diff --git a/ethcore/src/block_queue.rs b/ethcore/src/block_queue.rs
index fb735c973..dcfcec1e4 100644
--- a/ethcore/src/block_queue.rs
+++ b/ethcore/src/block_queue.rs
@@ -26,6 +26,7 @@ use views::*;
 use header::*;
 use service::*;
 use client::BlockStatus;
+use util::panics::*;
 
 /// Block queue status
 #[derive(Debug)]
@@ -59,6 +60,7 @@ impl BlockQueueInfo {
 /// A queue of blocks. Sits between network or other I/O and the BlockChain.
 /// Sorts them ready for blockchain insertion.
 pub struct BlockQueue {
+	panic_handler: Arc<PanicHandler>,
 	engine: Arc<Box<Engine>>,
 	more_to_verify: Arc<Condvar>,
 	verification: Arc<Mutex<Verification>>,
@@ -113,6 +115,7 @@ impl BlockQueue {
 		let ready_signal = Arc::new(QueueSignal { signalled: AtomicBool::new(false), message_channel: message_channel });
 		let deleting = Arc::new(AtomicBool::new(false));
 		let empty = Arc::new(Condvar::new());
+		let panic_handler = PanicHandler::new_in_arc();
 
 		let mut verifiers: Vec<JoinHandle<()>> = Vec::new();
 		let thread_count = max(::num_cpus::get(), 3) - 2;
@@ -123,11 +126,21 @@ impl BlockQueue {
 			let ready_signal = ready_signal.clone();
 			let empty = empty.clone();
 			let deleting = deleting.clone();
-			verifiers.push(thread::Builder::new().name(format!("Verifier #{}", i)).spawn(move || BlockQueue::verify(verification, engine, more_to_verify, ready_signal, deleting, empty))
-				.expect("Error starting block verification thread"));
+			let panic_handler = panic_handler.clone();
+			verifiers.push(
+				thread::Builder::new()
+				.name(format!("Verifier #{}", i))
+				.spawn(move || {
+					panic_handler.catch_panic(move || {
+					  BlockQueue::verify(verification, engine, more_to_verify, ready_signal, deleting, empty)
+					}).unwrap()
+				})
+				.expect("Error starting block verification thread")
+			);
 		}
 		BlockQueue {
 			engine: engine,
+			panic_handler: panic_handler,
 			ready_signal: ready_signal.clone(),
 			more_to_verify: more_to_verify.clone(),
 			verification: verification.clone(),
@@ -150,7 +163,7 @@ impl BlockQueue {
 				while lock.unverified.is_empty() && !deleting.load(AtomicOrdering::Relaxed) {
 					lock = wait.wait(lock).unwrap();
 				}
-				
+
 				if deleting.load(AtomicOrdering::Relaxed) {
 					return;
 				}
@@ -324,6 +337,12 @@ impl BlockQueue {
 	}
 }
 
+impl MayPanic for BlockQueue {
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener {
+		self.panic_handler.on_panic(closure);
+	}
+}
+
 impl Drop for BlockQueue {
 	fn drop(&mut self) {
 		self.clear();
diff --git a/ethcore/src/client.rs b/ethcore/src/client.rs
index 3de5c097e..26535c46c 100644
--- a/ethcore/src/client.rs
+++ b/ethcore/src/client.rs
@@ -17,6 +17,7 @@
 //! Blockchain database client.
 
 use util::*;
+use util::panics::*;
 use rocksdb::{Options, DB, DBCompactionStyle};
 use blockchain::{BlockChain, BlockProvider, CacheSize, TransactionId};
 use views::BlockView;
@@ -164,7 +165,8 @@ pub struct Client {
 	state_db: Mutex<JournalDB>,
 	block_queue: RwLock<BlockQueue>,
 	report: RwLock<ClientReport>,
-	import_lock: Mutex<()>
+	import_lock: Mutex<()>,
+	panic_handler: Arc<PanicHandler>,
 }
 
 const HISTORY: u64 = 1000;
@@ -205,19 +207,25 @@ impl Client {
 		let mut state_path = path.to_path_buf();
 		state_path.push("state");
 		let db = Arc::new(DB::open(&opts, state_path.to_str().unwrap()).unwrap());
-		
+
 		let engine = Arc::new(try!(spec.to_engine()));
 		let mut state_db = JournalDB::new_with_arc(db.clone());
 		if state_db.is_empty() && engine.spec().ensure_db_good(&mut state_db) {
 			state_db.commit(0, &engine.spec().genesis_header().hash(), None).expect("Error commiting genesis state to state DB");
 		}
+
+		let block_queue = BlockQueue::new(engine.clone(), message_channel);
+		let panic_handler = PanicHandler::new_in_arc();
+		panic_handler.forward_from(&block_queue);
+
 		Ok(Arc::new(Client {
 			chain: chain,
-			engine: engine.clone(),
+			engine: engine,
 			state_db: Mutex::new(state_db),
-			block_queue: RwLock::new(BlockQueue::new(engine, message_channel)),
+			block_queue: RwLock::new(block_queue),
 			report: RwLock::new(Default::default()),
 			import_lock: Mutex::new(()),
+			panic_handler: panic_handler
 		}))
 	}
 
@@ -355,12 +363,12 @@ impl BlockChainClient for Client {
 
 	fn block_status(&self, hash: &H256) -> BlockStatus {
 		if self.chain.read().unwrap().is_known(&hash) {
-			BlockStatus::InChain 
-		} else { 
-			self.block_queue.read().unwrap().block_status(hash) 
+			BlockStatus::InChain
+		} else {
+			self.block_queue.read().unwrap().block_status(hash)
 		}
 	}
-	
+
 	fn block_total_difficulty(&self, hash: &H256) -> Option<U256> {
 		self.chain.read().unwrap().block_details(hash).map(|d| d.total_difficulty)
 	}
@@ -438,3 +446,9 @@ impl BlockChainClient for Client {
 		}
 	}
 }
+
+impl MayPanic for Client {
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener {
+		self.panic_handler.on_panic(closure);
+	}
+}
diff --git a/ethcore/src/service.rs b/ethcore/src/service.rs
index 92f483507..8f95dd361 100644
--- a/ethcore/src/service.rs
+++ b/ethcore/src/service.rs
@@ -17,6 +17,7 @@
 //! Creates and registers client and network services.
 
 use util::*;
+use util::panics::*;
 use spec::Spec;
 use error::*;
 use std::env;
@@ -27,7 +28,7 @@ use client::Client;
 pub enum SyncMessage {
 	/// New block has been imported into the blockchain
 	NewChainBlock(Bytes), //TODO: use Cow
-	/// A block is ready 
+	/// A block is ready
 	BlockVerified,
 }
 
@@ -38,17 +39,22 @@ pub type NetSyncMessage = NetworkIoMessage<SyncMessage>;
 pub struct ClientService {
 	net_service: NetworkService<SyncMessage>,
 	client: Arc<Client>,
+	panic_handler: Arc<PanicHandler>
 }
 
 impl ClientService {
 	/// Start the service in a separate thread.
 	pub fn start(spec: Spec, net_config: NetworkConfiguration) -> Result<ClientService, Error> {
+		let panic_handler = PanicHandler::new_in_arc();
 		let mut net_service = try!(NetworkService::start(net_config));
+		panic_handler.forward_from(&net_service);
+
 		info!("Starting {}", net_service.host_info());
 		info!("Configured for {} using {} engine", spec.name, spec.engine_name);
 		let mut dir = env::home_dir().unwrap();
 		dir.push(".parity");
 		let client = try!(Client::new(spec, &dir, net_service.io().channel()));
+		panic_handler.forward_from(client.deref());
 		let client_io = Arc::new(ClientIoHandler {
 			client: client.clone()
 		});
@@ -57,6 +63,7 @@ impl ClientService {
 		Ok(ClientService {
 			net_service: net_service,
 			client: client,
+			panic_handler: panic_handler,
 		})
 	}
 
@@ -81,6 +88,12 @@ impl ClientService {
 	}
 }
 
+impl MayPanic for ClientService {
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener {
+		self.panic_handler.on_panic(closure);
+	}
+}
+
 /// IO interface for the Client handler
 struct ClientIoHandler {
 	client: Arc<Client>
diff --git a/parity/main.rs b/parity/main.rs
index f5a07208e..cc59aacb8 100644
--- a/parity/main.rs
+++ b/parity/main.rs
@@ -40,6 +40,7 @@ use rlog::{LogLevelFilter};
 use env_logger::LogBuilder;
 use ctrlc::CtrlC;
 use util::*;
+use util::panics::MayPanic;
 use ethcore::spec::*;
 use ethcore::client::*;
 use ethcore::service::{ClientService, NetSyncMessage};
@@ -92,7 +93,7 @@ fn setup_log(init: &str) {
 #[cfg(feature = "rpc")]
 fn setup_rpc_server(client: Arc<Client>, sync: Arc<EthSync>, url: &str) {
 	use rpc::v1::*;
-	
+
 	let mut server = rpc::HttpServer::new(1);
 	server.add_delegate(Web3Client::new().to_delegate());
 	server.add_delegate(EthClient::new(client.clone()).to_delegate());
@@ -105,10 +106,17 @@ fn setup_rpc_server(client: Arc<Client>, sync: Arc<EthSync>, url: &str) {
 fn setup_rpc_server(_client: Arc<Client>, _sync: Arc<EthSync>, _url: &str) {
 }
 
-fn main() {
-	let args: Args = Args::docopt().decode().unwrap_or_else(|e| e.exit());
+struct Configuration {
+	args: Args
+}
+impl Configuration {
+	fn parse() -> Self {
+		Configuration {
+			args: Args::docopt().decode().unwrap_or_else(|e| e.exit())
+		}
+	}
 
-	if args.flag_version {
+	fn print_version(&self) {
 		println!("\
 Parity version {} ({}-{}-{})
 Copyright 2015, 2016 Ethcore (UK) Limited
@@ -118,49 +126,100 @@ There is NO WARRANTY, to the extent permitted by law.
 
 By Wood/Paronyan/Kotewicz/Drwięga/Volf.\
 ", env!("CARGO_PKG_VERSION"), Target::arch(), Target::env(), Target::os());
+	}
+
+	fn get_spec(&self) -> Spec {
+		match self.args.flag_chain.as_ref() {
+			"frontier" | "mainnet" => ethereum::new_frontier(),
+			"morden" | "testnet" => ethereum::new_morden(),
+			"olympic" => ethereum::new_olympic(),
+			f => Spec::from_json_utf8(contents(f).expect("Couldn't read chain specification file. Sure it exists?").as_ref()),
+		}
+	}
+
+	fn get_init_nodes(&self, spec: &Spec) -> Vec<String> {
+		match self.args.arg_enode.len() {
+			0 => spec.nodes().clone(),
+			_ => self.args.arg_enode.clone(),
+		}
+	}
+
+	fn get_net_addresses(&self) -> (SocketAddr, SocketAddr) {
+		let listen_address;
+		let public_address;
+
+		match self.args.flag_address {
+			None => {
+				listen_address = SocketAddr::from_str(self.args.flag_listen_address.as_ref()).expect("Invalid listen address given with --listen-address");
+				public_address = SocketAddr::from_str(self.args.flag_public_address.as_ref()).expect("Invalid public address given with --public-address");
+			}
+			Some(ref a) => {
+				public_address = SocketAddr::from_str(a.as_ref()).expect("Invalid listen/public address given with --address");
+				listen_address = public_address.clone();
+			}
+		};
+
+		(listen_address, public_address)
+	}
+}
+
+fn wait_for_exit(client_service: &ClientService) {
+	let exit = Arc::new(Condvar::new());
+	// Handle possible exits
+	let e = exit.clone();
+	CtrlC::set_handler(move || { e.notify_all(); });
+	let e = exit.clone();
+	client_service.on_panic(move |_reason| { e.notify_all(); });
+	// Wait for signal
+	let mutex = Mutex::new(());
+	let _ = exit.wait(mutex.lock().unwrap()).unwrap();
+}
+
+fn main() {
+	let conf = Configuration::parse();
+	if conf.args.flag_version {
+		conf.print_version();
 		return;
 	}
 
-	setup_log(&args.flag_logging);
+	let spec = conf.get_spec();
+
+	// Setup logging
+	setup_log(&conf.args.flag_logging);
+	// Raise fdlimit
 	unsafe { ::fdlimit::raise_fd_limit(); }
 
-	let spec = match args.flag_chain.as_ref() {
-		"frontier" | "mainnet" => ethereum::new_frontier(),
-		"morden" | "testnet" => ethereum::new_morden(),
-		"olympic" => ethereum::new_olympic(),
-		f => Spec::from_json_utf8(contents(f).expect("Couldn't read chain specification file. Sure it exists?").as_ref()),
-	};
-	let init_nodes = match args.arg_enode.len() {
-		0 => spec.nodes().clone(),
-		_ => args.arg_enode.clone(),
-	};
+	// Configure network
+	let init_nodes = conf.get_init_nodes(&spec);
+	let (listen, public) = conf.get_net_addresses();
 	let mut net_settings = NetworkConfiguration::new();
 	net_settings.boot_nodes = init_nodes;
-	match args.flag_address {
-		None => {
-			net_settings.listen_address = SocketAddr::from_str(args.flag_listen_address.as_ref()).expect("Invalid listen address given with --listen-address");
-			net_settings.public_address = SocketAddr::from_str(args.flag_public_address.as_ref()).expect("Invalid public address given with --public-address");
-		}
-		Some(ref a) => {
-			net_settings.public_address = SocketAddr::from_str(a.as_ref()).expect("Invalid listen/public address given with --address");
-			net_settings.listen_address = net_settings.public_address.clone();
-		}
-	}
+	net_settings.listen_address = listen;
+	net_settings.public_address = public;
+
+	// Build client
 	let mut service = ClientService::start(spec, net_settings).unwrap();
 	let client = service.client().clone();
-	client.configure_cache(args.flag_cache_pref_size, args.flag_cache_max_size);
+	client.configure_cache(conf.args.flag_cache_pref_size, conf.args.flag_cache_max_size);
+
+	// Sync
 	let sync = EthSync::register(service.network(), client);
-	if args.flag_jsonrpc {
-		setup_rpc_server(service.client(), sync.clone(), &args.flag_jsonrpc_url);
+
+	// Setup rpc
+	if conf.args.flag_jsonrpc {
+		setup_rpc_server(service.client(), sync.clone(), &conf.args.flag_jsonrpc_url);
 	}
-	let io_handler  = Arc::new(ClientIoHandler { client: service.client(), info: Default::default(), sync: sync });
+
+	// Register IO handler
+	let io_handler  = Arc::new(ClientIoHandler {
+		client: service.client(),
+		info: Default::default(),
+		sync: sync
+	});
 	service.io().register_handler(io_handler).expect("Error registering IO handler");
 
-	let exit = Arc::new(Condvar::new());
-	let e = exit.clone();
-	CtrlC::set_handler(move || { e.notify_all(); });
-	let mutex = Mutex::new(());
-	let _ = exit.wait(mutex.lock().unwrap()).unwrap();
+	// Handle exit
+	wait_for_exit(&service);
 }
 
 struct Informant {
@@ -226,7 +285,7 @@ struct ClientIoHandler {
 }
 
 impl IoHandler<NetSyncMessage> for ClientIoHandler {
-	fn initialize(&self, io: &IoContext<NetSyncMessage>) { 
+	fn initialize(&self, io: &IoContext<NetSyncMessage>) {
 		io.register_timer(INFO_TIMER, 5000).expect("Error registering timer");
 	}
 
diff --git a/util/src/io/mod.rs b/util/src/io/mod.rs
index 4f16efd30..40cdbc368 100644
--- a/util/src/io/mod.rs
+++ b/util/src/io/mod.rs
@@ -31,16 +31,16 @@
 //!
 //! impl IoHandler<MyMessage> for MyHandler {
 //! 	fn initialize(&self, io: &IoContext<MyMessage>) {
-//!		io.register_timer(0, 1000).unwrap();
-//!	}
+//!			io.register_timer(0, 1000).unwrap();
+//!		}
 //!
-//!	fn timeout(&self, _io: &IoContext<MyMessage>, timer: TimerToken) {
-//!		println!("Timeout {}", timer);
-//!	}
+//!		fn timeout(&self, _io: &IoContext<MyMessage>, timer: TimerToken) {
+//!			println!("Timeout {}", timer);
+//!		}
 //!
-//!	fn message(&self, _io: &IoContext<MyMessage>, message: &MyMessage) {
-//!		println!("Message {}", message.data);
-//!	}
+//!		fn message(&self, _io: &IoContext<MyMessage>, message: &MyMessage) {
+//!			println!("Message {}", message.data);
+//!		}
 //! }
 //!
 //! fn main () {
@@ -70,7 +70,7 @@ impl<Message> From<::mio::NotifyError<service::IoMessage<Message>>> for IoError
 	}
 }
 
-/// Generic IO handler. 
+/// Generic IO handler.
 /// All the handler function are called from within IO event loop.
 /// `Message` type is used as notification data
 pub trait IoHandler<Message>: Send + Sync where Message: Send + Sync + Clone + 'static {
@@ -82,7 +82,7 @@ pub trait IoHandler<Message>: Send + Sync where Message: Send + Sync + Clone + '
 	fn message(&self, _io: &IoContext<Message>, _message: &Message) {}
 	/// Called when an IO stream gets closed
 	fn stream_hup(&self, _io: &IoContext<Message>, _stream: StreamToken) {}
-	/// Called when an IO stream can be read from 
+	/// Called when an IO stream can be read from
 	fn stream_readable(&self, _io: &IoContext<Message>, _stream: StreamToken) {}
 	/// Called when an IO stream can be written to
 	fn stream_writable(&self, _io: &IoContext<Message>, _stream: StreamToken) {}
diff --git a/util/src/io/service.rs b/util/src/io/service.rs
index 71b2520ed..c5f4a6072 100644
--- a/util/src/io/service.rs
+++ b/util/src/io/service.rs
@@ -25,6 +25,7 @@ use io::{IoError, IoHandler};
 use arrayvec::*;
 use crossbeam::sync::chase_lev;
 use io::worker::{Worker, Work, WorkType};
+use panics::*;
 
 /// Timer ID
 pub type TimerToken = usize;
@@ -159,13 +160,21 @@ pub struct IoManager<Message> where Message: Send + Sync {
 
 impl<Message> IoManager<Message> where Message: Send + Sync + Clone + 'static {
 	/// Creates a new instance and registers it with the event loop.
-	pub fn start(event_loop: &mut EventLoop<IoManager<Message>>) -> Result<(), UtilError> {
+	pub fn start(panic_handler: Arc<PanicHandler>, event_loop: &mut EventLoop<IoManager<Message>>) -> Result<(), UtilError> {
 		let (worker, stealer) = chase_lev::deque();
 		let num_workers = 4;
 		let work_ready_mutex =  Arc::new(Mutex::new(()));
 		let work_ready = Arc::new(Condvar::new());
-		let workers = (0..num_workers).map(|i| 
-			Worker::new(i, stealer.clone(), IoChannel::new(event_loop.channel()), work_ready.clone(), work_ready_mutex.clone())).collect();
+		let workers = (0..num_workers).map(|i|
+			Worker::new(
+				i,
+				stealer.clone(),
+				IoChannel::new(event_loop.channel()),
+				work_ready.clone(),
+				work_ready_mutex.clone(),
+				panic_handler.clone()
+			)
+		).collect();
 
 		let mut io = IoManager {
 			timers: Arc::new(RwLock::new(HashMap::new())),
@@ -306,19 +315,32 @@ impl<Message> IoChannel<Message> where Message: Send + Clone {
 /// General IO Service. Starts an event loop and dispatches IO requests.
 /// 'Message' is a notification message type
 pub struct IoService<Message> where Message: Send + Sync + Clone + 'static {
+	panic_handler: Arc<PanicHandler>,
 	thread: Option<JoinHandle<()>>,
 	host_channel: Sender<IoMessage<Message>>,
 }
 
+impl<Message> MayPanic for IoService<Message> where Message: Send + Sync + Clone + 'static {
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener {
+		self.panic_handler.on_panic(closure);
+	}
+}
+
 impl<Message> IoService<Message> where Message: Send + Sync + Clone + 'static {
 	/// Starts IO event loop
 	pub fn start() -> Result<IoService<Message>, UtilError> {
+		let panic_handler = PanicHandler::new_in_arc();
 		let mut event_loop = EventLoop::new().unwrap();
         let channel = event_loop.channel();
+		let panic = panic_handler.clone();
 		let thread = thread::spawn(move || {
-			IoManager::<Message>::start(&mut event_loop).unwrap(); //TODO:
+			let p = panic.clone();
+			panic.catch_panic(move || {
+				IoManager::<Message>::start(p, &mut event_loop).unwrap();
+			}).unwrap()
 		});
 		Ok(IoService {
+			panic_handler: panic_handler,
 			thread: Some(thread),
 			host_channel: channel
 		})
diff --git a/util/src/io/worker.rs b/util/src/io/worker.rs
index fa8a0fa2c..1ba0318bc 100644
--- a/util/src/io/worker.rs
+++ b/util/src/io/worker.rs
@@ -21,6 +21,7 @@ use std::sync::atomic::{AtomicBool, Ordering as AtomicOrdering};
 use crossbeam::sync::chase_lev;
 use io::service::{HandlerId, IoChannel, IoContext};
 use io::{IoHandler};
+use panics::*;
 
 pub enum WorkType<Message> {
 	Readable,
@@ -47,12 +48,14 @@ pub struct Worker {
 
 impl Worker {
 	/// Creates a new worker instance.
-	pub fn new<Message>(index: usize, 
-						stealer: chase_lev::Stealer<Work<Message>>, 
+	pub fn new<Message>(index: usize,
+						stealer: chase_lev::Stealer<Work<Message>>,
 						channel: IoChannel<Message>,
 						wait: Arc<Condvar>,
-						wait_mutex: Arc<Mutex<()>>) -> Worker 
-						where Message: Send + Sync + Clone + 'static {
+						wait_mutex: Arc<Mutex<()>>,
+						panic_handler: Arc<PanicHandler>
+					   ) -> Worker
+					where Message: Send + Sync + Clone + 'static {
 		let deleting = Arc::new(AtomicBool::new(false));
 		let mut worker = Worker {
 			thread: None,
@@ -60,15 +63,19 @@ impl Worker {
 			deleting: deleting.clone(),
 		};
 		worker.thread = Some(thread::Builder::new().name(format!("IO Worker #{}", index)).spawn(
-			move || Worker::work_loop(stealer, channel.clone(), wait, wait_mutex.clone(), deleting))
+			move || {
+				panic_handler.catch_panic(move || {
+					Worker::work_loop(stealer, channel.clone(), wait, wait_mutex.clone(), deleting)
+				}).unwrap()
+			})
 			.expect("Error creating worker thread"));
 		worker
 	}
 
 	fn work_loop<Message>(stealer: chase_lev::Stealer<Work<Message>>,
-						channel: IoChannel<Message>, wait: Arc<Condvar>, 
-						wait_mutex: Arc<Mutex<()>>, 
-						deleting: Arc<AtomicBool>) 
+						channel: IoChannel<Message>, wait: Arc<Condvar>,
+						wait_mutex: Arc<Mutex<()>>,
+						deleting: Arc<AtomicBool>)
 						where Message: Send + Sync + Clone + 'static {
 		while !deleting.load(AtomicOrdering::Relaxed) {
 			{
diff --git a/util/src/lib.rs b/util/src/lib.rs
index 16a25f538..260ef4301 100644
--- a/util/src/lib.rs
+++ b/util/src/lib.rs
@@ -21,6 +21,8 @@
 #![feature(plugin)]
 #![plugin(clippy)]
 #![allow(needless_range_loop, match_bool)]
+#![feature(catch_panic)]
+
 //! Ethcore-util library
 //!
 //! ### Rust version:
@@ -54,7 +56,7 @@
 //!   cd parity
 //!   cargo build --release
 //!   ```
-//!   
+//!
 //! - OSX:
 //!
 //!   ```bash
@@ -129,6 +131,7 @@ pub mod semantic_version;
 pub mod io;
 pub mod network;
 pub mod log;
+pub mod panics;
 
 pub use common::*;
 pub use misc::*;
diff --git a/util/src/network/service.rs b/util/src/network/service.rs
index d63836daf..60f0ec415 100644
--- a/util/src/network/service.rs
+++ b/util/src/network/service.rs
@@ -16,6 +16,7 @@
 
 use std::sync::*;
 use error::*;
+use panics::*;
 use network::{NetworkProtocolHandler, NetworkConfiguration};
 use network::error::{NetworkError};
 use network::host::{Host, NetworkIoMessage, ProtocolId};
@@ -27,13 +28,17 @@ use io::*;
 pub struct NetworkService<Message> where Message: Send + Sync + Clone + 'static {
 	io_service: IoService<NetworkIoMessage<Message>>,
 	host_info: String,
-	stats: Arc<NetworkStats>
+	stats: Arc<NetworkStats>,
+	panic_handler: Arc<PanicHandler>
 }
 
 impl<Message> NetworkService<Message> where Message: Send + Sync + Clone + 'static {
 	/// Starts IO event loop
 	pub fn start(config: NetworkConfiguration) -> Result<NetworkService<Message>, UtilError> {
+		let panic_handler = PanicHandler::new_in_arc();
 		let mut io_service = try!(IoService::<NetworkIoMessage<Message>>::start());
+		panic_handler.forward_from(&io_service);
+
 		let host = Arc::new(Host::new(config));
 		let stats = host.stats().clone();
 		let host_info = host.client_version();
@@ -43,6 +48,7 @@ impl<Message> NetworkService<Message> where Message: Send + Sync + Clone + 'stat
 			io_service: io_service,
 			host_info: host_info,
 			stats: stats,
+			panic_handler: panic_handler
 		})
 	}
 
@@ -72,3 +78,9 @@ impl<Message> NetworkService<Message> where Message: Send + Sync + Clone + 'stat
 	}
 }
 
+
+impl<Message> MayPanic for NetworkService<Message> where Message: Send + Sync + Clone + 'static {
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener {
+		self.panic_handler.on_panic(closure);
+	}
+}
diff --git a/util/src/panics.rs b/util/src/panics.rs
new file mode 100644
index 000000000..72718db58
--- /dev/null
+++ b/util/src/panics.rs
@@ -0,0 +1,183 @@
+// Copyright 2015, 2016 Ethcore (UK) Ltd.
+// This file is part of Parity.
+
+// Parity is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+
+// Parity is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+
+// You should have received a copy of the GNU General Public License
+// along with Parity.  If not, see <http://www.gnu.org/licenses/>.
+
+//! Panic utilities
+
+use std::thread;
+use std::ops::DerefMut;
+use std::any::Any;
+use std::sync::{Arc, Mutex};
+
+/// Thread-safe closure for handling possible panics
+pub trait OnPanicListener: Send + Sync + 'static {
+	/// Invoke listener
+	fn call(&mut self, arg: &str);
+}
+
+/// Forwards panics from child
+pub trait ForwardPanic {
+	/// Attach `on_panic` listener to `child` and rethrow all panics
+	fn forward_from<S>(&self, child: &S) where S : MayPanic;
+}
+
+/// Trait indicating that the structure catches some of the panics (most probably from spawned threads)
+/// and it's possbile to be notified when one of the threads panics.
+pub trait MayPanic {
+	/// `closure` will be invoked whenever panic in thread is caught
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener;
+}
+
+/// Structure that allows to catch panics and notify listeners
+pub struct PanicHandler {
+	listeners: Mutex<Vec<Box<OnPanicListener>>>
+}
+
+impl PanicHandler {
+	/// Creates new `PanicHandler` wrapped in `Arc`
+	pub fn new_in_arc() -> Arc<PanicHandler> {
+		Arc::new(Self::new())
+	}
+
+	/// Creates new `PanicHandler`
+	pub fn new() -> PanicHandler {
+		PanicHandler {
+			listeners: Mutex::new(vec![])
+		}
+	}
+
+	/// Invoke closure and catch any possible panics.
+	/// In case of panic notifies all listeners about it.
+	#[allow(deprecated)]
+	// TODO [todr] catch_panic is deprecated but panic::recover has different bounds (not allowing mutex)
+	pub fn catch_panic<G, R>(&self, g: G) -> thread::Result<R> where G: FnOnce() -> R + Send + 'static {
+		let result = thread::catch_panic(g);
+
+		if let Err(ref e) = result {
+			let res = convert_to_string(e);
+			if let Some(r) = res {
+				self.notify_all(r);
+			}
+		}
+
+		result
+	}
+
+	fn notify_all(&self, r: String) {
+		let mut listeners = self.listeners.lock().unwrap();
+		for listener in listeners.deref_mut() {
+			listener.call(&r);
+		}
+	}
+}
+
+impl MayPanic for PanicHandler {
+	fn on_panic<F>(&self, closure: F) where F: OnPanicListener {
+		self.listeners.lock().unwrap().push(Box::new(closure));
+	}
+}
+
+impl ForwardPanic for Arc<PanicHandler> {
+	fn forward_from<S>(&self, child: &S) where S : MayPanic {
+		let p = self.clone();
+		child.on_panic(move |t| p.notify_all(t));
+	}
+}
+
+impl<F> OnPanicListener for F
+	where F: FnMut(String) + Send + Sync + 'static {
+	fn call(&mut self, arg: &str) {
+		self(arg.to_owned())
+	}
+}
+
+fn convert_to_string(t: &Box<Any + Send>) -> Option<String> {
+	let as_str = t.downcast_ref::<&'static str>().map(|t| t.clone().to_owned());
+	let as_string = t.downcast_ref::<String>().cloned();
+
+	as_str.or(as_string)
+}
+
+#[test]
+fn should_notify_listeners_about_panic () {
+	use std::sync::RwLock;
+	// given
+	let invocations = Arc::new(RwLock::new(vec![]));
+	let i = invocations.clone();
+	let p = PanicHandler::new();
+	p.on_panic(move |t| i.write().unwrap().push(t));
+
+	// when
+	p.catch_panic(|| panic!("Panic!")).unwrap_err();
+
+	// then
+	assert!(invocations.read().unwrap()[0] == "Panic!");
+}
+
+#[test]
+fn should_notify_listeners_about_panic_when_string_is_dynamic () {
+	use std::sync::RwLock;
+	// given
+	let invocations = Arc::new(RwLock::new(vec![]));
+	let i = invocations.clone();
+	let p = PanicHandler::new();
+	p.on_panic(move |t| i.write().unwrap().push(t));
+
+	// when
+	p.catch_panic(|| panic!("Panic: {}", 1)).unwrap_err();
+
+	// then
+	assert!(invocations.read().unwrap()[0] == "Panic: 1");
+}
+
+#[test]
+fn should_notify_listeners_about_panic_in_other_thread () {
+	use std::thread;
+	use std::sync::RwLock;
+
+	// given
+	let invocations = Arc::new(RwLock::new(vec![]));
+	let i = invocations.clone();
+	let p = PanicHandler::new();
+	p.on_panic(move |t| i.write().unwrap().push(t));
+
+	// when
+	let t = thread::spawn(move ||
+		p.catch_panic(|| panic!("Panic!")).unwrap()
+	);
+	t.join().unwrap_err();
+
+	// then
+	assert!(invocations.read().unwrap()[0] == "Panic!");
+}
+
+#[test]
+fn should_forward_panics () {
+use std::sync::RwLock;
+	// given
+	let invocations = Arc::new(RwLock::new(vec![]));
+	let i = invocations.clone();
+	let p = PanicHandler::new_in_arc();
+	p.on_panic(move |t| i.write().unwrap().push(t));
+
+	let p2 = PanicHandler::new();
+	p.forward_from(&p2);
+
+	// when
+	p2.catch_panic(|| panic!("Panic!")).unwrap_err();
+
+	// then
+	assert!(invocations.read().unwrap()[0] == "Panic!");
+}