diff --git a/src/praisonai-agents/praisonaiagents/__init__.py b/src/praisonai-agents/praisonaiagents/__init__.py
index 2205fbfd6..d4e43c96a 100644
--- a/src/praisonai-agents/praisonaiagents/__init__.py
+++ b/src/praisonai-agents/praisonaiagents/__init__.py
@@ -232,6 +232,7 @@ def _get_lazy_cache():
     
     # Agent classes
     'Agent': ('praisonaiagents.agent.agent', 'Agent'),
+    'RetryBackoffConfig': ('praisonaiagents.agent.retry_utils', 'RetryBackoffConfig'),
     'BudgetExceededError': ('praisonaiagents.errors', 'BudgetExceededError'),
     
     # Error hierarchy - structured exception handling
@@ -783,6 +784,7 @@ def warmup(include_litellm: bool = False, include_openai: bool = True) -> dict:
     
     # Core classes - the essentials
     'Agent',
+    'RetryBackoffConfig',
     'AgentTeam',  # Primary class for multi-agent coordination (v1.0+)
     'AgentManager',  # Silent alias for AgentTeam
     'Agents',  # Deprecated alias for AgentTeam (emits warning)
diff --git a/src/praisonai-agents/praisonaiagents/agent/agent.py b/src/praisonai-agents/praisonaiagents/agent/agent.py
index f7a8a6ce0..4dfff40d6 100644
--- a/src/praisonai-agents/praisonaiagents/agent/agent.py
+++ b/src/praisonai-agents/praisonaiagents/agent/agent.py
@@ -259,6 +259,9 @@ def _get_default_server_registry() -> ServerRegistry:
 # Import structured error from central errors module
 from ..errors import BudgetExceededError
 
+# Import retry configuration
+from .retry_utils import RetryBackoffConfig
+
 class Agent(SteeringMixin, SandboxMixin, UnifiedExecutionMixin, ToolExecutionMixin, ChatHandlerMixin, SessionManagerMixin, ChatMixin, ExecutionMixin, MemoryMixin, AsyncMemoryMixin):
     # Class-level counter for generating unique display names for nameless agents
     _agent_counter = 0
@@ -595,6 +598,7 @@ def __init__(
         tool_search: Optional[Union[bool, str, Dict[str, Any], 'ToolSearchConfig']] = False,  # Progressive tool disclosure
         message_steering: Optional[Union[bool, 'MessageSteeringProtocol']] = False,  # Real-time message steering during execution
         sandbox: Optional[Union[bool, 'SandboxConfig']] = None,  # Sandbox for safe code execution
+        retry: Optional[Union[bool, Dict[str, Any], 'RetryBackoffConfig']] = None,  # Retry configuration with exponential backoff
     ):
         """Initialize an Agent instance.
 
@@ -792,6 +796,8 @@ def __init__(
         if autonomy is None:
             # AutonomyConfig is in agent/autonomy.py - use dict for config defaults
             autonomy = apply_config_defaults("autonomy", autonomy, None)
+        if retry is None:
+            retry = apply_config_defaults("retry", retry, RetryBackoffConfig)
 
         # ============================================================
         # DEPRECATION WARNINGS for params consolidated into configs
@@ -1978,6 +1984,16 @@ def __init__(
         # Store tool retry policy for tool execution with exponential backoff
         self._tool_retry_policy = _tool_config.retry_policy if _tool_config else None
         
+        # Retry configuration with jittered exponential backoff
+        if isinstance(retry, RetryBackoffConfig):
+            self._retry_config = retry
+        elif isinstance(retry, dict):
+            self._retry_config = RetryBackoffConfig(**retry)
+        elif retry is True:
+            self._retry_config = RetryBackoffConfig()  # Use defaults
+        else:
+            self._retry_config = None  # No retry configuration
+        
         # Cache for system prompts and formatted tools with eager thread-safe lock
         # Use OrderedDict for LRU behavior
         self._system_prompt_cache = OrderedDict()
@@ -2201,6 +2217,9 @@ def clone_for_channel(self) -> "Agent":
             # Tool configuration - use consolidated config when available  
             'tool_config': getattr(self, '_tool_config', None),
             
+            # Retry configuration
+            'retry': getattr(self, '_retry_config', None),
+            
             # CLI backend
             'cli_backend': getattr(self, '_cli_backend', None),
             
diff --git a/src/praisonai-agents/praisonaiagents/agent/chat_mixin.py b/src/praisonai-agents/praisonaiagents/agent/chat_mixin.py
index 8e5497bee..db149d524 100644
--- a/src/praisonai-agents/praisonaiagents/agent/chat_mixin.py
+++ b/src/praisonai-agents/praisonaiagents/agent/chat_mixin.py
@@ -1039,7 +1039,7 @@ def _chat_completion(self, messages, temperature=1.0, tools=None, stream=None, r
             try:
                 # First attempt: try with streaming enabled for better user experience
                 stream_callback = self.stream_emitter.emit if hasattr(self, 'stream_emitter') else None
-                final_response = self._execute_unified_chat_completion(
+                final_response = self._chat_completion_with_retry(
                     messages=messages,
                     temperature=temperature,
                     tools=formatted_tools,
@@ -1060,7 +1060,11 @@ def _chat_completion(self, messages, temperature=1.0, tools=None, stream=None, r
                     stream = False  # Set for the main execution below
                 else:
                     raise  # Re-raise if it's a different ValueError
-            except Exception:
+            except Exception as e:
+                from ..errors import LLMError
+                # Don't retry if it's an LLMError that has exhausted retries
+                if isinstance(e, LLMError):
+                    raise  # Re-raise LLMErrors immediately to avoid double retry
                 # For any other exception, fall back to non-streaming
                 logging.debug(f"{self.name}: Streaming attempt failed, falling back to non-streaming")
                 stream = False  # Set for the main execution below
@@ -1071,7 +1075,7 @@ def _chat_completion(self, messages, temperature=1.0, tools=None, stream=None, r
             # UNIFIED: Single protocol-driven dispatch path (fixes DRY violation)
             # All LLM providers now go through unified dispatcher for consistency and maintainability
             stream_callback = self.stream_emitter.emit if hasattr(self, 'stream_emitter') else None
-            final_response = self._execute_unified_chat_completion(
+            final_response = self._chat_completion_with_retry(
                 messages=messages,
                 temperature=temperature,
                 tools=formatted_tools,
@@ -3003,7 +3007,7 @@ async def _achat_impl(self, prompt, temperature, tools, output_json, output_pyda
                             response_format = self._build_response_format(schema_model)
                         
                         # Use composition instead of runtime class mutation for safety
-                        response = await self._execute_unified_achat_completion(
+                        response = await self._achat_completion_with_retry(
                             messages=messages,
                             temperature=temperature,
                             tools=formatted_tools,
@@ -3175,7 +3179,7 @@ async def _achat_impl(self, prompt, temperature, tools, output_json, output_pyda
                                         {"role": "user", "content": "Now regenerate your response using the reflection you made"}
                                     ]
                                     
-                                    new_response = await self._execute_unified_achat_completion(
+                                    new_response = await self._achat_completion_with_retry(
                                         messages=regenerate_messages,
                                         temperature=temperature,
                                         tools=formatted_tools,
@@ -4058,3 +4062,156 @@ async def _apply_context_compaction_async(self, messages, hook_event_class):
                 raise
             logging.debug(f"[compaction] skipped (non-fatal): {_ce}")
             return False
+
+    def _chat_completion_with_retry(self, messages, temperature=1.0, tools=None, stream=None, reasoning_steps=False, task_name=None, task_description=None, task_id=None, response_format=None, stream_callback=None, emit_events=True):
+        """
+        Wrapper for _execute_unified_chat_completion that adds jittered exponential backoff retry logic.
+        
+        This method wraps the unified chat completion call and adds retry capability for 
+        transient failures like rate limits, network errors, and service outages.
+        """
+        retry_config = getattr(self, '_retry_config', None)
+        if not retry_config:
+            return self._execute_unified_chat_completion(messages, temperature, tools, stream, reasoning_steps, 
+                                       task_name, task_description, task_id, response_format,
+                                       stream_callback=stream_callback, emit_events=emit_events)
+        
+        from .retry_utils import jittered_backoff
+        from ..hooks import HookEvent, OnRetryInput
+        import time
+        
+        max_attempts = retry_config.max_retries + 1
+        
+        for attempt in range(max_attempts):
+            try:
+                # Call the underlying unified chat completion directly to avoid infinite recursion
+                return self._execute_unified_chat_completion(messages, temperature, tools, stream, reasoning_steps, 
+                                           task_name, task_description, task_id, response_format,
+                                           stream_callback=stream_callback, emit_events=emit_events)
+            
+            except Exception as e:
+                from ..errors import LLMError
+                
+                # Only retry LLMErrors that are marked as retryable
+                if not isinstance(e, LLMError) or not e.is_retryable:
+                    raise  # Re-raise non-retryable errors immediately
+                
+                # If this is the last attempt, re-raise the error
+                if attempt >= max_attempts - 1:
+                    raise
+                
+                # Calculate delay for this retry attempt
+                delay = jittered_backoff(
+                    attempt,
+                    base_delay=retry_config.base_delay,
+                    max_delay=retry_config.max_delay,
+                    jitter_ratio=retry_config.jitter_ratio,
+                )
+                
+                # Fire OnRetry hook with delay information
+                retry_input = OnRetryInput(
+                    session_id=getattr(self, '_session_id', 'default'),
+                    cwd=os.getcwd(),
+                    event_name=HookEvent.ON_RETRY,
+                    timestamp=str(time.time()),
+                    agent_name=self.name,
+                    retry_count=attempt + 1,
+                    max_retries=retry_config.max_retries,
+                    error_message=str(e),
+                    operation="llm_request",
+                    delay_seconds=delay,
+                    attempt=attempt
+                )
+                self._hook_runner.execute_sync(HookEvent.ON_RETRY, retry_input)
+                
+                # Log retry attempt (buffered to avoid spam during transient failures)
+                logger.debug(f"[{self.name}] Retry {attempt + 1}/{max_attempts} after {delay:.1f}s: {str(e)[:100]}")
+                
+                # Sleep with interrupt awareness - make interruption terminal
+                interrupt_fn = getattr(self, '_is_interrupted', lambda: False)
+                sleep_start = time.time()
+                while time.time() - sleep_start < delay:
+                    if interrupt_fn():
+                        # Interruption is terminal - stop retrying
+                        raise RuntimeError("Agent interrupted during retry backoff")
+                    time.sleep(min(0.2, delay - (time.time() - sleep_start)))
+        
+        # This should never be reached, but just in case
+        raise RuntimeError("Retry loop completed without returning or raising an exception")
+
+    async def _achat_completion_with_retry(self, messages, temperature=1.0, tools=None, stream=None, reasoning_steps=False, task_name=None, task_description=None, task_id=None, response_format=None, stream_callback=None, emit_events=True):
+        """
+        Async wrapper for _execute_unified_achat_completion that adds jittered exponential backoff retry logic.
+        
+        This method wraps the async chat completion call and adds retry capability for 
+        transient failures like rate limits, network errors, and service outages.
+        """
+        retry_config = getattr(self, '_retry_config', None)
+        if not retry_config:
+            return await self._execute_unified_achat_completion(
+                messages, temperature, tools, stream, reasoning_steps, 
+                task_name, task_description, task_id, response_format,
+                stream_callback=stream_callback, emit_events=emit_events
+            )
+        
+        from .retry_utils import jittered_backoff, interruptible_sleep
+        from ..hooks import HookEvent, OnRetryInput
+        import time
+        import asyncio
+        
+        max_attempts = retry_config.max_retries + 1
+        
+        for attempt in range(max_attempts):
+            try:
+                # Call the underlying unified chat completion directly to avoid infinite recursion
+                return await self._execute_unified_achat_completion(
+                    messages, temperature, tools, stream, reasoning_steps,
+                    task_name, task_description, task_id, response_format,
+                    stream_callback=stream_callback, emit_events=emit_events
+                )
+            
+            except Exception as e:
+                from ..errors import LLMError
+                
+                # Only retry LLMErrors that are marked as retryable
+                if not isinstance(e, LLMError) or not e.is_retryable:
+                    raise  # Re-raise non-retryable errors immediately
+                
+                # If this is the last attempt, re-raise the error
+                if attempt >= max_attempts - 1:
+                    raise
+                
+                # Calculate delay for this retry attempt
+                delay = jittered_backoff(
+                    attempt,
+                    base_delay=retry_config.base_delay,
+                    max_delay=retry_config.max_delay,
+                    jitter_ratio=retry_config.jitter_ratio,
+                )
+                
+                # Fire OnRetry hook with delay information
+                retry_input = OnRetryInput(
+                    session_id=getattr(self, '_session_id', 'default'),
+                    cwd=os.getcwd(),
+                    event_name=HookEvent.ON_RETRY,
+                    timestamp=str(time.time()),
+                    agent_name=self.name,
+                    retry_count=attempt + 1,
+                    max_retries=retry_config.max_retries,
+                    error_message=str(e),
+                    operation="async_llm_request",
+                    delay_seconds=delay,
+                    attempt=attempt
+                )
+                await self._hook_runner.execute_async(HookEvent.ON_RETRY, retry_input)
+                
+                # Log retry attempt
+                logger.debug(f"[{self.name}] Async retry {attempt + 1}/{max_attempts} after {delay:.1f}s: {str(e)[:100]}")
+                
+                # Async sleep with interrupt awareness using the helper
+                interrupt_fn = getattr(self, '_is_interrupted', lambda: False)
+                if not await interruptible_sleep(delay, interrupt_fn=interrupt_fn):
+                    raise RuntimeError("Agent interrupted during retry backoff")
+        
+        # This should never be reached, but just in case
+        raise RuntimeError("Async retry loop completed without returning or raising an exception")
diff --git a/src/praisonai-agents/praisonaiagents/agent/retry_utils.py b/src/praisonai-agents/praisonaiagents/agent/retry_utils.py
new file mode 100644
index 000000000..e54ef7383
--- /dev/null
+++ b/src/praisonai-agents/praisonaiagents/agent/retry_utils.py
@@ -0,0 +1,101 @@
+"""
+Retry utilities with jittered exponential backoff for the PraisonAI SDK.
+
+Provides interrupt-aware retry mechanisms for LLM API calls and tool execution
+with configurable backoff strategies, jitter, and buffered status reporting.
+"""
+
+import asyncio
+import random
+import time
+from dataclasses import dataclass
+from typing import Callable, Optional
+
+
+@dataclass
+class RetryBackoffConfig:
+    """Configuration for jittered exponential backoff retry behavior."""
+    base_delay: float = 5.0      # Base delay in seconds
+    max_delay: float = 120.0     # Maximum delay in seconds  
+    jitter_ratio: float = 0.5    # Jitter as fraction of delay added on top of base (0.0-1.0)
+    max_retries: int = 3         # Maximum retry attempts
+    
+    def __post_init__(self):
+        """Validate configuration parameters."""
+        if self.base_delay <= 0:
+            raise ValueError("base_delay must be > 0")
+        if self.max_delay < self.base_delay:
+            raise ValueError("max_delay must be >= base_delay")
+        if not (0 <= self.jitter_ratio <= 1):
+            raise ValueError("jitter_ratio must be between 0 and 1")
+        if self.max_retries < 0:
+            raise ValueError("max_retries must be >= 0")
+
+
+def jittered_backoff(
+    attempt: int,
+    *,
+    base_delay: float = 5.0,
+    max_delay: float = 120.0,
+    jitter_ratio: float = 0.5,
+) -> float:
+    """
+    Calculate delay for jittered exponential backoff.
+    
+    Args:
+        attempt: Current attempt number (0-based)
+        base_delay: Base delay in seconds
+        max_delay: Maximum delay cap in seconds
+        jitter_ratio: Jitter ratio (0.0-1.0), fraction of delay added as positive jitter
+    
+    Returns:
+        Delay in seconds with jitter applied
+    
+    Example:
+        >>> # Attempt 0: ~5s, Attempt 1: ~10s, Attempt 2: ~20s
+        >>> delay = jittered_backoff(1, base_delay=5.0, max_delay=120.0, jitter_ratio=0.5)
+    """
+    # Exponential backoff: base * 2^attempt
+    delay = min(base_delay * (2 ** max(0, attempt)), max_delay)
+    
+    # Apply jitter: delay + uniform(0, jitter_ratio * delay) for additive positive jitter
+    if jitter_ratio > 0:
+        jitter_range = delay * jitter_ratio
+        jitter = random.uniform(0, jitter_range)  # Positive additive jitter only
+        delay = max(0.1, min(delay + jitter, max_delay))  # Clamp again after jitter
+    
+    return delay
+
+
+async def interruptible_sleep(
+    seconds: float,
+    check_interval: float = 0.2,
+    interrupt_fn: Optional[Callable[[], bool]] = None,
+) -> bool:
+    """
+    Sleep with periodic interruption checks.
+    
+    Args:
+        seconds: Total sleep duration in seconds
+        check_interval: How often to check for interruption (seconds)
+        interrupt_fn: Function that returns True if sleep should be interrupted
+    
+    Returns:
+        True if completed full sleep, False if interrupted
+    
+    Example:
+        >>> interrupted = await interruptible_sleep(30.0, interrupt_fn=lambda: agent.is_stopped())
+    """
+    if interrupt_fn is None:
+        interrupt_fn = lambda: False
+    
+    elapsed = 0.0
+    while elapsed < seconds:
+        if interrupt_fn():
+            return False  # Interrupted
+        
+        sleep_time = min(check_interval, seconds - elapsed)
+        await asyncio.sleep(sleep_time)
+        elapsed += sleep_time
+    
+    return True  # Completed full sleep
\ No newline at end of file
diff --git a/src/praisonai-agents/praisonaiagents/hooks/events.py b/src/praisonai-agents/praisonaiagents/hooks/events.py
index ec538a695..da06b619e 100644
--- a/src/praisonai-agents/praisonaiagents/hooks/events.py
+++ b/src/praisonai-agents/praisonaiagents/hooks/events.py
@@ -190,6 +190,8 @@ class OnRetryInput(HookInput):
     max_retries: int = 3
     error_message: str = ""
     operation: str = ""  # tool_call, llm_request, etc.
+    delay_seconds: float = 0.0  # Delay before retry
+    attempt: int = 0  # Current attempt number (0-based)
     
     def to_dict(self) -> Dict[str, Any]:
         base = super().to_dict()
@@ -204,7 +206,9 @@ def to_dict(self) -> Dict[str, Any]:
             "retry_count": self.retry_count,
             "max_retries": self.max_retries,
             "error_message": self.error_message,
-            "operation": self.operation
+            "operation": self.operation,
+            "delay_seconds": self.delay_seconds,
+            "attempt": self.attempt
         })
         return base