diff --git a/Lib/test/test_set.py b/Lib/test/test_set.py
index 2ebeff65e3f..77df31b622d 100644
--- a/Lib/test/test_set.py
+++ b/Lib/test/test_set.py
@@ -15,6 +15,12 @@ def check_pass_thru():
     raise PassThru
     yield 1
 
+class BadCmp:
+    def __hash__(self):
+        return 1
+    def __cmp__(self, other):
+        raise RuntimeError
+
 class TestJointOps(unittest.TestCase):
     # Tests common to both set and frozenset
 
@@ -227,6 +233,17 @@ class TestJointOps(unittest.TestCase):
         f.add(s)
         f.discard(s)
 
+    def test_badcmp(self):
+        s = self.thetype([BadCmp()])
+        # Detect comparison errors during insertion and lookup
+        self.assertRaises(RuntimeError, self.thetype, [BadCmp(), BadCmp()])
+        self.assertRaises(RuntimeError, s.__contains__, BadCmp())
+        # Detect errors during mutating operations
+        if hasattr(s, 'add'):
+            self.assertRaises(RuntimeError, s.add, BadCmp())
+            self.assertRaises(RuntimeError, s.discard, BadCmp())
+            self.assertRaises(RuntimeError, s.remove, BadCmp())
+
 class TestSet(TestJointOps):
     thetype = set
 
diff --git a/Objects/setobject.c b/Objects/setobject.c
index dbfa79cc3e7..c4cd562d582 100644
--- a/Objects/setobject.c
+++ b/Objects/setobject.c
@@ -44,11 +44,8 @@ probe indices are computed as explained in Objects/dictobject.c.
 
 All arithmetic on hash should ignore overflow.
 
-The lookup function always succeeds and nevers return NULL.  This simplifies
-and speeds client functions which do won't have to test for and handle
-errors.  To meet that requirement, any errors generated by a user defined 
-__cmp__() function are simply cleared and ignored. 
-Previously outstanding exceptions are maintained.
+Unlike the dictionary implementation, the lookkey functions can return
+NULL if the rich comparison returns an error.
 */
 
 static setentry *
@@ -60,10 +57,7 @@ set_lookkey(PySetObject *so, PyObject *key, register long hash)
 	register unsigned int mask = so->mask;
 	setentry *table = so->table;
 	register setentry *entry;
-	register int restore_error;
-	register int checked_error;
 	register int cmp;
-	PyObject *err_type, *err_value, *err_tb;
 	PyObject *startkey;
 
 	i = hash & mask;
@@ -71,31 +65,23 @@ set_lookkey(PySetObject *so, PyObject *key, register long hash)
 	if (entry->key == NULL || entry->key == key)
 		return entry;
 
-	restore_error = checked_error = 0;
 	if (entry->key == dummy)
 		freeslot = entry;
 	else {
 		if (entry->hash == hash) {
-			/* error can't have been checked yet */
-			checked_error = 1;
-			if (_PyErr_OCCURRED()) {
-				restore_error = 1;
-				PyErr_Fetch(&err_type, &err_value, &err_tb);
-			}
 			startkey = entry->key;
 			cmp = PyObject_RichCompareBool(startkey, key, Py_EQ);
 			if (cmp < 0)
-				PyErr_Clear();
+				return NULL;
 			if (table == so->table && entry->key == startkey) {
 				if (cmp > 0)
-					goto Done;
+					return entry;
 			}
 			else {
 				/* The compare did major nasty stuff to the
 				 * set:  start over.
  				 */
- 				entry = set_lookkey(so, key, hash);
- 				goto Done;
+ 				return set_lookkey(so, key, hash);
  			}
 		}
 		freeslot = NULL;
@@ -114,18 +100,10 @@ set_lookkey(PySetObject *so, PyObject *key, register long hash)
 		if (entry->key == key)
 			break;
 		if (entry->hash == hash && entry->key != dummy) {
-			if (!checked_error) {
-				checked_error = 1;
-				if (_PyErr_OCCURRED()) {
-					restore_error = 1;
-					PyErr_Fetch(&err_type, &err_value,
-						    &err_tb);
-				}
-			}
 			startkey = entry->key;
 			cmp = PyObject_RichCompareBool(startkey, key, Py_EQ);
 			if (cmp < 0)
-				PyErr_Clear();
+				return NULL;
 			if (table == so->table && entry->key == startkey) {
 				if (cmp > 0)
 					break;
@@ -134,29 +112,19 @@ set_lookkey(PySetObject *so, PyObject *key, register long hash)
 				/* The compare did major nasty stuff to the
 				 * set:  start over.
  				 */
- 				entry = set_lookkey(so, key, hash);
- 				break;
+ 				return set_lookkey(so, key, hash);
  			}
 		}
 		else if (entry->key == dummy && freeslot == NULL)
 			freeslot = entry;
 	}
-
-Done:
-	if (restore_error)
-		PyErr_Restore(err_type, err_value, err_tb);
 	return entry;
 }
 
 /*
  * Hacked up version of set_lookkey which can assume keys are always strings;
- * this assumption allows testing for errors during PyObject_Compare() to
- * be dropped; string-string comparisons never raise exceptions.  This also
- * means we don't need to go through PyObject_Compare(); we can always use
- * _PyString_Eq directly.
- *
- * This is valuable because the general-case error handling in set_lookkey() is
- * expensive, and sets with pure-string keys may be very common.
+ * This means we can always use _PyString_Eq directly and not have to check to
+ * see if the comparison altered the table.
  */
 static setentry *
 set_lookkey_string(PySetObject *so, PyObject *key, register long hash)
@@ -210,7 +178,7 @@ Internal routine to insert a new key into the table.
 Used both by the internal resize routine and by the public insert routine.
 Eats a reference to key.
 */
-static void
+static int
 set_insert_key(register PySetObject *so, PyObject *key, long hash)
 {
 	register setentry *entry;
@@ -218,6 +186,8 @@ set_insert_key(register PySetObject *so, PyObject *key, long hash)
 
 	assert(so->lookup != NULL);
 	entry = so->lookup(so, key, hash);
+	if (entry == NULL)
+		return -1;
 	if (entry->key == NULL) {
 		/* UNUSED */
 		so->fill++; 
@@ -234,6 +204,7 @@ set_insert_key(register PySetObject *so, PyObject *key, long hash)
 		/* ACTIVE */
 		Py_DECREF(key);
 	}
+	return 0;
 }
 
 /*
@@ -317,7 +288,11 @@ set_table_resize(PySetObject *so, int minused)
 		} else {
 			/* ACTIVE */
 			--i;
-			set_insert_key(so, entry->key, entry->hash);
+			if(set_insert_key(so, entry->key, entry->hash) == -1) {
+				if (is_oldtable_malloced)
+					PyMem_DEL(oldtable);
+				return -1;
+			}
 		}
 	}
 
@@ -336,7 +311,8 @@ set_add_entry(register PySetObject *so, setentry *entry)
 	assert(so->fill <= so->mask);  /* at least one empty slot */
 	n_used = so->used;
 	Py_INCREF(entry->key);
-	set_insert_key(so, entry->key, entry->hash);
+	if (set_insert_key(so, entry->key, entry->hash) == -1)
+		return -1;
 	if (!(so->used > n_used && so->fill*3 >= (so->mask+1)*2))
 		return 0;
 	return set_table_resize(so, so->used>50000 ? so->used*2 : so->used*4);
@@ -357,7 +333,10 @@ set_add_key(register PySetObject *so, PyObject *key)
 	assert(so->fill <= so->mask);  /* at least one empty slot */
 	n_used = so->used;
 	Py_INCREF(key);
-	set_insert_key(so, key, hash);
+	if (set_insert_key(so, key, hash) == -1) {
+		Py_DECREF(key);
+		return -1;
+	}
 	if (!(so->used > n_used && so->fill*3 >= (so->mask+1)*2))
 		return 0;
 	return set_table_resize(so, so->used>50000 ? so->used*2 : so->used*4);
@@ -372,6 +351,8 @@ set_discard_entry(PySetObject *so, setentry *oldentry)
 	PyObject *old_key;
 
 	entry = (so->lookup)(so, oldentry->key, oldentry->hash);
+	if (entry == NULL)
+		return -1;
 	if (entry->key == NULL  ||  entry->key == dummy)
 		return DISCARD_NOTFOUND;
 	old_key = entry->key;
@@ -397,6 +378,8 @@ set_discard_key(PySetObject *so, PyObject *key)
 			return -1;
 	}
 	entry = (so->lookup)(so, key, hash);
+	if (entry == NULL)
+		return -1;
 	if (entry->key == NULL  ||  entry->key == dummy)
 		return DISCARD_NOTFOUND;
 	old_key = entry->key;
@@ -601,7 +584,10 @@ set_merge(PySetObject *so, PyObject *otherset)
 		if (entry->key != NULL && 
 		    entry->key != dummy) {
 			Py_INCREF(entry->key);
-			set_insert_key(so, entry->key, entry->hash);
+			if (set_insert_key(so, entry->key, entry->hash) == -1) {
+				Py_DECREF(entry->key);
+				return -1;
+			}
 		}
 	}
 	return 0;
@@ -611,6 +597,7 @@ static int
 set_contains_key(PySetObject *so, PyObject *key)
 {
 	long hash;
+	setentry *entry;
 
 	if (!PyString_CheckExact(key) ||
 	    (hash = ((PyStringObject *) key)->ob_shash) == -1) {
@@ -618,7 +605,10 @@ set_contains_key(PySetObject *so, PyObject *key)
 		if (hash == -1)
 			return -1;
 	}
-	key = (so->lookup)(so, key, hash)->key; 
+	entry = (so->lookup)(so, key, hash);
+	if (entry == NULL)
+		return -1;
+	key = entry->key;
 	return key != NULL && key != dummy;
 }
 
@@ -626,8 +616,12 @@ static int
 set_contains_entry(PySetObject *so, setentry *entry)
 {
 	PyObject *key;
+	setentry *lu_entry;
 
-	key = (so->lookup)(so, entry->key, entry->hash)->key; 
+	lu_entry = (so->lookup)(so, entry->key, entry->hash);
+	if (lu_entry == NULL)
+		return -1;
+	key = lu_entry->key; 
 	return key != NULL && key != dummy;
 }
 
@@ -2096,4 +2090,6 @@ test_c_api(PySetObject *so)
 	Py_RETURN_TRUE;
 }
 
+#undef assertRaises
+
 #endif