diff --git a/src/backends/interpreter/builtins/concurrency.c b/src/backends/interpreter/builtins/concurrency.c
index 74fe77cf..6b6f462e 100644
--- a/src/backends/interpreter/builtins/concurrency.c
+++ b/src/backends/interpreter/builtins/concurrency.c
@@ -187,7 +187,9 @@ Value builtin_join(Value *args, int num_args, ExecutionContext *ctx) {
     // Check if task threw an exception
     if (task->ctx->exception_state.is_throwing) {
         // Re-throw the exception in the current context
+        // Retain the exception value since both task and caller will release it
         ctx->exception_state = task->ctx->exception_state;
+        VALUE_RETAIN(ctx->exception_state.exception_value);
         pthread_mutex_unlock((pthread_mutex_t*)task->task_mutex);
         return val_null();
     }
diff --git a/src/backends/interpreter/runtime/context.c b/src/backends/interpreter/runtime/context.c
index 04c78317..620d90b6 100644
--- a/src/backends/interpreter/runtime/context.c
+++ b/src/backends/interpreter/runtime/context.c
@@ -447,6 +447,9 @@ void defer_stack_execute(DeferStack *stack, ExecutionContext *ctx) {
         int was_throwing = ctx->exception_state.is_throwing;
         Value saved_exception = ctx->exception_state.exception_value;
 
+        // Retain saved exception to prevent it from being freed during defer execution
+        VALUE_RETAIN(saved_exception);
+
         // Temporarily clear exception state to allow defer to run
         ctx->exception_state.is_throwing = 0;
 
@@ -458,6 +461,11 @@ void defer_stack_execute(DeferStack *stack, ExecutionContext *ctx) {
         if (!ctx->exception_state.is_throwing) {
             ctx->exception_state.is_throwing = was_throwing;
             ctx->exception_state.exception_value = saved_exception;
+            // Release our extra reference since we're restoring the value
+            VALUE_RELEASE(saved_exception);
+        } else {
+            // Defer threw a new exception - release saved exception since it won't be used
+            VALUE_RELEASE(saved_exception);
         }
 
         // Clean up the deferred expression and release environment
diff --git a/src/backends/interpreter/runtime/statements.c b/src/backends/interpreter/runtime/statements.c
index cb32b8d1..9d0e743a 100644
--- a/src/backends/interpreter/runtime/statements.c
+++ b/src/backends/interpreter/runtime/statements.c
@@ -731,6 +731,10 @@ void eval_stmt(Stmt *stmt, Environment *env, ExecutionContext *ctx) {
                 int was_breaking = ctx->loop_state.is_breaking;
                 int was_continuing = ctx->loop_state.is_continuing;
 
+                // Retain saved values to prevent them from being freed while we execute finally
+                VALUE_RETAIN(saved_return);
+                VALUE_RETAIN(saved_exception);
+
                 // Clear states before finally
                 ctx->return_state.is_returning = 0;
                 ctx->exception_state.is_throwing = 0;
@@ -749,6 +753,13 @@ void eval_stmt(Stmt *stmt, Environment *env, ExecutionContext *ctx) {
                     ctx->exception_state.exception_value = saved_exception;
                     ctx->loop_state.is_breaking = was_breaking;
                     ctx->loop_state.is_continuing = was_continuing;
+                    // Release our extra references since we're restoring the values
+                    VALUE_RELEASE(saved_return);
+                    VALUE_RELEASE(saved_exception);
+                } else {
+                    // Finally changed control flow - release saved values since they won't be used
+                    VALUE_RELEASE(saved_return);
+                    VALUE_RELEASE(saved_exception);
                 }
             }
             break;
diff --git a/tests/memory/defer_exception_leak.hml b/tests/memory/defer_exception_leak.hml
new file mode 100644
index 00000000..ff1faa23
--- /dev/null
+++ b/tests/memory/defer_exception_leak.hml
@@ -0,0 +1,20 @@
+// Test for memory leak when defer throws while exception is pending
+// Previously, the original exception would leak when defer threw
+
+fn throw_error() {
+    throw "defer exception";
+}
+
+fn test_defer_throws() {
+    defer throw_error();
+    throw "original exception";
+}
+
+// Test the scenario
+try {
+    test_defer_throws();
+} catch (e) {
+    print("Caught: " + e);
+}
+
+print("Test passed - no memory leak");
diff --git a/tests/memory/finally_exception_leak.hml b/tests/memory/finally_exception_leak.hml
new file mode 100644
index 00000000..60025bd9
--- /dev/null
+++ b/tests/memory/finally_exception_leak.hml
@@ -0,0 +1,19 @@
+// Test for memory leak when finally block throws a new exception
+// Previously, the original exception would leak when finally threw
+
+fn test_finally_throws() {
+    try {
+        throw "original exception";
+    } finally {
+        throw "finally exception";
+    }
+}
+
+// Test the scenario
+try {
+    test_finally_throws();
+} catch (e) {
+    print("Caught: " + e);
+}
+
+print("Test passed - no memory leak");
diff --git a/tests/memory/join_exception_refcount.hml b/tests/memory/join_exception_refcount.hml
new file mode 100644
index 00000000..6c447306
--- /dev/null
+++ b/tests/memory/join_exception_refcount.hml
@@ -0,0 +1,16 @@
+// Test for refcount mismatch when joining a task that threw an exception
+// Previously, the exception value was copied without retaining
+
+async fn throws_error() {
+    throw "task exception";
+}
+
+// Test the scenario
+try {
+    let task = spawn(throws_error);
+    join(task);
+} catch (e) {
+    print("Caught: " + e);
+}
+
+print("Test passed - no refcount mismatch");