diff --git a/CHANGELOG b/CHANGELOG
index 18cd054..091a3b5 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -10,6 +10,10 @@
   and ``EachScheduling`` implementations. Note that required scheduler class public
   API may change in next ``pytest-xdist`` versions.
 
+- fix #124: xdist would mark test as complete after 'call' step. As a result,
+  xdist could identify the wrong test as failing when test crashes at teardown.
+  To address this issue, xdist now marks test as complete at teardown.
+
 1.15.0
 ------
 
diff --git a/testing/acceptance_test.py b/testing/acceptance_test.py
index 2bb7bb1..b0aa0ba 100644
--- a/testing/acceptance_test.py
+++ b/testing/acceptance_test.py
@@ -437,7 +437,32 @@ def test_crashing_item(testdir):
     """)
     result = testdir.runpytest("-n2", p)
     result.stdout.fnmatch_lines([
-        "*crashed*test_crash*", "*1 failed*1 passed*"
+        "*crashed*::test_crash*", "*1 failed*1 passed*"
+    ])
+
+
+def test_crashing_item_teardown(testdir):
+    p = testdir.makepyfile("""
+        import py
+        import pytest
+        import os
+        import time
+
+        @pytest.fixture
+        def crash_fixture(request):
+            def kill_me():
+                py.process.kill(os.getpid())
+            request.addfinalizer(kill_me)
+
+        def test_a(crash_fixture):
+            pass
+
+        def test_b():
+            pass
+    """)
+    result = testdir.runpytest("-n1", p)
+    result.stdout.fnmatch_lines([
+        "*crashed*::test_a*", "*1 failed*2 passed*"
     ])
 
 
diff --git a/xdist/dsession.py b/xdist/dsession.py
index 9ddbc2d..3377078 100644
--- a/xdist/dsession.py
+++ b/xdist/dsession.py
@@ -660,7 +660,7 @@ class DSession:
         If the node indicates it is finished with a test item, remove
         the item from the pending list in the scheduler.
         """
-        if rep.when == "call" or (rep.when == "setup" and not rep.passed):
+        if rep.when == "teardown" or (rep.when == "setup" and not rep.passed):
             self.sched.mark_test_complete(node, rep.item_index, rep.duration)
         # self.report_line("testreport %s: %s" %(rep.id, rep.status))
         rep.node = node