diff --git a/src/hyperlight_host/src/sandbox/initialized_multi_use.rs b/src/hyperlight_host/src/sandbox/initialized_multi_use.rs
index b31cd37d3..43f3c7211 100644
--- a/src/hyperlight_host/src/sandbox/initialized_multi_use.rs
+++ b/src/hyperlight_host/src/sandbox/initialized_multi_use.rs
@@ -163,9 +163,9 @@ impl MultiUseSandbox {
         func_ret_type: ReturnType,
         args: Option<Vec<ParameterValue>>,
     ) -> Result<ReturnValue> {
-        let res = call_function_on_guest(self, func_name, func_ret_type, args)?;
+        let res = call_function_on_guest(self, func_name, func_ret_type, args);
         self.restore_state()?;
-        Ok(res)
+        res
     }
 
     /// Restore the Sandbox's state
diff --git a/src/hyperlight_host/tests/integration_test.rs b/src/hyperlight_host/tests/integration_test.rs
index be8bb261e..73ad0b21d 100644
--- a/src/hyperlight_host/tests/integration_test.rs
+++ b/src/hyperlight_host/tests/integration_test.rs
@@ -429,6 +429,22 @@ fn execute_on_heap() {
     }
 }
 
+#[test]
+fn memory_resets_after_failed_guestcall() {
+    let mut sbox1 = new_uninit_rust().unwrap().evolve(Noop::default()).unwrap();
+    sbox1
+        .call_guest_function_by_name("AddToStaticAndFail", ReturnType::String, None)
+        .unwrap_err();
+    let res = sbox1
+        .call_guest_function_by_name("GetStatic", ReturnType::Int, None)
+        .unwrap();
+    assert!(
+        matches!(res, ReturnValue::Int(0)),
+        "Expected 0, got {:?}",
+        res
+    );
+}
+
 // checks that a recursive function with stack allocation eventually fails with stackoverflow
 #[test]
 fn recursive_stack_allocate_overflow() {
diff --git a/src/tests/rust_guests/simpleguest/src/main.rs b/src/tests/rust_guests/simpleguest/src/main.rs
index dffa2bd34..a713e7266 100644
--- a/src/tests/rust_guests/simpleguest/src/main.rs
+++ b/src/tests/rust_guests/simpleguest/src/main.rs
@@ -665,6 +665,16 @@ fn get_static(function_call: &FunctionCall) -> Result<Vec<u8>> {
     }
 }
 
+fn add_to_static_and_fail(_: &FunctionCall) -> Result<Vec<u8>> {
+    unsafe {
+        COUNTER += 10;
+    };
+    Err(HyperlightGuestError::new(
+        ErrorCode::GuestError,
+        "Crash on purpose".to_string(),
+    ))
+}
+
 fn violate_seccomp_filters(function_call: &FunctionCall) -> Result<Vec<u8>> {
     if function_call.parameters.is_none() {
         call_host_function("MakeGetpidSyscall", None, ReturnType::ULong)?;
@@ -1036,6 +1046,7 @@ pub extern "C" fn hyperlight_main() {
         add_to_static as i64,
     );
     register_function(add_to_static_def);
+
     let get_static_def = GuestFunctionDefinition::new(
         "GetStatic".to_string(),
         Vec::new(),
@@ -1044,6 +1055,14 @@ pub extern "C" fn hyperlight_main() {
     );
     register_function(get_static_def);
 
+    let add_to_static_and_fail_def = GuestFunctionDefinition::new(
+        "AddToStaticAndFail".to_string(),
+        Vec::new(),
+        ReturnType::Int,
+        add_to_static_and_fail as i64,
+    );
+    register_function(add_to_static_and_fail_def);
+
     let violate_seccomp_filters_def = GuestFunctionDefinition::new(
         "ViolateSeccompFilters".to_string(),
         Vec::new(),