diff -r da3f4774b939 Lib/test/pickletester.py
--- a/Lib/test/pickletester.py	Mon Mar 11 09:14:09 2013 +0200
+++ b/Lib/test/pickletester.py	Mon Mar 11 23:00:56 2013 +0530
@@ -1060,6 +1060,18 @@
              MyStr, MyUnicode,
              MyTuple, MyList, MyDict]
 
+class MyException(Exception):
+    """Extension with values, args not set."""
+    def __init__(self, foo):
+        self.foo = foo
+
+class MyException2(Exception):
+    """Extension with values, init called with no args."""
+    def __init__(self, foo):
+        self.foo = foo
+        Exception.__init__(self)
+
+
 
 class SlotList(MyList):
     __slots__ = ["foo"]
@@ -1111,6 +1123,15 @@
         self.module.Pickler(f, -1)
         self.module.Pickler(f, protocol=-1)
 
+    def test_unpickle_exceptions_requiring_args(self):
+        # Test issue1692335
+        c = MyException('testing')
+        c2 = self.module.loads(self.module.dumps(c))
+        self.assertEqual(c2.foo, c.foo)
+        d = MyException2('testing')
+        d2 = self.module.loads(self.module.dumps(d))
+        self.assertEqual(d2.foo, d.foo)
+
     def test_incomplete_input(self):
         s = StringIO.StringIO("X''.")
         self.assertRaises(EOFError, self.module.load, s)
diff -r da3f4774b939 Objects/exceptions.c
--- a/Objects/exceptions.c	Mon Mar 11 09:14:09 2013 +0200
+++ b/Objects/exceptions.c	Mon Mar 11 23:00:56 2013 +0530
@@ -35,13 +35,7 @@
     if (!self)
         return NULL;
     /* the dict is created on the fly in PyObject_GenericSetAttr */
-    self->message = self->dict = NULL;
-
-    self->args = PyTuple_New(0);
-    if (!self->args) {
-        Py_DECREF(self);
-        return NULL;
-    }
+    self->dict = NULL;
 
     self->message = PyString_FromString("");
     if (!self->message) {
@@ -49,18 +43,38 @@
         return NULL;
     }
 
+    if(args){
+        self->args = args;
+        Py_INCREF(args);
+        /* Since the args can be overwritten in __init__, we have to store
+           the original args somewhere for pickling. */
+        if (PyObject_SetAttrString((PyObject *)self, "__newargs__", args) < 0) {
+            Py_DECREF(self);
+            return NULL;
+        }
+    }
+    else{
+        self->args = PyTuple_New(0);
+        if (!self->args) {
+            Py_DECREF(self);
+            return NULL;
+        }
+    }
+
     return (PyObject *)self;
 }
 
 static int
 BaseException_init(PyBaseExceptionObject *self, PyObject *args, PyObject *kwds)
 {
+    PyObject *tmp;
     if (!_PyArg_NoKeywords(Py_TYPE(self)->tp_name, kwds))
         return -1;
 
-    Py_DECREF(self->args);
+    tmp = self->args;
     self->args = args;
     Py_INCREF(self->args);
+    Py_XDECREF(tmp);
 
     if (PyTuple_GET_SIZE(self->args) == 1) {
         Py_CLEAR(self->message);
@@ -183,10 +197,23 @@
 static PyObject *
 BaseException_reduce(PyBaseExceptionObject *self)
 {
+    PyObject *result;
+    PyObject *newargs = PyObject_GetAttrString((PyObject *)self, "__newargs__");
+    if (!newargs) {
+        if (PyErr_ExceptionMatches(PyExc_AttributeError)) {
+            PyErr_SetString(PyExc_AttributeError,
+                            "To pickle exceptions via BaseException.__reduce__, "
+                            "you need to set the __newargs__ attribute in your "
+                            "custom __new__ method.");
+        }
+        return NULL;
+    }
     if (self->args && self->dict)
-        return PyTuple_Pack(3, Py_TYPE(self), self->args, self->dict);
+        result = PyTuple_Pack(3, Py_TYPE(self), newargs, self->dict);
     else
-        return PyTuple_Pack(2, Py_TYPE(self), self->args);
+        result = PyTuple_Pack(2, Py_TYPE(self), newargs);
+    Py_DECREF(newargs);
+    return result;
 }
 
 /*