diff --git a/fault-tolerance/src/main/java/io/helidon/faulttolerance/Fallback.java b/fault-tolerance/src/main/java/io/helidon/faulttolerance/Fallback.java
index 730eede8eba..a50771b312e 100644
--- a/fault-tolerance/src/main/java/io/helidon/faulttolerance/Fallback.java
+++ b/fault-tolerance/src/main/java/io/helidon/faulttolerance/Fallback.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2020 Oracle and/or its affiliates.
+ * Copyright (c) 2020, 2022 Oracle and/or its affiliates.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -68,9 +68,9 @@ static <T> Fallback<T> create(Function<Throwable, ? extends CompletionStage<T>>
      * @param <T> type of the result
      * @return a new fallback
      */
-    static <T> Fallback<T> createMulti(Function<Throwable, ? extends CompletionStage<T>> fallback) {
+    static <T> Fallback<T> createMulti(Function<Throwable, ? extends Flow.Publisher<T>> fallback) {
         Builder<T> builder = builder();
-        return builder.fallback(fallback).build();
+        return builder.fallbackMulti(fallback).build();
     }
 
     /**
diff --git a/fault-tolerance/src/main/java/io/helidon/faulttolerance/FallbackImpl.java b/fault-tolerance/src/main/java/io/helidon/faulttolerance/FallbackImpl.java
index cc99fec158e..660906865cb 100644
--- a/fault-tolerance/src/main/java/io/helidon/faulttolerance/FallbackImpl.java
+++ b/fault-tolerance/src/main/java/io/helidon/faulttolerance/FallbackImpl.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2020 Oracle and/or its affiliates.
+ * Copyright (c) 2020, 2022 Oracle and/or its affiliates.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -17,6 +17,7 @@
 package io.helidon.faulttolerance;
 
 import java.util.concurrent.CompletableFuture;
+import java.util.concurrent.CompletionException;
 import java.util.concurrent.CompletionStage;
 import java.util.concurrent.Flow;
 import java.util.function.Function;
@@ -48,7 +49,12 @@ public Multi<T> invokeMulti(Supplier<? extends Flow.Publisher<T>> supplier) {
                     if (delayedTask.hadData() || errorChecker.shouldSkip(cause)) {
                         return Multi.error(cause);
                     } else {
-                        return Multi.create(fallbackMulti.apply(cause));
+                        return Multi.create(fallbackMulti.apply(cause))
+                                .onErrorResumeWith(t2 -> {
+                                    // Copy exception structure of Single<T> case
+                                    t2.addSuppressed(new CompletionException(throwable));
+                                    return Multi.error(t2);
+                                });
                     }
                 });
     }
diff --git a/fault-tolerance/src/test/java/io/helidon/faulttolerance/FallbackTest.java b/fault-tolerance/src/test/java/io/helidon/faulttolerance/FallbackTest.java
index 135bb142e95..e951973e365 100644
--- a/fault-tolerance/src/test/java/io/helidon/faulttolerance/FallbackTest.java
+++ b/fault-tolerance/src/test/java/io/helidon/faulttolerance/FallbackTest.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2020 Oracle and/or its affiliates.
+ * Copyright (c) 2020, 2022 Oracle and/or its affiliates.
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -17,13 +17,14 @@
 package io.helidon.faulttolerance;
 
 import java.util.Arrays;
+import java.util.List;
 import java.util.concurrent.CompletionException;
 import java.util.concurrent.TimeUnit;
 import java.util.concurrent.atomic.AtomicInteger;
 
+import io.helidon.common.reactive.Multi;
 import io.helidon.common.reactive.Single;
 import io.helidon.config.ConfigException;
-
 import org.junit.jupiter.api.BeforeEach;
 import org.junit.jupiter.api.Test;
 
@@ -43,7 +44,8 @@ void reset() {
 
     @Test
     void testFallback() {
-        String result = Fallback.create(this::fallback).invoke(this::primary)
+        String result = Fallback.create(this::fallback)
+                .invoke(this::primary)
                 .await(1, TimeUnit.SECONDS);
 
         assertThat(result, is("fallback"));
@@ -62,6 +64,29 @@ void testFallbackFails() {
         assertThat(suppressedCause, instanceOf(IllegalArgumentException.class));
     }
 
+    @Test
+    void testFallbackMulti() {
+        List<String> result = Fallback.createMulti(this::fallbackMulti)
+                .invokeMulti(this::primaryMulti)
+                .collectList()
+                .await(1, TimeUnit.SECONDS);
+
+        assertThat(result, is(List.of("1", "2", "3")));
+        assertThat(primaryCounter.get(), is(1));
+        assertThat(fallbackCounter.get(), is(1));
+    }
+
+    @Test
+    void testFallbackMultiFails() {
+        Multi<String> result = Fallback.createMulti(this::fallbackMultiFail).invokeMulti(this::primaryMulti);
+        ConfigException exception = FaultToleranceTest.completionException(Single.create(result), ConfigException.class);
+        Throwable[] suppressed = exception.getSuppressed();
+        assertThat("Should have a suppressed exception: " + Arrays.toString(suppressed), suppressed.length, is(1));
+        assertThat(suppressed[0], instanceOf(CompletionException.class));
+        Throwable suppressedCause = suppressed[0].getCause();
+        assertThat(suppressedCause, instanceOf(IllegalArgumentException.class));
+    }
+
     private Single<String> primary() {
         primaryCounter.incrementAndGet();
         return Single.error(new IllegalArgumentException("Intentional failure"));
@@ -76,4 +101,19 @@ private Single<String> fallbackFail(Throwable throwable) {
         fallbackCounter.incrementAndGet();
         return Single.error(new ConfigException("Intentional failure"));
     }
+
+    private Multi<String> primaryMulti() {
+        primaryCounter.incrementAndGet();
+        return Multi.error(new IllegalArgumentException("Intentional failure"));
+    }
+
+    private Multi<String> fallbackMulti(Throwable throwable) {
+        fallbackCounter.incrementAndGet();
+        return Multi.create(List.of("1", "2", "3"));
+    }
+
+    private Multi<String> fallbackMultiFail(Throwable throwable) {
+        fallbackCounter.incrementAndGet();
+        return Multi.error(new ConfigException("Intentional failure"));
+    }
 }
\ No newline at end of file