diff --git a/task_sdk/src/airflow/sdk/execution_time/task_runner.py b/task_sdk/src/airflow/sdk/execution_time/task_runner.py
index a467bb182291c..78eab44df83c3 100644
--- a/task_sdk/src/airflow/sdk/execution_time/task_runner.py
+++ b/task_sdk/src/airflow/sdk/execution_time/task_runner.py
@@ -305,8 +305,18 @@ def run(ti: RuntimeTaskInstance, log: Logger):
         )
 
         # TODO: Run task failure callbacks here
-    except (AirflowTaskTimeout, AirflowException, AirflowTaskTerminated):
+    except (AirflowTaskTimeout, AirflowException):
+        # TODO: handle the case of up_for_retry here
         ...
+    except AirflowTaskTerminated:
+        # External state updates are already handled with `ti_heartbeat` and will be
+        # updated already be another UI API. So, these exceptions should ideally never be thrown.
+        # If these are thrown, we should mark the TI state as failed.
+        msg = TaskState(
+            state=TerminalTIState.FAILED,
+            end_date=datetime.now(tz=timezone.utc),
+        )
+        # TODO: Run task failure callbacks here
     except SystemExit:
         ...
     except BaseException:
diff --git a/task_sdk/tests/execution_time/test_task_runner.py b/task_sdk/tests/execution_time/test_task_runner.py
index 78f8058accc0b..96ac89db5cd9d 100644
--- a/task_sdk/tests/execution_time/test_task_runner.py
+++ b/task_sdk/tests/execution_time/test_task_runner.py
@@ -26,7 +26,12 @@
 import pytest
 from uuid6 import uuid7
 
-from airflow.exceptions import AirflowFailException, AirflowSensorTimeout, AirflowSkipException
+from airflow.exceptions import (
+    AirflowFailException,
+    AirflowSensorTimeout,
+    AirflowSkipException,
+    AirflowTaskTerminated,
+)
 from airflow.sdk import DAG, BaseOperator, Connection
 from airflow.sdk.api.datamodels._generated import TaskInstance, TerminalTIState
 from airflow.sdk.execution_time.comms import (
@@ -352,6 +357,11 @@ def __init__(self, *args, **kwargs):
             "sensor-timeout-exception",
             AirflowSensorTimeout("Oops. Failing by AirflowSensorTimeout!"),
         ),
+        pytest.param(
+            "basic_failed3",
+            "task-terminated-exception",
+            AirflowTaskTerminated("Oops. Failing by AirflowTaskTerminated!"),
+        ),
     ],
 )
 def test_run_basic_failed(time_machine, mocked_parse, dag_id, task_id, fail_with_exception, make_ti_context):