diff --git a/api/events/event_handlers/create_document_index.py b/api/events/event_handlers/create_document_index.py
index 0c535a1c5be3ff..a9a5bc20c35b7f 100644
--- a/api/events/event_handlers/create_document_index.py
+++ b/api/events/event_handlers/create_document_index.py
@@ -1,4 +1,3 @@
-import contextlib
 import logging
 import time
 
@@ -42,11 +41,12 @@ def handle(sender, **kwargs):
             session.add(document)
         session.commit()
 
-    with contextlib.suppress(Exception):
-        try:
-            indexing_runner = IndexingRunner()
-            indexing_runner.run(documents)
-            end_at = time.perf_counter()
-            logger.info(click.style(f"Processed dataset: {dataset_id} latency: {end_at - start_at}", fg="green"))
-        except DocumentIsPausedError as ex:
-            logger.info(click.style(str(ex), fg="yellow"))
+    try:
+        indexing_runner = IndexingRunner()
+        indexing_runner.run(documents)
+        end_at = time.perf_counter()
+        logger.info(click.style(f"Processed dataset: {dataset_id} latency: {end_at - start_at}", fg="green"))
+    except DocumentIsPausedError as ex:
+        logger.info(click.style(str(ex), fg="yellow"))
+    except Exception:
+        logger.exception("Document index event handler failed, dataset_id: %s", dataset_id)
diff --git a/api/tests/unit_tests/events/event_handlers/test_create_document_index.py b/api/tests/unit_tests/events/event_handlers/test_create_document_index.py
new file mode 100644
index 00000000000000..e27dfd3b302271
--- /dev/null
+++ b/api/tests/unit_tests/events/event_handlers/test_create_document_index.py
@@ -0,0 +1,90 @@
+import logging
+from types import SimpleNamespace
+from unittest.mock import MagicMock, patch
+
+import pytest
+
+from core.indexing_runner import DocumentIsPausedError
+from events.event_handlers import create_document_index as handler_module
+
+
+@pytest.fixture
+def mock_document() -> SimpleNamespace:
+    return SimpleNamespace(
+        id="doc-1",
+        dataset_id="dataset-1",
+        indexing_status=None,
+        processing_started_at=None,
+    )
+
+
+@pytest.fixture
+def mock_session(mock_document: SimpleNamespace) -> MagicMock:
+    session = MagicMock()
+    session.scalar.return_value = mock_document
+    return session
+
+
+@pytest.fixture
+def mock_session_factory(mock_session: MagicMock) -> MagicMock:
+    factory = MagicMock()
+    factory.create_session.return_value.__enter__.return_value = mock_session
+    factory.create_session.return_value.__exit__.return_value = None
+    return factory
+
+
+@pytest.fixture
+def mock_indexing_runner() -> MagicMock:
+    return MagicMock()
+
+
+def test_handle_logs_document_pause(
+    mock_session_factory: MagicMock,
+    mock_indexing_runner: MagicMock,
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    mock_indexing_runner.run.side_effect = DocumentIsPausedError("Document is paused")
+
+    with (
+        patch.object(handler_module, "session_factory", mock_session_factory),
+        patch.object(handler_module, "IndexingRunner", return_value=mock_indexing_runner),
+    ):
+        with caplog.at_level(logging.INFO, logger=handler_module.logger.name):
+            handler_module.handle("dataset-1", document_ids=["doc-1"])
+
+    assert "Document is paused" in caplog.text
+
+
+def test_handle_logs_unexpected_indexing_errors(
+    mock_session_factory: MagicMock,
+    mock_indexing_runner: MagicMock,
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    mock_indexing_runner.run.side_effect = RuntimeError("Indexing failed")
+
+    with (
+        patch.object(handler_module, "session_factory", mock_session_factory),
+        patch.object(handler_module, "IndexingRunner", return_value=mock_indexing_runner),
+    ):
+        with caplog.at_level(logging.ERROR, logger=handler_module.logger.name):
+            handler_module.handle("dataset-1", document_ids=["doc-1"])
+
+    assert any(record.levelno >= logging.ERROR for record in caplog.records)
+    assert "Document index event handler failed" in caplog.text
+    assert "Indexing failed" in caplog.text
+
+
+def test_handle_runs_indexing_on_success(
+    mock_session_factory: MagicMock,
+    mock_indexing_runner: MagicMock,
+    caplog: pytest.LogCaptureFixture,
+) -> None:
+    with (
+        patch.object(handler_module, "session_factory", mock_session_factory),
+        patch.object(handler_module, "IndexingRunner", return_value=mock_indexing_runner),
+    ):
+        with caplog.at_level(logging.INFO, logger=handler_module.logger.name):
+            handler_module.handle("dataset-1", document_ids=["doc-1"])
+
+    mock_indexing_runner.run.assert_called_once()
+    assert "Processed dataset: dataset-1" in caplog.text