diff --git a/changelogs/fragments/70922-fix-block-in-rescue.yml b/changelogs/fragments/70922-fix-block-in-rescue.yml
new file mode 100644
index 00000000000..7900452977a
--- /dev/null
+++ b/changelogs/fragments/70922-fix-block-in-rescue.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - Fix statistics reporting when rescue block contains another block (issue https://github.com/ansible/ansible/issues/61253).
diff --git a/lib/ansible/executor/play_iterator.py b/lib/ansible/executor/play_iterator.py
index f67f709245c..6ac17af3369 100644
--- a/lib/ansible/executor/play_iterator.py
+++ b/lib/ansible/executor/play_iterator.py
@@ -514,6 +514,17 @@ class PlayIterator:
             return self.get_active_state(state.always_child_state)
         return state
 
+    def is_any_block_rescuing(self, state):
+        '''
+        Given the current HostState state, determines if the current block, or any child blocks,
+        are in rescue mode.
+        '''
+        if state.run_state == self.ITERATING_RESCUE:
+            return True
+        if state.tasks_child_state is not None:
+            return self.is_any_block_rescuing(state.tasks_child_state)
+        return False
+
     def get_original_task(self, host, task):
         # now a noop because we've changed the way we do caching
         return (None, None)
diff --git a/lib/ansible/plugins/strategy/__init__.py b/lib/ansible/plugins/strategy/__init__.py
index 7e4e4fff644..ca3a16d3c3a 100644
--- a/lib/ansible/plugins/strategy/__init__.py
+++ b/lib/ansible/plugins/strategy/__init__.py
@@ -552,7 +552,12 @@ class StrategyBase:
                     if iterator.is_failed(original_host) and state and state.run_state == iterator.ITERATING_COMPLETE:
                         self._tqm._failed_hosts[original_host.name] = True
 
-                    if state and iterator.get_active_state(state).run_state == iterator.ITERATING_RESCUE:
+                    # Use of get_active_state() here helps detect proper state if, say, we are in a rescue
+                    # block from an included file (include_tasks). In a non-included rescue case, a rescue
+                    # that starts with a new 'block' will have an active state of ITERATING_TASKS, so we also
+                    # check the current state block tree to see if any blocks are rescuing.
+                    if state and (iterator.get_active_state(state).run_state == iterator.ITERATING_RESCUE or
+                                  iterator.is_any_block_rescuing(state)):
                         self._tqm._stats.increment('rescued', original_host.name)
                         self._variable_manager.set_nonpersistent_facts(
                             original_host.name,
diff --git a/test/integration/targets/blocks/block_in_rescue.yml b/test/integration/targets/blocks/block_in_rescue.yml
new file mode 100644
index 00000000000..15360304b53
--- /dev/null
+++ b/test/integration/targets/blocks/block_in_rescue.yml
@@ -0,0 +1,33 @@
+- hosts: localhost
+  gather_facts: no
+  tasks:
+    - block:
+        - name: "EXPECTED FAILURE"
+          fail:
+            msg: "fail to test single level block in rescue"
+      rescue:
+        - block:
+          - debug:
+              msg: Rescued!
+
+    - block:
+        - name: "EXPECTED FAILURE"
+          fail:
+            msg: "fail to test multi-level block in rescue"
+      rescue:
+        - block:
+          - block:
+            - debug:
+                msg: Rescued!
+
+    - name: "Outer block"
+      block:
+        - name: "Inner block"
+          block:
+            - name: "EXPECTED FAILURE"
+              fail:
+                msg: "fail to test multi-level block"
+          rescue:
+            - name: "Rescue block"
+              block:
+                - debug: msg="Inner block rescue"
diff --git a/test/integration/targets/blocks/issue29047.yml b/test/integration/targets/blocks/issue29047.yml
new file mode 100644
index 00000000000..9743773c8cd
--- /dev/null
+++ b/test/integration/targets/blocks/issue29047.yml
@@ -0,0 +1,4 @@
+- hosts: localhost
+  gather_facts: no
+  tasks:
+    - include_tasks: issue29047_tasks.yml
diff --git a/test/integration/targets/blocks/issue29047_tasks.yml b/test/integration/targets/blocks/issue29047_tasks.yml
new file mode 100644
index 00000000000..3470d8672de
--- /dev/null
+++ b/test/integration/targets/blocks/issue29047_tasks.yml
@@ -0,0 +1,13 @@
+---
+- name: "EXPECTED FAILURE"
+  block:
+    - fail:
+       msg: "EXPECTED FAILURE"
+  rescue:
+    - name: Assert that ansible_failed_task is defined
+      assert:
+        that: ansible_failed_task is defined
+
+    - name: Assert that ansible_failed_result is defined
+      assert:
+        that: ansible_failed_result is defined
diff --git a/test/integration/targets/blocks/runme.sh b/test/integration/targets/blocks/runme.sh
index edba0c5275f..4f3db1db757 100755
--- a/test/integration/targets/blocks/runme.sh
+++ b/test/integration/targets/blocks/runme.sh
@@ -83,3 +83,13 @@ set -e
 cat rc_test.out
 [ $exit_code -eq 0 ]
 rm -f rc_test_out
+
+# https://github.com/ansible/ansible/issues/29047
+ansible-playbook -vv issue29047.yml -i ../../inventory
+
+# https://github.com/ansible/ansible/issues/61253
+ansible-playbook -vv block_in_rescue.yml -i ../../inventory > rc_test.out
+cat rc_test.out
+[ "$(grep -c 'rescued=3' rc_test.out)" -eq 1 ]
+[ "$(grep -c 'failed=0' rc_test.out)" -eq 1 ]
+rm -f rc_test.out