diff --git a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/InitializeTask.java b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/InitializeTask.java
index 21d0599b..5343470f 100644
--- a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/InitializeTask.java
+++ b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/InitializeTask.java
@@ -14,6 +14,7 @@
  */
 package com.amazonaws.services.kinesis.clientlibrary.lib.worker;
 
+import com.amazonaws.services.kinesis.clientlibrary.exceptions.KinesisClientLibNonRetryableException;
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
 
@@ -79,7 +80,15 @@ class InitializeTask implements ITask {
 
         try {
             LOG.debug("Initializing ShardId " + shardInfo.getShardId());
-            Checkpoint initialCheckpointObject = checkpoint.getCheckpointObject(shardInfo.getShardId());
+            Checkpoint initialCheckpointObject;
+            try {
+                initialCheckpointObject = checkpoint.getCheckpointObject(shardInfo.getShardId());
+            } catch (KinesisClientLibNonRetryableException e) {
+                LOG.error("Caught exception while fetching checkpoint for " + shardInfo.getShardId(), e);
+                final TaskResult result = new TaskResult(e);
+                result.leaseNotFound();
+                return result;
+            }
             ExtendedSequenceNumber initialCheckpoint = initialCheckpointObject.getCheckpoint();
 
             dataFetcher.initialize(initialCheckpoint.getSequenceNumber(), streamConfig.getInitialPositionInStream());
diff --git a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinator.java b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinator.java
index bcbabcde..47baad04 100644
--- a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinator.java
+++ b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinator.java
@@ -283,7 +283,8 @@ class KinesisClientLibLeaseCoordinator extends LeaseCoordinator<KinesisClientLea
         try {
             KinesisClientLease lease = leaseManager.getLease(shardId);
             if (lease == null) {
-                throw new KinesisClientLibIOException(errorMessage);
+                // This is a KinesisClientLibNonRetryableException
+                throw new com.amazonaws.services.kinesis.clientlibrary.exceptions.InvalidStateException(errorMessage);
             }
             return new Checkpoint(lease.getCheckpoint(), lease.getPendingCheckpoint());
         } catch (DependencyException | InvalidStateException | ProvisionedThroughputException e) {
diff --git a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumer.java b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumer.java
index 9e73aad9..11ee39b5 100644
--- a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumer.java
+++ b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumer.java
@@ -374,7 +374,7 @@ class ShardConsumer {
     }
 
     private enum TaskOutcome {
-        SUCCESSFUL, END_OF_SHARD, NOT_COMPLETE, FAILURE
+        SUCCESSFUL, END_OF_SHARD, NOT_COMPLETE, FAILURE, LEASE_NOT_FOUND
     }
 
     private TaskOutcome determineTaskOutcome() {
@@ -391,6 +391,10 @@ class ShardConsumer {
                 return TaskOutcome.SUCCESSFUL;
             }
             logTaskException(result);
+            // This is the case of result with exception
+            if (result.isLeaseNotFound()) {
+                return TaskOutcome.LEASE_NOT_FOUND;
+            }
         } catch (Exception e) {
             throw new RuntimeException(e);
         } finally {
@@ -487,6 +491,10 @@ class ShardConsumer {
             markForShutdown(ShutdownReason.TERMINATE);
             LOG.info("Shard " + shardInfo.getShardId() + ": Mark for shutdown with reason TERMINATE");
         }
+        if (taskOutcome == TaskOutcome.LEASE_NOT_FOUND) {
+            markForShutdown(ShutdownReason.ZOMBIE);
+            LOG.info("Shard " + shardInfo.getShardId() + ": Mark for shutdown with reason ZOMBIE as lease was not found");
+        }
         if (isShutdownRequested() && taskOutcome != TaskOutcome.FAILURE) {
             currentState = currentState.shutdownTransition(shutdownReason);
         } else if (isShutdownRequested() && ConsumerStates.ShardConsumerState.WAITING_ON_PARENT_SHARDS.equals(currentState.getState())) {
diff --git a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/TaskResult.java b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/TaskResult.java
index 70109b86..db22c97b 100644
--- a/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/TaskResult.java
+++ b/src/main/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/TaskResult.java
@@ -33,6 +33,8 @@ class TaskResult {
     // List of childShards of the current shard. This field is only required for the task result when we reach end of a shard.
     private List<ChildShard> childShards;
 
+    private boolean leaseNotFound;
+
     /**
      * @return the shardEndReached
      */
@@ -57,6 +59,14 @@ class TaskResult {
      */
     protected void setChildShards(List<ChildShard> childShards) { this.childShards = childShards; }
 
+    public boolean isLeaseNotFound() {
+        return leaseNotFound;
+    }
+
+    public void leaseNotFound() {
+        this.leaseNotFound = true;
+    }
+
     /**
      * @return the exception
      */
diff --git a/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinatorTest.java b/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinatorTest.java
index d8549870..e48cdd16 100644
--- a/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinatorTest.java
+++ b/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/KinesisClientLibLeaseCoordinatorTest.java
@@ -79,7 +79,7 @@ public class KinesisClientLibLeaseCoordinatorTest {
         leaseCoordinator.initialize();
     }
 
-    @Test(expected = KinesisClientLibIOException.class)
+    @Test(expected = com.amazonaws.services.kinesis.clientlibrary.exceptions.InvalidStateException.class)
     public void testGetCheckpointObjectWithNoLease()
             throws DependencyException, ProvisionedThroughputException, IllegalStateException, InvalidStateException,
             KinesisClientLibException {
diff --git a/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumerTest.java b/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumerTest.java
index 7afa3a8a..7a5e7fd2 100644
--- a/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumerTest.java
+++ b/src/test/java/com/amazonaws/services/kinesis/clientlibrary/lib/worker/ShardConsumerTest.java
@@ -54,8 +54,6 @@ import java.util.concurrent.Future;
 import java.util.concurrent.RejectedExecutionException;
 import java.util.concurrent.TimeUnit;
 
-import com.amazonaws.services.kinesis.leases.impl.LeaseCleanupManager;
-import com.amazonaws.services.kinesis.leases.impl.LeaseManager;
 import org.apache.commons.logging.Log;
 import org.apache.commons.logging.LogFactory;
 import org.hamcrest.Description;
@@ -64,7 +62,6 @@ import org.hamcrest.TypeSafeMatcher;
 import org.junit.Before;
 import org.junit.Test;
 import org.junit.runner.RunWith;
-import org.mockito.InjectMocks;
 import org.mockito.Mock;
 import org.mockito.runners.MockitoJUnitRunner;
 
@@ -246,6 +243,52 @@ public class ShardConsumerTest {
         assertThat(consumer.getCurrentState(), is(equalTo(ConsumerStates.ShardConsumerState.INITIALIZING)));
     }
 
+    @Test
+    public void testInitializationStateTransitionsToShutdownOnLeaseNotFound() throws Exception {
+        ShardInfo shardInfo = new ShardInfo("s-0-0", "testToken", null, ExtendedSequenceNumber.TRIM_HORIZON);
+
+        ICheckpoint checkpoint = new KinesisClientLibLeaseCoordinator(leaseManager, "", 0, 0);
+
+        when(leaseManager.getLease(anyString())).thenReturn(null);
+        when(leaseCoordinator.getLeaseManager()).thenReturn(leaseManager);
+        StreamConfig streamConfig =
+                new StreamConfig(streamProxy,
+                        1,
+                        10,
+                        callProcessRecordsForEmptyRecordList,
+                        skipCheckpointValidationValue, INITIAL_POSITION_LATEST);
+
+        ShardConsumer consumer =
+                new ShardConsumer(shardInfo,
+                        streamConfig,
+                        checkpoint,
+                        processor,
+                        leaseCoordinator,
+                        parentShardPollIntervalMillis,
+                        cleanupLeasesOfCompletedShards,
+                        executorService,
+                        metricsFactory,
+                        taskBackoffTimeMillis,
+                        KinesisClientLibConfiguration.DEFAULT_SKIP_SHARD_SYNC_AT_STARTUP_IF_LEASES_EXIST,
+                        config,
+                        shardSyncer,
+                        shardSyncStrategy);
+        assertThat(consumer.getCurrentState(), is(equalTo(ConsumerStates.ShardConsumerState.WAITING_ON_PARENT_SHARDS)));
+        consumer.consumeShard();
+        Thread.sleep(50L);
+        assertThat(consumer.getCurrentState(), is(equalTo(ConsumerStates.ShardConsumerState.WAITING_ON_PARENT_SHARDS)));
+        consumer.consumeShard();
+        Thread.sleep(50L);
+        assertThat(consumer.getCurrentState(), is(equalTo(ConsumerStates.ShardConsumerState.INITIALIZING)));
+        consumer.consumeShard();
+        Thread.sleep(50L);
+        assertThat(consumer.getCurrentState(), is(equalTo(ConsumerStates.ShardConsumerState.SHUTTING_DOWN)));
+        consumer.consumeShard();
+        Thread.sleep(50L);
+        assertThat(consumer.getCurrentState(), is(equalTo(ConsumerStates.ShardConsumerState.SHUTDOWN_COMPLETE)));
+    }
+
+
     @SuppressWarnings("unchecked")
     @Test
     public final void testRecordProcessorThrowable() throws Exception {