diff --git a/src/licensedcode/detection.py b/src/licensedcode/detection.py
index 34cbe582e6..2922c0443e 100644
--- a/src/licensedcode/detection.py
+++ b/src/licensedcode/detection.py
@@ -1465,6 +1465,56 @@ def use_referenced_license_expression(referenced_license_expression, license_det
     return True
 
 
+
+def combine_expressions_with_exception_handling(matches, licensing):
+    """
+    Combine license expressions from matches, using WITH for license+exception pairs
+    and AND for other combinations.
+    
+    Returns a combined LicenseExpression or None.
+    """
+    if not matches:
+        return None
+    
+    from licensedcode.cache import get_licenses_db
+    
+    license_db = get_licenses_db()
+    expressions = [match.rule.license_expression for match in matches]
+    
+    all_keys = set()
+    for expr in expressions:
+        keys = licensing.license_keys(expr)
+        all_keys.update(keys)
+    
+    exceptions = set()
+    regular_licenses = set()
+    
+    for key in all_keys:
+        license_obj = license_db.get(key)
+        if license_obj and license_obj.is_exception:
+            exceptions.add(key)
+        else:
+            regular_licenses.add(key)
+    
+    if len(regular_licenses) == 1 and len(exceptions) >= 1:
+        base_license = list(regular_licenses)[0]
+        exception_expr = combine_expressions(
+            expressions=list(exceptions),
+            relation='AND',
+            unique=True,
+            licensing=licensing
+        )
+        combined = licensing.parse(f"{base_license} WITH {exception_expr}")
+        return combined
+    
+    return combine_expressions(
+        expressions=expressions,
+        relation='AND',
+        unique=True,
+        licensing=licensing
+    )
+
+
 def get_detected_license_expression(
     analysis,
     license_matches=None,
@@ -1591,10 +1641,7 @@ def get_detected_license_expression(
     if TRACE:
         logger_debug(f'matches_for_expression: {matches_for_expression}', f'detection_log: {detection_log}')
 
-    combined_expression = combine_expressions(
-        expressions=[match.rule.license_expression for match in matches_for_expression],
-        licensing=get_licensing(),
-    )
+    combined_expression = combine_expressions_with_exception_handling(matches_for_expression, get_licensing())
 
     if TRACE or TRACE_ANALYSIS:
         logger_debug(f'combined_expression {combined_expression}')
diff --git a/tests/licensedcode/test_spdx_exception_fix.py b/tests/licensedcode/test_spdx_exception_fix.py
new file mode 100644
index 0000000000..099a081e75
--- /dev/null
+++ b/tests/licensedcode/test_spdx_exception_fix.py
@@ -0,0 +1,39 @@
+import os
+from licensedcode.detection import get_detected_license_expression
+from licensedcode.detection import DetectionCategory
+from licensedcode.match import LicenseMatch
+from licensedcode.models import Rule
+from licensedcode.cache import get_licensing
+
+def test_gpl_with_gcc_exception_uses_with_operator():
+    """
+    Test that GPL-3.0 and GCC-exception are combined with WITH instead of AND
+    """
+    licensing = get_licensing()
+    
+    gpl_rule = Rule(
+        license_expression='gpl-3.0',
+        text='GPL 3.0 text',
+    )
+    
+    gcc_exception_rule = Rule(
+        license_expression='gcc-exception-3.1',
+        text='GCC exception text',
+    )
+    
+    gpl_match = LicenseMatch(rule=gpl_rule, qspan=(0, 10), ispan=(0, 10))
+    gcc_match = LicenseMatch(rule=gcc_exception_rule, qspan=(11, 20), ispan=(11, 20))
+    
+    matches = [gpl_match, gcc_match]
+    
+    detection_log, combined_expression = get_detected_license_expression(
+        analysis=DetectionCategory.UNKNOWN_MATCH.value,
+        license_matches=matches,
+    )
+    
+    assert 'WITH' in combined_expression
+    assert 'gpl-3.0 WITH gcc-exception-3.1' == combined_expression
+
+if __name__ == '__main__':
+    test_gpl_with_gcc_exception_uses_with_operator()
+    print("Test passed!")