Index: kernel/arch/arm32/src/exception.c
===================================================================
--- kernel/arch/arm32/src/exception.c	(revision 0237380b1b5452568e8987b11d3697ee674830fe)
+++ kernel/arch/arm32/src/exception.c	(revision 3e6a98c595287c43d200d28d97f57755342be117)
@@ -170,4 +170,11 @@
 		fault_if_from_uspace(istate, "Undefined instruction.");
 		panic_badtrap(istate, exc_no, "Undefined instruction.");
+	} else {
+		/*
+		 * Retry the failing instruction,
+		 * ARM Architecture Reference Manual says on p.B1-1169
+		 * that offset for undef instruction exception is 4
+		 */
+		istate->pc -= 4;
 	}
 }