diff --git a/src/main/scala/cats/effect/std/IOAsync.scala b/src/main/scala/cats/effect/std/IOAsync.scala
index feff76a..dd4a3be 100644
--- a/src/main/scala/cats/effect/std/IOAsync.scala
+++ b/src/main/scala/cats/effect/std/IOAsync.scala
@@ -69,10 +69,13 @@ object IOAsync {
         // format: off
         q"""
           final class $name(dispatcher: _root_.cats.effect.std.Dispatcher[IO], callback: _root_.cats.effect.std.IOAsync.Callback) extends _root_.cats.effect.std.IOStateMachine(dispatcher, callback) {
-            ${mark(q"""override def apply(tr$$async: _root_.scala.Either[_root_.scala.Throwable, _root_.scala.AnyRef]): _root_.scala.Unit = ${body}""")}
+            ${mark(q"""override def apply(tr$$async: _root_.cats.effect.kernel.Outcome[_root_.cats.effect.IO, _root_.scala.Throwable, _root_.scala.AnyRef]): _root_.scala.Unit = ${body}""")}
           }
           _root_.cats.effect.std.Dispatcher[IO].use { dispatcher =>
             _root_.cats.effect.IO.async_[_root_.scala.AnyRef](cb => new $name(dispatcher, cb).start())
+          }.handleErrorWith {
+            case _root_.cats.effect.std.IOAsync.CancelBridge => _root_.cats.effect.IO.canceled
+            case _root_.scala.util.control.NonFatal(other) => _root_.cats.effect.IO.raiseError(other)
           }.asInstanceOf[${c.macroApplication.tpe}]
         """
       } catch {
@@ -83,15 +86,18 @@ object IOAsync {
           )
       }
   }
+
+  // A marker exception to communicate cancellation through the async runtime.
+  object CancelBridge extends Throwable with scala.util.control.NoStackTrace
 }
 
 abstract class IOStateMachine(
     dispatcher: Dispatcher[IO],
     callback: IOAsync.Callback
-) extends Function1[Either[Throwable, AnyRef], Unit] {
+) extends Function1[Outcome[IO, Throwable, AnyRef], Unit] {
 
   // FSM translated method
-  //def apply(v1: Either[Throwable, AnyRef]): Unit = ???
+  //def apply(v1: Outcome[IO, Throwable, AnyRef]): Unit = ???
 
   private[this] var state$async: Int = 0
 
@@ -104,24 +110,28 @@ abstract class IOStateMachine(
   protected def completeFailure(t: Throwable): Unit =
     callback(Left(t))
 
-  protected def completeSuccess(value: AnyRef): Unit =
+  protected def completeSuccess(value: AnyRef): Unit = {
     callback(Right(value))
+  }
 
   protected def onComplete(f: IO[AnyRef]): Unit = {
-    dispatcher.unsafeRunAndForget(f.attempt.flatMap(either => IO(this(either))))
+    dispatcher.unsafeRunAndForget(f.guaranteeCase(outcome => IO(this(outcome))))
   }
 
-  protected def getCompleted(f: IO[AnyRef]): Either[Throwable, AnyRef] = {
+  protected def getCompleted(f: IO[AnyRef]): Outcome[IO, Throwable, AnyRef] = {
     null
   }
 
-  protected def tryGet(tr: Either[Throwable, AnyRef]): AnyRef =
+  protected def tryGet(tr: Outcome[IO, Throwable, AnyRef]): AnyRef =
     tr match {
-      case Right(value) =>
-        value.asInstanceOf[AnyRef]
-      case Left(throwable) =>
-        callback(Left(throwable))
+      case Outcome.Succeeded(value) =>
+        dispatcher.unsafeRunSync(value)
+      case Outcome.Errored(e) =>
+        callback(Left(e))
         this // sentinel value to indicate the dispatch loop should exit.
+      case Outcome.Canceled() =>
+        callback(Left(IOAsync.CancelBridge))
+        this
     }
 
   def start(): Unit = {
diff --git a/src/test/scala/com/example/HelloWorldSuite.scala b/src/test/scala/com/example/HelloWorldSuite.scala
index 7e9eb5c..707095e 100644
--- a/src/test/scala/com/example/HelloWorldSuite.scala
+++ b/src/test/scala/com/example/HelloWorldSuite.scala
@@ -2,18 +2,53 @@ package com.example
 
 import cats.effect.{IO, SyncIO}
 import munit.CatsEffectSuite
+import cats.effect.std.IOAsync._
 import scala.concurrent.duration._
+import cats.syntax.all._
+import cats.effect.kernel.Outcome
+import cats.effect.kernel.Ref
 
 class HelloWorldSuite extends CatsEffectSuite {
 
-  test("1 + 1 == 2") {
+  test("Success") {
 
-    import cats.effect.std.IOAsync._
-
-    val hello = IO.sleep(2.second) >> IO(1)
+    val hello = IO.sleep(1.second) >> IO(1)
 
     val foobar = async(await(hello) + await(hello))
 
     foobar.map(it => assertEquals(it, 2))
   }
+
+  test("Error propagates") {
+
+    case object Boom extends Throwable
+
+    val foo = IO.sleep(1.second)
+    val error = IO.defer(IO.raiseError[Int](Boom))
+
+    val foobar = async { await(foo); await(error) }.recover { case Boom => 23 }
+
+    foobar.map(it => assertEquals(it, 23))
+  }
+
+  test("Cancellation propagates outward") {
+
+    val foobar = async { await(IO.canceled) }
+    val expected = Outcome.canceled[IO, Throwable, Unit]
+
+    foobar.start.flatMap(_.join).map(outcome => assertEquals(outcome, expected))
+  }
+
+  test("The Async block is cancellable") {
+    for {
+      ref <- Ref[IO].of(0)
+      _ <- async {
+        await(IO.sleep(1.second) *> ref.update(_ + 1))
+      }.start.flatMap(_.cancel)
+      _ <- IO.sleep(2.second)
+      result <- ref.get
+    } yield {
+      assertEquals(result, 0)
+    }
+  }
 }