diff --git a/nvm.sh b/nvm.sh
index e3098b8..f40a9f3 100644
--- a/nvm.sh
+++ b/nvm.sh
@@ -2742,6 +2742,15 @@ nvm() {
     EXIT_CODE="$?"
     set -a
     return "$EXIT_CODE"
+  elif [ -n "${BASH-}" ] && [ "${-#*E}" != "$-" ]; then
+    # shellcheck disable=SC3041
+    set +E
+    local EXIT_CODE
+    IFS="${DEFAULT_IFS}" nvm "$@"
+    EXIT_CODE="$?"
+    # shellcheck disable=SC3041
+    set -E
+    return "$EXIT_CODE"
   elif [ "${IFS}" != "${DEFAULT_IFS}" ]; then
     IFS="${DEFAULT_IFS}" nvm "$@"
     return "$?"
diff --git a/test/installation_node/install on bash with ERR trap and set -E b/test/installation_node/install on bash with ERR trap and set -E
new file mode 100755
index 0000000..edfad0c
--- /dev/null
+++ b/test/installation_node/install on bash with ERR trap and set -E	
@@ -0,0 +1,50 @@
+#!/bin/sh
+
+set -e
+
+cleanup() {
+  nvm cache clear
+  nvm deactivate
+  rm -rf "${NVM_DIR}"/v*
+  nvm unalias default
+}
+
+die() {
+  echo "$@"
+  cleanup || true
+  exit 1
+}
+
+\. ../../nvm.sh
+
+if [ -z "${BASH-}" ]; then
+  echo "This test only applies to Bash; skipping"
+  exit
+fi
+
+cleanup || true
+trap 'echo "==> EXIT signal received (status: $?)"; cleanup' EXIT
+
+# shellcheck disable=SC3047
+trap 'echo "==> ERR signal received"; exit 1' ERR
+# shellcheck disable=SC3041
+set -E
+
+# shellcheck disable=SC3045,SC3047
+ERR_TRAP_EXPECTED="$(trap -p ERR)"
+
+# Adding ` || die 'install failed'` implicitly disables error handling and
+# prevents ERR trap execution, so for the purposes of this test, `nvm install`
+# can't be part of another command or statement
+nvm install node
+
+case "$-" in
+*E*)
+  # shellcheck disable=SC3045,SC3047
+  [ "$(trap -p ERR)" = "$ERR_TRAP_EXPECTED" ] ||
+    die "ERR trap not restored after \"nvm install $VERSION\""
+  ;;
+*)
+  die "errtrace not restored after \"nvm install $VERSION\""
+  ;;
+esac