2 files changed, 2 insertions, 1 deletions

diff --git a/src/WixToolset.Core/VariableResolver.cs b/src/WixToolset.Core/VariableResolver.cs
index 0a7916a3..4a65bec2 100644
--- a/src/WixToolset.Core/VariableResolver.cs
+++ b/src/WixToolset.Core/VariableResolver.cs
@@ -94,7 +94,7 @@ namespace WixToolset.Core
             result.IsDefault = true;
             result.Value = value;
 
-            while (!result.DelayedResolve && matches.Count > 0)
+            while (!this.Messaging.EncounteredError && !result.DelayedResolve && matches.Count > 0)
             {
                 var sb = new StringBuilder(value);
 
diff --git a/src/test/WixToolsetTest.CoreIntegration/VariableResolverFixture.cs b/src/test/WixToolsetTest.CoreIntegration/VariableResolverFixture.cs
index b53842f7..eaeb4724 100644
--- a/src/test/WixToolsetTest.CoreIntegration/VariableResolverFixture.cs
+++ b/src/test/WixToolsetTest.CoreIntegration/VariableResolverFixture.cs
@@ -32,6 +32,7 @@ namespace WixToolsetTest.CoreIntegration
             Assert.Equal("Welcome to Localized Product Name", variableResolver.ResolveVariables(null, "Welcome to !(loc.ProductName)", false).Value);
             Assert.Equal("Welcome to Localized Product Name Enterprise Edition", variableResolver.ResolveVariables(null, "Welcome to !(loc.ProductNameEdition)", false).Value);
             Assert.Equal("Welcome to Localized Product Name Enterprise Edition v1.2.3", variableResolver.ResolveVariables(null, "Welcome to !(loc.ProductNameEditionVersion)", false).Value);
+            Assert.Throws<WixException>(() => variableResolver.ResolveVariables(null, "Welcome to !(loc.UnknownLocalizationVariable)", false));
         }
     }
 }