diff --git a/litellm/utils.py b/litellm/utils.py
index 1aed15ba83e..69d6bbd5963 100644
--- a/litellm/utils.py
+++ b/litellm/utils.py
@@ -2098,18 +2098,7 @@ def client(original_function):
             return result
         except Exception as e:
             if call_type == CallTypes.completion.value:
-                num_retries = kwargs.get("num_retries", None) or litellm.num_retries or None
-                if kwargs.get("retry_policy", None):
-                    get_num_retries_from_retry_policy: Callable[..., int | None] = (
-                        litellm_utils.get_num_retries_from_retry_policy
-                    )
-                    reset_retry_policy = litellm_utils.reset_retry_policy
-                    num_retries = get_num_retries_from_retry_policy(
-                        exception=e,
-                        retry_policy=kwargs.get("retry_policy"),
-                    )
-                    kwargs["retry_policy"] = reset_retry_policy()  # prevent infinite loops
-                litellm.num_retries = None  # set retries to None to prevent infinite loops
+                num_retries, kwargs = _get_wrapper_num_retries(kwargs=kwargs, exception=e)
                 context_window_fallback_dict: Final = kwargs.get("context_window_fallback_dict", {})
 
                 is_completion_litellm_router_call: Final = _is_litellm_router_call(kwargs, is_async=False)
@@ -2135,16 +2124,7 @@ def client(original_function):
                         kwargs["model"] = context_window_fallback_dict[model]
                     return original_function(*args, **kwargs)
             elif call_type == CallTypes.responses.value:
-                num_retries = kwargs.get("num_retries", None) or litellm.num_retries or None
-                if kwargs.get("retry_policy", None):
-                    get_num_retries_from_retry_policy = litellm_utils.get_num_retries_from_retry_policy
-                    reset_retry_policy = litellm_utils.reset_retry_policy
-                    num_retries = get_num_retries_from_retry_policy(
-                        exception=e,
-                        retry_policy=kwargs.get("retry_policy"),
-                    )
-                    kwargs["retry_policy"] = reset_retry_policy()  # prevent infinite loops
-                litellm.num_retries = None  # set retries to None to prevent infinite loops
+                num_retries, kwargs = _get_wrapper_num_retries(kwargs=kwargs, exception=e)
 
                 is_responses_litellm_router_call: Final = _is_litellm_router_call(kwargs, is_async=False)
                 if (
@@ -2436,7 +2416,6 @@ def client(original_function):
                     num_retries and not is_acompletion_litellm_router_call and not isinstance(e, ImportError)
                 ):  # only enter this if call is not from litellm router/proxy. router has it's own logic for retrying
                     try:
-                        litellm.num_retries = None  # set retries to None to prevent infinite loops
                         kwargs["num_retries"] = num_retries
                         kwargs["original_function"] = original_function
                         if isinstance(e, openai.RateLimitError):  # rate limiting specific error
@@ -2467,7 +2446,6 @@ def client(original_function):
                     num_retries and not is_aresponses_litellm_router_call and not isinstance(e, ImportError)
                 ):  # only enter this if call is not from litellm router/proxy. router has it's own logic for retrying
                     try:
-                        litellm.num_retries = None  # set retries to None to prevent infinite loops
                         kwargs["num_retries"] = num_retries
                         kwargs["original_function"] = original_function
                         if isinstance(e, openai.RateLimitError):  # rate limiting specific error
diff --git a/tests/unit/test_utils.py b/tests/unit/test_utils.py
index 38287b25169..5b22a18b4e7 100644
--- a/tests/unit/test_utils.py
+++ b/tests/unit/test_utils.py
@@ -10880,3 +10880,51 @@ def test_get_optional_params_forwards_a_tool_config_cache_point_to_a_downstream_
     )
 
     assert optional_params["extra_body"] == {"kept": True, "cache_control_injection_points": [point]}
+
+
+_FAILING_CALL_CASES: Final = (
+    pytest.param("completion", "chat/completions", {"messages": [{"role": "user", "content": "hi"}]}, id="completion"),
+    pytest.param("responses", "responses", {"input": "hi"}, id="responses"),
+)
+_FAILING_ASYNC_CALL_CASES: Final = (
+    pytest.param(
+        "acompletion", "chat/completions", {"messages": [{"role": "user", "content": "hi"}]}, id="acompletion"
+    ),
+    pytest.param("aresponses", "responses", {"input": "hi"}, id="aresponses"),
+)
+
+
+@respx.mock
+@pytest.mark.parametrize("call_name, path, payload", _FAILING_CALL_CASES)
+def test_failed_call_keeps_global_num_retries_for_later_calls(
+    monkeypatch: pytest.MonkeyPatch, call_name: str, path: str, payload: dict[str, object]
+) -> None:
+    monkeypatch.setattr(litellm, "num_retries", 3)
+    route: Final = respx.post(f"https://api.openai.com/v1/{path}").respond(500, json={"error": {"message": "boom"}})
+    call: Final = getattr(litellm, call_name)
+
+    for _ in range(2):
+        with pytest.raises(litellm.InternalServerError):
+            call(model="openai/gpt-5.6", api_key="sk-test", max_retries=0, **payload)
+
+    assert route.call_count == 8
+    assert litellm.num_retries == 3
+
+
+@pytest.mark.asyncio
+@respx.mock
+@pytest.mark.parametrize("call_name, path, payload", _FAILING_ASYNC_CALL_CASES)
+async def test_failed_async_call_keeps_global_num_retries_for_later_calls(
+    monkeypatch: pytest.MonkeyPatch, call_name: str, path: str, payload: dict[str, object]
+) -> None:
+    monkeypatch.setattr(litellm, "num_retries", 3)
+    monkeypatch.setattr(litellm, "disable_aiohttp_transport", True)
+    route: Final = respx.post(f"https://api.openai.com/v1/{path}").respond(500, json={"error": {"message": "boom"}})
+    call: Final = getattr(litellm, call_name)
+
+    for _ in range(2):
+        with pytest.raises(litellm.InternalServerError):
+            await call(model="openai/gpt-5.6", api_key="sk-test", max_retries=0, **payload)
+
+    assert route.call_count == 8
+    assert litellm.num_retries == 3