diff --git a/thunder/core/interpreter.py b/thunder/core/interpreter.py
index b6563bbe13..aea2baf52e 100644
--- a/thunder/core/interpreter.py
+++ b/thunder/core/interpreter.py
@@ -2101,8 +2101,9 @@ def __new__(cls, iterable=()):
         return wrap_const(cls.value())
 
     def __init__(self, iterable=()):
-        SequenceWrapperMethods.__init__(self, iterable)
-        return wrap_const(None)
+        # We need to propagate the return value because it could be JIT_SIGNALS
+        res = SequenceWrapperMethods.__init__(self, iterable)
+        return res
 
     def __setitem__(self, key, value, /):
         self.track_items()
diff --git a/thunder/tests/test_interpreter.py b/thunder/tests/test_interpreter.py
index 3f0dfb0a94..ab1b45289c 100644
--- a/thunder/tests/test_interpreter.py
+++ b/thunder/tests/test_interpreter.py
@@ -3001,6 +3001,21 @@ def foo():
     assert foo() == jit(foo)()
 
 
+def test_exception_in_list_init(jit):
+    def foo(l):
+        for i in l:
+            yield i
+
+    def bar():
+        return list(foo(2))
+
+    with pytest.raises(TypeError):
+        bar()
+
+    with pytest.raises(TypeError):
+        jit(bar)()
+
+
 #
 # Network tests
 #