[] args = ArgumentsBuilder.unwrap(spec, rayFunction.classLoader);
       // Execute the task.
       Object result;
@@ -59,12 +82,18 @@ public class Worker {
       if (!spec.isActorCreationTask()) {
         runtime.put(returnId, result);
       } else {
-        runtime.localActors.put(returnId, result);
+        currentActor = result;
+        currentActorId = returnId;
       }
       LOGGER.info("Finished executing task {}", spec.taskId);
     } catch (Exception e) {
       LOGGER.error("Error executing task " + spec, e);
-      runtime.put(returnId, new RayException("Error executing task " + spec, e));
+      if (!spec.isActorCreationTask()) {
+        runtime.put(returnId, new RayException("Error executing task " + spec, e));
+      } else {
+        actorCreationException = e;
+        currentActorId = returnId;
+      }
     } finally {
       runtime.getWorkerContext().setCurrentTask(null, null);
       Thread.currentThread().setContextClassLoader(oldLoader);
diff --git a/java/test/src/main/java/org/ray/api/test/FailureTest.java b/java/test/src/main/java/org/ray/api/test/FailureTest.java
new file mode 100644
index 000000000..0e9d6da91
--- /dev/null
+++ b/java/test/src/main/java/org/ray/api/test/FailureTest.java
@@ -0,0 +1,63 @@
+package org.ray.api.test;
+
+import org.junit.Assert;
+import org.junit.Test;
+import org.ray.api.Ray;
+import org.ray.api.RayActor;
+import org.ray.api.RayObject;
+import org.ray.api.exception.RayException;
+
+public class FailureTest extends BaseTest {
+
+  private static final String EXCEPTION_MESSAGE = "Oops";
+
+  public static int badFunc() {
+    throw new RuntimeException(EXCEPTION_MESSAGE);
+  }
+
+  public static class BadActor {
+
+    public BadActor(boolean failOnCreation) {
+      if (failOnCreation) {
+        throw new RuntimeException(EXCEPTION_MESSAGE);
+      }
+    }
+
+    public int func() {
+      throw new RuntimeException(EXCEPTION_MESSAGE);
+    }
+  }
+
+  private static void assertTaskFail(RayObject<?> rayObject) {
+    try {
+      rayObject.get();
+      Assert.fail("Task didn't fail.");
+    } catch (RayException e) {
+      e.printStackTrace();
+      Throwable rootCause = e.getCause();
+      while (rootCause.getCause() != null) {
+        rootCause = rootCause.getCause();
+      }
+      Assert.assertTrue(rootCause instanceof RuntimeException);
+      Assert.assertEquals(rootCause.getMessage(), EXCEPTION_MESSAGE);
+    }
+  }
+
+  @Test
+  public void testNormalTaskFailure() {
+    assertTaskFail(Ray.call(FailureTest::badFunc));
+  }
+
+  @Test
+  public void testActorCreationFailure() {
+    RayActor<BadActor> actor = Ray.createActor(BadActor::new, true);
+    assertTaskFail(Ray.call(BadActor::func, actor));
+  }
+
+  @Test
+  public void testActorTaskFailure() {
+    RayActor<BadActor> actor = Ray.createActor(BadActor::new, false);
+    assertTaskFail(Ray.call(BadActor::func, actor));
+  }
+}
+