diff --git a/mysql-test/suite/binlog_encryption/rpl_parallel_ignored_errors.result b/mysql-test/suite/binlog_encryption/rpl_parallel_ignored_errors.result
new file mode 100644
index 00000000000..9fbd329d58c
--- /dev/null
+++ b/mysql-test/suite/binlog_encryption/rpl_parallel_ignored_errors.result
@@ -0,0 +1,57 @@
+include/master-slave.inc
+[connection master]
+connection server_2;
+include/stop_slave.inc
+connection server_2;
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+SET @old_parallel_mode=@@GLOBAL.slave_parallel_mode;
+SET @old_dbug= @@GLOBAL.debug_dbug;
+SET GLOBAL slave_parallel_mode='optimistic';
+SET GLOBAL slave_parallel_threads= 3;
+CHANGE MASTER TO master_use_gtid=slave_pos;
+CALL mtr.add_suppression("Commit failed due to failure of an earlier commit on which this one depends");
+include/start_slave.inc
+connection server_2;
+connection server_1;
+ALTER TABLE mysql.gtid_slave_pos ENGINE=InnoDB;
+CREATE TABLE t1 (a int PRIMARY KEY) ENGINE=InnoDB;
+include/save_master_gtid.inc
+connection server_1;
+connection server_2;
+include/sync_with_master_gtid.inc
+connection server_2;
+connect  con_temp2,127.0.0.1,root,,test,$SERVER_MYPORT_2,;
+BEGIN;
+INSERT INTO t1 VALUES (32);
+connection server_1;
+INSERT INTO t1 VALUES (32);
+connection server_2;
+SET GLOBAL debug_dbug="+d,hold_worker_on_schedule";
+SET debug_sync="debug_sync_action SIGNAL reached_pause WAIT_FOR continue_worker";
+connection server_1;
+SET gtid_seq_no=100;
+INSERT INTO t1 VALUES (33);
+connection server_2;
+SET debug_sync='now WAIT_FOR reached_pause';
+connection server_1;
+INSERT INTO t1 VALUES (34);
+connection server_2;
+connection con_temp2;
+COMMIT;
+connection server_2;
+include/stop_slave.inc
+connection server_2;
+include/assert.inc [table t1 should have zero rows where a>32]
+connection server_2;
+SELECT * FROM t1 WHERE a>32;
+a
+DELETE FROM t1 WHERE a=32;
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+SET GLOBAL slave_parallel_mode=@old_parallel_mode;
+SET GLOBAL debug_dbug=@old_debug;
+SET DEBUG_SYNC= 'RESET';
+include/start_slave.inc
+connection server_2;
+connection server_1;
+DROP TABLE t1;
+include/rpl_end.inc
diff --git a/mysql-test/suite/binlog_encryption/rpl_parallel_ignored_errors.test b/mysql-test/suite/binlog_encryption/rpl_parallel_ignored_errors.test
new file mode 100644
index 00000000000..8a26778c8f2
--- /dev/null
+++ b/mysql-test/suite/binlog_encryption/rpl_parallel_ignored_errors.test
@@ -0,0 +1 @@
+--source suite/rpl/include/rpl_parallel_ignored_errors.inc
diff --git a/mysql-test/suite/rpl/include/rpl_parallel_ignored_errors.inc b/mysql-test/suite/rpl/include/rpl_parallel_ignored_errors.inc
new file mode 100644
index 00000000000..25da12f30a3
--- /dev/null
+++ b/mysql-test/suite/rpl/include/rpl_parallel_ignored_errors.inc
@@ -0,0 +1,112 @@
+# ==== Purpose ====
+#
+# Test verifies that, in parallel replication, transaction failure notification
+# is propagated to all the workers. Workers should abort the execution of
+# transaction event groups, whose event positions are higher than the failing
+# transaction group.
+#
+# ==== Implementation ====
+#
+# Steps:
+#    0 - Create a table t1 on master which has a primary key. Enable parallel
+#        replication on slave with slave_parallel_mode='optimistic' and
+#        slave_parallel_threads=3.
+#    1 - On slave start a transaction and execute a local INSERT statement
+#        which will insert value 32. This is done to block the INSERT coming
+#        from master.
+#    2 - On master execute an INSERT statement with value 32, so that it is
+#        blocked on slave.
+#    3 - On slave enable a debug sync point such that it holds the worker thread
+#        execution as soon as work is scheduled to it.
+#    4 - INSERT value 33 on master. It will be held on slave by other worker
+#        thread due to debug simulation.
+#    5 - INSERT value 34 on master.
+#    6 - On slave, enusre that INSERT 34 has reached a state where it waits for
+#        its prior transactions to commit.
+#    7 - Commit the local INSERT 32 on slave server so that first worker will
+#        error out.
+#    8 - Now send a continue signal to second worker processing 33. It should
+#        wakeup and propagate the error to INSERT 34.
+#    9 - Upon slave stop due to error, check that no rows are found after the
+#        failed INSERT 32.
+#
+# ==== References ====
+#
+# MDEV-20645: Replication consistency is broken as workers miss the error
+#             notification from an earlier failed group.
+#
+
+--source include/have_innodb.inc
+--source include/have_debug.inc
+--source include/have_debug_sync.inc
+--source include/have_binlog_format_statement.inc
+--source include/master-slave.inc
+
+--enable_connect_log
+--connection server_2
+--source include/stop_slave.inc
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+SET @old_parallel_mode=@@GLOBAL.slave_parallel_mode;
+SET @old_dbug= @@GLOBAL.debug_dbug;
+SET GLOBAL slave_parallel_mode='optimistic';
+SET GLOBAL slave_parallel_threads= 3;
+CHANGE MASTER TO master_use_gtid=slave_pos;
+CALL mtr.add_suppression("Commit failed due to failure of an earlier commit on which this one depends");
+--source include/start_slave.inc
+
+--connection server_1
+ALTER TABLE mysql.gtid_slave_pos ENGINE=InnoDB;
+CREATE TABLE t1 (a int PRIMARY KEY) ENGINE=InnoDB;
+--source include/save_master_gtid.inc
+
+--connection server_2
+--source include/sync_with_master_gtid.inc
+
+--connect (con_temp2,127.0.0.1,root,,test,$SERVER_MYPORT_2,)
+BEGIN;
+INSERT INTO t1 VALUES (32);
+
+--connection server_1
+INSERT INTO t1 VALUES (32);
+
+--connection server_2
+--let $wait_condition= SELECT COUNT(*) = 1 FROM information_schema.processlist WHERE info like "INSERT INTO t1 VALUES (32)"
+--source include/wait_condition.inc
+SET GLOBAL debug_dbug="+d,hold_worker_on_schedule";
+SET debug_sync="debug_sync_action SIGNAL reached_pause WAIT_FOR continue_worker";
+
+--connection server_1
+SET gtid_seq_no=100;
+INSERT INTO t1 VALUES (33);
+
+--connection server_2
+SET debug_sync='now WAIT_FOR reached_pause';
+
+--connection server_1
+INSERT INTO t1 VALUES (34);
+
+--connection server_2
+--let $wait_condition= SELECT COUNT(*) = 1 FROM information_schema.processlist WHERE state like "Waiting for prior transaction to commit"
+--source include/wait_condition.inc
+--connection con_temp2
+COMMIT;
+
+# Clean up.
+--connection server_2
+--source include/stop_slave.inc
+--let $assert_cond= COUNT(*) = 0 FROM t1 WHERE a>32
+--let $assert_text= table t1 should have zero rows where a>32
+--source include/assert.inc
+SELECT * FROM t1 WHERE a>32;
+DELETE FROM t1 WHERE a=32;
+
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+SET GLOBAL slave_parallel_mode=@old_parallel_mode;
+SET GLOBAL debug_dbug=@old_debug;
+SET DEBUG_SYNC= 'RESET';
+--source include/start_slave.inc
+
+--connection server_1
+DROP TABLE t1;
+--disable_connect_log
+--source include/rpl_end.inc
diff --git a/mysql-test/suite/rpl/r/rpl_parallel_ignored_errors.result b/mysql-test/suite/rpl/r/rpl_parallel_ignored_errors.result
new file mode 100644
index 00000000000..9fbd329d58c
--- /dev/null
+++ b/mysql-test/suite/rpl/r/rpl_parallel_ignored_errors.result
@@ -0,0 +1,57 @@
+include/master-slave.inc
+[connection master]
+connection server_2;
+include/stop_slave.inc
+connection server_2;
+SET @old_parallel_threads=@@GLOBAL.slave_parallel_threads;
+SET @old_parallel_mode=@@GLOBAL.slave_parallel_mode;
+SET @old_dbug= @@GLOBAL.debug_dbug;
+SET GLOBAL slave_parallel_mode='optimistic';
+SET GLOBAL slave_parallel_threads= 3;
+CHANGE MASTER TO master_use_gtid=slave_pos;
+CALL mtr.add_suppression("Commit failed due to failure of an earlier commit on which this one depends");
+include/start_slave.inc
+connection server_2;
+connection server_1;
+ALTER TABLE mysql.gtid_slave_pos ENGINE=InnoDB;
+CREATE TABLE t1 (a int PRIMARY KEY) ENGINE=InnoDB;
+include/save_master_gtid.inc
+connection server_1;
+connection server_2;
+include/sync_with_master_gtid.inc
+connection server_2;
+connect  con_temp2,127.0.0.1,root,,test,$SERVER_MYPORT_2,;
+BEGIN;
+INSERT INTO t1 VALUES (32);
+connection server_1;
+INSERT INTO t1 VALUES (32);
+connection server_2;
+SET GLOBAL debug_dbug="+d,hold_worker_on_schedule";
+SET debug_sync="debug_sync_action SIGNAL reached_pause WAIT_FOR continue_worker";
+connection server_1;
+SET gtid_seq_no=100;
+INSERT INTO t1 VALUES (33);
+connection server_2;
+SET debug_sync='now WAIT_FOR reached_pause';
+connection server_1;
+INSERT INTO t1 VALUES (34);
+connection server_2;
+connection con_temp2;
+COMMIT;
+connection server_2;
+include/stop_slave.inc
+connection server_2;
+include/assert.inc [table t1 should have zero rows where a>32]
+connection server_2;
+SELECT * FROM t1 WHERE a>32;
+a
+DELETE FROM t1 WHERE a=32;
+SET GLOBAL slave_parallel_threads=@old_parallel_threads;
+SET GLOBAL slave_parallel_mode=@old_parallel_mode;
+SET GLOBAL debug_dbug=@old_debug;
+SET DEBUG_SYNC= 'RESET';
+include/start_slave.inc
+connection server_2;
+connection server_1;
+DROP TABLE t1;
+include/rpl_end.inc
diff --git a/mysql-test/suite/rpl/t/rpl_parallel_ignored_errors.test b/mysql-test/suite/rpl/t/rpl_parallel_ignored_errors.test
new file mode 100644
index 00000000000..90f09a76546
--- /dev/null
+++ b/mysql-test/suite/rpl/t/rpl_parallel_ignored_errors.test
@@ -0,0 +1 @@
+--source include/rpl_parallel_ignored_errors.inc
diff --git a/sql/rpl_parallel.cc b/sql/rpl_parallel.cc
index 8fef2d66635..574730b96c1 100644
--- a/sql/rpl_parallel.cc
+++ b/sql/rpl_parallel.cc
@@ -228,6 +228,12 @@ finish_event_group(rpl_parallel_thread *rpt, uint64 sub_id,
       entry->stop_on_error_sub_id == (uint64)ULONGLONG_MAX)
     entry->stop_on_error_sub_id= sub_id;
   mysql_mutex_unlock(&entry->LOCK_parallel_entry);
+  DBUG_EXECUTE_IF("hold_worker_on_schedule", {
+      if (entry->stop_on_error_sub_id < (uint64)ULONGLONG_MAX)
+      {
+        debug_sync_set_action(thd, STRING_WITH_LEN("now SIGNAL continue_worker"));
+      }
+    });
 
   if (rgi->killed_for_retry == rpl_group_info::RETRY_KILL_PENDING)
     wait_for_pending_deadlock_kill(thd, rgi);
@@ -1096,6 +1102,13 @@ handle_rpl_parallel_thread(void *arg)
         bool did_enter_cond= false;
         PSI_stage_info old_stage;
 
+        DBUG_EXECUTE_IF("hold_worker_on_schedule", {
+            if (rgi->current_gtid.domain_id == 0 &&
+                rgi->current_gtid.seq_no == 100) {
+                  debug_sync_set_action(thd,
+                STRING_WITH_LEN("now SIGNAL reached_pause WAIT_FOR continue_worker"));
+            }
+          });
         DBUG_EXECUTE_IF("rpl_parallel_scheduled_gtid_0_x_100", {
             if (rgi->current_gtid.domain_id == 0 &&
                 rgi->current_gtid.seq_no == 100) {
@@ -1137,7 +1150,10 @@ handle_rpl_parallel_thread(void *arg)
         skip_event_group= do_gco_wait(rgi, gco, &did_enter_cond, &old_stage);
 
         if (unlikely(entry->stop_on_error_sub_id <= rgi->wait_commit_sub_id))
+        {
           skip_event_group= true;
+          rgi->worker_error= 1;
+        }
         if (likely(!skip_event_group))
           do_ftwrl_wait(rgi, &did_enter_cond, &old_stage);