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This paper proposes an exception handling mechanism for developing reliable smart process-based applications. With Smart Process-based Application Model that we have proposed, a smart process is generated automatically according to the execution of composite web services to better meet user's individual requirements. We focus on the failures of a smart process and give an approach to handle exceptions. Firstly, based on Execution Transition Diagram(ETD) and several execution states we define in this paper, exceptions can be handled automatically by selecting rational transitions in the ETD during the execution of a smart process. And then, with Smart Process Logic Model(SPLM) and Withdrawal Business Spanning Graph(WBSG) we have proposed, business services that need to be withdrawn could be achieved automatically.