diff --git a/test/e2e/cli_test.go b/test/e2e/cli_test.go
index 6c84c4e2c4d8..95c12c39ff6b 100644
--- a/test/e2e/cli_test.go
+++ b/test/e2e/cli_test.go
@@ -938,7 +938,7 @@ func (s *CLISuite) TestRetryWorkflowWithContinueOn() {
 		Then().
 		ExpectWorkflow(func(t *testing.T, metadata *metav1.ObjectMeta, status *wfv1.WorkflowStatus) {
 			workflowName = metadata.Name
-			assert.Equal(t, 6, len(status.Nodes))
+			assert.Equal(t, 7, len(status.Nodes))
 		}).
 		RunCli([]string{"retry", workflowName}, func(t *testing.T, output string, err error) {
 			if assert.NoError(t, err, output) {
@@ -954,10 +954,10 @@ func (s *CLISuite) TestRetryWorkflowWithContinueOn() {
 		ExpectWorkflow(func(t *testing.T, metadata *metav1.ObjectMeta, status *wfv1.WorkflowStatus) {
 			workflowName = metadata.Name
 			assert.Equal(t, wfv1.WorkflowFailed, status.Phase)
-			assert.Equal(t, 6, len(status.Nodes))
+			assert.Equal(t, 7, len(status.Nodes))
 		}).
 		ExpectWorkflowNode(func(status wfv1.NodeStatus) bool {
-			return strings.Contains(status.Name, "retry-workflow-with-continueon.success")
+			return strings.Contains(status.Name, ".success")
 		}, func(t *testing.T, status *wfv1.NodeStatus, pod *corev1.Pod) {
 			assert.Equal(t, 2, len(status.Children))
 		})
diff --git a/test/e2e/testdata/retry-workflow-with-continueon.yaml b/test/e2e/testdata/retry-workflow-with-continueon.yaml
index 9d2ce1414860..43a3b5670078 100644
--- a/test/e2e/testdata/retry-workflow-with-continueon.yaml
+++ b/test/e2e/testdata/retry-workflow-with-continueon.yaml
@@ -6,6 +6,9 @@ spec:
   entrypoint: dag
   templates:
     - name: dag
+      retryStrategy:
+        limit: 2
+        retryPolicy: OnError
       dag:
         failFast: false
         tasks:
diff --git a/workflow/util/util.go b/workflow/util/util.go
index 8917c51c1d3c..5cadd22cbab9 100644
--- a/workflow/util/util.go
+++ b/workflow/util/util.go
@@ -971,7 +971,7 @@ func FormulateRetryWorkflow(ctx context.Context, wf *wfv1.Workflow, restartSucce
 				log.Debugf("Reset %s node %s since it's a group node", node.Name, string(node.Phase))
 				continue
 			} else {
-				if isDescendantNodeSucceeded(wf, node, nodeIDsToReset) {
+				if node.Type != wfv1.NodeTypeRetry && isDescendantNodeSucceeded(wf, node, nodeIDsToReset) {
 					log.Debugf("Node %s remains as is since it has succeed child nodes.", node.Name)
 					newWF.Status.Nodes.Set(node.ID, node)
 					continue