diff --git a/changelogs/fragments/ec2_transit_gateway_IncorrectState.yaml b/changelogs/fragments/ec2_transit_gateway_IncorrectState.yaml
new file mode 100644
index 00000000000..0668d630491
--- /dev/null
+++ b/changelogs/fragments/ec2_transit_gateway_IncorrectState.yaml
@@ -0,0 +1,3 @@
+---
+minor_changes:
+- ec2_transit_gateway - wait and retry if API returns an IncorrectState error.
diff --git a/plugins/modules/ec2_transit_gateway.py b/plugins/modules/ec2_transit_gateway.py
index c013ea67379..4237376203b 100644
--- a/plugins/modules/ec2_transit_gateway.py
+++ b/plugins/modules/ec2_transit_gateway.py
@@ -242,7 +242,11 @@ class AnsibleEc2Tgw(object):
     def __init__(self, module, results):
         self._module = module
         self._results = results
-        self._connection = self._module.client('ec2')
+        retry_decorator = AWSRetry.jittered_backoff(
+            catch_extra_error_codes=['IncorrectState'],
+        )
+        connection = module.client('ec2', retry_decorator=retry_decorator)
+        self._connection = connection
         self._check_mode = self._module.check_mode
 
     def process(self):