diff --git a/plinth/tests/test_utils.py b/plinth/tests/test_utils.py
index b47e5d5ef..1fa461f9e 100644
--- a/plinth/tests/test_utils.py
+++ b/plinth/tests/test_utils.py
@@ -123,3 +123,13 @@ class TestYAMLFileUtil(TestCase):
             file_conf = ruamel.yaml.round_trip_load(retrieved_conf)
             assert file_conf == {'property1': self.kv_pair,
                                  'property2': self.kv_pair}
+
+    def test_context_exception(self):
+        """Test that exception during update does not update file."""
+        test_file = tempfile.NamedTemporaryFile()
+        with self.assertRaises(ValueError):
+            with YAMLFile(test_file.name) as yaml_file:
+                yaml_file['property1'] = 'value1'
+                raise ValueError('Test')
+
+        assert open(test_file.name, 'r').read() == ''
diff --git a/plinth/utils.py b/plinth/utils.py
index 3d3c9b977..512755193 100644
--- a/plinth/utils.py
+++ b/plinth/utils.py
@@ -108,9 +108,10 @@ class YAMLFile(object):
 
             return self.conf
 
-    def __exit__(self, typ, value, traceback):
-        with open(self.yaml_file, 'w') as intro_conf:
-            ruamel.yaml.round_trip_dump(self.conf, intro_conf)
+    def __exit__(self, type_, value, traceback):
+        if not traceback:
+            with open(self.yaml_file, 'w') as intro_conf:
+                ruamel.yaml.round_trip_dump(self.conf, intro_conf)
 
     def is_file_empty(self):
         return os.stat(self.yaml_file).st_size == 0