Exception handling is a structuring technique that facilitates the design of software systems by encapsulating the process of error recovery. In this paper, we present a systematic approach for incorporating exceptional behaviour in the development of component-based software. The premise of our approach is that components alone do not provide the appropriate means to deal with exceptional behaviour in an effective manner, hence the need to consider the notion of collaborations for capturing the interactive behaviour between components when error recovery involves more than one component. The feasibility of the approach is demonstrated in terms of the mining control system case study. Copyright (C) 2004 John Wiley Sons, Ltd.353195236