diff --git a/lib/Cake/Test/Case/Utility/XmlTest.php b/lib/Cake/Test/Case/Utility/XmlTest.php
index b28a4efc0..820202c17 100644
--- a/lib/Cake/Test/Case/Utility/XmlTest.php
+++ b/lib/Cake/Test/Case/Utility/XmlTest.php
@@ -187,12 +187,23 @@ class XmlTest extends CakeTestCase {
  *
  * @dataProvider invalidDataProvider
  * @expectedException XmlException
- * return void
+ * @return void
  */
 	public function testBuildInvalidData($value) {
 		Xml::build($value);
 	}
 
+/**
+ * Test that building SimpleXmlElement with invalid XML causes the right exception.
+ *
+ * @expectedException XmlException
+ * @return void
+ */
+	public function testBuildInvalidDataSimpleXml() {
+		$input = '<derp';
+		$xml = Xml::build($input, array('return' => 'simplexml'));
+	}
+
 /**
  * test build with a single empty tag
  *
diff --git a/lib/Cake/Utility/Xml.php b/lib/Cake/Utility/Xml.php
index f446798a3..19ea1725e 100644
--- a/lib/Cake/Utility/Xml.php
+++ b/lib/Cake/Utility/Xml.php
@@ -131,16 +131,23 @@ class Xml {
 		if ($hasDisable && !$options['loadEntities']) {
 			libxml_disable_entity_loader(true);
 		}
-		if ($options['return'] === 'simplexml' || $options['return'] === 'simplexmlelement') {
-			$xml = new SimpleXMLElement($input, LIBXML_NOCDATA);
-		} else {
-			$xml = new DOMDocument();
-			$xml->loadXML($input);
+		try {
+			if ($options['return'] === 'simplexml' || $options['return'] === 'simplexmlelement') {
+				$xml = new SimpleXMLElement($input, LIBXML_NOCDATA);
+			} else {
+				$xml = new DOMDocument();
+				$xml->loadXML($input);
+			}
+		} catch (Exception $e) {
+			$xml = null;
 		}
 		if ($hasDisable && !$options['loadEntities']) {
 			libxml_disable_entity_loader(false);
 		}
 		libxml_use_internal_errors($internalErrors);
+		if ($xml === null) {
+			throw new XmlException(__d('cake_dev', 'Xml cannot be read.'));
+		}
 		return $xml;
 	}