diff --git a/package-lock.json b/package-lock.json
index 2aa07eba..87cf916a 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -5149,14 +5149,14 @@
       "license": "MIT"
     },
     "node_modules/tinyglobby": {
-      "version": "0.2.14",
-      "resolved": "https://registry.npmjs.org/tinyglobby/-/tinyglobby-0.2.14.tgz",
-      "integrity": "sha512-tX5e7OM1HnYr2+a2C/4V0htOcSQcoSTH9KgJnVvNm5zm/cyEWKJ7j7YutsH9CxMdtOkkLFy2AHrMci9IM8IPZQ==",
+      "version": "0.2.15",
+      "resolved": "https://registry.npmjs.org/tinyglobby/-/tinyglobby-0.2.15.tgz",
+      "integrity": "sha512-j2Zq4NyQYG5XMST4cbs02Ak8iJUdxRM0XI5QyxXuZOzKOINmWurp3smXu3y5wDcJrptwpSjgXHzIQxR0omXljQ==",
       "dev": true,
       "license": "MIT",
       "dependencies": {
-        "fdir": "^6.4.4",
-        "picomatch": "^4.0.2"
+        "fdir": "^6.5.0",
+        "picomatch": "^4.0.3"
       },
       "engines": {
         "node": ">=12.0.0"
@@ -5319,9 +5319,9 @@
       }
     },
     "node_modules/vite": {
-      "version": "7.1.4",
-      "resolved": "https://registry.npmjs.org/vite/-/vite-7.1.4.tgz",
-      "integrity": "sha512-X5QFK4SGynAeeIt+A7ZWnApdUyHYm+pzv/8/A57LqSGcI88U6R6ipOs3uCesdc6yl7nl+zNO0t8LmqAdXcQihw==",
+      "version": "7.1.5",
+      "resolved": "https://registry.npmjs.org/vite/-/vite-7.1.5.tgz",
+      "integrity": "sha512-4cKBO9wR75r0BeIWWWId9XK9Lj6La5X846Zw9dFfzMRw38IlTk2iCcUt6hsyiDRcPidc55ZParFYDXi0nXOeLQ==",
       "dev": true,
       "license": "MIT",
       "dependencies": {
@@ -5330,7 +5330,7 @@
         "picomatch": "^4.0.3",
         "postcss": "^8.5.6",
         "rollup": "^4.43.0",
-        "tinyglobby": "^0.2.14"
+        "tinyglobby": "^0.2.15"
       },
       "bin": {
         "vite": "bin/vite.js"
diff --git a/src/appConfigurationImpl.ts b/src/appConfigurationImpl.ts
index 6918e2fe..7452d2ba 100644
--- a/src/appConfigurationImpl.ts
+++ b/src/appConfigurationImpl.ts
@@ -598,21 +598,19 @@ export class AzureAppConfigurationImpl implements AzureAppConfiguration {
      * Updates etag of watched settings from loaded data. If a watched setting is not covered by any selector, a request will be sent to retrieve it.
      */
     async #updateWatchedKeyValuesEtag(existingSettings: ConfigurationSetting[]): Promise<void> {
+        const updatedSentinels: ConfigurationSettingId[] = [];
         for (const sentinel of this.#sentinels) {
             const matchedSetting = existingSettings.find(s => s.key === sentinel.key && s.label === sentinel.label);
             if (matchedSetting) {
-                sentinel.etag = matchedSetting.etag;
+                updatedSentinels.push( {...sentinel, etag: matchedSetting.etag} );
             } else {
                 // Send a request to retrieve key-value since it may be either not loaded or loaded with a different label or different casing
                 const { key, label } = sentinel;
                 const response = await this.#getConfigurationSetting({ key, label });
-                if (response) {
-                    sentinel.etag = response.etag;
-                } else {
-                    sentinel.etag = undefined;
-                }
+                updatedSentinels.push( {...sentinel, etag: response?.etag} );
             }
         }
+        this.#sentinels = updatedSentinels;
     }
 
     /**
@@ -670,7 +668,6 @@ export class AzureAppConfigurationImpl implements AzureAppConfiguration {
             if (response?.statusCode === 200 // created or changed
                 || (response === undefined && sentinel.etag !== undefined) // deleted
             ) {
-                sentinel.etag = response?.etag;// update etag of the sentinel
                 needRefresh = true;
                 break;
             }
diff --git a/test/refresh.test.ts b/test/refresh.test.ts
index 26f869de..6d4aea89 100644
--- a/test/refresh.test.ts
+++ b/test/refresh.test.ts
@@ -25,11 +25,19 @@ function addSetting(key: string, value: any) {
 }
 
 let listKvRequestCount = 0;
+let failNextListKv = false;
 const listKvCallback = () => {
+    if (failNextListKv) {
+        throw new Error("Intended error for test");
+    }
     listKvRequestCount++;
 };
 let getKvRequestCount = 0;
+let failNextGetKv = false;
 const getKvCallback = () => {
+    if (failNextGetKv) {
+        throw new Error("Intended error for test");
+    }
     getKvRequestCount++;
 };
 
@@ -40,6 +48,7 @@ describe("dynamic refresh", function () {
             { value: "red", key: "app.settings.fontColor" },
             { value: "40", key: "app.settings.fontSize" },
             { value: "30", key: "app.settings.fontSize", label: "prod" },
+            { value: "someValue", key: "sentinel" },
             { value: "someValue", key: "TestTagKey", tags: { "env": "dev" } }
         ].map(createMockedKeyValue);
         mockAppConfigurationClientListConfigurationSettings([mockedKVs], listKvCallback);
@@ -48,6 +57,8 @@ describe("dynamic refresh", function () {
 
     afterEach(() => {
         restoreMocks();
+        failNextListKv = false;
+        failNextGetKv = false;
         listKvRequestCount = 0;
         getKvRequestCount = 0;
     });
@@ -239,6 +250,44 @@ describe("dynamic refresh", function () {
         expect(settings.get("app.settings.bgColor")).eq("white");
     });
 
+    it("should continue to refresh when previous refresh-all attempt failed", async () => {
+        const connectionString = createMockedConnectionString();
+        const settings = await load(connectionString, {
+            selectors: [
+                { keyFilter: "app.settings.*" }
+            ],
+            refreshOptions: {
+                enabled: true,
+                refreshIntervalInMs: 2000,
+                watchedSettings: [
+                    { key: "sentinel" }
+                ]
+            }
+        });
+        expect(settings.get("app.settings.fontSize")).eq("40");
+        expect(settings.get("app.settings.fontColor")).eq("red");
+        expect(settings.get("sentinel")).to.be.undefined;
+        expect(listKvRequestCount).eq(1);
+        expect(getKvRequestCount).eq(1); // one getKv request for sentinel key
+
+        // change setting
+        addSetting("app.settings.bgColor", "white");
+        updateSetting("sentinel", "updatedValue");
+        failNextListKv = true; // force next listConfigurationSettings request to fail
+        await sleepInMs(2 * 1000 + 1);
+        await settings.refresh(); // even if the provider detects the sentinel key change, this refresh will fail, so we won't get the updated value of sentinel
+        expect(listKvRequestCount).eq(1);
+        expect(getKvRequestCount).eq(2);
+        expect(settings.get("app.settings.bgColor")).to.be.undefined;
+
+        failNextListKv = false;
+        await sleepInMs(2 * 1000 + 1);
+        await settings.refresh(); // should continue to refresh even if sentinel key doesn't change now
+        expect(listKvRequestCount).eq(2);
+        expect(getKvRequestCount).eq(4);
+        expect(settings.get("app.settings.bgColor")).eq("white");
+    });
+
     it("should execute callbacks on successful refresh", async () => {
         const connectionString = createMockedConnectionString();
         const settings = await load(connectionString, {