diff --git a/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/KafkaStreamsApp.java b/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/KafkaStreamsApp.java
index a615a24d5..211214f55 100644
--- a/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/KafkaStreamsApp.java
+++ b/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/KafkaStreamsApp.java
@@ -128,7 +128,7 @@ protected void doStop() {
 
   @Override
   public boolean healthCheck() {
-    return true;
+    return app.state().isRunningOrRebalancing();
   }
 
   /**
diff --git a/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/exceptionhandlers/IgnoreProductionExceptionHandler.java b/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/exceptionhandlers/IgnoreProductionExceptionHandler.java
new file mode 100644
index 000000000..151a5b4dc
--- /dev/null
+++ b/kafka-streams-framework/src/main/java/org/hypertrace/core/kafkastreams/framework/exceptionhandlers/IgnoreProductionExceptionHandler.java
@@ -0,0 +1,49 @@
+package org.hypertrace.core.kafkastreams.framework.exceptionhandlers;
+
+import org.apache.kafka.clients.producer.ProducerRecord;
+import org.apache.kafka.streams.errors.ProductionExceptionHandler;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+
+import java.util.ArrayList;
+import java.util.Arrays;
+import java.util.List;
+import java.util.Map;
+
+public class IgnoreProductionExceptionHandler implements ProductionExceptionHandler {
+  private static final String IGNORE_PRODUCTION_EXCEPTION_CLASSES = "ignore.production.exception.classes";
+
+  private static final Logger LOGGER = LoggerFactory.getLogger(IgnoreProductionExceptionHandler.class);
+
+  private List<Class<Exception>> ignoreExceptionClasses = new ArrayList<>();
+
+  @Override
+  public ProductionExceptionHandlerResponse handle(ProducerRecord<byte[], byte[]> record, Exception exception) {
+    for (Class<Exception> exceptionClass : ignoreExceptionClasses) {
+      if (exceptionClass.isInstance(exception)) {
+        LOGGER.error("Failed to produce record to topic={}, partition={}, size={} due to exception {}. will skip this record.",
+          record.topic(), record.partition(), record.value().length, exception.getLocalizedMessage());
+        return ProductionExceptionHandlerResponse.CONTINUE;
+      }
+    }
+    return ProductionExceptionHandlerResponse.FAIL;
+  }
+
+  @Override
+  public void configure(Map<String, ?> configs) {
+    if (configs.containsKey(IGNORE_PRODUCTION_EXCEPTION_CLASSES)) {
+      Object configValue = configs.get(IGNORE_PRODUCTION_EXCEPTION_CLASSES);
+      if (configValue instanceof String) {
+        LOGGER.info("found {}={}", IGNORE_PRODUCTION_EXCEPTION_CLASSES, configValue);
+        List<String> classNameList = Arrays.asList(((String) configValue).trim().split("\\s*,\\s*"));
+        for (String className : classNameList) {
+          try {
+            ignoreExceptionClasses.add((Class<Exception>) Class.forName(className));
+          } catch (ClassNotFoundException e) {
+            LOGGER.error("Class with name {} not found.", className);
+          }
+        }
+      }
+    }
+  }
+}
diff --git a/kafka-streams-framework/src/test/java/org/hypertrace/core/kafkastreams/framework/exceptionhandlers/IgnoreProductionExceptionHandlerTest.java b/kafka-streams-framework/src/test/java/org/hypertrace/core/kafkastreams/framework/exceptionhandlers/IgnoreProductionExceptionHandlerTest.java
new file mode 100644
index 000000000..d40770bd9
--- /dev/null
+++ b/kafka-streams-framework/src/test/java/org/hypertrace/core/kafkastreams/framework/exceptionhandlers/IgnoreProductionExceptionHandlerTest.java
@@ -0,0 +1,90 @@
+package org.hypertrace.core.kafkastreams.framework.exceptionhandlers;
+
+import org.apache.kafka.clients.producer.ProducerRecord;
+import org.apache.kafka.common.errors.RecordTooLargeException;
+import org.apache.kafka.streams.errors.ProductionExceptionHandler;
+import org.junit.jupiter.api.Test;
+
+import java.util.HashMap;
+import java.util.Map;
+
+import static org.junit.jupiter.api.Assertions.assertEquals;
+
+public class IgnoreProductionExceptionHandlerTest {
+
+  private static final String IGNORE_PRODUCTION_EXCEPTION_CLASSES = "ignore.production.exception.classes";
+  private static final String TOPIC = "test-topic";
+  private static final byte[] KEY = new byte[]{0, 1, 2, 3};
+  private static final byte[] VALUE = new byte[]{0, 1, 2, 3};
+
+  @Test
+  public void failWithoutConfiguredException() {
+    IgnoreProductionExceptionHandler handler = new IgnoreProductionExceptionHandler();
+
+    ProducerRecord<byte[], byte[]> record = new ProducerRecord(TOPIC, KEY, VALUE);
+    Exception exception = new RecordTooLargeException();
+
+    ProductionExceptionHandler.ProductionExceptionHandlerResponse response = handler.handle(record, exception);
+    assertEquals(response, ProductionExceptionHandler.ProductionExceptionHandlerResponse.FAIL);
+  }
+
+  @Test
+  public void continueWithConfiguredException() {
+    Map<String, String> configs = new HashMap<>();
+    configs.put(IGNORE_PRODUCTION_EXCEPTION_CLASSES, "org.apache.kafka.common.errors.RecordTooLargeException");
+
+    IgnoreProductionExceptionHandler handler = new IgnoreProductionExceptionHandler();
+    handler.configure(configs);
+
+    ProducerRecord<byte[], byte[]> record = new ProducerRecord(TOPIC, KEY, VALUE);
+    Exception exception = new RecordTooLargeException();
+
+    ProductionExceptionHandler.ProductionExceptionHandlerResponse response = handler.handle(record, exception);
+    assertEquals(response, ProductionExceptionHandler.ProductionExceptionHandlerResponse.CONTINUE);
+  }
+
+  @Test
+  public void failWithConfiguredException() {
+    Map<String, String> configs = new HashMap<>();
+    configs.put(IGNORE_PRODUCTION_EXCEPTION_CLASSES, "org.apache.kafka.common.errors.RecordBatchTooLargeException");
+
+    IgnoreProductionExceptionHandler handler = new IgnoreProductionExceptionHandler();
+    handler.configure(configs);
+
+    ProducerRecord<byte[], byte[]> record = new ProducerRecord(TOPIC, KEY, VALUE);
+    Exception exception = new RecordTooLargeException();
+
+    ProductionExceptionHandler.ProductionExceptionHandlerResponse response = handler.handle(record, exception);
+    assertEquals(response, ProductionExceptionHandler.ProductionExceptionHandlerResponse.FAIL);
+  }
+
+  @Test
+  public void continueWithConfiguredMultipleExceptions() {
+    Map<String, String> configs = new HashMap<>();
+    configs.put(IGNORE_PRODUCTION_EXCEPTION_CLASSES, "org.apache.kafka.common.errors.ProducerFencedException,org.apache.kafka.common.errors.RecordTooLargeException");
+
+    IgnoreProductionExceptionHandler handler = new IgnoreProductionExceptionHandler();
+    handler.configure(configs);
+
+    ProducerRecord<byte[], byte[]> record = new ProducerRecord(TOPIC, KEY, VALUE);
+    Exception exception = new RecordTooLargeException();
+
+    ProductionExceptionHandler.ProductionExceptionHandlerResponse response = handler.handle(record, exception);
+    assertEquals(response, ProductionExceptionHandler.ProductionExceptionHandlerResponse.CONTINUE);
+  }
+
+  @Test
+  public void failWithConfiguredMultipleExceptions() {
+    Map<String, String> configs = new HashMap<>();
+    configs.put(IGNORE_PRODUCTION_EXCEPTION_CLASSES, "org.apache.kafka.common.errors.ProducerFencedException,org.apache.kafka.common.errors.RecordBatchTooLargeException");
+
+    IgnoreProductionExceptionHandler handler = new IgnoreProductionExceptionHandler();
+    handler.configure(configs);
+
+    ProducerRecord<byte[], byte[]> record = new ProducerRecord(TOPIC, KEY, VALUE);
+    Exception exception = new RecordTooLargeException();
+
+    ProductionExceptionHandler.ProductionExceptionHandlerResponse response = handler.handle(record, exception);
+    assertEquals(response, ProductionExceptionHandler.ProductionExceptionHandlerResponse.FAIL);
+  }
+}