diff --git a/Cargo.toml b/Cargo.toml
index a135e767..cbf98b7b 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -27,7 +27,6 @@ build = "build.rs"
 [dependencies]
 libc = "0.2"
 num = "0.1"
-abort_on_panic = "1.0"
 
 # These features are both optional, but you must pick one to 
 # indicate which python ffi you are trying to bind to.
diff --git a/src/function.rs b/src/function.rs
index a79f3559..ef17088d 100644
--- a/src/function.rs
+++ b/src/function.rs
@@ -16,8 +16,10 @@
 // OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER
 // DEALINGS IN THE SOFTWARE.
 
-use std::{mem, ptr};
-use python::{Python, PythonObject};
+use libc;
+use std::{mem, ptr, io, any};
+use std::ffi::{CString, CStr};
+use python::{Python, PythonObject, PyDrop};
 use objects::{PyObject, PyTuple, PyDict, PyString, exc};
 use conversion::ToPyObject;
 use ffi;
@@ -135,11 +137,17 @@ macro_rules! py_fn_impl {
     }}
 }
 
-pub unsafe fn handle_callback<F, T>(_location: &str, f: F) -> *mut ffi::PyObject
-    where F: FnOnce(Python) -> PyResult<T>,
+pub unsafe fn py_fn_impl(py: Python, method_def: *mut ffi::PyMethodDef) -> PyObject {
+    err::from_owned_ptr_or_panic(py, ffi::PyCFunction_New(method_def, ptr::null_mut()))
+}
+
+#[cfg(feature="nightly")]
+pub unsafe fn handle_callback<F, T>(location: &str, f: F) -> *mut ffi::PyObject
+    where F: FnOnce(Python) -> PyResult<T>, F: ::std::panic::RecoverSafe,
           T: ToPyObject
 {
-    abort_on_panic!({
+    let guard = AbortOnDrop(location);
+    let ret = ::std::panic::recover(|| {
         let py = Python::assume_gil_acquired();
         match f(py) {
             Ok(val) => {
@@ -150,11 +158,51 @@ pub unsafe fn handle_callback<F, T>(_location: &str, f: F) -> *mut ffi::PyObject
                 ptr::null_mut()
             }
         }
-    })
+    });
+    let ret = match ret {
+        Ok(r) => r,
+        Err(ref err) => handle_panic(Python::assume_gil_acquired(), err)
+    };
+    mem::forget(guard);
+    ret
 }
 
-pub unsafe fn py_fn_impl(py: Python, method_def: *mut ffi::PyMethodDef) -> PyObject {
-    err::from_owned_ptr_or_panic(py, ffi::PyCFunction_New(method_def, ptr::null_mut()))
+fn handle_panic(_py: Python, _panic: &any::Any) -> *mut ffi::PyObject {
+    let msg = cstr!("Rust panic");
+    unsafe {
+        ffi::PyErr_SetString(ffi::PyExc_SystemError, msg.as_ptr());
+    }
+    ptr::null_mut()
+}
+
+#[cfg(not(feature="nightly"))]
+pub unsafe fn handle_callback<F, T>(location: &str, f: F) -> *mut ffi::PyObject
+    where F: FnOnce(Python) -> PyResult<T>,
+          T: ToPyObject
+{
+    let guard = AbortOnDrop(location);
+    let py = Python::assume_gil_acquired();
+    let ret = match f(py) {
+        Ok(val) => {
+            val.into_py_object(py).into_object().steal_ptr()
+        }
+        Err(e) => {
+            e.restore(py);
+            ptr::null_mut()
+        }
+    };
+    mem::forget(guard);
+    ret
+}
+
+pub struct AbortOnDrop<'a>(pub &'a str);
+
+impl <'a> Drop for AbortOnDrop<'a> {
+    fn drop(&mut self) {
+        use std::io::Write;
+        let _ = writeln!(&mut io::stderr(), "Cannot unwind out of {}", self.0);
+        unsafe { libc::abort() }
+    }
 }
 
 // Tests for this file are in tests/test_function.rs
diff --git a/src/lib.rs b/src/lib.rs
index e5514b62..f8819193 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -24,6 +24,7 @@
 
     const_fn, // for GILProtected::new (#24111)
     shared, // for std::ptr::Shared (#27730)
+    recover, // for converting panics to python exceptions (#27719)
 ))]
 
 #![allow(unused_imports)] // because some imports are only necessary with python 2.x or 3.x
@@ -82,9 +83,6 @@
 
 extern crate libc;
 
-#[macro_use]
-extern crate abort_on_panic;
-
 #[cfg(feature="python27-sys")]
 extern crate python27_sys as ffi;
 
@@ -107,7 +105,7 @@ pub type Py_hash_t = libc::c_long;
 #[allow(non_camel_case_types)]
 pub type Py_hash_t = ffi::Py_hash_t;
 
-use std::ptr;
+use std::{ptr, mem};
 
 /// Constructs a `&'static CStr` literal.
 macro_rules! cstr(
@@ -150,9 +148,8 @@ pub mod _detail {
     pub mod libc {
         pub use ::libc::c_char;
     }
-    pub use abort_on_panic::PanicGuard;
     pub use err::from_owned_ptr_or_panic;
-    pub use function::{handle_callback, py_fn_impl};
+    pub use function::{handle_callback, py_fn_impl, AbortOnDrop};
 }
 
 /// Expands to an `extern "C"` function that allows Python to load
@@ -222,24 +219,29 @@ pub unsafe fn py_module_initializer_impl(
     name: *const libc::c_char,
     init: fn(Python, &PyModule) -> PyResult<()>
 ) {
-    abort_on_panic!({
-        let py = Python::assume_gil_acquired();
-        ffi::PyEval_InitThreads();
-        let module = ffi::Py_InitModule(name, ptr::null_mut());
-        if module.is_null() { return; }
+    let guard = function::AbortOnDrop("py_module_initializer");
+    let py = Python::assume_gil_acquired();
+    ffi::PyEval_InitThreads();
+    let module = ffi::Py_InitModule(name, ptr::null_mut());
+    if module.is_null() {
+        mem::forget(guard);
+        return;
+    }
 
-        let module = match PyObject::from_borrowed_ptr(py, module).cast_into::<PyModule>(py) {
-            Ok(m) => m,
-            Err(e) => {
-                PyErr::from(e).restore(py);
-                return;
-            }
-        };
-        match init(py, &module) {
-            Ok(()) => (),
-            Err(e) => e.restore(py)
+    let module = match PyObject::from_borrowed_ptr(py, module).cast_into::<PyModule>(py) {
+        Ok(m) => m,
+        Err(e) => {
+            PyErr::from(e).restore(py);
+            mem::forget(guard);
+            return;
         }
-    })
+    };
+    let ret = match init(py, &module) {
+        Ok(()) => (),
+        Err(e) => e.restore(py)
+    };
+    mem::forget(guard);
+    ret
 }
 
 #[macro_export]
@@ -279,25 +281,31 @@ pub unsafe fn py_module_initializer_impl(
     def: *mut ffi::PyModuleDef,
     init: fn(Python, &PyModule) -> PyResult<()>
 ) -> *mut ffi::PyObject {
-    abort_on_panic!({
-        let py = Python::assume_gil_acquired();
-        ffi::PyEval_InitThreads();
-        let module = ffi::PyModule_Create(def);
-        if module.is_null() { return module; }
+    let guard = function::PanicOnDrop("py_module_initializer");
+    let py = Python::assume_gil_acquired();
+    ffi::PyEval_InitThreads();
+    let module = ffi::PyModule_Create(def);
+    if module.is_null() {
+        mem::forget(guard);
+        return module;
+    }
 
-        let module = match PyObject::from_owned_ptr(py, module).cast_into::<PyModule>(py) {
-            Ok(m) => m,
-            Err(e) => {
-                PyErr::from(e).restore(py);
-                return ptr::null_mut();
-            }
-        };
-        match init(py, &module) {
-            Ok(()) => module.into_object().steal_ptr(),
-            Err(e) => {
-                e.restore(py);
-                return ptr::null_mut();
-            }
+    let module = match PyObject::from_owned_ptr(py, module).cast_into::<PyModule>(py) {
+        Ok(m) => m,
+        Err(e) => {
+            PyErr::from(e).restore(py);
+            mem::forget(guard);
+            return ptr::null_mut();
         }
-    })
+    };
+    let ret = match init(py, &module) {
+        Ok(()) => module.into_object().steal_ptr(),
+        Err(e) => {
+            e.restore(py);
+            ptr::null_mut()
+        }
+    };
+    mem::forget(guard);
+    ret
 }
+
diff --git a/src/py_class/slots.rs b/src/py_class/slots.rs
index 6d723c8d..7247e889 100644
--- a/src/py_class/slots.rs
+++ b/src/py_class/slots.rs
@@ -17,6 +17,7 @@
 // DEALINGS IN THE SOFTWARE.
 
 use ffi;
+use std::mem;
 use python::Python;
 
 #[macro_export]
@@ -51,10 +52,11 @@ macro_rules! py_class_type_object_dynamic_init {
 pub unsafe extern "C" fn tp_dealloc_callback<T>(obj: *mut ffi::PyObject)
     where T: super::BaseObject
 {
-    abort_on_panic!({
-        let py = Python::assume_gil_acquired();
-        T::dealloc(py, obj)
-    });
+    let guard = ::function::AbortOnDrop("Cannot unwind out of tp_dealloc");
+    let py = Python::assume_gil_acquired();
+    let r = T::dealloc(py, obj);
+    mem::forget(guard);
+    r
 }
 
 #[macro_export]
diff --git a/tests/test_class.rs b/tests/test_class.rs
index 62e8612f..06ef889a 100644
--- a/tests/test_class.rs
+++ b/tests/test_class.rs
@@ -30,6 +30,40 @@ fn empty_class_with_new() {
     assert!(typeobj.call(py, NoArgs, None).unwrap().cast_into::<Empty>(py).is_ok());
 }
 
+#[test]
+fn new_with_one_arg() {
+    py_class!(class C |py| {
+        data _data: i32;
+        def __new__(_cls, arg: i32) -> PyResult<C> {
+            C::create_instance(py, arg)
+        }
+    });
+
+    let gil = Python::acquire_gil();
+    let py = gil.python();
+    let typeobj = py.get_type::<C>();
+    let obj = typeobj.call(py, (42,), None).unwrap().cast_into::<C>(py).unwrap();
+    assert_eq!(*obj._data(py), 42);
+}
+
+#[test]
+fn new_with_two_args() {
+    py_class!(class C |py| {
+        data _data1: i32;
+        data _data2: i32;
+        def __new__(_cls, arg1: i32, arg2: i32) -> PyResult<C> {
+            C::create_instance(py, arg1, arg2)
+        }
+    });
+
+    let gil = Python::acquire_gil();
+    let py = gil.python();
+    let typeobj = py.get_type::<C>();
+    let obj = typeobj.call(py, (10, 20), None).unwrap().cast_into::<C>(py).unwrap();
+    assert_eq!(*obj._data1(py), 10);
+    assert_eq!(*obj._data2(py), 20);
+}
+
 #[test]
 #[allow(dead_code)]
 fn data_is_dropped() {