diff --git a/kotlinx-coroutines-core/common/src/CompletableJob.kt b/kotlinx-coroutines-core/common/src/CompletableJob.kt
index f818749420..9a632276fe 100644
--- a/kotlinx-coroutines-core/common/src/CompletableJob.kt
+++ b/kotlinx-coroutines-core/common/src/CompletableJob.kt
@@ -31,6 +31,9 @@ public interface CompletableJob : Job {
      * This function transitions this job into _cancelled_ state if it was not completed or cancelled yet.
      * However, that if this job has children, then it transitions into _cancelling_ state and becomes _cancelled_
      * once all its children are [complete][isCompleted]. See [Job] for details.
+     *
+     * Its responsibility of the caller to properly handle and report the given [exception], all job's children will receive
+     * a [CancellationException] with the [exception] as a cause for the sake of diagnostic.
      */
     public fun completeExceptionally(exception: Throwable): Boolean
 }
\ No newline at end of file
diff --git a/kotlinx-coroutines-core/common/test/CompletableJobTest.kt b/kotlinx-coroutines-core/common/test/CompletableJobTest.kt
index 335e5d5672..8b17e23556 100644
--- a/kotlinx-coroutines-core/common/test/CompletableJobTest.kt
+++ b/kotlinx-coroutines-core/common/test/CompletableJobTest.kt
@@ -6,7 +6,7 @@ package kotlinx.coroutines
 
 import kotlin.test.*
 
-class CompletableJobTest {
+class CompletableJobTest : TestBase() {
     @Test
     fun testComplete() {
         val job = Job()
@@ -46,4 +46,57 @@ class CompletableJobTest {
         assertFalse(child.isActive)
         assertFalse(parent.isActive)
     }
-}
\ No newline at end of file
+
+    @Test
+    fun testExceptionIsNotReportedToChildren() = parametrized { job ->
+        expect(1)
+        val child = launch(job) {
+            expect(2)
+            try {
+                // KT-33840
+                hang {}
+            } catch (e: Throwable) {
+                assertTrue(e is CancellationException)
+                assertTrue((if (RECOVER_STACK_TRACES) e.cause?.cause else e.cause) is TestException)
+                expect(4)
+                throw e
+            }
+        }
+        yield()
+        expect(3)
+        job.completeExceptionally(TestException())
+        child.join()
+        finish(5)
+    }
+
+    @Test
+    fun testCompleteExceptionallyDoesntAffectDeferred() = parametrized { job ->
+        expect(1)
+        val child = async(job) {
+            expect(2)
+            try {
+                // KT-33840
+                hang {}
+            } catch (e: Throwable) {
+                assertTrue(e is CancellationException)
+                assertTrue((if (RECOVER_STACK_TRACES) e.cause?.cause else e.cause) is TestException)
+                expect(4)
+                throw e
+            }
+        }
+        yield()
+        expect(3)
+        job.completeExceptionally(TestException())
+        child.join()
+        assertTrue { child.getCompletionExceptionOrNull() is CancellationException }
+        finish(5)
+    }
+
+    private fun parametrized(block: suspend CoroutineScope.(CompletableJob) -> Unit) {
+        runTest {
+            block(Job())
+            reset()
+            block(SupervisorJob())
+        }
+    }
+}