diff --git a/avocado/__init__.py b/avocado/__init__.py
index 579eb95606a94577721db558b6e9840465e965f4..cd2dfe5b06738e94f232902b510a6258f066747c 100644
--- a/avocado/__init__.py
+++ b/avocado/__init__.py
@@ -13,10 +13,10 @@
 # Author: Lucas Meneghel Rodrigues <lmr@redhat.com>
 
 
-__all__ = ['main', 'Test', 'VERSION', 'fail_on_error']
+__all__ = ['main', 'Test', 'VERSION', 'fail_on']
 
 
 from avocado.core.job import main
 from avocado.core.test import Test
 from avocado.core.version import VERSION
-from avocado.core.exceptions import fail_on_error
+from avocado.core.exceptions import fail_on
diff --git a/avocado/core/exceptions.py b/avocado/core/exceptions.py
index 9035815acdd0d9af444e2a8f5afaf94eec764aa8..b3e2df5e1c214b9f8d156607a475f4fcb36494c7 100644
--- a/avocado/core/exceptions.py
+++ b/avocado/core/exceptions.py
@@ -15,29 +15,45 @@
 """
 Exception classes, useful for tests, and other parts of the framework code.
 """
-
-
-def fail_on_error(fn):
-    """
-    Apply to any test you want to FAIL upon any exception raised.
-
-    Normally only TestFail called explicitly will mark an avocado test with the
-    FAIL state, but this decorator is provided as a convenience for people
-    that need a more relaxed behavior.
-
-    :param fn: Function that will be decorated
-    """
-    def new_fn(*args, **kwargs):
-        try:
-            return fn(*args, **kwargs)
-        except TestBaseException:
-            raise
-        except Exception, e:
-            raise TestFail(str(e))
-    new_fn.__name__ = fn.__name__
-    new_fn.__doc__ = fn.__doc__
-    new_fn.__dict__.update(fn.__dict__)
-    return new_fn
+from functools import wraps
+import types
+
+
+def fail_on(exceptions=None):
+    """
+    Fail the test when decorated function produces exception of the specified
+    type.
+
+    (For example, our method may raise IndexError on tested software failure.
+    We can either try/catch it or use this decorator instead)
+
+    :param exceptions: Tuple or single exception to be assumed as
+                       test fail [Exception]
+    :note: self.error and self.skip behavior remains intact
+    :note: To allow simple usage param "exceptions" must not be callable
+    """
+    func = False
+    if exceptions is None:
+        exceptions = Exception
+    elif isinstance(exceptions, types.FunctionType):     # @fail_on without ()
+        func = exceptions
+        exceptions = Exception
+
+    def decorate(func):
+        """ Decorator """
+        @wraps(func)
+        def wrap(*args, **kwargs):
+            """ Function wrapper """
+            try:
+                return func(*args, **kwargs)
+            except TestBaseException:
+                raise
+            except exceptions, details:
+                raise TestFail(str(details))
+        return wrap
+    if func:
+        return decorate(func)
+    return decorate
 
 
 class JobBaseException(Exception):
diff --git a/examples/tests/fail_on_error.py b/examples/tests/fail_on_exception.py
similarity index 74%
rename from examples/tests/fail_on_error.py
rename to examples/tests/fail_on_exception.py
index 39c057872b04083de5787d9ebd5b98c1022b81a4..40a97459babbf9358d5d09019784545a4588c640 100755
--- a/examples/tests/fail_on_error.py
+++ b/examples/tests/fail_on_exception.py
@@ -3,13 +3,14 @@
 import avocado
 
 
-class FailOnError(avocado.Test):
+class FailOnException(avocado.Test):
 
     """
-    Test illustrating the behavior of the fail_on_error decorator.
+    Test illustrating the behavior of the fail_on decorator.
     """
 
-    @avocado.fail_on_error
+    # @avocado.fail_on(ValueError) also possible
+    @avocado.fail_on
     def test(self):
         """
         This should end with FAIL.
diff --git a/selftests/all/functional/avocado/basic_tests.py b/selftests/all/functional/avocado/basic_tests.py
index e666d7e46c5b5bb07f680a0fc5e93cbb1507d449..fb748b89e459496fc23d47f11dd9daca08d56664 100644
--- a/selftests/all/functional/avocado/basic_tests.py
+++ b/selftests/all/functional/avocado/basic_tests.py
@@ -126,10 +126,10 @@ class RunnerOperationTest(unittest.TestCase):
                                                                 result))
         self.assertIn('"status": "ERROR"', result.stdout)
 
-    def test_fail_on_error(self):
+    def test_fail_on_exception(self):
         os.chdir(basedir)
         cmd_line = ("./scripts/avocado run --sysinfo=off --job-results-dir %s "
-                    "--json - fail_on_error" % self.tmpdir)
+                    "--json - fail_on_exception" % self.tmpdir)
         result = process.run(cmd_line, ignore_status=True)
         expected_rc = 1
         self.assertEqual(result.exit_status, expected_rc,