Index: Lib/test/test_with.py
===================================================================
--- Lib/test/test_with.py	(revision 77979)
+++ Lib/test/test_with.py	(working copy)
@@ -213,11 +213,16 @@
     def raiseTestException(self):
         raise self.TEST_EXCEPTION
 
-    def assertAfterWithManagerInvariantsWithError(self, mock_manager):
+    def assertAfterWithManagerInvariantsWithError(self, mock_manager,
+                                                  exc_type=RuntimeError):
         self.assertTrue(mock_manager.enter_called)
         self.assertTrue(mock_manager.exit_called)
-        self.assertEqual(mock_manager.exit_args[0], RuntimeError)
-        self.assertEqual(mock_manager.exit_args[1], self.TEST_EXCEPTION)
+        self.assertEqual(mock_manager.exit_args[0], exc_type)
+        if exc_type is RuntimeError:
+            self.assertEqual(mock_manager.exit_args[1], self.TEST_EXCEPTION)
+        # Test the __exit__ arguments. Issue #7853
+        self.assertIsInstance(mock_manager.exit_args[1], exc_type)
+        self.assertIsNot(mock_manager.exit_args[2], None)
 
     def assertAfterWithGeneratorInvariantsWithError(self, mock_generator):
         self.assertTrue(mock_generator.yielded)
@@ -355,6 +360,14 @@
         self.assertAfterWithManagerInvariantsWithError(cm)
         self.assertAfterWithGeneratorInvariantsWithError(self.resource)
 
+    def testSingleResourceZeroDivision(self):
+        cm = mock_contextmanager_generator()
+        def shouldThrow():
+            with cm as self.resource:
+                1 // 0
+        self.assertRaises(ZeroDivisionError, shouldThrow)
+        self.assertAfterWithManagerInvariantsWithError(cm, ZeroDivisionError)
+
     def testNestedSingleStatements(self):
         mock_a = mock_contextmanager_generator()
         mock_b = mock_contextmanager_generator()
Index: Python/ceval.c
===================================================================
--- Python/ceval.c	(revision 77979)
+++ Python/ceval.c	(working copy)
@@ -2906,14 +2906,16 @@
 						val = Py_None;
 						Py_INCREF(val);
 					}
+					/* Normalize the exception, either
+					   for 'except' or '__exit__'. */
+					PyErr_NormalizeException(
+						&exc, &val, &tb);
 					/* Make the raw exception data
 					   available to the handler,
 					   so a program can emulate the
 					   Python main loop.  Don't do
 					   this for 'finally'. */
 					if (b->b_type == SETUP_EXCEPT) {
-						PyErr_NormalizeException(
-							&exc, &val, &tb);
 						set_exc_info(tstate,
 							     exc, val, tb);
 					}