diff --git a/changelogs/fragments/52561-fix-handlers-on-failed-hosts-with-always-section.yaml b/changelogs/fragments/52561-fix-handlers-on-failed-hosts-with-always-section.yaml
deleted file mode 100644
index 36e7cd4a6b..0000000000
--- a/changelogs/fragments/52561-fix-handlers-on-failed-hosts-with-always-section.yaml
+++ /dev/null
@@ -1,2 +0,0 @@
-bugfixes:
-  - Fix handlers on failed hosts with always section (https://github.com/ansible/ansible/issues/52561)
diff --git a/lib/ansible/executor/play_iterator.py b/lib/ansible/executor/play_iterator.py
index 63e4811789..ab40ce6723 100644
--- a/lib/ansible/executor/play_iterator.py
+++ b/lib/ansible/executor/play_iterator.py
@@ -484,7 +484,7 @@ class PlayIterator:
         elif state.fail_state != self.FAILED_NONE:
             if state.run_state == self.ITERATING_RESCUE and state.fail_state & self.FAILED_RESCUE == 0:
                 return False
-            elif state.run_state == self.ITERATING_ALWAYS and state.fail_state & self.FAILED_ALWAYS == 0 and state.did_rescue:
+            elif state.run_state == self.ITERATING_ALWAYS and state.fail_state & self.FAILED_ALWAYS == 0:
                 return False
             else:
                 return not state.did_rescue
diff --git a/test/integration/targets/blocks/block_fail.yml b/test/integration/targets/blocks/block_fail.yml
new file mode 100644
index 0000000000..6b84d05625
--- /dev/null
+++ b/test/integration/targets/blocks/block_fail.yml
@@ -0,0 +1,5 @@
+---
+- name: Include tasks that have a failure in a block
+  hosts: localhost
+  tasks:
+  - include_tasks: block_fail_tasks.yml
diff --git a/test/integration/targets/blocks/block_fail_tasks.yml b/test/integration/targets/blocks/block_fail_tasks.yml
new file mode 100644
index 0000000000..6e70dc2373
--- /dev/null
+++ b/test/integration/targets/blocks/block_fail_tasks.yml
@@ -0,0 +1,9 @@
+- block:
+  - name: EXPECTED FAILURE
+    fail:
+      msg: failure
+
+  always:
+  - name: run always task
+    debug:
+      msg: TEST COMPLETE
diff --git a/test/integration/targets/blocks/runme.sh b/test/integration/targets/blocks/runme.sh
index 20c8939424..ebce8581f4 100755
--- a/test/integration/targets/blocks/runme.sh
+++ b/test/integration/targets/blocks/runme.sh
@@ -26,3 +26,11 @@ env python -c \
     'import sys, re; sys.stdout.write(re.sub("\x1B\[([0-9]{1,2}(;[0-9]{1,2})?)?[m|K]", "", sys.stdin.read()))' \
     <block_test.out >block_test_wo_colors.out
 [ "$(grep -c 'TEST COMPLETE' block_test.out)" = "$(egrep '^[0-9]+ plays in' block_test_wo_colors.out | cut -f1 -d' ')" ]
+
+# run test that includes tasks that fail inside a block with always
+rm -f block_test.out block_test_wo_colors.out
+ansible-playbook -vv block_fail.yml -i ../../inventory "$@" | tee block_test.out
+env python -c \
+    'import sys, re; sys.stdout.write(re.sub("\x1B\[([0-9]{1,2}(;[0-9]{1,2})?)?[m|K]", "", sys.stdin.read()))' \
+    <block_test.out >block_test_wo_colors.out
+[ "$(grep -c 'TEST COMPLETE' block_test.out)" = "$(egrep '^[0-9]+ plays in' block_test_wo_colors.out | cut -f1 -d' ')" ]