diff --git a/tsweb/tsweb.go b/tsweb/tsweb.go
index b0a226c7f..0221dacb9 100644
--- a/tsweb/tsweb.go
+++ b/tsweb/tsweb.go
@@ -387,15 +387,18 @@ func StdHandler(h ReturnHandler, opts HandlerOptions) http.Handler {
 
 // LogHandler returns an http.Handler that logs to opts.Logf.
 // It logs both successful and failing requests.
-// The log line includes the first error returned to [Handler] within.
+// The log line includes the first error returned to [ErrorHandler] within.
 // The outer-most LogHandler(LogHandler(...)) does all of the logging.
 // Inner LogHandler instance do nothing.
+// Panics are swallowed and their stack traces are put in the error.
 func LogHandler(h http.Handler, opts LogOptions) http.Handler {
 	return logHandler{h, opts.withDefaults()}
 }
 
 // ErrorHandler converts a [ReturnHandler] into a standard [http.Handler].
 // Errors are handled as specified by the [ReturnHandler.ServeHTTPReturn] method.
+// When wrapped in a [LogHandler], panics are added to the [AccessLogRecord];
+// otherwise, panics continue up the stack.
 func ErrorHandler(h ReturnHandler, opts ErrorOptions) http.Handler {
 	return errorHandler{h, opts.withDefaults()}
 }
@@ -433,21 +436,34 @@ func (h logHandler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
 		RequestID:  RequestIDFromContext(r.Context()),
 	}
 
-	var bucket string
-	var startRecorded bool
-	if bs := h.opts.BucketedStats; bs != nil {
-		bucket = bs.bucketForRequest(r)
-		if bs.Started != nil {
-			switch v := bs.Started.Map.Get(bucket).(type) {
-			case *expvar.Int:
-				// If we've already seen this bucket for, count it immediately.
-				// Otherwise, for newly seen paths, only count retroactively
-				// (so started-finished doesn't go negative) so we don't fill
-				// this LabelMap up with internet scanning spam.
-				v.Add(1)
-				startRecorded = true
-			}
+	if bs := h.opts.BucketedStats; bs != nil && bs.Started != nil && bs.Finished != nil {
+		bucket := bs.bucketForRequest(r)
+		var startRecorded bool
+		switch v := bs.Started.Map.Get(bucket).(type) {
+		case *expvar.Int:
+			// If we've already seen this bucket for, count it immediately.
+			// Otherwise, for newly seen paths, only count retroactively
+			// (so started-finished doesn't go negative) so we don't fill
+			// this LabelMap up with internet scanning spam.
+			v.Add(1)
+			startRecorded = true
 		}
+		defer func() {
+			// Only increment metrics for buckets that result in good HTTP statuses
+			// or when we know the start was already counted.
+			// Otherwise they get full of internet scanning noise. Only filtering 404
+			// gets most of the way there but there are also plenty of URLs that are
+			// almost right but result in 400s too. Seem easier to just only ignore
+			// all 4xx and 5xx.
+			if startRecorded {
+				bs.Finished.Add(bucket, 1)
+			} else if msg.Code < 400 {
+				// This is the first non-error request for this bucket,
+				// so count it now retroactively.
+				bs.Started.Add(bucket, 1)
+				bs.Finished.Add(bucket, 1)
+			}
+		}()
 	}
 
 	if fn := h.opts.OnStart; fn != nil {
@@ -467,29 +483,27 @@ func (h logHandler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
 		msg.Err = e
 	}))
 
-	lw := &loggingResponseWriter{ResponseWriter: w, logf: h.opts.Logf}
+	lw := newLogResponseWriter(h.opts.Logf, w, r)
 
-	// Invoke the handler that we're logging.
-	var recovered any
 	defer func() {
+		// If the handler panicked then make sure we include that in our error.
+		// Panics caught up errorHandler shouldn't appear here, unless the panic
+		// originates in one of its callbacks.
+		recovered := recover()
 		if recovered != nil {
-			// TODO(icio): When the panic below is eventually caught by
-			// http.Server, it cancels the inlight request and the "500 Internal
-			// Server Error" response we wrote to the client below is never
-			// received, even if we flush it.
-			if f, ok := w.(http.Flusher); ok {
-				f.Flush()
+			if msg.Err == "" {
+				msg.Err = panic2err(recovered).Error()
+			} else {
+				msg.Err += "\n\nthen " + panic2err(recovered).Error()
 			}
-			panic(recovered)
 		}
-	}()
-	func() {
-		defer func() {
-			recovered = recover()
-		}()
-		h.h.ServeHTTP(lw, r)
+		h.logRequest(r, lw, msg)
 	}()
 
+	h.h.ServeHTTP(lw, r)
+}
+
+func (h logHandler) logRequest(r *http.Request, lw *loggingResponseWriter, msg AccessLogRecord) {
 	// Complete our access log from the loggingResponseWriter.
 	msg.Bytes = lw.bytes
 	msg.Seconds = h.opts.Now().Sub(msg.Time).Seconds()
@@ -515,22 +529,6 @@ func() {
 	}
 
 	// Closing metrics.
-	if bs := h.opts.BucketedStats; bs != nil && bs.Finished != nil {
-		// Only increment metrics for buckets that result in good HTTP statuses
-		// or when we know the start was already counted.
-		// Otherwise they get full of internet scanning noise. Only filtering 404
-		// gets most of the way there but there are also plenty of URLs that are
-		// almost right but result in 400s too. Seem easier to just only ignore
-		// all 4xx and 5xx.
-		if startRecorded {
-			bs.Finished.Add(bucket, 1)
-		} else if msg.Code < 400 {
-			// This is the first non-error request for this bucket,
-			// so count it now retroactively.
-			bs.Started.Add(bucket, 1)
-			bs.Finished.Add(bucket, 1)
-		}
-	}
 	if h.opts.StatusCodeCounters != nil {
 		h.opts.StatusCodeCounters.Add(responseCodeString(msg.Code/100), 1)
 	}
@@ -573,7 +571,23 @@ type loggingResponseWriter struct {
 	logf     logger.Logf
 }
 
-// WriteHeader implements http.Handler.
+// newLogResponseWriter returns a loggingResponseWriter which uses's the logger
+// from r, or falls back to logf. If a nil logger is given, the logs are
+// discarded.
+func newLogResponseWriter(logf logger.Logf, w http.ResponseWriter, r *http.Request) *loggingResponseWriter {
+	if l, ok := logger.LogfKey.ValueOk(r.Context()); ok && l != nil {
+		logf = l
+	}
+	if logf == nil {
+		logf = logger.Discard
+	}
+	return &loggingResponseWriter{
+		ResponseWriter: w,
+		logf:           logf,
+	}
+}
+
+// WriteHeader implements [http.ResponseWriter].
 func (l *loggingResponseWriter) WriteHeader(statusCode int) {
 	if l.code != 0 {
 		l.logf("[unexpected] HTTP handler set statusCode twice (%d and %d)", l.code, statusCode)
@@ -583,7 +597,7 @@ func (l *loggingResponseWriter) WriteHeader(statusCode int) {
 	l.ResponseWriter.WriteHeader(statusCode)
 }
 
-// Write implements http.Handler.
+// Write implements [http.ResponseWriter].
 func (l *loggingResponseWriter) Write(bs []byte) (int, error) {
 	if l.code == 0 {
 		l.code = 200
@@ -626,57 +640,43 @@ type errorHandler struct {
 
 // ServeHTTP implements the http.Handler interface.
 func (h errorHandler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
-	logf := h.opts.Logf
-	if l := logger.LogfKey.Value(r.Context()); l != nil {
-		logf = l
-	}
-
 	// Keep track of whether a response gets written.
 	lw, ok := w.(*loggingResponseWriter)
 	if !ok {
-		lw = &loggingResponseWriter{
-			ResponseWriter: w,
-			logf:           logf,
-		}
+		lw = newLogResponseWriter(h.opts.Logf, w, r)
 	}
 
-	// In case the handler panics, we want to recover and continue logging the
-	// error before raising the panic again for the server to handle.
-	var panicRes any
+	var err error
 	defer func() {
-		if panicRes != nil {
-			panic(panicRes)
+		// In case the handler panics, we want to recover and continue logging
+		// the error before logging it (or re-panicking if we couldn't log).
+		rec := recover()
+		if rec != nil {
+			err = panic2err(rec)
+		}
+		if err == nil {
+			return
+		}
+		if h.handleError(w, r, lw, err) {
+			return
+		}
+		if rec != nil {
+			// If we weren't able to log the panic somewhere, throw it up the
+			// stack to someone who can.
+			panic(rec)
 		}
 	}()
-	err := func() (err error) {
-		defer func() {
-			if r := recover(); r != nil {
-				panicRes = r
-				if r == http.ErrAbortHandler {
-					err = http.ErrAbortHandler
-				} else {
-					// Even if r is an error, do not wrap it as an error here as
-					// that would allow things like panic(vizerror.New("foo"))
-					// which is really hard to define the behavior of.
-					var stack [10000]byte
-					n := runtime.Stack(stack[:], false)
-					err = fmt.Errorf("panic: %v\n\n%s", r, stack[:n])
-				}
-			}
-		}()
-		return h.rh.ServeHTTPReturn(lw, r)
-	}()
-	if err == nil {
-		return
-	}
+	err = h.rh.ServeHTTPReturn(lw, r)
+}
 
+func (h errorHandler) handleError(w http.ResponseWriter, r *http.Request, lw *loggingResponseWriter, err error) (logged bool) {
 	// Extract a presentable, loggable error.
 	var hOK bool
 	var hErr HTTPError
 	if errors.As(err, &hErr) {
 		hOK = true
 		if hErr.Code == 0 {
-			logf("[unexpected] HTTPError %v did not contain an HTTP status code, sending internal server error", hErr)
+			lw.logf("[unexpected] HTTPError %v did not contain an HTTP status code, sending internal server error", hErr)
 			hErr.Code = http.StatusInternalServerError
 		}
 	} else if v, ok := vizerror.As(err); ok {
@@ -696,23 +696,70 @@ func (h errorHandler) ServeHTTP(w http.ResponseWriter, r *http.Request) {
 		} else if hErr.Msg != "" {
 			pb(hErr.Msg)
 		}
+		logged = true
 	}
 
 	if lw.code != 0 {
 		if hOK {
-			logf("[unexpected] handler returned HTTPError %v, but already sent a response with code %d", hErr, lw.code)
+			lw.logf("[unexpected] handler returned HTTPError %v, but already sent a response with code %d", hErr, lw.code)
 		}
 		return
 	}
 
 	// Set a default error message from the status code. Do this after we pass
 	// the error back to the logger so that `return errors.New("oh")` logs as
-	// `"err": "oh"`, not `"err": "internal server error: oh"`.
+	// `"err": "oh"`, not `"err": "Internal Server Error: oh"`.
 	if hErr.Msg == "" {
 		hErr.Msg = http.StatusText(hErr.Code)
 	}
 
+	// If OnError panics before a response is written, write a bare 500 back.
+	defer func() {
+		if lw.code == 0 {
+			if rec := recover(); rec != nil {
+				w.WriteHeader(http.StatusInternalServerError)
+				panic(rec)
+			}
+		}
+	}()
+
 	h.opts.OnError(w, r, hErr)
+	return logged
+}
+
+// panic2err converts a recovered value to an error containing the panic stack trace.
+func panic2err(recovered any) error {
+	if recovered == nil {
+		return nil
+	}
+	if recovered == http.ErrAbortHandler {
+		return http.ErrAbortHandler
+	}
+
+	// Even if r is an error, do not wrap it as an error here as
+	// that would allow things like panic(vizerror.New("foo"))
+	// which is really hard to define the behavior of.
+	var stack [10000]byte
+	n := runtime.Stack(stack[:], false)
+	return &panicError{
+		rec:   recovered,
+		stack: stack[:n],
+	}
+}
+
+// panicError is an error that contains a panic.
+type panicError struct {
+	rec   any
+	stack []byte
+}
+
+func (e *panicError) Error() string {
+	return fmt.Sprintf("panic: %v\n\n%s", e.rec, e.stack)
+}
+
+func (e *panicError) Unwrap() error {
+	err, _ := e.rec.(error)
+	return err
 }
 
 // writeHTTPError is the default error response formatter.
diff --git a/tsweb/tsweb_test.go b/tsweb/tsweb_test.go
index fff7cc805..18bb7e48d 100644
--- a/tsweb/tsweb_test.go
+++ b/tsweb/tsweb_test.go
@@ -662,40 +662,120 @@ func TestStdHandler_Panic(t *testing.T) {
 	if err != nil {
 		t.Fatal(err)
 	}
-	if <-recovered == nil {
-		t.Fatal("expected panic but saw none")
+	if rec := <-recovered; rec != nil {
+		t.Fatalf("expected no panic but saw: %v", rec)
 	}
 
 	// Check that the log message contained the stack trace in the error.
 	var logerr bool
 	if p := "panic: panicked elsewhere\n\ngoroutine "; !strings.HasPrefix(r.Err, p) {
-		t.Errorf("got error prefix %q, want %q", r.Err[:min(len(r.Err), len(p))], p)
+		t.Errorf("got Err prefix %q, want %q", r.Err[:min(len(r.Err), len(p))], p)
 		logerr = true
 	}
 	if s := "\ntailscale.com/tsweb.panicElsewhere("; !strings.Contains(r.Err, s) {
-		t.Errorf("want substr %q, not found", s)
+		t.Errorf("want Err substr %q, not found", s)
 		logerr = true
 	}
 	if logerr {
 		t.Logf("logger got error: (quoted) %q\n\n(verbatim)\n%s", r.Err, r.Err)
 	}
 
-	t.Run("check_response", func(t *testing.T) {
-		// TODO(icio): Swallow panics? tailscale/tailscale#12784
-		t.SkipNow()
+	// Check that the server sent an error response.
+	if res.StatusCode != 500 {
+		t.Errorf("got status code %d, want %d", res.StatusCode, 500)
+	}
+	body, err := io.ReadAll(res.Body)
+	if err != nil {
+		t.Errorf("error reading body: %s", err)
+	} else if want := "Internal Server Error\n"; string(body) != want {
+		t.Errorf("got body %q, want %q", body, want)
+	}
+	res.Body.Close()
+}
 
-		// Check that the server sent an error response.
-		if res.StatusCode != 500 {
-			t.Errorf("got status code %d, want %d", res.StatusCode, 500)
+func TestStdHandler_OnErrorPanic(t *testing.T) {
+	var r AccessLogRecord
+	h := StdHandler(
+		ReturnHandlerFunc(func(w http.ResponseWriter, r *http.Request) error {
+			// This response is supposed to be written by OnError, but it panics
+			// so nothing is written.
+			return Error(401, "lacking auth", nil)
+		}),
+		HandlerOptions{
+			Logf: t.Logf,
+			OnError: func(w http.ResponseWriter, r *http.Request, h HTTPError) {
+				panicElsewhere()
+			},
+			OnCompletion: func(_ *http.Request, alr AccessLogRecord) {
+				r = alr
+			},
+		},
+	)
+
+	// Run our panicking handler in a http.Server which catches and rethrows
+	// any panics.
+	recovered := make(chan any, 1)
+	s := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		defer func() {
+			recovered <- recover()
+		}()
+		h.ServeHTTP(w, r)
+	}))
+	t.Cleanup(s.Close)
+
+	// Send a request to our server.
+	res, err := http.Get(s.URL)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if rec := <-recovered; rec != nil {
+		t.Fatalf("expected no panic but saw: %v", rec)
+	}
+
+	// Check that the log message contained the stack trace in the error.
+	var logerr bool
+	if p := "lacking auth\n\nthen panic: panicked elsewhere\n\ngoroutine "; !strings.HasPrefix(r.Err, p) {
+		t.Errorf("got Err prefix %q, want %q", r.Err[:min(len(r.Err), len(p))], p)
+		logerr = true
+	}
+	if s := "\ntailscale.com/tsweb.panicElsewhere("; !strings.Contains(r.Err, s) {
+		t.Errorf("want Err substr %q, not found", s)
+		logerr = true
+	}
+	if logerr {
+		t.Logf("logger got error: (quoted) %q\n\n(verbatim)\n%s", r.Err, r.Err)
+	}
+
+	// Check that the server sent a bare 500 response.
+	if res.StatusCode != 500 {
+		t.Errorf("got status code %d, want %d", res.StatusCode, 500)
+	}
+	body, err := io.ReadAll(res.Body)
+	if err != nil {
+		t.Errorf("error reading body: %s", err)
+	} else if want := ""; string(body) != want {
+		t.Errorf("got body %q, want %q", body, want)
+	}
+	res.Body.Close()
+}
+
+func TestErrorHandler_Panic(t *testing.T) {
+	// errorHandler should panic when not wrapped in logHandler.
+	defer func() {
+		rec := recover()
+		if rec == nil {
+			t.Fatal("expected errorHandler to panic when not wrapped in logHandler")
 		}
-		body, err := io.ReadAll(res.Body)
-		if err != nil {
-			t.Errorf("error reading body: %s", err)
-		} else if want := "internal server error\n"; string(body) != want {
-			t.Errorf("got body %q, want %q", body, want)
+		if want := any("uhoh"); rec != want {
+			t.Fatalf("got panic %#v, want %#v", rec, want)
 		}
-		res.Body.Close()
-	})
+	}()
+	ErrorHandler(
+		ReturnHandlerFunc(func(w http.ResponseWriter, r *http.Request) error {
+			panic("uhoh")
+		}),
+		ErrorOptions{},
+	).ServeHTTP(httptest.NewRecorder(), httptest.NewRequest("GET", "/", nil))
 }
 
 func panicElsewhere() {