diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 8598c1f..9db37d1 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -1,3 +1,8 @@
+3.1.1
+-----
+
+* Since 3.8, CancelledError is a subclass of BaseException rather than Exception, so we need to catch it explicitly.
+
 3.1.0
 -----
 
diff --git a/memoize/wrapper.py b/memoize/wrapper.py
index 9875072..14379dd 100644
--- a/memoize/wrapper.py
+++ b/memoize/wrapper.py
@@ -6,7 +6,7 @@
 import datetime
 import functools
 import logging
-from asyncio import Future
+from asyncio import Future, CancelledError
 from typing import Optional, Callable
 
 from memoize.configuration import CacheConfiguration, NotConfiguredCacheCalledException, \
@@ -116,7 +116,7 @@ async def refresh(actual_entry: Optional[CacheEntry], key: CacheKey,
                 logger.debug('Timeout for %s: %s', key, e)
                 update_statuses.mark_update_aborted(key, e)
                 raise CachedMethodFailedException('Refresh timed out') from e
-            except Exception as e:
+            except (Exception, CancelledError) as e:
                 logger.debug('Error while refreshing cache for %s: %s', key, e)
                 update_statuses.mark_update_aborted(key, e)
                 raise CachedMethodFailedException('Refresh failed to complete') from e
diff --git a/setup.py b/setup.py
index 74e4a2f..22ab504 100644
--- a/setup.py
+++ b/setup.py
@@ -11,7 +11,7 @@ def prepare_description():
 
 setup(
     name='py-memoize',
-    version='3.1.0',
+    version='3.1.1',
     author='Michal Zmuda',
     author_email='zmu.michal@gmail.com',
     url='https://github.com/DreamLab/memoize',
diff --git a/tests/end2end/test_wrapper.py b/tests/end2end/test_wrapper.py
index 2441ed9..6a40f7a 100644
--- a/tests/end2end/test_wrapper.py
+++ b/tests/end2end/test_wrapper.py
@@ -1,5 +1,6 @@
 import asyncio
 import time
+from asyncio import CancelledError
 from datetime import timedelta
 from unittest.mock import Mock
 
@@ -174,6 +175,37 @@ async def get_value(arg, kwarg=None):
         assert context.value.__class__ == CachedMethodFailedException
         assert str(context.value.__cause__) == str(ValueError('stub0'))
 
+    async def test_should_return_cancelled_exception_for_all_concurrent_callers(self):
+        # given
+        value = 0
+
+        @memoize()
+        async def get_value(arg, kwarg=None):
+            new_task = asyncio.create_task(asyncio.sleep(1))
+            new_task.cancel()  # this will raise CancelledError
+            await new_task
+
+        # when
+        res1 = get_value('test', kwarg='args1')
+        res2 = get_value('test', kwarg='args1')
+        res3 = get_value('test', kwarg='args1')
+
+        # then
+        with pytest.raises(Exception) as context:
+            await res1
+        assert context.value.__class__ == CachedMethodFailedException
+        assert str(context.value.__cause__) == str(CancelledError())
+
+        with pytest.raises(Exception) as context:
+            await res2
+        assert context.value.__class__ == CachedMethodFailedException
+        assert str(context.value.__cause__) == str(CancelledError())
+
+        with pytest.raises(Exception) as context:
+            await res3
+        assert context.value.__class__ == CachedMethodFailedException
+        assert str(context.value.__cause__) == str(CancelledError())
+
     async def test_should_return_timeout_for_all_concurrent_callers(self):
         # given
         value = 0