@@ -272,6 +272,13 @@ export class FlutterDebugSession extends DartDebugSession {
 
 		this.isReloadInProgress = true;
 		const restartType = hotRestart ? "hot-restart" : "hot-reload";
+
+		// To avoid issues with hot restart pausing on exceptions during the restart, we remove
+		// exception-pause behaviour here, and it will be re-added as part of the startup code
+		// when the new isolate appears.
+		if (hotRestart)
+			await this.threadManager.setExceptionPauseMode("None", false);
+
 		try {
 			await this.runDaemon.restart(this.currentRunningAppId, !this.noDebug, hotRestart, args);
 		} catch (e) {
 
@@ -77,8 +77,10 @@ export class ThreadManager {
 		return this.threads.map((thread: ThreadInfo) => new Thread(thread.num, thread.ref.name));
 	}
 
-	public async setExceptionPauseMode(mode: VmExceptionMode) {
-		this.exceptionMode = mode;
+	public async setExceptionPauseMode(mode: VmExceptionMode, persist = true) {
+		if (persist) {
+			this.exceptionMode = mode;
+		}
 		if (!this.debugSession.vmService)
 			return;