A method and apparatus is provided for handling parity errors within a data processing system. Each occurrence of a parity error is attributed to an addressable memory location or a block of memory locations that was being accessed when the error occurred. A memory location or a memory block is marked as unusable after a predetermined number of errors is attributed to that location or block, respectively. The predetermined number of errors that is allowed to occur prior to degradation could be two, or more. In one embodiment, the predetermined number of errors resulting in memory degradation is programmable.