diff --git a/CHANGES b/CHANGES
index 66bc5f17..dabc5903 100644
--- a/CHANGES
+++ b/CHANGES
@@ -10,6 +10,9 @@
 * Fixed `fragment_identifier_matcher` treating opaque fragments (those without
   ``=``, e.g. ``/users/5``) as always equal, so a required fragment matched a
   different one or none at all. See #806
+* Fixed the recorder decorator not writing captured responses when the decorated
+  function raises. Dump failures during exception handling are logged without
+  replacing the original exception. See #705
 
 0.26.2
 ------
diff --git a/responses/_recorder.py b/responses/_recorder.py
index e0fac897..19aec72d 100644
--- a/responses/_recorder.py
+++ b/responses/_recorder.py
@@ -1,3 +1,4 @@
+import logging
 from functools import wraps
 from typing import TYPE_CHECKING
 
@@ -29,6 +30,8 @@
 from responses import _real_send
 from responses.registries import OrderedRegistry
 
+logger = logging.getLogger("responses")
+
 
 def _remove_nones(d: "Any") -> "Any":
     if isinstance(d, dict):
@@ -115,12 +118,25 @@ def deco_record(function: "_F") -> "Callable[..., Any]":
             @wraps(function)
             def wrapper(*args: "Any", **kwargs: "Any") -> "Any":  # type: ignore[misc]
                 with self:
-                    ret = function(*args, **kwargs)
-                    self.dump_to_file(
-                        file_path=file_path, registered=self.get_registry().registered
-                    )
-
-                    return ret
+                    function_raised = False
+                    try:
+                        return function(*args, **kwargs)
+                    except BaseException:
+                        function_raised = True
+                        raise
+                    finally:
+                        try:
+                            self.dump_to_file(
+                                file_path=file_path,
+                                registered=self.get_registry().registered,
+                            )
+                        except BaseException:
+                            if not function_raised:
+                                raise
+                            logger.exception(
+                                "Failed to dump recorded responses while handling "
+                                "an exception from the decorated function"
+                            )
 
             return wrapper
 
diff --git a/responses/tests/test_recorder.py b/responses/tests/test_recorder.py
index b761dc80..74b9cb2f 100644
--- a/responses/tests/test_recorder.py
+++ b/responses/tests/test_recorder.py
@@ -133,6 +133,63 @@ def run():
             data = yaml.safe_load(file)
         assert data == get_data(httpserver.host, httpserver.port)
 
+    def test_recorder_dumps_when_decorated_function_raises(self, httpserver):
+        _, _, url404, _ = self.prepare_server(httpserver)
+        original_error = RuntimeError("original failure")
+
+        @_recorder.record(file_path=self.out_file)
+        def run():
+            requests.get(url404)
+            raise original_error
+
+        with pytest.raises(RuntimeError) as exc_info:
+            run()
+
+        assert exc_info.value is original_error
+        with open(self.out_file) as file:
+            data = yaml.safe_load(file)
+        assert (
+            data["responses"]
+            == get_data(httpserver.host, httpserver.port)["responses"][:1]
+        )
+
+    def test_dump_failure_does_not_mask_function_exception(self, httpserver, caplog):
+        custom_recorder = _recorder.Recorder()
+        _, _, url404, _ = self.prepare_server(httpserver)
+        original_error = RuntimeError("original failure")
+
+        def dump_to_file(*args, **kwargs):
+            raise OSError("dump failure")
+
+        custom_recorder.dump_to_file = dump_to_file  # type: ignore[method-assign]
+
+        @custom_recorder.record(file_path=self.out_file)
+        def run():
+            requests.get(url404)
+            raise original_error
+
+        with caplog.at_level("ERROR", logger="responses"):
+            with pytest.raises(RuntimeError) as exc_info:
+                run()
+
+        assert exc_info.value is original_error
+        assert "Failed to dump recorded responses" in caplog.text
+
+    def test_dump_failure_is_raised_when_function_succeeds(self):
+        custom_recorder = _recorder.Recorder()
+
+        def dump_to_file(*args, **kwargs):
+            raise OSError("dump failure")
+
+        custom_recorder.dump_to_file = dump_to_file  # type: ignore[method-assign]
+
+        @custom_recorder.record(file_path=self.out_file)
+        def run():
+            return None
+
+        with pytest.raises(OSError, match="dump failure"):
+            run()
+
     def test_recorder_toml(self, httpserver):
         custom_recorder = _recorder.Recorder()