diff --git a/activerecord/lib/active_record/observer.rb b/activerecord/lib/active_record/observer.rb
index 2b0728f..b9606a8 100644
--- a/activerecord/lib/active_record/observer.rb
+++ b/activerecord/lib/active_record/observer.rb
@@ -34,16 +34,23 @@ module ActiveRecord
       def instantiate_observers
         return if @observers.blank?
         @observers.each do |observer|
-          if observer.respond_to?(:to_sym) # Symbol or String
-            observer.to_s.camelize.constantize.instance
-          elsif observer.respond_to?(:instance)
-            observer.instance
-          else
+          unless instantiate_observer(observer)
             raise ArgumentError, "#{observer} must be a lowercase, underscored class name (or an instance of the class itself) responding to the instance method. Example: Person.observers = :big_brother # calls BigBrother.instance"
           end
         end
       end
 
+      def instantiate_observer(observer)
+        if observer.respond_to?(:to_sym) # Symbol or String
+          observer.to_s.camelize.constantize.instance
+        elsif observer.respond_to?(:instance)
+          observer.instance
+        end
+      rescue Exception => e
+        logger.warn("Couldn't instantiate observer #{observer.inspect}: #{e.message}")
+        true
+      end
+      
       protected
         # Notify observers when the observed class is subclassed.
         def inherited(subclass)