diff --git a/docs/ref/settings.txt b/docs/ref/settings.txt
index f23a187bf2..781c231354 100644
--- a/docs/ref/settings.txt
+++ b/docs/ref/settings.txt
@@ -1836,9 +1836,9 @@ TEMPLATE_DEBUG
 Default: ``False``
 
 A boolean that turns on/off template debug mode. If this is ``True``, the fancy
-error page will display a detailed report for any ``TemplateSyntaxError``. This
-report contains the relevant snippet of the template, with the appropriate line
-highlighted.
+error page will display a detailed report for any exception raised during
+template rendering. This report contains the relevant snippet of the template,
+with the appropriate line highlighted.
 
 Note that Django only displays fancy error pages if :setting:`DEBUG` is ``True``, so
 you'll want to set that to take advantage of this setting.
diff --git a/docs/releases/1.4.txt b/docs/releases/1.4.txt
index f12db2817b..8de9e8d358 100644
--- a/docs/releases/1.4.txt
+++ b/docs/releases/1.4.txt
@@ -263,6 +263,22 @@ setup for test suites) has seen a performance benefit as a result.
 See the :meth:`~django.db.models.query.QuerySet.bulk_create` docs for more
 information.
 
+No wrapping of exceptions in ``TEMPLATE_DEBUG`` mode
+~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+In previous versions of Django, whenever the :setting:`TEMPLATE_DEBUG` setting
+was ``True``, any exception raised during template rendering (even exceptions
+unrelated to template syntax) were wrapped in ``TemplateSyntaxError`` and
+re-raised. This was done in order to provide detailed template source location
+information in the debug 500 page.
+
+In Django 1.4, exceptions are no longer wrapped. Instead, the original
+exception is annotated with the source information. This means that catching
+exceptions from template rendering is now consistent regardless of the value of
+:setting:`TEMPLATE_DEBUG`, and there's no need to catch and unwrap
+``TemplateSyntaxError`` in order to catch other errors.
+
+
 Minor features
 ~~~~~~~~~~~~~~