diff --git a/src/__tests__/createAction-test.js b/src/__tests__/createAction-test.js
index 1265dd9a..336f3136 100644
--- a/src/__tests__/createAction-test.js
+++ b/src/__tests__/createAction-test.js
@@ -130,5 +130,16 @@ describe('createAction()', () => {
         meta: { foo: 'bar' }
       });
     });
+
+    it('set error to true if payloadCreator return an Error object', () => {
+      const errObj = new TypeError('this is an error');
+      const actionCreator = createAction(type, () => errObj);
+      const errAction = actionCreator('invalid arguments');
+      expect(errAction).to.deep.equal({
+        type,
+        payload: errObj,
+        error: true
+      });
+    });
   });
 });
diff --git a/src/createAction.js b/src/createAction.js
index 532610d7..304c2d07 100644
--- a/src/createAction.js
+++ b/src/createAction.js
@@ -17,7 +17,7 @@ export default function createAction(type, payloadCreator, metaCreator) {
       action.payload = payload;
     }
 
-    if (hasError) {
+    if (hasError || payload instanceof Error) {
       // Handle FSA errors where the payload is an Error object. Set error.
       action.error = true;
     }