diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3f965d43da..4387e0eec6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,11 @@
 # Changelog
 
+## Unreleased
+
+### Fixes
+
+- ASP.NET Core: fix handled not being set for Handled exceptions ([#1111](https://github.com/getsentry/sentry-dotnet/pull/1111))
+
 ## 3.7.0
 
 ### Features
diff --git a/src/Sentry.AspNetCore/SentryMiddleware.cs b/src/Sentry.AspNetCore/SentryMiddleware.cs
index 270bd346ab..c2fd8aad87 100644
--- a/src/Sentry.AspNetCore/SentryMiddleware.cs
+++ b/src/Sentry.AspNetCore/SentryMiddleware.cs
@@ -115,18 +115,21 @@ public async Task InvokeAsync(HttpContext context)
                     var exceptionFeature = context.Features.Get<IExceptionHandlerFeature?>();
                     if (exceptionFeature?.Error != null)
                     {
-                        CaptureException(exceptionFeature.Error);
+                        CaptureException(exceptionFeature.Error, "IExceptionHandlerFeature");
                     }
                 }
                 catch (Exception e)
                 {
-                    CaptureException(e);
+                    CaptureException(e, "SentryMiddleware.UnhandledException");
 
                     ExceptionDispatchInfo.Capture(e).Throw();
                 }
 
-                void CaptureException(Exception e)
+                void CaptureException(Exception e, string mechanism)
                 {
+                    e.Data[Mechanism.HandledKey] = false;
+                    e.Data[Mechanism.MechanismKey] = mechanism;
+
                     var evt = new SentryEvent(e);
 
                     _logger.LogTrace("Sending event '{SentryEvent}' to Sentry.", evt);
diff --git a/test/Sentry.AspNetCore.Tests/SentryMiddlewareTests.cs b/test/Sentry.AspNetCore.Tests/SentryMiddlewareTests.cs
index f593142451..621842a3e7 100644
--- a/test/Sentry.AspNetCore.Tests/SentryMiddlewareTests.cs
+++ b/test/Sentry.AspNetCore.Tests/SentryMiddlewareTests.cs
@@ -88,6 +88,23 @@ public async Task InvokeAsync_ExceptionThrown_SameRethrown()
             Assert.Same(expected, actual);
         }
 
+        [Fact]
+        public async Task InvokeAsync_ExceptionThrown_HandledSetFalse()
+        {
+            var expected = new Exception("test");
+            _fixture.RequestDelegate = _ => throw expected;
+
+            _fixture.Hub.When(h => h.CaptureEvent(Arg.Any<SentryEvent>()))
+                .Do(c => Assert.False((bool)c.Arg<SentryEvent>().Exception.Data[Mechanism.HandledKey]));
+
+            var sut = _fixture.GetSut();
+
+            var actual = await Assert.ThrowsAsync<Exception>(
+                async () => await sut.InvokeAsync(_fixture.HttpContext));
+
+            Assert.Same(expected, actual);
+        }
+
         [Fact]
         public async Task InvokeAsync_FeatureFoundWithNoError_DoesNotCapturesEvent()
         {
@@ -102,6 +119,21 @@ public async Task InvokeAsync_FeatureFoundWithNoError_DoesNotCapturesEvent()
             _ = _fixture.Hub.DidNotReceive().CaptureEvent(Arg.Any<SentryEvent>());
         }
 
+        [Fact]
+        public async Task InvokeAsync_FeatureFoundWithError_CapturesEvent()
+        {
+            var exception = new Exception();
+            var feature = Substitute.For<IExceptionHandlerFeature>();
+            _ = feature.Error.Returns(exception);
+            _ = _fixture.HttpContext.Features.Get<IExceptionHandlerFeature>().Returns(feature);
+            var sut = _fixture.GetSut();
+
+            await sut.InvokeAsync(_fixture.HttpContext);
+
+            _ = _fixture.Hub.Received().CaptureEvent(Arg.Any<SentryEvent>());
+            Assert.Equal("IExceptionHandlerFeature", exception.Data[Mechanism.MechanismKey]);
+        }
+
         [Fact]
         public async Task InvokeAsync_ScopePushed_BeforeConfiguringScope()
         {