diff --git a/workflow/controller/operator.go b/workflow/controller/operator.go
index 49f75507e596..dc1ee23d4ec6 100644
--- a/workflow/controller/operator.go
+++ b/workflow/controller/operator.go
@@ -671,7 +671,8 @@ func (woc *wfOperationCtx) processNodeRetries(node *wfv1.NodeStatus, retryStrate
 		timeToWait := baseDuration
 		if retryStrategy.Backoff.Factor > 0 {
 			// Formula: timeToWait = duration * factor^retry_number
-			timeToWait = baseDuration * time.Duration(math.Pow(float64(retryStrategy.Backoff.Factor), float64(len(node.Children))))
+			// Note that timeToWait should equal to duration for the first retry attempt.
+			timeToWait = baseDuration * time.Duration(math.Pow(float64(retryStrategy.Backoff.Factor), float64(len(node.Children)-1)))
 		}
 		waitingDeadline := lastChildNode.FinishedAt.Add(timeToWait)
 
diff --git a/workflow/controller/operator_test.go b/workflow/controller/operator_test.go
index 133a72f71bd4..95e79813df86 100644
--- a/workflow/controller/operator_test.go
+++ b/workflow/controller/operator_test.go
@@ -3,6 +3,8 @@ package controller
 import (
 	"encoding/json"
 	"fmt"
+	"regexp"
+	"strconv"
 	"strings"
 	"testing"
 	"time"
@@ -10,6 +12,7 @@ import (
 	"github.com/prometheus/client_golang/prometheus"
 	dto "github.com/prometheus/client_model/go"
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
 	apiv1 "k8s.io/api/core/v1"
 	apierr "k8s.io/apimachinery/pkg/api/errors"
 	"k8s.io/apimachinery/pkg/api/resource"
@@ -361,6 +364,102 @@ func TestProcessNodesWithRetriesWithBackoff(t *testing.T) {
 	assert.Equal(t, n.Phase, wfv1.NodeSucceeded)
 }
 
+func TestProcessNodesWithRetriesWithExponentialBackoff(t *testing.T) {
+	require := require.New(t)
+
+	cancel, controller := newController()
+	defer cancel()
+	require.NotNil(controller)
+	wf := unmarshalWF(helloWorldWf)
+	require.NotNil(wf)
+	woc := newWorkflowOperationCtx(wf, controller)
+	require.NotNil(woc)
+
+	// Verify that there are no nodes in the wf status.
+	require.Zero(len(woc.wf.Status.Nodes))
+
+	// Add the parent node for retries.
+	nodeName := "test-node"
+	nodeID := woc.wf.NodeID(nodeName)
+	node := woc.initializeNode(nodeName, wfv1.NodeTypeRetry, "", &wfv1.Template{}, "", wfv1.NodeRunning)
+	retries := wfv1.RetryStrategy{}
+	retryLimit := int32(2)
+	retries.Limit = &retryLimit
+	retries.RetryPolicy = wfv1.RetryPolicyAlways
+	retries.Backoff = &wfv1.Backoff{
+		Duration: "5m",
+		Factor:   2,
+	}
+	woc.wf.Status.Nodes[nodeID] = *node
+
+	require.Equal(wfv1.NodeRunning, node.Phase)
+
+	// Ensure there are no child nodes yet.
+	lastChild := getChildNodeIndex(node, woc.wf.Status.Nodes, -1)
+	require.Nil(lastChild)
+
+	woc.initializeNode("child-node-1", wfv1.NodeTypePod, "", &wfv1.Template{}, "", wfv1.NodeFailed)
+	woc.addChildNode(nodeName, "child-node-1")
+
+	n := woc.wf.GetNodeByName(nodeName)
+
+	// Last child has failed. processNodesWithRetries() should return false due to the default backoff.
+	var err error
+	n, _, err = woc.processNodeRetries(n, retries, &executeTemplateOpts{})
+	require.NoError(err)
+	require.Equal(wfv1.NodeRunning, n.Phase)
+
+	// First backoff should be between 295 and 300 seconds.
+	backoff, err := parseRetryMessage(n.Message)
+	require.NoError(err)
+	require.LessOrEqual(backoff, 300)
+	require.Less(295, backoff)
+
+	woc.initializeNode("child-node-2", wfv1.NodeTypePod, "", &wfv1.Template{}, "", wfv1.NodeError)
+	woc.addChildNode(nodeName, "child-node-2")
+	n = woc.wf.GetNodeByName(nodeName)
+
+	n, _, err = woc.processNodeRetries(n, retries, &executeTemplateOpts{})
+	require.NoError(err)
+	require.Equal(wfv1.NodeRunning, n.Phase)
+
+	// Second backoff should be between 595 and 600 seconds.
+	backoff, err = parseRetryMessage(n.Message)
+	require.NoError(err)
+	require.LessOrEqual(backoff, 600)
+	require.Less(595, backoff)
+
+	// Mark lastChild as successful.
+	lastChild = getChildNodeIndex(n, woc.wf.Status.Nodes, -1)
+	require.NotNil(lastChild)
+	woc.markNodePhase(lastChild.Name, wfv1.NodeSucceeded)
+	n, _, err = woc.processNodeRetries(n, retries, &executeTemplateOpts{})
+	require.NoError(err)
+	// The parent node also gets marked as Succeeded.
+	require.Equal(wfv1.NodeSucceeded, n.Phase)
+}
+
+func parseRetryMessage(message string) (int, error) {
+	pattern := regexp.MustCompile(`Backoff for (\d+) minutes (\d+) seconds`)
+	matches := pattern.FindStringSubmatch(message)
+	if len(matches) != 3 {
+		return 0, fmt.Errorf("unexpected message: %v", message)
+	}
+
+	minutes, err := strconv.Atoi(matches[1])
+	if err != nil {
+		return 0, err
+	}
+
+	seconds, err := strconv.Atoi(matches[2])
+	if err != nil {
+		return 0, err
+	}
+
+	totalSeconds := minutes*60 + seconds
+	return totalSeconds, nil
+}
+
 // TestProcessNodesWithRetries tests retrying when RetryOn.Error is disabled
 func TestProcessNodesNoRetryWithError(t *testing.T) {
 	cancel, controller := newController()
@@ -460,7 +559,7 @@ spec:
     outputs: {}
     retryStrategy:
       backoff:
-        duration: "1"
+        duration: "2"
         factor: 2
         maxDuration: 1m
       limit: 10