diff --git a/src/snapshots.js b/src/snapshots.js
index e4108d44..2b56d426 100644
--- a/src/snapshots.js
+++ b/src/snapshots.js
@@ -188,38 +188,62 @@ export async function* takeStorybookSnapshots(percy, callback, { baseUrl, flags
     // set storybook environment info
     percy.client.addEnvironmentInfo(environmentInfo);
 
-    // use a single page to capture story snapshots without reloading
-    yield* withPage(percy, previewUrl, async function*(page) {
-      // determines when to retry page crashes
-      lastCount = snapshots.length;
-
-      while (snapshots.length) {
-        // separate story and snapshot options
-        let { id, args, globals, queryParams, ...options } = snapshots[0];
-
-        if (flags.dryRun || options.enableJavaScript || percy.config.snapshot.enableJavaScript) {
-          // when dry-running or when javascript is enabled, use the preview dom
-          options.domSnapshot = previewResource.content;
+    // We use an outer and inner loop on same snapshots.length
+    // - we create a new page and load one story on it at a time for snapshotting
+    // - if it throws exception then we want to catch it outside of `withPage` call as
+    //   when `withPage` returns it closes the page
+    // - we want to make sure we close the page that had exception in story to make sure
+    //   we dont reuse a page which is possibly in a weird state due to last exception
+    // - so post exception we come out of inner loop and skip the story, create new page
+    //   using outer loop and continue next stories again on a new page
+    while (snapshots.length) {
+      try {
+        // use a single page to capture story snapshots without reloading
+        yield* withPage(percy, previewUrl, async function*(page) {
+          // determines when to retry page crashes
+          lastCount = snapshots.length;
+
+          while (snapshots.length) {
+            // separate story and snapshot options
+            let { id, args, globals, queryParams, ...options } = snapshots[0];
+
+            if (flags.dryRun || options.enableJavaScript || percy.config.snapshot.enableJavaScript) {
+              log.debug(`Loading story via previewResource: ${options.name}`);
+              // when dry-running or when javascript is enabled, use the preview dom
+              options.domSnapshot = previewResource.content;
+            } else {
+              log.debug(`Loading story: ${options.name}`);
+              // when not dry-running and javascript is not enabled, capture the story dom
+              yield page.eval(evalSetCurrentStory, { id, args, globals, queryParams });
+              /* istanbul ignore next: tested, but coverage is stripped */
+              let { dom, domSnapshot = dom } = yield page.snapshot(options);
+              options.domSnapshot = domSnapshot;
+            }
+
+            // validate without logging to prune all other options
+            PercyConfig.validate(options, '/snapshot/dom');
+            // snapshots are queued and do not need to be awaited on
+            percy.snapshot(options);
+            // discard this story snapshot when done
+            snapshots.shift();
+          }
+        }, () => {
+          log.debug(`Page crashed while loading story: ${snapshots[0].name}`);
+          // return true to retry as long as the length decreases
+          return lastCount > snapshots.length;
+        });
+      } catch (e) {
+        if (process.env.PERCY_SKIP_STORY_ON_ERROR === 'true') {
+          let { name } = snapshots[0];
+          log.error(`Failed to capture story: ${name}`);
+          log.error(e);
+          // ignore story
+          snapshots.shift();
         } else {
-          // when not dry-running and javascript is not enabled, capture the story dom
-          yield page.eval(evalSetCurrentStory, { id, args, globals, queryParams });
-          /* istanbul ignore next: tested, but coverage is stripped */
-          let { dom, domSnapshot = dom } = yield page.snapshot(options);
-          options.domSnapshot = domSnapshot;
+          throw e;
         }
-
-        // validate without logging to prune all other options
-        PercyConfig.validate(options, '/snapshot/dom');
-        // snapshots are queued and do not need to be awaited on
-        percy.snapshot(options);
-        // discard this story snapshot when done
-        snapshots.shift();
       }
-    }, () => {
-      log.debug(`Page crashed while loading story: ${snapshots[0].name}`);
-      // return true to retry as long as the length decreases
-      return lastCount > snapshots.length;
-    });
+    }
 
     // will stop once snapshots are done processing
     yield* percy.yield.stop();
diff --git a/test/storybook.test.js b/test/storybook.test.js
index 51bf551e..628bd3ac 100644
--- a/test/storybook.test.js
+++ b/test/storybook.test.js
@@ -155,6 +155,39 @@ describe('percy storybook', () => {
     ]);
   });
 
+  describe('with PERCY_SKIP_STORY_ON_ERROR set to true', () => {
+    beforeAll(() => {
+      process.env.PERCY_SKIP_STORY_ON_ERROR = true;
+    });
+
+    afterAll(() => {
+      delete process.env.PERCY_SKIP_STORY_ON_ERROR;
+    });
+
+    it('skips the story and logs the error but does not break build', async () => {
+      server.reply('/iframe.html', () => [200, 'text/html', [
+        `<script>__STORYBOOK_PREVIEW__ = { async extract() {}, ${
+          'channel: { emit() {}, on: (a, c) => a === "storyErrored" && c(new Error("Story Error")) }'
+        } }</script>`,
+        `<script>__STORYBOOK_STORY_STORE__ = { raw: () => ${JSON.stringify([
+          { id: '1', kind: 'foo', name: 'bar' }
+        ])} }</script>`
+      ].join('')]);
+
+      // does not reject
+      await storybook(['http://localhost:8000']);
+
+      // contains logs of story error
+      expect(logger.stderr).toEqual([
+        '[percy] Failed to capture story: foo: bar',
+        // error logs contain the client stack trace
+        jasmine.stringMatching(/^\[percy\] Error: Story Error\n.*\/iframe\.html.*$/s),
+        // does not create a build if all stories failed [ 1 in this case ]
+        '[percy] Build not created'
+      ]);
+    });
+  });
+
   it('uses the preview dom when javascript is enabled', async () => {
     let previewDOM = '<p>This is the preview</p>';
     let i = 0;