diff --git a/changelog.d/19116.misc b/changelog.d/19116.misc
new file mode 100644
index 000000000..2291d0781
--- /dev/null
+++ b/changelog.d/19116.misc
@@ -0,0 +1 @@
+Move exception handling up the stack (avoid `exit(1)` in our composable functions).
diff --git a/synapse/app/generic_worker.py b/synapse/app/generic_worker.py
index 8f512c157..1a7bedaac 100644
--- a/synapse/app/generic_worker.py
+++ b/synapse/app/generic_worker.py
@@ -364,14 +364,11 @@ def start(config: HomeServerConfig) -> None:
     # Start the tracer
     init_tracer(hs)  # noqa
 
-    try:
-        hs.setup()
+    hs.setup()
 
-        # Ensure the replication streamer is always started in case we write to any
-        # streams. Will no-op if no streams can be written to by this worker.
-        hs.get_replication_streamer()
-    except Exception as e:
-        handle_startup_exception(e)
+    # Ensure the replication streamer is always started in case we write to any
+    # streams. Will no-op if no streams can be written to by this worker.
+    hs.get_replication_streamer()
 
     async def start() -> None:
         await _base.start(hs)
@@ -388,7 +385,10 @@ def start(config: HomeServerConfig) -> None:
 def main() -> None:
     homeserver_config = load_config(sys.argv[1:])
     with LoggingContext(name="main", server_name=homeserver_config.server.server_name):
-        start(homeserver_config)
+        try:
+            start(homeserver_config)
+        except Exception as e:
+            handle_startup_exception(e)
 
 
 if __name__ == "__main__":
diff --git a/synapse/app/homeserver.py b/synapse/app/homeserver.py
index 023a0d877..9fd65b271 100644
--- a/synapse/app/homeserver.py
+++ b/synapse/app/homeserver.py
@@ -414,10 +414,7 @@ def setup(
     # Start the tracer
     init_tracer(hs)  # noqa
 
-    try:
-        hs.setup()
-    except Exception as e:
-        handle_startup_exception(e)
+    hs.setup()
 
     async def _start_when_reactor_running() -> None:
         # TODO: Feels like this should be moved somewhere else.
@@ -464,7 +461,10 @@ def main() -> None:
         # check base requirements
         check_requirements()
         hs = create_homeserver(homeserver_config)
-        setup(hs)
+        try:
+            setup(hs)
+        except Exception as e:
+            handle_startup_exception(e)
 
         # redirect stdio to the logs, if configured.
         if not hs.config.logging.no_redirect_stdio: