diff --git a/.changeset/humble-weeks-tease.md b/.changeset/humble-weeks-tease.md
new file mode 100644
index 0000000000..ad1d2c67bf
--- /dev/null
+++ b/.changeset/humble-weeks-tease.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/medusa": patch
+---
+
+fix(medusa): avoid throwing on error on set step failure endpoint
diff --git a/integration-tests/http/__tests__/workflow-engine/admin/index.spec.ts b/integration-tests/http/__tests__/workflow-engine/admin/index.spec.ts
index 6ffead6881..137dc22a11 100644
--- a/integration-tests/http/__tests__/workflow-engine/admin/index.spec.ts
+++ b/integration-tests/http/__tests__/workflow-engine/admin/index.spec.ts
@@ -6,7 +6,7 @@ import {
   WorkflowResponse,
 } from "@medusajs/framework/workflows-sdk"
 import { medusaIntegrationTestRunner } from "@medusajs/test-utils"
-import { Modules } from "@medusajs/utils"
+import { Modules, TransactionState } from "@medusajs/utils"
 import {
   adminHeaders,
   createAdminUser,
@@ -95,6 +95,54 @@ medusaIntegrationTestRunner({
       })
     })
 
+    describe("POST /admin/workflow-execution/[workflow_id]/steps/failure", function () {
+        it("should set step as failed", async () => {
+            const stepId = 'test-step'
+            const step = createStep({
+                name: stepId,
+                async: true,
+            }, () => { })
+
+            const workflowId = 'test-workflow'
+            createWorkflow({
+                name: workflowId,
+                retentionTime: 60,
+            }, () => {
+                step()
+                return new WorkflowResponse(void 0)
+            })
+
+            const transactionId = "test-transaction"
+            const engine = container.resolve(Modules.WORKFLOW_ENGINE) as IWorkflowEngineService
+            await engine.run(workflowId, {
+                transactionId
+            })
+            let workflowDetail = (await api.get(`/admin/workflows-executions/${workflowId}/${transactionId}`, adminHeaders)).data.workflow_execution
+
+            expect(workflowDetail.state).toBe(TransactionState.INVOKING)
+
+            const setFailureResponse = await api.post(`/admin/workflows-executions/${workflowId}/steps/failure`, {
+                transaction_id: transactionId,
+                step_id: stepId
+            }, adminHeaders)
+
+            expect(setFailureResponse.status).toBe(200)
+            expect(setFailureResponse.data).toEqual(
+                expect.objectContaining({
+                    success: true,
+                })
+            )
+
+            workflowDetail = (await api.get(`/admin/workflows-executions/${workflowId}/${transactionId}`, adminHeaders)).data.workflow_execution
+            
+            expect(workflowDetail).toEqual(
+                expect.objectContaining({
+                    state: TransactionState.REVERTED,
+                })
+            )
+        })
+    })
+
     describe("Workflow Orchestrator module subscribe", function () {
       it("should subscribe to a workflow and receive the response when it finishes", async () => {
         const step1 = createStep({ name: "step1" }, async () => {
diff --git a/packages/medusa/src/api/admin/workflows-executions/[workflow_id]/steps/failure/route.ts b/packages/medusa/src/api/admin/workflows-executions/[workflow_id]/steps/failure/route.ts
index 3b75070f69..c04668c903 100644
--- a/packages/medusa/src/api/admin/workflows-executions/[workflow_id]/steps/failure/route.ts
+++ b/packages/medusa/src/api/admin/workflows-executions/[workflow_id]/steps/failure/route.ts
@@ -45,6 +45,8 @@ export const POST = async (
       context: {
         requestId: req.requestId,
       },
+      throwOnError: false,
+      logOnError: true,
     },
   })