diff --git a/gobblin-modules/gobblin-kafka-09/src/test/java/org/apache/gobblin/runtime/HighLevelConsumerTest.java b/gobblin-modules/gobblin-kafka-09/src/test/java/org/apache/gobblin/runtime/HighLevelConsumerTest.java
index bb0b96f90..1ec5bbbd8 100644
--- a/gobblin-modules/gobblin-kafka-09/src/test/java/org/apache/gobblin/runtime/HighLevelConsumerTest.java
+++ b/gobblin-modules/gobblin-kafka-09/src/test/java/org/apache/gobblin/runtime/HighLevelConsumerTest.java
@@ -40,6 +40,7 @@
 import org.apache.gobblin.configuration.ConfigurationKeys;
 import org.apache.gobblin.kafka.KafkaTestBase;
 import org.apache.gobblin.kafka.client.AbstractBaseKafkaConsumerClient;
+import org.apache.gobblin.kafka.client.DecodeableKafkaRecord;
 import org.apache.gobblin.kafka.client.Kafka09ConsumerClient;
 import org.apache.gobblin.kafka.writer.Kafka09DataWriter;
 import org.apache.gobblin.kafka.writer.KafkaWriterConfigurationKeys;
@@ -176,6 +177,34 @@ public void testCalculateProduceToConsumeLag() {
     Assert.assertTrue(consumer.calcMillisSince(produceTimestamp).equals(234L));
   }
 
+  @Test
+  public void testQueueProcessorRuntimeExceptionEncounteredAutoCommitEnabled() throws Exception {
+    Properties consumerProps = new Properties();
+    consumerProps.setProperty(ConfigurationKeys.KAFKA_BROKERS, _kafkaBrokers);
+    consumerProps.setProperty(Kafka09ConsumerClient.GOBBLIN_CONFIG_VALUE_DESERIALIZER_CLASS_KEY, "org.apache.kafka.common.serialization.ByteArrayDeserializer");
+    consumerProps.setProperty(SOURCE_KAFKA_CONSUMERCONFIG_KEY_WITH_DOT + KAFKA_AUTO_OFFSET_RESET_KEY, "earliest");
+    //Generate a brand new consumer group id to ensure there are no previously committed offsets for this group id
+    String consumerGroupId = Joiner.on("-").join(TOPIC, "auto", System.currentTimeMillis());
+    consumerProps.setProperty(SOURCE_KAFKA_CONSUMERCONFIG_KEY_WITH_DOT + HighLevelConsumer.GROUP_ID_KEY, consumerGroupId);
+    consumerProps.setProperty(HighLevelConsumer.ENABLE_AUTO_COMMIT_KEY, "true");
+
+    // Create an instance of MockedHighLevelConsumer using an anonymous class
+    MockedHighLevelConsumer consumer = new MockedHighLevelConsumer(TOPIC, ConfigUtils.propertiesToConfig(consumerProps), NUM_PARTITIONS) {
+      int callCount = 0;
+      @Override
+      public void processMessage(DecodeableKafkaRecord<byte[], byte[]> message) {
+        super.processMessage(message);
+        // Override the method to throw a custom exception
+        throw new RuntimeException("Simulated exception in processMessage");
+      }
+    };
+    consumer.startAsync().awaitRunning();
+
+    // Assert all NUM_MSGS messages were processed
+    consumer.awaitExactlyNMessages(NUM_MSGS, 10000);
+    consumer.shutDown();
+  }
+
   private List<byte[]> createByteArrayMessages() {
     List<byte[]> records = Lists.newArrayList();
 
diff --git a/gobblin-runtime/src/main/java/org/apache/gobblin/runtime/kafka/HighLevelConsumer.java b/gobblin-runtime/src/main/java/org/apache/gobblin/runtime/kafka/HighLevelConsumer.java
index ea996b5fb..64bf9b810 100644
--- a/gobblin-runtime/src/main/java/org/apache/gobblin/runtime/kafka/HighLevelConsumer.java
+++ b/gobblin-runtime/src/main/java/org/apache/gobblin/runtime/kafka/HighLevelConsumer.java
@@ -340,18 +340,29 @@ public void run() {
         while (true) {
           record = queue.take();
           messagesRead.inc();
-          HighLevelConsumer.this.processMessage((DecodeableKafkaRecord)record);
-          recordsProcessed.incrementAndGet();
+          try {
+            HighLevelConsumer.this.processMessage((DecodeableKafkaRecord) record);
+            recordsProcessed.incrementAndGet();
+          }
+          catch (Exception e) {
+            // Rethrow exception in case auto commit is disabled
+            if (!HighLevelConsumer.this.enableAutoCommit) {
+              throw e;
+            }
+            // Continue with processing next records in case auto commit is enabled
+            log.error("Encountered exception while processing record. Record: {} Exception: {}", record, e);
+          }
 
-          if(!HighLevelConsumer.this.enableAutoCommit) {
-            KafkaPartition partition = new KafkaPartition.Builder().withId(record.getPartition()).withTopicName(HighLevelConsumer.this.topic).build();
+          if (!HighLevelConsumer.this.enableAutoCommit) {
+            KafkaPartition partition =
+                new KafkaPartition.Builder().withId(record.getPartition()).withTopicName(HighLevelConsumer.this.topic)
+                    .build();
             // Committed offset should always be the offset of the next record to be read (hence +1)
             partitionOffsetsToCommit.put(partition, record.getOffset() + 1);
           }
         }
-      } catch (InterruptedException e) {
+      } catch(InterruptedException e){
         log.warn("Thread interrupted while processing queue ", e);
-        // TODO: evaluate whether we should interrupt the thread or continue processing
         Thread.currentThread().interrupt();
       } catch (Exception e) {
         log.error("Encountered exception while processing record so stopping queue processing. Record: {} Exception: {}", record, e);