diff --git a/avocado/core/test.py b/avocado/core/test.py
index 4ff4ee03a0ec8cc5a469802cd53c55eb35713bc3..2ae8739e1906401dc2689733bf4fcd73d1a928aa 100644
--- a/avocado/core/test.py
+++ b/avocado/core/test.py
@@ -707,12 +707,12 @@ class Test(unittest.TestCase):
         except exceptions.TestBaseException as detail:
             self.__status = detail.status
             self.__fail_class = detail.__class__.__name__
-            self.__fail_reason = detail
+            self.__fail_reason = str(detail)
             self.__traceback = stacktrace.prepare_exc_info(sys.exc_info())
         except AssertionError as detail:
             self.__status = 'FAIL'
             self.__fail_class = detail.__class__.__name__
-            self.__fail_reason = detail
+            self.__fail_reason = str(detail)
             self.__traceback = stacktrace.prepare_exc_info(sys.exc_info())
         except Exception as detail:
             self.__status = 'ERROR'
diff --git a/selftests/functional/test_basic.py b/selftests/functional/test_basic.py
index 468b7d57b46c02c13b5fcf7a485f2f92212d5548..3af94542038f62358a95dcca5f03c614df7a809e 100644
--- a/selftests/functional/test_basic.py
+++ b/selftests/functional/test_basic.py
@@ -114,6 +114,19 @@ class MyTest(Test):
 '''
 
 
+RAISE_CUSTOM_PATH_EXCEPTION_CONTENT = '''import os
+import sys
+
+from avocado import Test
+
+class SharedLibTest(Test):
+    def test(self):
+        sys.path.append(os.path.join(os.path.dirname(__file__), "shared_lib"))
+        from mylib import CancelExc
+        raise CancelExc("This should not crash on unpickling in runner")
+'''
+
+
 def probe_binary(binary):
     try:
         return utils_path.find_command(binary)
@@ -391,6 +404,26 @@ class RunnerOperationTest(unittest.TestCase):
                                                                 result))
         self.assertIn('"status": "FAIL"', result.stdout)
 
+    def test_exception_not_in_path(self):
+        os.chdir(basedir)
+        os.mkdir(os.path.join(self.tmpdir, "shared_lib"))
+        mylib = script.Script(os.path.join(self.tmpdir, "shared_lib",
+                                           "mylib.py"),
+                              "from avocado import TestCancel\n\n"
+                              "class CancelExc(TestCancel):\n"
+                              "    pass")
+        mylib.save()
+        mytest = script.Script(os.path.join(self.tmpdir, "mytest.py"),
+                               RAISE_CUSTOM_PATH_EXCEPTION_CONTENT)
+        mytest.save()
+        result = process.run("%s --show test run --sysinfo=off "
+                             "--job-results-dir %s %s"
+                             % (AVOCADO, self.tmpdir, mytest))
+        self.assertIn("mytest.py:SharedLibTest.test -> CancelExc: This "
+                      "should not crash on unpickling in runner",
+                      result.stdout)
+        self.assertNotIn("Failed to read queue", result.stdout)
+
     def test_runner_timeout(self):
         os.chdir(basedir)
         cmd_line = ('%s run --sysinfo=off --job-results-dir %s '