diff --git a/src/dependency_injector/providers.pyx b/src/dependency_injector/providers.pyx
index 84c1fad7..39716ea0 100644
--- a/src/dependency_injector/providers.pyx
+++ b/src/dependency_injector/providers.pyx
@@ -3222,8 +3222,8 @@ cdef class ThreadLocalSingleton(BaseSingleton):
                 return future_result
 
             self._storage.instance = instance
-        finally:
-            return instance
+        
+        return instance
 
     def _async_init_instance(self, future_result, result):
         try:
diff --git a/tests/unit/providers/singleton/test_thread_local_singleton_py3.py b/tests/unit/providers/singleton/test_thread_local_singleton_py3.py
new file mode 100644
index 00000000..fb0a3638
--- /dev/null
+++ b/tests/unit/providers/singleton/test_thread_local_singleton_py3.py
@@ -0,0 +1,20 @@
+import pytest
+
+from dependency_injector.containers import Container
+from dependency_injector.providers import ThreadLocalSingleton
+
+
+class FailingClass:
+    def __init__(self):
+        raise ValueError("FAILING CLASS")
+
+
+class TestContainer(Container):
+    failing_class = ThreadLocalSingleton(FailingClass)
+
+
+def test_on_failure_value_error_is_raised():
+    container = TestContainer()
+
+    with pytest.raises(ValueError, match="FAILING CLASS"):
+        container.failing_class()