A method and system for recovering from stack-overflow or stack-underflow faults without restarting software or hardware. At every task switch operation in an application program, a portion of the memory stack is copied to a backup location, so that portion of the stack can be restored if it is subsequently corrupted by a stack-overflow or stack-underflow fault during the execution of the next task. State variable data is similarly copied to a backup location, so that it can be used to restore or estimate the output of the next task if that task experiences a fault. Techniques are disclosed for selecting which state variable data and which portion of the memory stack to copy to backup, and for detecting a stack-overflow or stack-underflow fault and restoring state variable and memory data in the event of such a fault.