diff --git a/Lib/test/test_coroutines.py b/Lib/test/test_coroutines.py
index 4a327b5ba9f1683..6d63cdb5f0fcc92 100644
--- a/Lib/test/test_coroutines.py
+++ b/Lib/test/test_coroutines.py
@@ -975,6 +975,21 @@ async def waiter(coro):
                                     "coroutine is being awaited already"):
             waiter(coro).send(None)
 
+    def test_await_16(self):
+        # See https://bugs.python.org/issue29600 for details.
+
+        async def f():
+            return ValueError()
+
+        async def g():
+            try:
+                raise KeyError
+            except:
+                return await f()
+
+        _, result = run_async(g())
+        self.assertIsNone(result.__context__)
+
     def test_with_1(self):
         class Manager:
             def __init__(self, name):
diff --git a/Misc/NEWS b/Misc/NEWS
index 98b47bdab4a8f11..e56c0914b1b8d27 100644
--- a/Misc/NEWS
+++ b/Misc/NEWS
@@ -10,6 +10,8 @@ Release date: XXXX-XX-XX
 Core and Builtins
 -----------------
 
+- bpo-29600: Fix wrapping coroutine return values in StopIteration.
+
 - Issue #29537: Restore runtime compatibility with bytecode files generated by
   CPython 3.5.0 to 3.5.2, and adjust the eval loop to avoid the problems that
   could be caused by the malformed variant of the BUILD_MAP_UNPACK_WITH_CALL
diff --git a/Objects/genobject.c b/Objects/genobject.c
index d403598181abd4c..0de540898d5e152 100644
--- a/Objects/genobject.c
+++ b/Objects/genobject.c
@@ -466,8 +466,7 @@ _PyGen_SetStopIterationValue(PyObject *value)
     PyObject *e;
 
     if (value == NULL ||
-        (!PyTuple_Check(value) &&
-         !PyObject_TypeCheck(value, (PyTypeObject *) PyExc_StopIteration)))
+        (!PyTuple_Check(value) && !PyExceptionInstance_Check(value)))
     {
         /* Delay exception instantiation if we can */
         PyErr_SetObject(PyExc_StopIteration, value);