This document discusses how to handle exceptions in Mule applications. There are two types of exceptions: system exceptions which occur at the system level, and messaging exceptions which occur when messages are involved. By default, exceptions stop flow execution, log the exception, and roll back transactions. To continue execution, reconnection strategies can be used for system exceptions while messaging exception strategies specify custom exception handling. Messaging exception strategies contain catch, rollback, choice, reference, and custom handlers and can be defined globally for reuse in multiple flows.