diff --git a/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/7_2_0/5828-reduction-jobs-failing-in-reduction-fails-jobs.yaml b/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/7_2_0/5828-reduction-jobs-failing-in-reduction-fails-jobs.yaml
new file mode 100644
index 00000000000..978d0e3e233
--- /dev/null
+++ b/hapi-fhir-docs/src/main/resources/ca/uhn/hapi/fhir/changelog/7_2_0/5828-reduction-jobs-failing-in-reduction-fails-jobs.yaml
@@ -0,0 +1,8 @@
+---
+type: fix
+issue: 5828
+title: "When batch 2 jobs with Reduction steps fail in the final part
+        of the reduction step, this would often leave the job
+        stuck in the FINALIZE state.
+        This has been fixed; the job will now FAIL.
+"
diff --git a/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/batch2/Batch2CoordinatorIT.java b/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/batch2/Batch2CoordinatorIT.java
index 130cf6951a3..2e304e08373 100644
--- a/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/batch2/Batch2CoordinatorIT.java
+++ b/hapi-fhir-jpaserver-test-r4/src/test/java/ca/uhn/fhir/jpa/batch2/Batch2CoordinatorIT.java
@@ -234,6 +234,61 @@ public class Batch2CoordinatorIT extends BaseJpaR4Test {
 		assertEquals(1.0, jobInstance.getProgress());
 	}
 
+	@Test
+	public void reductionStepFailing_willFailJob() throws InterruptedException {
+		// setup
+		String jobId = new Exception().getStackTrace()[0].getMethodName();
+		int totalChunks = 3;
+		AtomicInteger chunkCounter = new AtomicInteger();
+		String error = "this is an error";
+
+		buildAndDefine3StepReductionJob(jobId, new IReductionStepHandler() {
+
+			@Override
+			public void firstStep(StepExecutionDetails<TestJobParameters, VoidModel> theStep, IJobDataSink<FirstStepOutput> theDataSink) {
+				for (int i = 0; i < totalChunks; i++) {
+					theDataSink.accept(new FirstStepOutput());
+				}
+			}
+
+			@Override
+			public void secondStep(StepExecutionDetails<TestJobParameters, FirstStepOutput> theStep, IJobDataSink<SecondStepOutput> theDataSink) {
+				SecondStepOutput output = new SecondStepOutput();
+				theDataSink.accept(output);
+			}
+
+			@Override
+			public void reductionStepConsume(ChunkExecutionDetails<TestJobParameters, SecondStepOutput> theChunkDetails, IJobDataSink<ReductionStepOutput> theDataSink) {
+				chunkCounter.getAndIncrement();
+			}
+
+			@Override
+			public void reductionStepRun(StepExecutionDetails<TestJobParameters, SecondStepOutput> theStepExecutionDetails, IJobDataSink<ReductionStepOutput> theDataSink) {
+				// always throw
+				throw new RuntimeException(error);
+			}
+		});
+
+		// test
+		JobInstanceStartRequest request = buildRequest(jobId);
+		myFirstStepLatch.setExpectedCount(1);
+		Batch2JobStartResponse startResponse = myJobCoordinator.startInstance(new SystemRequestDetails(), request);
+		String instanceId = startResponse.getInstanceId();
+		assertNotNull(instanceId);
+
+		// waiting for job to end (any status - but we'll verify failed later)
+		myBatch2JobHelper.awaitJobHasStatus(instanceId, StatusEnum.getEndedStatuses().toArray(new StatusEnum[0]));
+
+		// verify
+		Optional<JobInstance> instanceOp = myJobPersistence.fetchInstance(instanceId);
+		assertTrue(instanceOp.isPresent());
+		JobInstance jobInstance = instanceOp.get();
+
+		assertEquals(totalChunks, chunkCounter.get());
+
+		assertEquals(StatusEnum.FAILED, jobInstance.getStatus());
+	}
+
 	@Test
 	public void testJobWithReductionStepFiresCompletionHandler() throws InterruptedException {
 		// setup
diff --git a/hapi-fhir-storage-batch2/src/main/java/ca/uhn/fhir/batch2/coordinator/ReductionStepExecutorServiceImpl.java b/hapi-fhir-storage-batch2/src/main/java/ca/uhn/fhir/batch2/coordinator/ReductionStepExecutorServiceImpl.java
index 48c20840784..febd36805bb 100644
--- a/hapi-fhir-storage-batch2/src/main/java/ca/uhn/fhir/batch2/coordinator/ReductionStepExecutorServiceImpl.java
+++ b/hapi-fhir-storage-batch2/src/main/java/ca/uhn/fhir/batch2/coordinator/ReductionStepExecutorServiceImpl.java
@@ -30,6 +30,7 @@ import ca.uhn.fhir.batch2.model.ChunkOutcome;
 import ca.uhn.fhir.batch2.model.JobDefinitionStep;
 import ca.uhn.fhir.batch2.model.JobInstance;
 import ca.uhn.fhir.batch2.model.JobWorkCursor;
+import ca.uhn.fhir.batch2.model.StatusEnum;
 import ca.uhn.fhir.batch2.model.WorkChunk;
 import ca.uhn.fhir.batch2.model.WorkChunkStatusEnum;
 import ca.uhn.fhir.jpa.dao.tx.IHapiTransactionService;
@@ -137,7 +138,6 @@ public class ReductionStepExecutorServiceImpl implements IReductionStepExecutorS
 	public void reducerPass() {
 		if (myCurrentlyExecuting.tryAcquire()) {
 			try {
-
 				String[] instanceIds = myInstanceIdToJobWorkCursor.keySet().toArray(new String[0]);
 				if (instanceIds.length > 0) {
 					String instanceId = instanceIds[0];
@@ -214,6 +214,36 @@ public class ReductionStepExecutorServiceImpl implements IReductionStepExecutorS
 		boolean defaultSuccessValue = true;
 		ReductionStepChunkProcessingResponse response = new ReductionStepChunkProcessingResponse(defaultSuccessValue);
 
+		try {
+			processChunksAndCompleteJob(theJobWorkCursor, step, instance, parameters, reductionStepWorker, response);
+		} catch (Exception ex) {
+			ourLog.error("Job completion failed for Job {}", instance.getInstanceId());
+
+			executeInTransactionWithSynchronization(() -> {
+				myJobPersistence.updateInstance(instance.getInstanceId(), theInstance -> {
+					theInstance.setStatus(StatusEnum.FAILED);
+					return true;
+				});
+				return null;
+			});
+			response.setSuccessful(false);
+		}
+
+		// if no successful chunks, return false
+		if (!response.hasSuccessfulChunksIds()) {
+			response.setSuccessful(false);
+		}
+
+		return response;
+	}
+
+	private <PT extends IModelJson, IT extends IModelJson, OT extends IModelJson> void processChunksAndCompleteJob(
+			JobWorkCursor<PT, IT, OT> theJobWorkCursor,
+			JobDefinitionStep<PT, IT, OT> step,
+			JobInstance instance,
+			PT parameters,
+			IReductionStepWorker<PT, IT, OT> reductionStepWorker,
+			ReductionStepChunkProcessingResponse response) {
 		try {
 			executeInTransactionWithSynchronization(() -> {
 				try (Stream<WorkChunk> chunkIterator =
@@ -277,13 +307,6 @@ public class ReductionStepExecutorServiceImpl implements IReductionStepExecutorS
 				return null;
 			});
 		}
-
-		// if no successful chunks, return false
-		if (!response.hasSuccessfulChunksIds()) {
-			response.setSuccessful(false);
-		}
-
-		return response;
 	}
 
 	private <T> T executeInTransactionWithSynchronization(Callable<T> runnable) {